According to FinanceAsia, a Hong Kong-based publication, Phu Hung Khang Development Corporation, a subsidiary of Phu My Hung Development Corporation (PMH) has recently signed a $400 million term loan through a group of Taiwan, China and Hong Kong's banks for the purposes of repaying existing debt, purchasing financial shares and raising working capital.
The consolidated loan has been arranged by Mega International Commercial Bank, Taipei Fubon Commercial Bank, Bank SinoPac, Shanghai Commercial & Savings Bank, Taiwan Cooperative Bank, Yuanta Commercial Bank, Chang Hwa Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Taichung Commercial Bank, Taiwan Business Bank.
However, the loan is believed to use for development of a property complex megaproject in Hoa Binh province where Phu My Hung's subsidiary is located.
Phu My Hung Development Corporation formerly known as Phu My Hung Joint Venture was established in 1993 by Tan Thuan Industrial Promotion Company and Central Trading & Development (CT&D) of Taiwan.
In 2016, Phu My Hung Development purchased 99 per cent stake of San Nam Park, the investor of San Nam Hoa Binh food plant, a very large scale project. This plant has a total area of 405 hectares located in Ky Son district, Hoa Binh province, situating approximately 65 km from Hanoi center.
Nevertheless, this project has not been effective for a while leading to the waste of land resources, based on the conclusion of the Government Inspectorate in 2017.
Out of 405 hectares of land recovering by People’s Committee of Hoa Binh province, only 7.9 hectares of land were contracted land, the rest have been used by the investor since 2007 without signing a proper contract and making land rent payment.
After acquiring SANNAM PARK, Phu My Hung Development Corporation met with leaders of Hoa Binh province to resolve these issues.
Currently, Phu My Hung Development is developing the San Nam project in Hoa Binh province. The company aims to develop a sustainable urban area that creates long-term value and at the same time explores the potential of natural environment of the province to turn Hoa Binh province into an attractive tourism destination and an ideal urban area.
This project will offer many commercial activities and specific services. For instance, outdoor activities will include mountain climbing, cable skiing, spa, yoga, eco-tourism combined with agriculture to attract tourists.
Additionally, this project hopes to build an affordable resort that is not only environmental friendly but also meets the international standard in order to attract tourists to Hoa Binh province.
Training local workers to provide necessary services, promote local agricultural products in the direction of healthy food and develop local restaurants is also the goal of the project.
Nevertheless, challenge still exists during the process of project implementation. In particular, the company has not been able to successfully negotiate with 10 households that are currently planting trees on about 33 hectares of the project land.
The investor is currently asking for assistance from local authority to soon be able to implement their investment and also to receive preferential treatment from the province.