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

October 18, 2013 | 10:13

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South Korean company, Hyupjin Vina, has refused to pay debts totalling VND44 billion ($2.09 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."