The National Assembly's Resolution outlines specific mechanisms and policies to address challenges and obstacles related to projects and land under inspection, examination, and legal rulings in Ho Chi Minh City, Da Nang, and Khanh Hoa Province, as detailed in the accompanying Appendix. It also covers 1,313 cases involving violations of land use terms in the issuance of land use rights certificates, house ownership rights, and other property attached to land.
Four projects in Ho Chi Minh City have been resolved. They include the 39-39B Ben Van Don project in District 4, The Water Bay project covering 30.2 hectares in Binh Khanh Ward, the Lakeview City project covering 30.1 hectares in Nam Rach Chiec, and the New City project covering 38.4 hectares in Binh Khanh Ward of Thu Duc City.
Among them, the 39-39B Ben Van Don project, developed by Nova Phuc Nguyen Company, had been stalled for years due to its connection to the case of ‘Violating regulations on management and use of State assets, causing loss and waste’ at the Vietnam Rubber Group.
Regarding this project, the Resolution clearly states that investors may continue using the land to implement the project after the administrative and criminal handling of individuals and organizations involved in violations. This includes addressing wrongdoing, mitigating the consequences of economic violations, and recovering any material benefits gained unlawfully, as stipulated by the legally effective judgment.
Nova Real Estate Investment Group Joint Stock Company has invested in two upcoming projects: The Water Bay and Lakeview City. The Lakeview City project, which consists of townhouses, has been completed and sold to buyers. However, it has not yet been granted a pink book (certificate of home ownership rights) because the land use fee has not been calculated.
The project will be handled as follows: For the land area exchanged corresponding to the investor’s audited and appraised investment—covering compensation, support, and construction costs—the land price for calculating the land use fee will be determined based on the completion date of land recovery and compensation on November 20, 2008. For the land area where land use fees have not been paid, the land price will be determined based on the date when the competent state agency issued the land allocation decision on April 18, 2017.
For the New City project, developed by the consortium of Saigon Real Estate Joint Stock Company, Thuan Viet Construction and Trading Company Limited, and Thanh Thanh Cong Production and Trading Joint Stock Company, construction has been completed and handed over to homebuyers. However, for years, the land use fee has not been appraised, preventing residents from receiving pink books due to various issues, including disputes over the timing of land price determination.
The Resolution stipulates that for the land area corresponding to the land use fee the investor has temporarily paid to the State, the land price will be determined based on the contract liquidation date with the investor on March 30, 2018. For land where land use fees remain unpaid, the price will be determined based on the date when the competent state agency issued the land allocation decision on December 11, 2020.
Over the years, Da Nang City has carried out the Government’s four conclusions and three judgments, including the significant Conclusion 2852 from the Government Inspectorate dated November 2, 2012. This particular conclusion led to over 1,300 stalled projects in the locality, which have been on hold for many years. Therefore, Resolution 170 is seen as a long-awaited relief for these projects, much like 'finally seeing daylight' under the carriage.
Amongst the projects is the project along Hoang Sa road leading to Son Tra Peninsula that have been unfinished and abandoned due to violations and problems that have not been resolved for many years.
Furthermore, among the numerous large-scale abandoned projects in Son Tra that have resulted in aesthetic degradation and waste over many years is the resort project in the Bai Trem Bay area.
According to the licensed planning, this project includes 204 plots of land to build resort clusters, 22 luxury villas, restaurants and an 18-storey 5-star hotel with an investment capital of about US$20 million. The investor has completed the construction of the villas but due to problems, it had to be temporarily suspended and abandoned.
Last but not least, the Da Phuoc International Urban Area project, which involved land reclaimed from the sea in Thanh Binh Ward in Hai Chau District, was once envisioned to be a prestigious urban area of Da Nang city. However, it now presents a land of abandonment and overgrown vegetation, spanning approximately 181 hectares.
According to Chairman Le Hoang Chau of the Ho Chi Minh City Real Estate Association, Resolution 170 has been invaluable in eliminating obstacles for projects in recent years. However, there are still projects facing impediments that need to be addressed in a similar way.
Mr. Chau stated that there are currently about 200 projects in Ho Chi Minh City facing legal obstacles that need to be addressed. To tackle these issues, the city plans to prioritize each project individually. Projects that fall under the city's jurisdiction will be resolved immediately, while those beyond its authority will require coordination with central ministries and agencies for resolution.
Chairman Le Trung Chinh of the Da Nang People's Committee, said that Resolution 170 is an important mechanism, creating a favorable foundation to unblock resources, overcome the waste of resources for the State, society and enterprises, create trust for investors as well as strengthen the favorable environment for production and business.
This policy is expected to spur economic growth in Da Nang City in the coming years. To ensure effective implementation, the local government has developed a detailed plan that outlines the responsibilities of department heads and coordination mechanisms between agencies.
According to Professor Dang Hung Vo, the real estate market is currently stagnant, with high prices but low transaction volume. One contributing factor is the shortage of supply caused by unapproved projects and those still awaiting inspection.
This resolution will help partly alleviate supply issues. Moreover, it indicates that all problems, including inspection projects related to criminal cases, will be reviewed and can be resolved more easily than before.
