Log in
Business

S. Korean contractor disowns debt of VND44-bililon to Vietnamese firms

South Korean company, Hyupjin Vina, has refused to pay debts totalling VND44 billion (USD2.09 million) to 39 Vietnamese sub-contractors of the five-star Mariott Hotel project, instead shifting responsibility to the project’s main contractor, Hyundai Engineering & Construction Company


  

The five-star Mariott Hotel project in Hanoi

The Vietnamese sub-contractors provided materials, equipment and thousands of workers for the completion of the five-star Mariott Hotel project in My Dinh Commune, Tu Liem District, Hanoi. When the project is completed, however, Hyupjin Vina suddenly filed for bankruptcy and refused to pay their debt.

Hyupjin Vina has said that the project’s main contractor, Hyundai Engineering & Construction Company, refused a payment to them of USD3.5 million, and so are unable to pay the Vietnamese partners.

Yet Kim Byung Joo, Director of Marriot Hanoi Hotel Project, who is also the representative for Hyundai Engineering & Construction Company, claims that his company has paid the entire debt of USD3.5 million in monthly installments.

Kim Byung Joo added, “By July 2012, Hyupjin proposed that Hyundai transfer over VND4.7 billion (USD223,809) for them to continue buying materials and equipment. After receiving the money, Hyupjin did not fulfill their commitments so we terminated the contract."

 

By this time Hyupjin still owned Hyundai more than USD2 million from advanced payments.

Hyundai claimed that they were also a victim of Hyupjin and said they were not responsible for their debts. 

Reactions:
Share:
Trending
Most Viewed
Vietnam can still thrive despite global turmoil: ADB

Vietnam can still thrive despite global turmoil: ADB

For Vietnam, this is both a challenge and an opportunity to accelerate domestic reforms, expand its global partnerships, and reinforce its competitive edge in a more complex world.

FTA Index facilitates Vietnam's 8% GDP target in 2025: Prime Minister

FTA Index facilitates Vietnam's 8% GDP target in 2025: Prime Minister

The FTA Index aims to provide transparent, objective data for central and local authorities to steer and monitor integration efforts

Q1 sees foreign investors posting $1 billion in net sales

Q1 sees foreign investors posting $1 billion in net sales

Similar outflows are seen across the region with Vietnam's foreign investor outflows remain moderate.

SSC launches Vietnam Governance Manual 2025

SSC launches Vietnam Governance Manual 2025

Vietnam targets 100% online processing of business-related procedures

Vietnam targets 100% online processing of business-related procedures

By 2026, corporate compliance costs must be halved compared to 2024, achieved through a 50% reduction in processing times.

Vietnam aims to create one million new businesses by 2030

Vietnam aims to create one million new businesses by 2030

Ministries and local governments are expected to cut at least 30% of processing times, compliance costs, and unnecessary business conditions this year.

Hanoi advances energy efficiency for businesses

Hanoi advances energy efficiency for businesses

Hanoi authorities, in collaboration with relevant agencies, are providing technical support to businesses in adopting advanced energy-saving technologies and developing energy efficiency indices.

Vietnamese spend US$13 million daily on coffee and tea

Vietnamese spend US$13 million daily on coffee and tea

Total revenue for the F&B industry is expected to reach VND755.4 trillion ($29.6 billion) this year.