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Vincom Retail: Platinum closures done per contract

Released at: 18:21, 09/03/2017

Vincom Retail: Platinum closures done per contract

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Vincom Retail responds to claim by Platinum Cineplexes that it acted illegally in closing three cineplexes.

by Duy Anh & Ngoc Lan

In response to claims by Multi Vision Plus (MVP) yesterday over the closure of its Platinum Cineplexes at three Vincom Retail (VCR) shopping malls in Hanoi, Ms. Tran Mai Hoa, General Director of VCR today provided VET with documentary evidence that it complied with the terms of the contract and relevant law.

Ms. Hoa said it was ready to answer any lawsuit instigated by Platinum Cineplex, adding that VCR has also filed a lawsuit against Platinum.

If MVP does not voluntarily move its assets away from VCR premises, it said, then it will do so itself. The moving and storage of assets will be witnessed by representatives from authorities and be done in accordance with the contract.

On March 1, Vincom forced the closure of Platinum Cineplexes at Vincom Long Bien Plaza, Vincom Mega Mall Times City, and Vincom Mega Mall Royal City.

VCR has sent many documents asking MVP to move its assets now the contract has been terminated, but MVP has deliberately delayed moving. On October 15, MVP agreed to move their assets but later asked for extension to February 4. On December 19, MVP once again asked for an extension, this time of 10 to 12 months. On December 20, it requested an extension and permission to operate over the Tet holiday.

VCR agreed to an extension to February 24, but MVP has still not moved its assets. On March 1, VCR was forced to seal the premises, in accordance with the contract. It notified MVP of its plans. 

Sealing the premises is a legal measure and meant to “clean” the premises.  It was done and overseen by MVP managers and bailiffs at each location.

During their partnership, VCR said, MVP repeatedly violated the terms of the contract, such as not paying rent. Only when VCR repeatedly submitted payment requests did MVP pay rent, but not in full. This violation was sufficient to terminate the contract. The contract was terminated in accordance with the rights of the two parties negotiated and clearly specified in the contract.

MVP, meanwhile, said they will bring the matter to the attention of relevant ministries in Vietnam and expects intervention. A representative of VCR, however, noted that the case is a disagreement between the two business partners and should therefore be resolved on the basis of law and the trade and civil agreement between the parties.

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