Ho Chi Minh City orders SATRA to return prime land if project stalls

The directive asks that SATRA work with the Department of Finance and the Department of Construction to assess whether it still qualifies to use the land at 135 Nguyen Hue and 39 Le Loi Streets in Saigon Ward. 

If SATRA does not meet the legal criteria, the company must issue a written notice to return the site.

In the event of a handover, the chairman of the Saigon Ward People's Committee will organize a site inspection, complete the necessary documents, and transfer the land to the city's Land Development Center for future management.

The directive follows years of delays in redeveloping the site. In 2016, SATRA was allowed to demolish the original Tax Trade Center and construct a 40-story tower known as Satra Tax Plaza. 

Work was expected to begin in early 2017 and finish by 2020, but the land remains empty.

The original Tax Trade Center was built in 1922 and opened two years later, featuring three floors with entrances on Nguyen Hue Street and at the corner of Nguyen Hue and Le Loi.

Plans for the new tower included an entrance linked to metro line No. 1, two underground levels for shopping and entertainment, four underground parking levels, and a rooftop helipad.

In 2021, the city submitted a request to the prime minister asking to lease the land to SATRA without a public auction. However, ministries and agencies rejected the proposal.

They pointed out that the land is state-owned and thus requires a public auction. 

They also noted that the proposed project does not fall within SATRA's core business activities, which is prohibited under investment regulations.

As a result, the city assigned the Department of Finance to guide SATRA through the process of reorganizing assets and handling land use.

Authorities will now either select a new investor or manage the land directly according to existing plans and laws. 

Officials are also reviewing whether SATRA's project could have violated rules against non-core business investments.