Vietnam’s Ministry of Public Security (MPS) has opened an investigation into local real estate firm Alibaba Real Estate and has asked Dong Nai Province officials to transfer documents regarding 29 projects that the company is alleged to be involved in.
According to Tuo Tre News, source from the Dong Nai Department of Construction have received a request from the MPS for paperwork related to Alibaba’s real estate projects in the province by Alibaba. The news report from Tuo Tre said that the MPS is investigating Alibaba for irregularities in land sales related to 29 projects that are located in Dong Nai’s in Long Thanh, Nhon Trach, and Xuan Loc Districts.
The Dong Nai Province People’s Committee reported that Alibaba has offered to sell land plots in the 29 projects, 27 of which are located in Long Thanh District, for the last two years and that none of these projects have ever been approved by relevant government agencies in Dong Nai.
According to the company’s website, Alibaba Real Estate was established in May 2016 with four people and a charter capital of US$4,300 (100 million VND). Since the company opened, the charter capital has risen to $241 million (5,500 billion VND), according to the website.
The company’s vision is to become one of Southeast Asia’s biggest real estate corporations within five years. The company has no relationship with China’s ecommerce technology giant, Alibaba China and has been in the news for illegal activities before.
In November 2017 he HCMC Department of Natural Resources and Environment on Monday issued a warning to customers and secondary real estate investors about illegal activity of Alibaba Real Estate Joint-Stock Company and Alibaba Tây Bắc HCMC Joint-Stock Company. HCMC’s Tây Bắc Urban Area management board sent a document to the city’s People’s Committee about Alibaba Real Estate’s illegal sales of land plots.
The HCMC Real Estate Association also issued a warning about inaccurate information about the two companies, which claim they are investors in certain housing projects. The companies sold housing plots illegally and collected deposits from customers.
In July 2018 the People’s Committee of HCMC asked that Alibaba Real Estate not be allowed to participate in projects in the North West urban area (Cu Chi district, HCMC), because this company had been uncooperative with the authorities. At that time, the HCMC People’s Committee asked the Department of Construction to work closely with the Ministry of Public Security and the HCMC Police Department of Police to investigate economic crimes and corruption related to the company.