According to the Deputy Minister of Construction, Novaland and Hung Thinh's real estate projects in Dong Nai and Binh Thuan provinces are currently facing difficulties and obstacles that need to be resolved by the Prime Minister's Task Force.
This information was provided by Deputy Minister of Construction Nguyen Tuong Van at the government press conference on the evening of July 4th.
According to him, the Prime Minister 's Task Force on removing difficulties for the real estate sector has worked directly with 6 localities, received 108 recommendations from businesses, and forwarded them to provincial People's Committees, ministries, and agencies for direct institutional resolution.
For example, in Dong Nai, the Task Force reviewed seven large projects of Novaland and Hung Thinh Groups. These projects mainly faced obstacles related to not being included in the planning and not allocating 20% of the land for social housing. "The Task Force has proposed a plan, submitted it, and received approval from the Prime Minister, which will serve as the basis for implementing the next steps to resolve the issues," Mr. Van shared.
The task force also advised the Prime Minister and the Ministry of Natural Resources and Environment to consider and resolve issues regarding land prices, land use fees, and the issuance of land use right certificates for the Novaland Phan Thiet project in Binh Thuan.
In Ho Chi Minh City, according to the Deputy Minister of Construction, the Prime Minister's Task Force has addressed 30 recommendations regarding the renovation of apartment buildings, social housing, and urban planning that the local authorities had misunderstood but not fully implemented.
Mr. Nguyen Tuong Van, Deputy Minister of Construction, answers questions at the government press conference on the evening of July 4th. Photo: Nhat Bac
Previously, Binh Thuan province also proposed five ways to resolve the difficulties for the Novaland Phan Thiet project, including maintaining the investment policy, consolidating land lease decisions, and allowing a one-time payment of land lease fees to resolve the legal issues of this project.
The project, spanning nearly 1,000 hectares and with an investment of approximately US$5 billion, is being developed by Delta-Valley Binh Thuan Co., Ltd., a subsidiary of Novaland, in Tien Thanh commune, Phan Thiet city. In its report, Binh Thuan province outlined five obstacles and proposed specific solutions to address these issues.
Regarding Novaland's difficulties, at its recent annual general meeting, Chairman Bui Thanh Nhon informed that the company is making efforts to comprehensively restructure and has seen positive signs. The company's production and business activities are expected to recover from the third quarter. According to Mr. Nhon, Novaland is reorganizing priorities for projects nearing completion to deliver products to customers and selecting projects with high liquidity potential to expedite legal procedures, in order to catch up with the market recovery. The company restarted the Aqua City project in Dong Nai on June 23rd.
Also at the press conference, Deputy Minister of Construction Nguyen Tuong Van stated that the three biggest obstacles facing real estate investment projects are institutional frameworks and implementation; and capital, bond markets, and credit.
Regarding capital, the State Bank of Vietnam has recently introduced a series of solutions concerning debt restructuring, debt classification, and bond trading.
"Local authorities need to consider resolving issues related to real estate projects as an urgent and important task, and the relevant agency must handle it decisively," Deputy Minister Van stated.
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