Vietnam - Hanoi suggests applying strict rules to control foreign-invested property projects

Ninety five foreign invested real estate projects have been licensed in Hanoi. However, many investors have not moved since the day they got the licenses.

According to VnMedia newspaper, 88 out of the 95 projects have been allocated land totalling 1,500 hectares. These include 17 shopping mall projects, 66 office buildings for lease, and five golf course and park projects.

Three investors reportedly have not fulfilled the site clearance work. Of the seven projects, the city's authorities have assigned the Hanoi Land Fund centre to carry out the site clearance for three projects in the West Lake project, Yen So Park and Biotech Park.

A report by the Hanoi Planning and Investment Department shows that 82 out of the 88 projects have kicked off, but the implementation has been going very slowly. Some investors have found as to spontaneously not following the approved planning without the permission of the watchdog agencies. Euroland project developed by TSQ Vietnam in Mo Lao new urban area is a typical example.

Besides TSQ Vietnam, Togi Vietnam, Pacific Land Vietnam, Pacific Thang Long, all of them are the "big guys" have also been cited as the real estate developers who have slow pace projects in Hanoi.

TSQ Vietnam, a 100 percent Polish invested project, has become well known with the "Ha Tay Millennium Tower" project in Yet Kieu ward of Ha Dong district. The project is expected to comprise of two 45-storey towers and four ground floors, and have the total investment capital of US$37.6 million.

However, no move has been taken by the investor since November 2006, when the investment license was granted, and the area reserved for the project remains a wild land.

Meanwhile, another project of TSQ Vietnam - Euroland in Ha Dong district - has been found as spontaneously not following the approved programming.

Another big guy famous for the long-time of project implementation is Pacific Thang Long, a joint name between JANAKPUR Limiter (Ireland) and Thang Long Company, which develops the Giang Vo Complex at No 15-17 Ngoc Khanh Street in Ba Dinh district.

The license was granted to the 70 million dollar project in December 2007. Meanwhile, the period of "preparing for the start of the construction" still has not ended.

Pacific Land Vietnam, another investor, got the license for Habiotech Park covering an area of 200 hectares and capitalised at US$250 million, has not completed the site clearance since March 2008.

The other projects going at a snail's pace include: Togi Vietnam's project on the complex of shopping mall, office building, apartments and sports practice in Quang Minh commune of Me Linh district, which was licensed in 2010, the $1.5 million project on Bon Mua (four seasons) tourism complex developed by Bon Mua Tourism Company, a joint venture of Vietnamese Kim Thi Thu Huong, Nguyen Ngoc Quyen and German Rolf Getschmann in Son Tay town, which got license in September 2007.

Nguyen Van Khoi, deputy Mayor of Hanoi, said on Dau Tu (Investment) newspaper that except some projects covering small areas, which have been implemented following the schedule, most of the others have been going more slowly than stipulated in the investment licenses.

Khoi said that one of the biggest problems for the project implementation is the slow site clearance work. The site clearance work for the Nam Thang Long urban area started in 2005, but there has still been no site for the construction.

Kinh Te Do Thi newspaper has reported that Hanoi authorities have made some suggestions to the Ministry of Construction in an effort to keep a stricter control over foreign invested real estate projects.

The city believes that it is necessary to set up a new regulation that investors will only be able to borrow working capital after they finish the capital contribution to the legal entities that run projects.

Regarding the duration of the projects, the city believes that it must not be higher than 50 years.

VietNamNet

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