Hanoi authorities provide lifeline for delayed projects

At a meeting held last week in Hanoi with the committee, an SIS representative suggested the city authorities apply a temporary price for the delayed project in Nam Tu Liem district based on prices for neighbouring projects.

“This is the baseline for us to pay land taxes, and when the official land price is fixed we will adjust it,” said the SIS representative.

In another case, Thai-backed Noble Van Tri golf course project in Dong Anh district is waiting for an amended investment certificate.

The Noble Van Tri representative said that the golf course had opened in 2007 and the developer wanted to implement a residential area segment next to the course, however it now had to wait for approval due to the forthcoming city master plan.

Metropolis and Noble Van Tri are two among the 37 foreign-invested projects in Hanoi which are lagging behind schedule due to land clearance and compensation, as well as zoning and administrative delays.

Hanoi People’s Committee Vice Chairman Nguyen Ngoc Tuan said that slow land clearance and compensation, tardy infrastructure construction, and sluggish detailed zoning were the main reasons for the roadblock.

Tuan said that all of those obstacles needed to be resolved before May 30, and any issues that the local government could not resolve would be passed on to more senior authorities.

These projects include SIS Investment’s Metropolis, Noble Van Tri, Samsung Group’s R&D Centre, Chinfon Taiwan’s VMEP factory and Ho Dong Quan lake.

Other projects hindered by zoning headaches include North Thuong Tin Industrial Zone, Tran Song Hong, VIT-Tien Phong residential, Green Technology City, ParkCity, Bac An Khanh, WestGate, Times Square and Ho Tay.

Projects delayed by land clearance and compensation were Tay Ho Tay, Nam Thang Long phase 2, the C2 area of Gamuda, Yen So park, Grammar School, Togi Vietnam, Phuong Dong healthcare centre, and Ho Tay International Tower.

Some others are facing capital shortages or are in the process of restructuring their unit scales, such as Daewoo Cleve and Booyoung Vina.

Tuan claimed foreign investors needed to show more determination in implementing their delayed projects. “The developers must be more proactive and work closely with local authorities to find solutions,” he said.