On 17/9, Chinh (51, former chairman of the Board of Directors of Housing Development and Trading Joint Stock Company - HDTC); Huynh The Nang (66, former general director of Vinafood II); and Nguyen Tho Tri (64, former deputy general director of Vinafood II) stood trial at the Ho Chi Minh City People's Court for violating regulations on the management and use of state assets, causing loss and waste.

During the biographical information review, Chinh stated that prior to being prosecuted, he was the chairman of HDTC, a state-owned enterprise privatized in 2016. He had previously been sentenced to six months in prison in 1997 by the Tan Binh District People's Court for robbery; 15 months in prison in 1998 by the Ho Chi Minh City People's Court for fraud; and was prosecuted in 2023 and 2024 by Ho Chi Minh City Police for abuse of trust to appropriate property and embezzlement.

Nang also disclosed his 2020 suspended sentence of two years and six months by the Ho Chi Minh City People's Court for irresponsibility causing serious consequences related to violations at Vinafood II. Tri had been exempted from criminal liability for the same crime by the High-Level People's Court in Ho Chi Minh City.

Following the procedural matters, the representative of the People's Procuracy began reading the indictment. The trial is expected to last three days.

Defendant Dinh Truong Chinh at the court today. Photo: Hai Duyen

Defendant Dinh Truong Chinh at the court today. Photo: Hai Duyen

Chinh was known as a "real estate M&A tycoon" during his time as chairman of the Board of Directors of Viet Han Trading - Advertising - Construction - Real Estate Company Limited (Viet Han Company). After leaving this company, he became the chairman of HDTC.

Vinafood II, a 100% state-owned enterprise, was assigned to manage over 6,300 m2 of land and buildings at 33 Nguyen Du Street and 34, 36, and 42 Chu Manh Trinh Street, Saigon Ward (formerly Ben Nghe Ward, District 1). In 2010, after fulfilling financial obligations exceeding 766 billion VND, Vinafood II received a land use rights certificate from the Ho Chi Minh City People's Committee for the construction of a hotel, office building, and commercial center.

However, between 2014 and 2015, due to financial losses, Vinafood II decided to liquidate these four properties to recover capital and repay debts.

Reselling four prime properties after 33 days

The indictment states that Chinh (then representing Viet Han Company) took advantage of this decision and repeatedly submitted written requests to purchase the land from Vinafood II.

Chinh is accused of colluding with Nang to implement a "capital contribution - divestment" scheme to acquire the over 6,300 m2 property in downtown Ho Chi Minh City without an auction. They then established Viet Han Saigon Company to develop the project.

In 12/2015, Vinafood II signed a capital contribution and transfer contract for the land at a price of 730 billion VND (570 billion VND for capital contribution transfer and 160 billion VND for 20% divestment). In the contract, Chinh committed to continuing the project.

However, the investigation revealed that Chinh's intention was not to cooperate in the project’s development, but to acquire the four properties and resell them for profit. After paying over 730 billion VND, he offered the land to several real estate groups for approximately two trillion VND. Just 33 days later, he transferred 99% of the shares in Viet Han Saigon to Mua Dong Real Estate Joint Stock Company for 1,683 billion VND, earning nearly 970 billion VND in profit.

Huynh The Nang, Nguyen Tho Tri, and Dinh Truong Chinh at the court today. Photo: Hai Duyen

Huynh The Nang, Nguyen Tho Tri, and Dinh Truong Chinh at the court today. Photo: Hai Duyen

Concealing the 970 billion VND profit

The procuracy determined that to conceal the resale of the four properties, Chinh had his cousin, Hoang Ngoc Cam Hong, act as the transferee of 99% of the capital contribution in Viet Han Saigon, valued at 792 billion VND. The contract was merely a formality, and Hong made no payment. On 2/2/2016, the Ho Chi Minh City Department of Planning and Investment amended the business registration certificate, confirming Hong's 99% ownership.

As arranged by Chinh, Hong then resold this stake to Mua Dong Real Estate Joint Stock Company for 1,683 billion VND. Once the full payment was received, Hong made nine payment orders, transferring 792 billion VND to Viet Han Company to legitimize the contract. The remaining difference of nearly 900 billion VND was withdrawn and transferred to accounts as directed by Chinh, then further circulated back to Viet Han Company and his personal account.

Within just 33 days of purchasing the four Vinafood II properties for 730 billion VND, Chinh and Viet Han Company profited by 970 billion VND.

According to the procuracy, the land, being state property, should have been publicly auctioned and transferred only with government authorization. However, due to a prior agreement with Nang, Chinh proceeded with the illegal transfer, resulting in a loss of 970 billion VND, for which he bears criminal responsibility.

Nang, aware of the regulations, still collaborated with Chinh to legitimize the transfer through the capital contribution - divestment scheme and admitted his wrongdoing. The investigation concluded that his actions stemmed from limited legal understanding and instructions from superiors, with no evidence of personal gain.

Tri is accused of aiding Nang in legitimizing the procedures, also due to misunderstanding and instructions from superiors, with no evidence of personal gain.

Hai Duyen