Novaland (NVL) Subsidiary Wins Arbitration but Remains Stuck on 7/5 Residential Project

Overview

A subsidiary of Novaland (NVL) has won an arbitration dispute at the Vietnam International Arbitration Centre (VIAC) regarding the 7/5 residential project in Ho Chi Minh City, but the enforcement process remains stalled as the counterparty, TKG Taekwang Vina, continues to resist. The project, located in Long Binh ward, Thu Duc City, has been mired in legal battles since 2018.

Key Facts

• Công ty Gia Huy, a Novaland subsidiary, won a VIAC arbitration award (No. 275) for the 7/5 residential project.
• The Ho Chi Minh City People’s Court upheld the arbitration award, but enforcement is pending.
• On July 13, 2026, the Dong Nai Civil Judgment Enforcement Office held a meeting with Gia Huy and TKG Taekwang Vina to discuss enforcement.
• TKG Taekwang Vina continues to demand termination of enforcement, claiming it has fulfilled its obligations.
• The next enforcement meeting is scheduled for July 22, 2026.
• The project was originally transferred from TKG to Gia Huy in April 2018 via a 100% capital transfer in Công ty A Sung.
• Novaland raised VND 1,730 billion in bonds in late 2018 to fund the remaining payment for the project.

What Happened

Công ty TNHH Đầu tư và Phát triển Địa ốc Gia Huy (Gia Huy), a subsidiary of Novaland Group (NVL), has won a long-running arbitration dispute over the 7/5 residential project in Ho Chi Minh City. The Vietnam International Arbitration Centre (VIAC) issued a ruling in favor of Gia Huy, which was subsequently upheld by the Ho Chi Minh City People’s Court. However, the enforcement of the award has been delayed as the counterparty, Công ty Cổ phần TKG Taekwang Vina (TKG), continues to resist.

According to Gia Huy, on July 13, 2026, the Dong Nai Civil Judgment Enforcement Office held a meeting with both parties to discuss enforcement. TKG reiterated its request to terminate enforcement, claiming it has fully complied with the arbitration award. The enforcement office has scheduled another meeting for July 22, 2026. The dispute stems from a 2018 agreement where TKG agreed to transfer 100% of its capital in Công ty A Sung (the project developer) to Gia Huy. Gia Huy made an initial payment but alleges TKG failed to complete land clearance and compensation, a prerequisite for the final payment.

Market Context

Novaland (NVL) shares closed at VND 12,600 on July 21, 2026, on the HOSE. The stock has been under pressure due to the company’s ongoing legal and financial challenges, including this protracted dispute. The real estate sector in Vietnam has faced headwinds from regulatory tightening and a slowdown in the property market, adding to NVL’s difficulties.

Strategic Significance

The resolution of this dispute is critical for Novaland as it would allow the company to take control of a prime residential project in Ho Chi Minh City, potentially unlocking significant value. The project, located in Thu Duc City, is in a high-growth area. However, the continued resistance from TKG and the slow enforcement process highlight the risks associated with legal disputes in Vietnam’s real estate sector. For long-term investors, the outcome will signal Novaland’s ability to execute on its project pipeline and resolve legacy issues.

What to Watch

• Outcome of the July 22, 2026 enforcement meeting.
• Any further legal filings by TKG to challenge the arbitration award.
• Novaland’s Q2 2026 earnings report for updates on provisions or project progress.
• Regulatory developments regarding land clearance and project handover procedures.
• NVL’s stock price reaction to any breakthrough in the enforcement process.