A real estate company calls for help because the project has been "frozen" for 6 years and has not been resolved.

On May 28, taking us to the construction site of the Binh Dang Commercial Service - Apartment Project in District 8 of Saigon 5 Real Estate Development Joint Stock Company (Saigon 5 Real Estate), Mr. Nguyen Hoang Minh, Deputy General Director of Saigon 5 Real Estate, expressed his sadness for the project that has been suspended for nearly 6 years due to administrative procedures that have not yet been resolved.

According to Mr. Minh, Saigon 5 Real Estate had completed the project investment procedures before the company was equitized in September 2016. By January 2018, the project was granted a construction permit and started construction. When the foundation, basement and ground floor were completed, construction had to be temporarily suspended from July 2019 until now.

The initial problem was that the project's legal entity name from a 100% state-owned company to a joint stock company was stuck in the process of equitization, determining enterprise value, and appraising land prices, so the new name from a limited liability company to a joint stock company had not been updated, so the project was stopped.

During the process of dismantling that has lasted for many years, in June 2024, the Ho Chi Minh City People's Committee directed to remove obstacles and update the new legal name for the project. The whole company is happy because they believe that the project can be restarted.

The leaders of the City People's Committee, specifically Vice Chairman Bui Xuan Cuong, also requested to promptly resolve difficulties for businesses and avoid losses of state capital.

However, when the company submitted its application for a construction permit for phase 2, the Department of Construction requested that the 1/2000 planning be updated by the People's Committee of District 8, and that it contact the Department of Planning and Investment (currently the Department of Finance) to adjust the progress in the decision to approve the project investment. The reason was that according to regulations, the project implementation period was only 2 years, while the project was already 6 years behind schedule.

However, relevant departments only provide guidance back and forth, without any specific and definitive solution.

According to Mr. Minh, it is worth mentioning that from the end of 2024 until now, the City People's Committee has sent documents 4 times requesting departments, branches and District 8 People's Committee to remove obstacles for the project, but for unknown reasons, the problem has not been resolved yet.

“The company has been established and developed for 30 years, and has implemented many stable projects, but because of this procedural problem, it has fallen into financial exhaustion. Up to now, more than 50% of the staff have quit their jobs, and each month the company has to pay more than 1 billion VND in bank interest.

More tragically, banks have also announced that if the financial situation does not improve, the possibility of the project being transferred to bad debt is very high. This causes a great loss of opportunity cost and capital loss for the State" - Mr. Minh shared.

Company leaders are saddened by the project's problems that have not been resolved.

Saigon 5 Real Estate Company is a member unit of Saigon Real Estate Corporation, with the State holding up to 99.78% of charter capital, equivalent to more than 362 billion VND.

The Binh Dang Commercial Service Residential Area - Apartment Project has an extremely favorable location, adjacent to four street frontages, of which the main facade is located on Highway 50, right in the center of District 8. The project has a total initial investment of nearly 600 billion VND, designed to include 276 apartments.

To date, the company has borrowed capital from banks and invested about 260 billion VND in the foundation and related items. However, the project has been in a "frozen" state until now due to unresolved legal procedural problems.

Source: https://nld.com.vn/mot-doanh-nghiep-dia-oc-keu-cuu-vi-du-an-dung-hinh-6-nam-chua-duoc-thao-go-196250529144012049.htm