Construction giant Hoa Binh, conglomerate FLC tangled in lawsuits

Ho Chi Minh City-based Hoa Binh Construction Group JSC in February last year filed a lawsuit against FLC Group to Vietnam International Arbitration Center (VIAC) involving a contract signed in 2014 on the construction of FLC Sam Son Beach and Gold Resort in Thanh Hoa Province.

Contractor Hoa Binh said it had not received the full payment for its work on the project, which completed at the end of 2015.

The VIAC then had ordered project investor FLC to pay Hoa Binh nearly VND235 billion ($10.25 million).

FLC, in disagreement, requested the People’s Court of Ho Chi Minh City to dismiss its findings, but met with refusal on Tuesday.

A spokesperson from FLC said Thursday the company does not agree with the VIAC and HCMC People’s Court ruling.

VIAC had made its decision without considering adequate evidence regarding the alleged debt it has with Hoa Binh, the spokesperson said.

VIAC and HCMC People’s Court also ignored FLC’s request to summon an auditing company to clarify the alleged debt, it was further added.

FLC has since filed a lawsuit against Hoa Binh for construction delays of at least 110 days, requesting VND80 billion ($3.49 million) in compensation.

Hoa Binh did not supply enough workers for the project, hired incapable sub-contractors and failed to follow the design in part, FLC stated. It confirmed it had to stop Hoa Binh from continuing its work, hiring another contractor to fix the problems.

Hoa Binh is a major contractor in Vietnam with experience in a variety of projects including residential property, factories, and aviation.

FLC is a developer of resorts and golf courses with interests in aviation and hi-tech agriculture.