Vietnam Germany Steel Pipe partners for Legend City urban development

The Board of Directors of Vietnam Germany Steel Pipe JSC (VGP) approved an investment cooperation contract with Vietnam Construction and Import-Export Joint Stock Corporation (VCG) for the Vietnam Germany Legend City (LGC) Urban Area project – Phase 1. The agreement outlines a 50/50 capital contribution ratio from both VGP and VCG for the project's equity, with initial contributions based on VGP's incurred costs up to the contract signing date.

The cooperation aims to develop and operate Phase 1 of the LGC project, with profits and business results to be shared proportionally without forming a new economic entity. The project scope encompasses land within LGC Phase 1, ready for capital mobilization through contributions, investment cooperation, and business cooperation at various stages, as permitted by the Phu Tho Department of Construction.

The management structure includes a steering committee, comprising VGP's chairman of the board and VCG's general director, and a project management board operating as an independent branch of VGP. Penalties for significant breaches of the contract include compensation for actual damages, an 8% penalty on the total contributed capital, and 16% annual interest on the contributed capital.