Court opens Posco VST-Thanh Nam Group debt claim

October 10, 2018 | 09:41

(0) user say

A representative of The Hanoi People's Procuracy said that Posco VST’s debt claim against Thanh Nam Group is grounded, but the final result will only be released by the Hanoi People’ Court today.

court opens posco vst thanh nam group debt claim

The Hanoi People’ Court's hearing today

After two delays, the Hanoi People’ Court has just opened the debt claim of more than VND58 billion ($2.56 million) between Posco VST and Thanh Nam Group.

The lawsuit gained public attention because of its duration. The case was brought to the municipal court to be resolved, rather than the district court as prescribed by regulations.

At court, the two sides kept to their opinions. However, based on the submitted materials and documents provided by the two parties, a representative of the Hanoi People's Procuracy said that Posco VST’s claim is correct.

According to the plaintiff, Posco VST and Thanh Nam Group signed a contract under which Posco VST was to supply stainless steel to Thanh Nam Group in 2010-2013. However, Thanh Nam Group could not meet the payment plan committed in a document released in December 2013 for a debt of more than VND58 billion.

“From January 2013 to July 2016, Thanh Nam not only once but 12 times admitted to owe Posco VST money. Only in September 2015, long after Posco VST sued, did Thanh Nam for the first propose Posco VST to compare the debts under each contract, each delivery, and each payment," said Posco VST's document.

Meanwhile, Thanh Nam believes that the debt is not correct because Posco VST several times issued invoices at the end of the month to contribute to the sales report of the parent company. The debt was assessed after the invoices issued by Posco VST, not based on the actual number of deliveries.

Posco VST confirmed that as one of Korea’s largest operating firms in Vietnam, they fully obey Vietnamese law. Posco VST is also concerned that if they fail to collect the debt, it will set a bad precedent for the company's business.

The court’s conclusions will be published by VIR on October 10, 2018.

By Phuong Thu

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional