Hanoi Cancels Auction Results for Prime Ba Dinh Land

Hanoi's People's Committee has decided to cancel the auction results for a prime plot of over 3,300 square meters located at 18 Cao Ba Quat Street in Ba Dinh District. The land was designated for the construction of a 5-star hotel. According to a decision dated July 23, Duyen Ha Company Limited, the winning bidder, failed to complete the payment for the land by the stipulated deadline. Consequently, the city authorities have revoked the approval of the auction results for the company. Late last year, Duyen Ha Company won the bid for this 3,366 square meter plot at 1.379 trillion VND (approximately $55 million USD), double the starting price. The company had previously deposited over 135 billion VND (approximately $5.5 million USD), equivalent to 20% of the starting price, as a deposit. In late June, the company submitted a request to cancel the auction results. The deposit will not be refunded. The city has instructed Duyen Ha Company to work with tax authorities, financial departments, and the land development fund for guidance on the refund of the amount exceeding the deposit. Previous approved plans estimated the total investment for the hotel project at 18 Cao Ba Quat Street to be over 911 billion VND (approximately $36 million USD). This included an initial land auction price of about 679 billion VND and construction costs of 232 billion VND. The project was slated to have a maximum of 6 floors, a total floor area exceeding 15,900 square meters, and a operational period of 50 years. Duyen Ha Company was established in November 1993 and is headquartered in Tuong Mai Ward, Hanoi. Initially, the company specialized in the construction of industrial and civil works, as well as power grids and substations. Later, it expanded into other sectors, including building material production with a cement factory in Ninh Binh Province.