For the past 6 years, the project has been "shelved" while businesses are eagerly waiting for procedures and people are hoping to have a house - Photo: NGOC HIEN
On June 2, the Office of the Ho Chi Minh City People's Committee sent document No. 8228 to the Department of Construction and the Department of Finance regarding the Binh Dang commercial service and apartment project (District 8, Ho Chi Minh City). This document was also sent to Tuoi Tre newspaper .
Criticize 2 departments for delay in handling procedures
According to the content of the document, on May 29, Tuoi Tre newspaper published an article "Painful apartment project worth hundreds of billions of dong 'frozen' for 6 years in Ho Chi Minh City", reflecting on the settlement of granting construction permits for the main part (phase 2) of the Binh Dang commercial service - apartment project. Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong commented as follows:
Regarding the removal of difficulties and obstacles of the Binh Dang commercial service area - apartment project, the City People's Committee has issued directive documents (official dispatches dated April 2, 2025, November 18, 2024, notice dated October 30, 2024) and the City People's Committee Office has issued a transfer note dated January 9, 2025 to relevant agencies to consider and resolve the petition of Saigon 5 Real Estate Development Joint Stock Company, urging the implementation of directive documents of the City People's Committee.
But up to now, the Department of Construction and the Department of Finance have not yet consulted the City People's Committee to consider the proposal to locally adjust the 1/2000 scale zoning plan (updating the architectural planning criteria of the project) and extend the project investment progress, to have a basis for resolving the issuance of construction permits (phase 2) for the Binh Dang commercial service - apartment project.
The Ho Chi Minh City People's Committee criticized the Department of Construction and the Department of Finance for the delay in handling the above procedures. At the same time, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong assigned the Department of Construction and the Department of Finance to report on the results of implementing the direction of the City People's Committee and submit it to the City People's Committee before June 10, 2025.
Businesses hope to restart projects soon
Speaking to Tuoi Tre Online at noon on June 2, Mr. Nguyen Hoang Minh - Deputy General Director of Saigon 5 Real Estate Development Joint Stock Company - said that the company thanks Tuoi Tre newspaper and media agencies for accompanying and reflecting the difficulties and problems of the company to promote the implementation of Resolution 68 on the private economy .
According to Mr. Minh, the business hopes that the authorities will soon intervene and remove obstacles related to the licensing procedures for phase 2 so that the project can start, "saving" the business from financial difficulties.
As Tuoi Tre Online reported earlier, despite starting construction 6 years ago, pouring in more than 260 billion VND and having completed the ground floor, the Binh Dang commercial service - apartment project (District 8, Ho Chi Minh City) has been "frozen" for the past 6 years due to administrative procedures.
Every month, the investor has to pay about 1 billion VND in bank interest, and has so far generated more than 51 billion VND in profit, while the project is stuck in administrative procedures, causing financial difficulties for the business.
What problems did the project encounter that made it "freeze" for 6 years?
A representative of Saigon 5 Real Estate Development Company said there were two problems that caused the project to stall. First, because this was an equitization, there were problems with the valuation of the enterprise.
This led to the fact that the name of the land-using unit has not been updated to Saigon 5 Company from Saigon 5 Construction and Trade Company Limited. After many meetings to resolve the issue, by June 2024, the name of the new land-using unit on the red book was updated.
Although the name on the red book had been updated, when the enterprise submitted the application for a construction permit for phase 2, the Department of Construction requested to contact the People's Committee of District 8 to update the 1/2,000 planning and contact the Department of Planning and Investment to adjust the progress in the decision to approve the project investment because the project was 6 years behind schedule, while the initial approval was only 2 years.
According to documents of the Ho Chi Minh City People's Committee, from the end of 2024 until now, the City People's Committee has issued 4 documents to remove obstacles for the project, assigning specific tasks to departments and the People's Committee of District 8, and at the same time extending the completion time to November 10, 2024, November 30, 2024, December 10, 2024, April 15, 2025, respectively.
"Up to now, nearly 7 months have passed, but the documents related to the granting of construction permits for the main part of the Binh Dang project have not been resolved by the departments and branches according to the direction of the Standing Committee of the City People's Committee," the business informed.
Source: https://tuoitre.vn/tp-hcm-phe-binh-so-xay-dung-so-tai-chinh-sau-phan-anh-cua-tuo-tre-2025060211521245.htm
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