The Khang Thi housing development, located in Long Chau ward (formerly part of Vinh Long city), consists of 42 two-story houses, each with a floor area of 220-240 m2. The main gate of the development connects to Nguyen Hue street, a central area in Vinh Long province. Currently, about 5 houses are occupied, while others are advertised for rent as warehouses or parking spaces.

The unauthorized Khang Thi housing development connects to Nguyen Hue street in central Vinh Long province. Photo: An Binh

The unauthorized Khang Thi housing development connects to Nguyen Hue street in central Vinh Long province. Photo: An Binh

One resident who purchased two units in 2022 said each unit cost over 5 billion VND. However, none of the houses have legal documentation, and the developer has become unreachable. "Like many other homeowners here, I hope the authorities will find a solution so we can receive proper documentation for our homes and live and conduct business with peace of mind," the resident said.

According to records, in 11/2021, the Khang Thi housing development project, under P&G Real Estate Co., Ltd. in Vinh Long, received provincial approval to convert agricultural land and transfer land use rights within 36 months. However, six months prior, the developer had already acquired nearly 6,800 m2 of land to build the housing development. Nearly 4,300 m2 of perennial crop and aquaculture land was converted into roads (nearly 2,300 m2) and houses (over 2,000 m2) without authorization.

In 6/2022, Vinh Long Province's Department of Construction discovered the unauthorized construction, but the 42 houses were already structurally complete, with painted facades, granite cladding, and installed doors and windows. The company was fined 40 million VND and ordered to complete the necessary legal procedures.

In 1/2023, the Vinh Long Provincial People's Committee fined the company 150 million VND for starting the project before receiving approval. One month later, the committee imposed another fine of 157 million VND for unauthorized land use and land acquisition before provincial approval. In 3/2023, the company received a 500 million VND fine from the Chairman of the Provincial People's Committee for conducting real estate business without meeting legal requirements.

At that time, Pham Xuan Giang, Director of P&G Real Estate Co., Ltd., stated he had invested approximately 100 billion VND in the project, with each unit priced at around 5 billion VND. Of the project's 6,800 m2, over 2,000 m2 was converted to residential land. He attributed the violations to delays in completing legal procedures due to the complex process and the company's inexperience.

Vinh Long province formed an investigation team to examine the project's construction. The case was then transferred to the provincial police to investigate potential criminal activity. However, in 7/2024, the Vinh Long Provincial Police concluded there was insufficient evidence for criminal charges. They did not issue an exit ban for Pham Xuan Giang.

Inside the unauthorized Khang Thi housing development. Photo: An Binh

Inside the unauthorized Khang Thi housing development. Photo: An Binh

A representative from the Department of Construction stated the developer had paid the fines and contacted authorities to submit supplementary documents and propose remedial measures. However, by the end of 2024, the procedures remained incomplete, and the developer had become unreachable.

Vinh Long Province's Inspectorate reported 21 customers had made deposits for 29 units, paying over 90% of the total value, amounting to approximately 109 billion VND. Pham Xuan Giang has left the area and is not cooperating with authorities.

A representative from the Department of Agriculture and Environment stated the project remains unresolved due to legal complexities surrounding land and housing at the time of construction. The scale of the unauthorized construction presents difficulties for demolition. The authorities are seeking guidance from higher authorities to address the violations.

Dang Van Chinh, Vice Chairman of the Vinh Long Provincial People's Committee, confirmed the province has reported the situation to the central government for guidance.

An Binh