The Prime Minister has assigned the Ministry of Natural Resources and Environment and Hanoi authorities to check reports in local newspapers about 300 pending or abandoned real estate projects in the city.
The Hanoi Planning and Investment Department has released a decision to stop a housing project in Me Tri ward of Nam Tu Liem district. The investment certificate was given in June 2008 to Vietnam Trade Union Tourism Co Ltd.
The company has to give back the land plot allocated to it before implementing the project, because the investor did not start the project within 12 months as stipulated in the 2014 Investment Law.
The Hanoi authorities have also recently stopped a series of housing projects as the investors have not implemented the projects as committed. In July, they stopped investment activities at a housing project using the D2-CT1 land plot in Bac Tu Liem district registered by Son Ha International JSC.
Most recently, the Hanoi People’s Committee proposed taking back a land plot and resuming an investigation of violations at three land plots (B9/CC1, B9/CC3 and C3/HH, C3/CC1-1) belonging to the Nam Trung Yen Urban Area in Cau Giay district. The projects have not started in the last 11 years, causing a waste of natural resources.
According to local newspapers, more than 300 projects are pending or unimplemented.
Answering questions from voters, the Hanoi Department of Natural Resources and the Environment some days ago said the department has joined forces with relevant agencies to inspect 379 projects and give conclusions about each project.
It has proposed taking back the land, revoking the decisions on allocating or leasing land, and stopping the investment of 28 projects covering a total area of 1,844.3 hectares; and has proposed extending the use of land for 24 months for 25 projects, covering an area of 39 hectares.
If the investors cannot put the land into use after the 24 extended months, the State will take back the land without any reimbursement for the land and the assets on the land.
There are many ‘golden land plots’ in Hanoi that big real estate firms have neglected. Some projects in urban area development have been re-planned after a decade long of unuse.
The Kim Chung – Di Trach new urban area projects registered by Vietracimex kicked off in 2008. It was expected to be a big urban area with shopping center, semi-detached villas, apartments for lease, and a hospital and schools meeting international standards in the western part of Hanoi.
The land price in Kim Chung – Di Trach area once hit VND50-70 million per square meter when the real estate market was hot. However, only 10 rows of houses and villas have been built, while most of the area has been left idle.
Investors have been invited to contribute capital to real estate projects and enjoy a profit of 36 percent per annum, and have also been persuaded to buy corporate bonds at a high interest rate of 18 percent per annum.
While COVID-19 continues to impact the whole economy, most millionaires in Vietnam have been investing in the real estate market.