Novaland says southern Vietnam initiatives beneath development after shoppers hotel police court cases

Responding to Ho Chi Minh City police requests for project documents, Vietnam real estate major Novaland says all its projects in southern Vietnam provinces are under construction.

Novaland said in a Wednesday press release that the projects include NovaWorld Phan Thiet and NovaWorld Ho Tram in the southern provinces of Binh Thuan and Ba Ria-Vung Tau respectively, as also some projects in HCMC.

These projects are on the priority list for clearing legal obstacles by ministries, agencies and local authorities, he added.

The police had asked for documents related to the firm’s Aqua City project in neighboring Dong Nai province.

“Many customers have expressed their solidarity with the group, but some have wanted to withdraw their money due to financial difficulties, so they sent petitions to the police. In fact, the business is facing many difficulties. The Aqua City project is still under construction and just waiting for more cash flow for work to be completed.”

The source noted that the firm will negotiate a 36-month payment period for customers who have purchased products with a buyback commitment.

“The company did not make empty promises. If customers still want their cash back when projects are about to be handed over, they will put the business under great pressure,” he stressed.

“We understand that under the pressure of prolonged financial difficulties, a few customers could not resolve disputes through civil proceedings in court or arbitration but sent petitions to the authorities, including the investigative agency of Ho Chi Minh City police.”

Therefore, the investigative agency has been carrying out information verification under prescribed legal procedures to provide official feedback to customers, the Novaland rep said.

With objective actions by the HCMC police’s investigative agency and timely coordination between relevant agencies and organizations, “we believe that the verification results will make customers and investors feel secure and continue to stay with the group as it overcomes difficulties, recovers and develops sustainably,” he added.

The rep noted that Novaland has also received requests for documents for projects other than Aqua City. “Such police requests for project documents are normal in the context of the struggling real estate market.”

Novaland, listed on the Ho Chi Minh Stock Exchange as NVL, hit its floor price of VND13,600 ($0.53) per share Wednesday.