(CLO) According to the Chairman of HoREA, hundreds of projects in Ho Chi Minh City are facing legal obstacles partly due to the incompetence of the investors. If these obstacles are not removed soon to restart the projects, it will not only be a waste of land resources but also result in a loss of state budget revenue.
Citing data from the Ho Chi Minh City Department of Construction, the Ho Chi Minh City Real Estate Association (HoREA) stated that during the period 2015-2023, 86 real estate and commercial housing projects in the city were halted or not yet implemented, accounting for 62.3% of the total 138 housing projects.
HoREA emphasized that the 86 real estate projects that have been halted have a land area of up to 964 hectares, resulting in a huge waste of land resources and investment capital for businesses.
Besides the 86 projects that have been halted, the city also has 220 real estate projects with legal issues, including 72 projects referred by the Prime Minister 's Task Force and 148 projects compiled by HoREA.
Granting land to incompetent real estate developers is a huge waste. (Illustrative image/VNA)
Of the total 220 projects, 77 have been processed, reaching 35% completion, while 143 projects are still being processed.
Mr. Le Hoang Chau, Chairman of HoREA, believes that hundreds of projects are facing legal obstacles partly due to the incompetence of the investors. Mr. Chau emphasized: If these obstacles are not removed soon to restart the projects, it will not only waste land resources and lead to revenue losses for the state budget, but also create difficulties for businesses and result in a housing shortage, making it difficult for housing prices to fall in the short term.
Besides issues related to the developer's capacity, Mr. Chau also stated that many real estate projects are currently stalled due to obstacles in project transfer regulations.
According to current regulations, the investor is only allowed to transfer the project after fulfilling all financial obligations related to land.
HoREA argues that this is not really in line with reality, because if the investor has fulfilled their financial obligations, they only need to wait about 21 days to be granted the Certificate of Land Use Rights, which is no different from the previous regulations in the 2014 Law on Real Estate Business.
Therefore, HoREA proposes allowing the transfer of projects even when the investor has not yet fulfilled their financial obligations, provided that the transferee is responsible for fulfilling these obligations on their behalf.
"This approach will help resolve the situation of hundreds of stalled projects, while ensuring that the state budget still collects all taxes and fees," Mr. Chau said.
The Chairman of HoREA analyzed that Resolution 42 on handling bad debts allows the transfer of real estate projects with collateral without requiring the fulfillment of financial obligations beforehand. Thanks to this, during the period 2017-2023, many projects were processed quickly, helping the market operate more smoothly.
Furthermore, the 2020 Investment Law stipulates that the transfer of projects outside the real estate sector only requires that the project has not ceased operations and meets the conditions in the investment approval document. HoREA argues that applying this principle to real estate projects would ensure fairness among different types of projects.
Therefore, if it is proposed that in cases where the investor transfers all or part of a real estate project that has not yet fulfilled its financial obligations regarding land, the transferee investor will be obligated to fulfill these obligations on behalf of the transferring investor. This would help revitalize the market and create opportunities to restart stalled projects.
"This proposal also ensures revenue for the state budget as the acquiring enterprise will continue to fulfill its financial obligations," HoREA emphasized.
Source: https://www.congluan.vn/giao-dat-cho-chu-dau-tu-bat-dong-san-kem-nang-luc-lang-phi-post334439.html
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