Quang Nam: Ending the market area project after 4 years "on paper"
After 4 years of approving the investment policy for the housing construction project in Tan An market area (Quang Nam) which is still "on paper", the Department of Planning and Investment of Quang Nam province has just issued a document terminating the operation of this project.
The Department of Planning and Investment of Quang Nam province has announced the termination of the investment project of Tan An Market Quarter, Tan Binh town, Hiep Duc district.
According to the Department of Planning and Investment of Quang Nam province, the termination of the project is decided by the investor himself according to regulations.
The Department of Planning and Investment of Quang Nam province requires Duy Dung One Member Co., Ltd. to be responsible for completing the procedures for liquidating the investment project and performing the obligations of the investor in accordance with the provisions of law.
It is known that the project investor has sent a notice to the Provincial People's Committee and the Department of Planning and Investment of Quang Nam about stopping the project from April 17, 2024.
According to Duy Dung One Member Co., Ltd., the project's termination was due to the Covid 19 pandemic spreading nationwide for 2 years, temporarily suspending all projects, causing the project's implementation progress to be prolonged.
In addition, in 2023, real estate projects in Quang Nam will be temporarily suspended to review reports for inspection by Quang Nam province and the Government. After the inspection decision is made, Quang Nam province must have time to rearrange personnel to implement the inspection decision to continue directing real estate business projects.
The state policy of issuing the new adjusted Land Law approved by the National Assembly, effective from 2024, and the new Bidding Law and Bidding Decree have made the procedures for compensation and site clearance, the selection of project implementation units prolonged, the price of construction materials increased, causing the investment capital to increase compared to the project investment policy.
The high investment capital of the project while the real estate market situation nationwide in general and Quang Nam in particular has been in a sharp and prolonged decline. This creates a psychological feeling that the demand for buying is very low, which is the basis for the project's financial imbalance, making the project less feasible compared to the time of deciding on the project investment policy;
In addition, the national business situation after Covid 19 is very difficult, especially for businesses in the construction industry, causing the company's financial situation to not meet the set plan.
It is known that in September 2018, the People's Committee of Quang Nam province recognized Duy Dung One Member Co., Ltd. as the investor of the Tan An Market Quarter Housing Construction Investment Project with a total area of nearly 5 hectares.
By November 2020, the People's Committee of Quang Nam province issued a document approving the investment policy of the Tan An Market Quarter Housing Construction Investment Project with a total investment of more than 65 billion VND.
The project aims to synchronously invest in technical infrastructure, social infrastructure of residential areas and build market houses to connect regional infrastructure synchronously according to the approved detailed planning 1/500; develop housing according to the detailed planning, design housing and build market houses to meet the trading needs of people in the area.
However, 4 years after approving the investment policy, the project has yet to start construction.
Source: https://baodautu.vn/quang-nam-cham-dut-du-an-khu-pho-cho-sau-4-nam-nam-tren-giay-d224741.html
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