Novaland, one of the most prominent real-estate developers in Vietnam, recently wrote to the Ministry of Construction requesting urgent permission to continue their US$260 million project that has been left pending for years.
Deputy Minister of Construction Nguyen Van Sinh commented that Novaland’s request has been forwarded to the Housing and Real Estate Market Management Agency, but gave no answers on how they would resolve the problem.
Head of the Agency Nguyen Trong Ninh stated that specific records and info of the case have not been procured and all procedures would have to wait until then. He also noted that Novaland should not expect any priority treatment as theirs is considered just another case that the agency deals with on a daily basis.
According to real estate experts, most projects in HCMC are being halted because the inspection of Thu Thiem new urban area is related to negligence on the part of some former city leaders and also use of mixed land owned by the State. If responsibilities of the parties involved are not promptly identified and resolved, real-estate developers and buyers will suffer greatly.
According to Chairman of Vietnam National Real Estate Association Nguyen Tran Nam, the biggest problems of Vietnam’s real-estate sector are conflicting administrative procedures and stricter control imposed on licensing new projects, which result in delayed approval and decrease in real estate transactions while there are still pressing demands for housing.
Currently, governmental agencies are still amending and adjusting the legal frameworks and documents. The Ministry of Construction also said that two major schemes have been proposed to the Prime Minister regarding effective management and monitoring of real estate market activities.
In the near future, the Ministry will work closely with district-level agencies on specific cases to resolve them efficiently.