D2D Joint Venture Loses 11,628.9 m² Dong Nai Land Plot for 5-Star Hotel

Overview

Dong Nai authorities have issued Decision No. 3194/QD-UBND dated 6 October 2026 revoking 11,628.9 m² of land in Trấn Biên ward from Berjaya-D2D, the joint venture in which HOSE-listed D2D (Phát triển Đô thị số 2) is a partner. The land was earmarked for a complex and 5-star hotel project that was not completed within its extended schedule. The revocation is made without compensation for land use rights, attached assets or remaining investment costs.

Key Facts

• Revoked area: 11,628.9 m², comprising Lot A at 7,696.9 m² and the 5-star hotel parcel at 3,932.0 m².
• Location: Trấn Biên ward, Dong Nai City (formerly Thống Nhất ward, Biên Hòa City).
• Decision No. 3194/QD-UBND signed 6 October 2026; effective from 20 October 2026.
• Legal basis: Clause 8, Article 81 of the 2024 Land Law, after the land-use extension expired without full project completion.
• Original land allocation: Decision No. 2833/QD-UBND dated 29 August 2008 and Decision No. 1493/QD-UBND dated 27 May 2009.
• Prior extension: Decision No. 1454/QD-UBND dated 14 April 2026 granted a further three months, with additional land-rent payment required.
• Joint venture: Berjaya Leisure (Cayman) Ltd, a subsidiary of Malaysia’s Berjaya Group, and D2D, established in 2008 with charter capital of USD 20 million.
• No compensation is payable for land, assets attached to land, or remaining investment costs.

What Happened

Under Decision No. 3194/QD-UBND, the Dong Nai City People’s Committee determined that Berjaya-D2D had exhausted its extended land-use period without completing all approved project components. The revocation falls under Clause 8, Article 81 of the 2024 Land Law, which allows the State to reclaim land where an investor fails to put the site to use within the permitted timeframe. The company must surrender the land-use right certificate, hand the site to the city’s Land Development Centre, and settle any outstanding financial obligations.

The decision follows an earlier three-month extension granted on 14 April 2026, which required Berjaya-D2D to pay additional land rent, finalise legal procedures, revise the project schedule and accelerate remaining construction. That decision explicitly warned that failure to complete investment and bring the land into use would trigger revocation without compensation. Tax authorities have been instructed to review the company’s land-related financial obligations and collect or retroactively collect any shortfall up to the revocation date. Local authorities will monitor handover and may report for enforcement if the company does not comply.

Market Context

D2D trades on the Ho Chi Minh Stock Exchange (HOSE) and closed at VND 21,900 on 11 October 2026. The revocation concerns a joint-venture vehicle rather than D2D’s core industrial-park land business, but it removes a long-dormant hospitality asset from the group’s development pipeline. The decision lands amid a broader Vietnamese real estate cycle in which provincial authorities have moved more aggressively against delayed projects, using the 2024 Land Law’s revocation provisions to force idle sites back into the market.

Strategic Significance

For long-term holders, the key question is the scale of D2D’s exposure. The joint venture was capitalised at USD 20 million in 2008, and the land was allocated in 2008 and 2009, meaning the carrying value of D2D’s stake and any capitalised project costs may already be impaired or written down. Because the revocation is uncompensated, any residual book value tied to the hotel and complex would need to be reassessed. The outcome also signals that Dong Nai, now a centrally administered city and a major industrial hub, is prioritising execution over land banking, a stance that cuts both ways for D2D: it pressures dormant JV assets but reinforces the scarcity value of the group’s active industrial-park land bank.

What to Watch

• D2D’s next financial statements for any impairment or provision relating to the Berjaya-D2D stake.
• Confirmation that Berjaya-D2D has handed over the land-use right certificate and the site to the Land Development Centre.
• Tax authority findings on outstanding land-related obligations and any retroactive collection.
• Any disclosure from D2D on the joint venture’s remaining assets, liabilities or dissolution plans.
• Whether Dong Nai applies similar revocation measures to other delayed projects in the province.