A closer look at 7 stalled projects that Ho Chi Minh City is currently working to resolve.

On the afternoon of February 20th, Mr. Bui Xuan Cuong, Vice Chairman of the People's Committee of Ho Chi Minh City, along with relevant departments and agencies, held a direct meeting with the investors of 7 projects facing difficulties in Ho Chi Minh City to listen to their concerns and consider solutions.

Representatives from the businesses attending the meeting stated that the meeting only recorded information regarding the bottlenecks of 7 projects. It is expected that the leadership will announce further solutions next week.

The projects being considered by the Ho Chi Minh City People's Committee for resolution of obstacles include: the Ben Nghe Street commercial center and high-end apartment project (Tan Thuan Dong ward, District 7); the Tan Thang sports and residential complex (Son Ky ward, Tan Phu district); the Cuu Long apartment project (Ward 1, District 4); the Song Viet complex (Thu Thiem new urban area, Thu Duc City); the Thien Ly housing area (Phuoc Long B ward, Thu Duc City); the 30.2-hectare project in Binh Khanh ward (Thu Duc City); and the Co Giang apartment project (Co Giang ward, District 1). These projects mainly face obstacles related to apartment sales procedures, land tax calculation, construction permits, land price reassessment, and inspections. Some projects have been stalled for many years and remain unresolved.

Accordingly, the commercial center and luxury apartment project on Ben Nghe Street (Asiana Riverside, District 7) has been invested in by Gotec Vietnam Co., Ltd. since 2018.

The project covers an area of ​​10,076.6 m2, comprising 2 blocks, 21 stories high, with approximately 500 apartments; to date, the foundation, basement, and first floor have been completed, and construction of the subsequent floors is underway, but it has not yet received the necessary permits to begin sales.

The reason is that the company has submitted applications three times requesting notification that the housing units are eligible for sale or lease-purchase for commercial housing, but each time the Ho Chi Minh City Department of Construction has rejected the applications due to a review of the land use purpose transfer. To date, the company's immediate losses have amounted to approximately 1,052 billion VND.

The Song Viet complex project (Thu Duc City) is invested by Quoc Loc Phat Company (a member of Son Kim Land). The project, covering 4.8 hectares, is facing difficulties in obtaining confirmation that it meets the conditions for selling or leasing future residential units.

The reason is due to conflicts with the overall planning of the Thu Thiem new urban area.

The 30.2-hectare project in Binh Khanh ward (Thu Duc City) was initially developed by Century 21 International Development Co., Ltd., and was later acquired by Novaland Group under the commercial name The Water Bay.

The project is currently suspended for inspection and investigation. In 2020, Novaland Group announced that it had invested up to 6,000 billion VND in the project but it was not implemented. Therefore, the company has repeatedly appealed to the Ministry of Construction to allow it to continue with this residential project.

The Co Giang apartment project (District 1) has received investment approval from the Ho Chi Minh City People's Committee. Novaland Group, the project developer, with the commercial name Grand Manhattan, has already commenced construction up to the 28th floor but is facing obstacles in obtaining the investment certificate and the preferential exemption of land use fees for the entire allocated land area. Because this project involves the renovation and reconstruction of old apartment buildings, the investor must also compensate for the use of common areas.

The Tan Thang Cultural, Sports and Residential Complex project (Celadon City, Tan Phu District) covers an area of ​​82.5 hectares and was approved by the Ho Chi Minh City People's Committee for Saigon Thuong Tin Tan Thang Real Estate Investment Joint Stock Company as the investor. Subsequently, Gamuda Land Joint Stock Company acquired a majority stake in Saigon Thuong Tin Tan Thang Real Estate Investment Joint Stock Company to own this project.

According to Gamuda Land, when acquiring the shares, the previous investor stated that the tax exemption was granted and they would only pay the recognized portion. However, the city later required the new investor to pay over 400 billion VND in taxes because the company did not directly pay compensation and resettlement support but only acquired the shares, thus not being able to deduct compensation and resettlement costs from the land use and lease fees for the project. Due to their refusal to pay the taxes, the project has been stalled for a long time, and Gamuda Land is listed as owing over 541 billion VND in taxes, including both principal and interest.

Project No. 1 Ton That Thuyet, now commercially known as De la Sol, was originally a project of Saigon Cuu Long Investment and Production Business Joint Stock Company. Approved for investment in 2017, the project covers an area of ​​1.4 hectares and comprises 870 apartments.

Viet Hung Phu Real Estate Investment and Business Joint Stock Company acquired this project. After purchasing 100% of Viet Hung Phu's shares, they then transferred them to Capitaland Company. It is understood that the project is currently stalled in the construction permit issuance process.

The Thien Ly residential project in Phuoc Long B Ward, Thu Duc City, is invested by An Thien Ly Construction and Service Co., Ltd.

This project, spanning 17.4 hectares, was allocated land in 2007 and had its 1/500 scale detailed planning approved in 2009. However, in 2016, 4.2 hectares of this project underwent a partial adjustment to the 1/500 scale detailed planning, causing legal complications. Nearly 15 years have passed, yet the investor has still been unable to proceed with the project.

ARTICLE: SON NHUNG - PHOTOS: HOANG TRIEU
PRESENTED BY: CHI PHAN

Source: https://nld.com.vn/kinh-te/emagazine-can-canh-7-du-an-vuong-mac-dang-duoc-tp-hcm-thao-go-20230221121235748.htm