Ho Chi Minh City proposed for solving difficulties in housing projects

Mr. Vo Van Hoan, Vice Chairman of Ho Chi Minh City People's Committee (HCMC PC), has just signed a document no.1225 / UBND-DT to send to the Prime Minister the proposal to solve difficulties and problems in investment procedures for construction of housing projects in Ho Chi Minh City.

(From left to right: Mr. Tran Vinh Tuyen – VP of Ho Chi Minh City People's Committee, Mr. Than Thanh Vu - Founder & Chairman of VnInvestors and VinaForum, Mr. Nguyen Thien Nhan - Member of Politburo, Secretary of Ho Chi Minh City Party Committee, in a meeting of HCM City Party Committee for contributing advising opinions for the City economic development)

One of the crucial parts is the solution to problems related to "intertwined land" which is not residential land in housing projects, which are causing congestion for many current projects

(VinaForum: for an example, a residential project of 10,000 m2 has an intertwined land piece of 1,000 m2 which is not residential land. And this 1,000 m2 causes congestion for the project development)

According to HCMC PC's report, in 2019, real estate businesses faced many difficulties, challenges when the market size and the supply of real estate products decreased. Most real estate companies’ sales and profits have been reduced. In addition, according to the Ministry of Planning and Investment (MPI), in 2019, 598 real estate companies nationwide registered to halt their operation, 686 companies dissolved (up 39.4% compared to 2018). In 2018 and 2019, the real estate business growth rate is always lower than the overall growth of the whole city. The proportion of real estate business in GRDP (Gross Regional Domestic Production) has a tendency to decrease (from 7.3% to 4.1%). This led to a decrease in the construction industry and many other industries. In 2019, HCMC PC only approved investment and recognized the investors of 4 commercial housing projects with full legal status (down 24 projects compared to 2018); recognized investors for 16 commercial housing projects (down 64 projects compared to the same period in 2018) ...

One of the reasons leading to the above situation is that the regulations on investment, housing, land and planning have not been consistent in the transition and promulgation process. Many projects are in the process of checking, auditing, investigating and reviewing legal procedures. If there is no solution to promptly solve those problems, it will reduce the state budget revenues from real estate business investment activities.

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According to the statistics of Ho Chi Minh City Real Estate Association (HoREA), there are about 158 projects involving public land in the City. At the meeting of Cty leaders with real estate businesses at the beginning of 2020, Mr. Le Hoang Chau, Chairman of HoREA , said that 124 out of these 158 projects were allowed to get back in implementation , but in fact many of those projects have not been able to carry out normally.