Authorities have traditionally identified the complexities of household relocation as a significant obstacle to urban redevelopment. However, in Ho Chi Minh City, a contrasting challenge has emerged, that is despite the successful relocation of residents from critically degraded apartment buildings, the commencement of new construction has been impeded.
For instance, the apartment building at 350 Hoang Van Thu on Hoang Van Thu Street in Ho Chi Minh City’s Tan Binh District has been completely demolished. Despite nearly nine years having passed since its demolition, the site remains vacant, with no reconstruction efforts undertaken.
Mr. Thanh Phuong, a former resident of the apartment building at 350 Hoang Van Thu Street, stated that the building had been constructed many years ago and had significantly deteriorated. Since 2016, all residents have relocated, vacating the site to facilitate the construction of a new apartment complex.
Resident Thanh Phuong moaned that former dwellers of the apartment building have been anticipating the reconstruction of the building so they can return to their original place of residence as initially planned. However, the wait continues to be prolonged.
Since 2010, the Ho Chi Minh City People's Committee has designated Duc Khai Tan Binh Joint Stock Company as the investor responsible for the reconstruction of the 350 Hoang Van Thu apartment building. As part of the project implementation, the investor has provided compensation to 137 households and arranged temporary housing for 20 households.
Representative of the project investor, Nguyen Huynh Vinh Hoang, stated that the company has not yet been allocated the land required for construction. Consequently, the investor has submitted an official request to the Ho Chi Minh City People's Committee, seeking an early extension of the project timeline.
Since 2018, the Nakyco apartment building in Tan Son Nhi Ward in Tan Phu District has been included in the city's renovation and construction project. However, seven years have passed since the residents were relocated, and the project remains stalled.
According to the Tan Son Nhi Ward People's Committee, residents have repeatedly petitioned the authorities to implement the project and stabilize their living condition but the project remains immobile.
Head of the Economic, Infrastructure, and Urban Department of Tan Phu District Vo Truong Binh stated that the Nakyco apartment building was constructed before 1975 and consists of 30 residential units. He further noted that the Tan Phu District People's Committee has submitted multiple official requests to the Ho Chi Minh City People's Committee, as well as to relevant departments and agencies, seeking guidance and resolutions to carry out the construction of new apartment buildings.
Residents of the apartment building located at 155-157 Bui Vien Street, District 1, Ho Chi Minh City, have been relocated to temporary housing for a period of six years. The project for the reconstruction of the building has not proceeded due to the absence of an investor. According to Vice Chairman of District 1 People's Committee Vu Nguyen Quang Vinh, the district has selected two qualified enterprises to participate in the investment. The specialized department is advising the District People's Committee to organize an apartment building conference to select investors.
The Ho Chi Minh City People's Committee issued a project on February 27 to renovate and reconstruct old, damaged, and degraded apartment buildings in the city. Although the project has demolished 5 of the 16 severely damaged apartment buildings which are classified grade D, no new replacement buildings have been constructed yet.
According to an observation, six primary factors, largely rooted in systemic policy mechanisms, contribute to the delays. These include issues concerning capital allocation for building assessments and repairs, planning execution, and the determination of land use fees.
Talking about the challenges of renovating old apartments in Ho Chi Minh City, an investor cited the biggest obstacle as navigating the city's cumbersome bureaucratic procedures. For instance, securing land allocation requires completing compensation processes, but by the time those are finished, the original investment policy has often expired, necessitating a new application for land allocation.
Furthermore, he said that at this time, the investor has to extend the investment policy before being allocated land. Each time they complete a procedure, they have to wait a few years.
An investor - a director of a company involving in the reconstruction of older residential buildings reported substantial operational challenges, such as public dissatisfaction with project timelines and financial constraints associated with capital investment. He proposed for focused municipal action to address legal barriers, suggesting that procedural efficiency is paramount to the timely completion of redevelopment projects.
Real estate businesses urged the Ho Chi Minh City People's Committee to remove obstacles and establish a favorable framework to encourage investor participation in the swift and seamless renovation and rebuilding of the city's dilapidated apartments.
Deputy Head of the Ho Chi Minh City Department of Construction’s Urban Development Bureau Vu Anh Dung stated that the renovation and reconstruction of old, damaged, and deteriorating apartments is a top priority project that requires prompt action from businesses.
He emphasized that the responsibility for investment procedures lies with specific departments or agencies, which must carry out the resolution process. Moreover, he suggested investors should report their emerging problems during the construction to the Ho Chi Minh City People's Committee for timely intervention.
