Vietnam legal news - Intellasia News Services

Chair of Korea's Keangnam-Vina Group (investor of Hanoi Landmark Tower project in Vietnam's capital), Ha Jong Suk, recently committed to complete construction of the towers by October 2010. If it does not, the investor will pay a fine of 100 billion dong. War veterans, specialists and construction engineers sent an open letter to the chair of Keangnam group, stating that the construction group has "challenged" the investors to finish the body of the largest tower in Hanoi right in the 1,000 year-anniversary of Thang Long-Hanoi (by 2010).

Talking to VnExpress.net on November 17, the group chair said that promised loans for Keangnam Vina were suspended after the bet announcement was released.

The composer group of the bet announcement sent to us said that they are ready to sign a commitment challenging on the construction speed of Hanoi Landmark Tower project with Keangnam. What do you think?

Ha Jong Suk: Later November 17, we required The Veteran newspaper to unveil name, position, and working place, and secured asset of the bet maker because the letter sent to us had been signed "Reader group of The Veteran" only.

In the agreement, the 100 billion dong bet is not related to individual's interests. It seems that they [unknown reader group] as treating Keangnam as a joke. To protect our interest and prestige, we will meet the bet maker's requirements.

How do you foresee the move of management agencies (such as Hanoi city governance) on the signing of agreement?

The City government only recently heard about the case through media. Keangnam only accepted to commit to the construction speed of the Hanoi Landmark Tower.

You said that Keangnam would give the entire 11 apartments of Floor 6 of the 48-storey building and a penthouse with a total value of 100 billion dong to Hanoi's State Treasury if your group cannot complete the project on time. Keangnam proposed to deposit apartments instead of cash, which is assessed to be unfair. What do you think about this?

Depositing apartments is normal. We are carrying out the project so the capital demand is very high. We will not take cash to deposit for the commitment. After the construction on the project is finished, available apartments will be converted into cash. On the other hand, we do have enough cash to invest and sign the commitment at the same time. At present, it is very difficult for the construction companies to borrow loans.

Keangnam committed to complete the body of Hanoi Landmark Tower project by October 2010 on the occasion of Thang Long Hanoi 1,000 Year Anniversary. But how will you welcome the anniversary with such a body?

We are confident to finish the project on time, as committed. All buildings must be constructed 24/24, not 8 hours a day. Completion of the entire work depends on many factors. By October 2010, the construction from Floor 1 to Floor 20 along with the 70th Floor of the 70 storey Tower will be finished and put into operation. Initially, Hanoi Landmark Tower project was not in the project list to welcome Thang Long Hanoi 1,000 Year Anniversary.

Those who are not investors cannot understand how much money Keangnam needs to spend on the project.

A source said that Keangnam is facing problems especially with the financial crisis causing strong impact on the Eastern Asia region. How can Keangnam mobilise enough capital to serve the construction?

We are facing number of problems. Credit items that should have been transferred to Keangnam were suspended with the requirement that we are forced to explain investment items in details. All countries are suffering due to the global financial depression. But like Vietnam, Korea also can overcome the current challenges.

We have reported out capital disbursement to Hanoi city People's Committee and relevant agencies such as the city Finance Department. Keangnam does not have problems of capital. These state agencies have enough authority to clarify the capital strength of Keangnam.

What do you think about the rumours that Korean investors including Keangnam are withdrawing capital?

I don't know where the rumours come from. But, Keangnam can not leave the project because we have paid land rental to the city's budget already. Till date, all costs have been paid.