A view of Vân Đồn Island in Quảng Ninh Province. — Photo vietnamnet.vn

HCM CITY — The Ministry of Construction has urged authorities on Phú Quốc Island in Kiên Giang Province and Vân Đồn Island in Quảng Ninh Province as well as Vân Phong Bay area in Khánh Hòa Province, to take immediate steps to control surging land prices.

These areas are slated to become special administrative economic units if approved by the National Assembly in October. The special designation would allow them to receive preferential incentives. As such, land speculators have been flocking to the three provinces, driving property prices up.

Nguyễn Văn Sinh, deputy construction minister, in a letter sent to People’s Committees of the three provinces on April 12, said that land speculation was seriously affecting the sustainable development of the property market.

He told authorities to conduct inspections and uncover violations of land and real estate laws, among other regulations. Violations in the provinces include illegal transfer of land-use rights, including transfer of forestland and farmland.

The localities were told to report their inspection results to the ministry’s Housing Management and Real Estate Market Department before May 7.

Land prices in Vân Đồn, Vân Phong and Phú Quốc have reached VNĐ60 million (US$2,632) per square metre, according to a report from the Việt Nam Association of Real Estate Brokers.

Experts warn that special economic administrative units have not been officially approved, and that investors should only pay attention to official reports. — VNS