Vice Chairman of Ho Chi Minh City directed to urgently remove obstacles for Saigon Real Estate project 5

The Office of the Ho Chi Minh City People's Committee has just issued a document announcing the conclusion of Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong on recommendations related to Saigon 5 Real Estate Development Joint Stock Company and the Binh Dang Apartment Service and Commercial Area project (National Highway 50, District 8).

Phó Chủ tịch TP HCM chỉ đạo gấp rút gỡ vướng dự án của Địa ốc Sài Gòn 5 - Ảnh 1.

Unfinished project of Saigon Real Estate 5

Accordingly, Vice Chairman of the City Bui Xuan Cuong assigned the Department of Natural Resources and Environment (TN-MT) to give opinions on the appraisal of the value of the company's unfinished costs, finished products, and inventories before officially converting into a joint stock company... to submit to the City People's Committee no later than June 2023.

Regarding the proposal related to the Binh Dang Apartment Service Commercial Area project, in 2021, the City People's Committee issued a notice requesting the Department of Natural Resources and Environment to update the name change of the land user as Saigon 5 Real Estate on the certificate of land use rights, house ownership rights and other assets attached to the land. However, the Department of Natural Resources and Environment said that the City Police requested to provide documents related to a number of premises managed and used by Saigon Real Estate Corporation - One Member Co., Ltd., including the land belonging to the Binh Dang Apartment Service Commercial Area project.

Also according to the meeting conclusion document, the City Police and the City Party Committee's Internal Affairs Committee agreed that with the direction of the City People's Committee, the Department of Natural Resources and Environment should continue to urgently review, resolve, and propose the Saigon Real Estate Corporation - LLC as well as the contents of the direction and conclusion of the City People's Committee Chairman and report the results no later than June 15, 2023; not to delay to affect or reduce the efficiency of the enterprise's investment capital.

Regarding Saigon 5 Real Estate's request for support of 58 billion VND from Saigon Real Estate Corporation, Mr. Bui Xuan Cuong said that the City People's Committee does not directly intervene in the production and business activities of the enterprise.

Therefore, it is recommended that Saigon Real Estate Corporation, as the owner of the capital contribution, take the initiative and have appropriate, positive and feasible solutions to handle Saigon Real Estate 5's request to support the company, ensuring the preservation and development of investment capital.

As reported by Nguoi Lao Dong Newspaper , because the procedures have not been completed and the name has not been updated to a joint stock company, the project of Saigon 5 Real Estate Joint Stock Company has not been granted a construction permit for the main part, has not been granted a permit to open for sale future housing... Up to now, the project has been delayed for 7 years, causing the company to fall into a state of illiquidity, unable to pay principal and interest to the bank, and has been converted into bad debt.

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