Scissors to cut up construction red tape to be cut to

Administrative procedures for building new urban areas, housing and industrial zone infrastructure are set to be loosened significantly.

Too often developers face a paper chase to get their projects off the ground
The new paperwork process, being drafted by the Ministry of Construction (MoC), proposes only eight steps needed, down from the current 33. The maximum waiting time for approval will also be reduced from 36 months to 12. Seven procedures will be phased out while eight will be merged.

MoC Minister Nguyen Hong Quan said the new model would greatly improve construction management. The new model also received support from investors who attended a recent conference held by the MoC.
Nguyen Van Duc, vice director of Dat Lanh Real Estate Co., Ltd., said many investors had to wait for over three years to complete project procedures.

“Though provincial people’s committees already approved the projects, the investors still have to knock at the door of all local authorities and departments,” said Duc. He cited a 42-month long wait from the Ho Chi Minh City Department of Zoning and Architecture on a plan for a 4,400-square-metre plot of land as an example of bureaucratic tardiness.

However, representatives of several local authorities and departments remained concerned about the feasibility of the new process. Nguyen Van Chuyen, director of Vinh Phuc Construction Department, said the new model would allow investors to send in zoning plans at a 1:2,000 scale despite being contrary to the government’s Decree 02/2006/ND-CP.

Nguyen Trong Hoa, director of Ho Chi Minh City Department of Zoning and Architecture, added that most of the zoning plans submitted by investors for approval were of a poor quality, therefore “the MoC should not pamper investors”.

Nho Trung (vir.com.vn)