'Golden' real estate projects sleeping peacefully in Binh Duong

Binh Duong , one of the leading localities in the country in attracting investment and urban development, is facing a difficult problem: a series of important real estate projects are "stalled".

Projects that were once expected to change the face of the area have now become a nightmare for the people. Typical examples include the Vo Minh Duc residential area project, the 21st Century residential area (Thu Dau Mot city) and the Roxana Plaza apartment complex (Thuan An city); these projects not only waste resources but also seriously affect the lives and trust of the people.

When the dream of settling down is far away

Started in 2010 in Chanh Nghia Ward, Thu Dau Mot City, the Vo Minh Duc residential area project was once promoted as an ideal place for hundreds of families to settle down. However, 14 years have passed, and that dream remains unfulfilled. Thanh Nguyen Investment - Construction and Real Estate Trading Joint Stock Company, the project investor, not only failed to complete the project but was also accused of illegal construction.

Dozens of households have spent money to buy houses here in the hope of having a stable place to live, but what they received in return were only long-term promises. Mr. Tran The A, a customer, shared: “I spent more than a billion VND to deposit to buy a 5x15m house. To pay, I also borrowed from the bank, but until now, I don’t have a house and the interest is piling up.”

Ms. Nguyen Thi M, another customer, said she had paid up to 3 billion VND for her dream house. However, all she received were documents asking for an extension from the investor. “We have hung banners and sent petitions to the authorities many times, but to no avail,” Ms. M said.

The 21st Century Residential Area Project in Phu Cuong Ward, Thu Dau Mot City, was assigned to Tan Vu Minh Construction - Investment - Real Estate Trading Company Limited in 2006. Although it has been implemented for nearly two decades, this project is still not completed, causing disruption to people's lives. In 2016, the People's Committee of Binh Duong province revoked the project and planned to convert it into Phu Cuong Park. However, this orientation has not been specified yet.

Residents living in the suspended project area were upset: “Our houses are in disrepair, but we dare not repair them for fear of losing everything if the project is implemented. We just hope the government will return our land use rights so we can settle down.”

The Roxana Plaza project in Thuan An city is another example of the stagnation in Binh Duong's real estate sector. Started in 2017 with the original name Contentment Plaza, the project was invested by Tuong Phong Real Estate Investment Trading Service Construction Company Limited. However, to date, the project has not yet handed over apartments as committed.

Hundreds of customers are in a dilemma. According to the decision of the People's Committee of Binh Duong province, a special task force has been established to resolve related issues. Hundreds of people who bought houses in the project have questions such as: When will Tuong Phong Company complete the construction and hand over the apartments to the people? If the investor does not complete the construction and hand over the apartments to the people, how will the government handle the issue?

Conclusion 308/KL-UBND dated August 22, 2023 of the People's Committee of Binh Duong province requires Tuong Phong Company to continue signing apartment sale and purchase contracts with households according to the contracts signed with the authorized company, Naviland Joint Stock Company. Therefore, the contracts that households have signed with Naviland Joint Stock Company are still valid. Why not continue to sign 3-party contracts between Tuong Phong Company, Naviland Joint Stock Company and the residents but have to liquidate the contract with Naviland Joint Stock Company and then sign a new contract with Tuong Phong Company...

Difficulties in handling and efforts from the government

Faced with the complicated situation at the Vo Minh Duc project, the leaders of the Binh Duong Department of Construction have requested the investor to complete the project portion that has been allocated land; at the same time, adjust the planning and divide the project into appropriate investment phases. If the investor fails to meet the requirements, the authorities will consider bringing the matter to court, even requesting the police to investigate and handle violations, in order to protect the rights of the people.

Mr. Huynh Pham Tuan Anh, Deputy Director of the Department of Construction of Binh Duong province, shared that the Department does not want to criminalize economic contracts between the parties, but to resolve the issue completely, it may be necessary to request the involvement of law enforcement agencies. Revocation of the project and compensation for the people may be the optimal solution to end the backlog. The province has now adjusted the project implementation schedule for the Vo Minh Duc project until 2028.

As for the Roxana Plaza project (formerly known as Contentment Plaza), the investor is Tuong Phong Real Estate Investment Trading Service Construction Company Limited. Currently, blocks A and B of the apartment complex in this project have been topped out and are in the interior finishing stage. However, Tuong Phong Company and Naviland Joint Stock Company have not yet reached an agreement with all customers who have signed the transfer contract.

To resolve the problems, the People's Committee of Binh Duong province issued Decision No. 2026/QD-UBND dated July 8, 2024, establishing a working group to dialogue with relevant parties. The working group has organized three dialogue sessions and is continuing to work to synthesize documents and report to the Provincial People's Committee to propose a solution.

The violation of construction and real estate business regulations by Tuong Phong Company and Naviland Joint Stock Company at the project has been handled by competent state agencies in accordance with the law.

Meanwhile, the Phu Cuong Park project (formerly the 21st Century Residential Area) invested by the Provincial Land Fund Development Center has also encountered many obstacles. The project has dragged on for many years, making the lives of resettled households difficult. From 2017 to 2021, the Provincial People's Committee directed the advance payment from the Land Development Fund to support temporary housing for people with a total amount of VND 5,928 billion. However, the State Audit determined that this was not in accordance with regulations and requested the recovery of funds.

Faced with this situation, the Provincial People's Committee has temporarily suspended the advance payment of capital from the Land Development Fund and assigned relevant departments and branches to study appropriate support plans. Meetings between the Department of Natural Resources and Environment, the Department of Finance and the People's Committee of Thu Dau Mot City were held to review and propose feasible solutions. On May 28, 2024, the relevant parties agreed to submit to the Provincial People's Committee a plan to support temporary housing for 2022 and 2023. At the same time, the resettlement arrangement for households whose land was recovered was also proposed to be assigned to the People's Committee of Thu Dau Mot City to coordinate implementation, ensuring rights in accordance with legal regulations.

Slow-moving real estate projects not only waste resources but also lose people’s trust. Binh Duong provincial authorities are trying to promote solutions to “awaken” these “sleeping” projects by speeding up legal progress, adjusting planning and calling for investment.

Restarting these projects not only helps balance the interests of residents and investors, but also promises to contribute to sustainable urban development. Facing great challenges, Binh Duong is aiming to build a modern city, meeting the needs of residents for settlement and creating momentum for socio-economic development.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/nhung-du-an-bat-dong-san-vang-ngu-yen-tai-binh-duong/20241119084312318