(CLO) Chairman of HoREA, hundreds of projects in Ho Chi Minh City are stuck in legal problems partly due to the incompetent investors. If they are not resolved soon to restart, it will be a waste of land resources and a loss of state budget revenue.
Citing data from the Ho Chi Minh City Department of Construction, the Ho Chi Minh City Real Estate Association (HoREA) said that in the 2015-2023 period, the city had 86 real estate and commercial housing projects that were suspended or not implemented, accounting for 62.3% of the total 138 housing projects.
HoREA emphasized: 86 real estate projects that have been suspended have a land use scale of up to 964 hectares, which causes a huge waste of land resources and investment capital of enterprises.
In addition to the 86 projects that have been suspended, the city also has 220 real estate projects with legal problems, including 72 projects transferred by the Prime Minister's Working Group and 148 projects compiled by HoREA.
Handing over land to incompetent real estate investors is a huge waste. (Illustration photo/VNA)
Of the total 220 projects, 77 have been processed, reaching 35%, and 143 projects are still being processed.
Mr. Le Hoang Chau, Chairman of HoREA, said that hundreds of projects are stuck in legal problems partly due to the incompetence of investors. Mr. Chau emphasized: If the problems are not resolved soon to restart, it will be a waste of land resources, loss of state budget revenue, difficulties for businesses, and lack of housing supply, making it difficult to reduce housing prices in the short term.
In addition to issues related to the investor's capacity, Mr. Chau also said that many real estate projects are currently stalled due to problems in project transfer regulations.
According to current regulations, investors are only allowed to transfer projects when they have completed all financial obligations regarding land.
HoREA believes that this is not really suitable for reality, because if the investor has fulfilled his financial obligations, he only needs to wait about 21 days to be granted a Land Use Rights Certificate, no different from the previous regulations in the 2014 Law on Real Estate Business.
Therefore, HoREA proposed to allow project transfer even if the investor has not fulfilled its financial obligations, on condition that the transferee must be responsible for performing this obligation instead.
“This approach will help resolve the situation of hundreds of projects being “covered up,” while ensuring that the state budget still collects all taxes and fees,” said Mr. Chau.
The Chairman of HoREA analyzed that in Resolution 42 on handling bad debts, it allows the transfer of real estate projects with secured assets without having to fulfill financial obligations first. Thanks to that, in the period of 2017-2023, many projects have been handled quickly, helping the market operate more smoothly.
In addition, the Investment Law 2020 stipulates that the transfer of a project not in the real estate sector only requires that the project not be terminated and meet the conditions in the investment approval document. HoREA believes that if this principle is applied to real estate, it will ensure fairness between project types.
Therefore, if it is proposed that the investor transfers all or part of a real estate project that has not fulfilled its financial obligations regarding the project's land, the investor receiving the transfer will be obliged to fulfill this obligation on behalf of the transferring investor, which will help clear the market and create opportunities to restart stalled projects.
"This proposal also ensures revenue for the state budget when the transferee enterprise will continue to fulfill its financial obligations," HoREA emphasized.
Source: https://www.congluan.vn/giao-dat-cho-chu-dau-tu-bat-dong-san-kem-nang-luc-lang-phi-post334439.html
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