Napoleon Castle apartment building in Nha Trang Town, Khanh Hoa Province. Photo by VnExpress/An Phuoc.
The cancellation order was issued Thursday by the provincial construction department to real estate company Cat Tiger Khareal, developer of the 40-storey Napoleon Castle apartment complex in the province's Nha Trang Town.
The company, which is also based in Nha Trang, had not obtained the local government’s permission to allow foreign ownership in the project, the department said.
The real estate developer has been directed to report cancellation of the contracts to the department next month. The department will consult relevant agencies to assess if the project is part of a "national security area" where foreign ownership is not allowed.
Napoleon Castle will have 1,000 apartments on an area of 3,000 square meters, located 550 meters away from the Nha Trang coastline.
Although the project is still undergoing construction, the investor has handed over 200 apartments to residents, which violates safety regulations. The company has been fined VND55 million ($2,375) for the violation.
Vietnam allows foreigners to buy property, except land and not more than 30 percent of a residential quarters or apartment project. However no foreigner is allowed to own property in areas deemed vital to national security.