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Provinces call for investment in real estate projects

Update: February, 21/2020 - 10:20
A resort project in Bà Rịa-Vũng Tàu Province. The province is seeking investment for 37 key projects, including 16 public investment projects. — Photo dotproperty.com.vn

HCM CITY — A number of provinces across the country are calling for investment in key real estate projects, attracting the attention of real estate businesses with strong capacity.

Mai Trung Hưng, deputy director of Bà Rịa-Vũng Tàu Province’s Department of Construction, said that 37 key projects, including 16 public investment projects, are seeking investment.

The department has been assigned by the provincial People’s Committee to invite bids for the South Vũng Tàu New Urban Area Project, he said. 

Covering ​​69.46 hectares, the project, with a cost of VNĐ4.62 trillion (US$198.75 million), includes townhouses, villas, apartments and shopping centres in wards 10 and 11 in Vũng Tàu City. 

In addition, the province has agreed on the investor selection procedures for 12 projects. 

There are five major projects that the province has not called for investors due to problems related to site clearance and investment procedures. 

The province said it would solve the problems so that bidding for these projects could start this year.

In addition, Đồng Nai Province is calling for investment in two social housing projects, including one project covering 1.41 hectares in Long Bình Tân Ward in Biên Hòa City, and another project covering 5 hectares in Lộc An Commune in Long Thành District, which has completed technical infrastructure.

Meanwhile, Bình Phước is calling for investment in Suối Cam Lake resort with an area of nearly ​​1.8 hectares located in Tân Phú and Tiến Thành wards in Tân Thành Commune in Đồng Xoài City.

Thái Văn Thắng, deputy head of Long An Province’s Department of Planning and Investment’s Foreign Economic Relations Division, said the province would invite bids for investment in 10 projects, most of them property projects, in the first quarter.

The projects have been licensed for many years, but have had their licences withdrawn because of long delays. The province will have to conduct bidding again, he said.

Ngô Đức Sơn, deputy general director of DRH Holdings, said many provinces have focused on calling for investment, especially in property projects, providing information on planning and criteria of each project to investors.

However, Sơn said the provinces should diversify investment promotion programmes.

“For large projects, investors need to prepare for investment plans, capital sources and seek partners, which takes at least two to three years to finish investment procedures,” he noted.

According to Sơn, potential investors with strong financial capacity should be selected. Many businesses just register for investment for land speculation and then transfer it to others to earn a profit. 

In many cases, after cleared land was allocated to businesses, many projects were delayed for a long time, causing damage to localities, he noted.

Lawyer Nguyễn Văn Hùng of HCM City Bar Association pointed out that although the Investment Law has specific provisions on the extension of projects, law enforcement remains weak. Many projects have been delayed for up to 10-15 years, and have not been handled well by localities.

Localities must improve investment promotion activities, choose better investors, and apply stricter sanctions on investment violations so that capable investors with a strong financial capacity will be attracted to the projects, he said. — VNS

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