Ho Chi Minh City real estate developers urge solutions for breakthough

17:57 | 23/02/2020
Ho Chi Minh City People's Committee and developers discussed solutions to the legal and administrative quandaries holding back real estate projects in the city on the morning of February 22

The meeting was part of the committee’s efforts to create a fair and competitive investment environment for all developers in 2020 and the time ahead.

According to Nguyen Thanh Phong, Chairman of Ho Chi Minh City People’s Committee, urgent solutions will soon be proposed to help developers stabilise their business and continue to participate in a programme to improve the city’s’ landscape.

Phong said the city will focus on the development of leading enterprises and developers which can help improve the city's competitiveness.

“The local authorities must understand developers’ difficulties and join hands to decrease those difficulties. The city cannot develop without the success of investors. Thus local authorities must share all difficulties burdening developers and must try their best to alleviate them,” Phong said.

He requested local departments to present more drastic solutions to improve the business environment within the tenets of current laws and regulations to serve developers.

Recently, the Ho Chi Minh City Real Estate Association and real estate developers have been petitioning the Committee, asking for help to wipe out red tape keeping projects delayed.

According to Le Hoang Chau, chairman of the association, the real estate market of the city is now in a difficult situation. These difficulties, however, are temporary and are not part of the normal course of events. "The reasons of these difficulties were the overlapping legal framework and the implementation of legal documentation at the grassroots levels,” Chau said.

ho chi minh city real estate developers urge solutions for breakthough

The Sun Avenue project located in District 2 developed by Novaland

A representative of Novaland, one of the biggest real estate developers in the southern provinces, said that with the help and support from local authorities, many of its difficulties have been dispelled at several projects.

Among those are the Co Giang residential project located at 100 Co Giang Street in District 1. This project was handed over land by the local authorities along with the construction permit.

The other project was a complex of trading centre, office, offitel, and apartments at 151-155 Ben Van Don Street in District 4. The land use tax for this project was adjusted by the Ho Chi Minh City’s Department of Natural Resources and Environment after a long wait.

Another apartment tower located at Thao Dien commune of District 2 and an partment tower located at Dien Bien Phu Street of Binh Thanh district have also been granted land use right certificates.

Meanwhile, the high rise building located at 67 Mai Chi Tho Road, District 2 and seven other projects located in Phu Nhuan district were also being reviewed and proposed for granting land use right certificates by the authorities.

With the desire to break though current difficulties and promote the development of the real estate market, Novaland believes that the government and relevant authorities will accompany developers, soon releasing guidelines and instructions to solve current difficulties and problems.

Novaland also wishes local authorities would allow developers to quickly resume their projects to strengthen the supply of products to real estate market and meet the accommodation and investment needs of the people, thereby improving social security and contributing to the state budget.

Novaland is one of Vietnam's premier real estate developers operating in the southern provinces. The company holds and develop about 4,900 hectares, a factor that is key for real estate developers to continuously launch new products.

"Novaland pursues a long-term vision in Vietnam and we see the current red tape and legal difficulties besetting the market as nothing but a temporary hindrance," said a representative from Novaland. "When the real estate legislation is clear and completed, the market will quickly return to activity, Novaland will then be able to release pent-up supply to meet the rising demand at the soonest timeline."

By Bich Ngoc

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