The incident that occurred during the execution of the project Saigon Apartment at 11D Thi Sach St, District.1, HCMC

                                                                       HCMC, November 1st, 2007

                                                                             No 034-CBTT/HBC

                                                                       --------------------------------

To: STATE SECURITIES COMMISSION 

   Address: 164  Tran Quang Khai, Ha Noi

   Tel: (84.4) 9340760 - Fax: (84.4) 9340739–Email: phathanh@ssc.gov.vn

CC: HO CHI MINH CITY STOCK EXCHANGE

    Address:  45-47 Ben Chuong Duong, District 1, HCMC

    Tel: (84.8) 8217501 – Fax: (84.8) 8217452 – Email: niemyet@yahoo.com

We would like to make the following announcement regarding the incident that occurred during the execution of the project Saigon Apartment at 11D Thi Sach St, District.1, HCMC that caused the tumble of part of the sidewalk adjacent to the apartment building Cosaco located at No 5 Nguyen Sieu St, Ben Nghe Ward, District 1, HCMC:

The oganizations participating in the project:

- Investor: Công ty Liên doanh Trung tâm Thương mại và Căn hộ Sài Gòn (Saigon Commercial Center and Apartment Shareholding Company).

- Project Design Contractor:  Hainal – Konyi (Viet Nam) Ltd.

- Investigation and survey division: Xí nghiệp thiết kế - Công ty Xây dựng & Dịch vụ Thủy Lợi.

- Consultant/Supervisor:  McKillop Courtyard (Viet Nam) Ltd.

- Contractor in charge of execution: Hoa Binh Construction and Real Estate Corporation.

- Insurance consultant: Aon (Viet Nam) Ltd.

- Insurance company: Bao Minh Sai Gon.

During the execution of the project we have been following strictly all the regulations governing the technical requirements and execution procedures. We have also bought full insurance cover for the construction project which includes insurance on physical damages, on responsibility towards third party, accident insurance, insurance on machinery and equipments, and other kinds of insurance as required.

Detailed description of the incidentá :

At 15:30 October 31st, 2007 , at the construction site 11D – Thi Sach St. on the side of Nguyen Sieu St , while digging the ground to prepare for the concrete pile connection at the area of axis 7-8/B at the depth of about 8 meters the workers dicovered a ground water stream gushing out strongly from the bottom of the pit. About 10 minutes later, a patch of sidewalk on Nguyen Sieu Street collapsed. The area of the collapsed patch is about 4mx4m and 1.6 m deep.

: 1st layer- bored piles ; 2nd layer- Larsen metal sheet piles ; 3rd layer-Larsen metal sheet piles  The digging was done in accordance with steps and procedures that had been presented to the authorities.

Two thirds of the basement and the mezzanine floor had been finished and the workers were digging for the foundation of the remaining one third of the basement following the approved design. In June, 2007 the contractor received the order regarding the suspension of the construction work from the City Construction Service. The order was strictly observed. After that everything necessary was done with a view to having the suspension order lifted such as repairing a number of apartments in the apartment building at 5 Nguyen Sieu St. Up to now, the repair of some apartments has been completed and the repair work is still going on in some others. After all the requirements from the Construction Service had been fulfilled, the contractor received the decision No 4081/QD-SXD-QLCLXD on October 18, 2007. which removed the suspension order.

(The contractor had carried out all the safety measures in accordance with report on assessment of execution procedures that had been approved by the authorities)

Cause of the incident and damages).

- The cause of the incident : It was because the digging of the foundation pit hit and broke the ground stream of water that links with part of the ground filled with water under the sidewalk, which caused a sudden fall-off of pressure and made the patch of sidewalk collapse

- Casualties: nobody was killed or injured. Material damage has not been reported except the collapse of about 14 sq meters of sidewalk on Nguyen Sieu St.

- Basing on the actual situation, the possibility of occurence of subsequent incidents as well as the guarantee of people’s safety, Hoa Binh Corp and leaders of District 1 People’s Committee have collaborated closely in evacuating the inhabitants in the Cosaco building at No 5 Nguyen Sieu St.

 Handling of the incident : Immediate measures:

Right after the incident, Hoa Binh Corp urgently carried out safety measures under the close and timely guidance and support of leaders of government organizations of different levels including City People’s Committee, People’s committees of District 1 and Ben Nghe ward, The City Construction Service, Saigon Construction Quality Control Co.

The measures taken are as follows:

- The unsafe area was isolated by a security cordon.

- Evacuating the inhabitants in neighboring dwellings to the apartment building at 212A Nguyen Trai Street to prevent possible casualties (under the guidance of People’s Committees of District I and Ben Nghe Ward).

 - Propping up the wall between the construction site and the sidewalk on Nguyen Sieu St.

- Filling up the pits to create a balance of pressure to prevent possible subsequent tumbling of earth..

- Carrying out inspection, observation and examination of the neighboring buildings for timely handling of possible incidents in those places.

-Carrying out quality control of the apartment building at No 5 Nguyen Sieu St to discover possible problems and ways to solve these problems thoroughly.

- Keep taking care of the neighboring residents affected by the incident. Coordinating with Bao Minh Insurance Company and the project investor in the compensation for the damage of the people and in paying the cost incurred in their evacuation.

- Keeping on realizing measures of handling the incident following instructions of the deputy director of the City Construction Service under the close guidance of Leaders of City People’s Committee, People’s committees of District I and Ben Nghe Ward and other organizations concerned.

                                                                                           Sincerely,

                                                                                  Chairman of the BOM

                                                                                          Lê Viết Hải