Hyupjin Vina’s subcontractors funding row wreaks havoc
Hyupjin Vina’s subcontractors funding row wreaks havoc
The disappearance of South Korean-backed Hyupjin Vina is wreaking havoc on 39 domestic and foreign sub-contractors which were involved in the construction of the JW Marriott Hanoi Hotel.
The sub-contractors claimed Hyupjin Vina owed them $2.1 million as part of the construction of the hotel, but the firm has disappeared following the bankrupcy of its parent company in South Korea.
According to Le Mai from P&V Vietnam, one of the 39 affected firms, they need support from the authorities to protect their rights and enforce their contracts.
“We have been trying to resolve the debt for over a year, since Hyupjin reneged on our contracts, and we have seen little progress. We are appealing to the authorities to support us and the other contractors,” Mai explained.
Byung Joo Kim, the project manager under Hyundai E&C, confided in VIR last week saying that the company’s contract with Hyupjin Vina was terminated as the latter had failed to fulfil obligations.
“All payments related to work under Hyupjin’s purview were made, including equipment and materials. Hyundai has completed its part of the payment process,” Kim confirmed.
“Hyupjin is responsible for all outstanding payments to the sub-contractors and suppliers it hired in accordance with the contracts signed by all parties,” he added.
Kim related that after terminating its contract with Hyupjin, Hyundai had to spend a great deal of time working with their contractors to ensure the project’s success. This required Hyundai to outlay even more capital on top of the fees.
“It is not only the sub-contractors who are suffering, we are too. We sustained financial losses due to Hyupjin’s failure to meet its obligations and we do not believe we have any responsibility for debts that Hyupjin received money for and was required to pay out,” he explained.
When VIR attempted to contact Hyupjin’s representatives in Vietnam, they were unavailable for comment. One representative from EIA, another of the 39 sub-contractors, revealed that Hyupjin’s office had been closed for months and their mobile phone were terminated.
Kim from Hyundai also said he had not heard from Hyupjin for several months.
“We expect them to appear to bring this issue to some kind of conclusion, but we have no idea where they are. Hyupjin’s mother company Hyupjin Group filed for bankruptcy last year,” Kim said.
Dinh Van Khoi, representative of the sub-contractors, said they were in the dark about when and if they would ever get paid as Hyupjin Vina had disappeared completely off the radar.
“We have no idea when we will get paid,” Khoi said. He added that the sub-contractors were now turning to local authorities, police, and tax bodies to help them recover the debt.
Mai from P&V Vietnam said they had petitioned police where the hotel is located. “We are awaiting further guidance,” she said.
Though it has refused to provide any financial assistance or compensation to sub-contractors, Kim said Hyundai would make a reasonable, diligent, good faith effort to assist the parties in settling their dispute.
But the disappearance of Hyupjin does not bode well and the group of sub-contractors may have to wait for more time to be paid.
The nine-storey JW Marriott Hanoi Hotel has been under construction since October 2007. It boasts 450 high-end rooms and is located just behind the National Convention Centre in the west of Hanoi.
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