Why has the Phu Thinh Social Housing Apartment project not been re-constructed?

Project behind schedule

This is one of two large-scale social housing projects in Phan Thiet City under construction, with social security purposes according to the policy of the Government and local authorities, to serve the housing needs of low-income people and stabilize their lives. However, the deadline for handing over the houses has been over 9 months, but the project has not been completed yet. After many meetings with the relevant authorities, the investor has committed to the Provincial People's Committee to hand over the houses soon, but to date the project has stopped construction, not implementing the committed content.

Phu Thinh social housing project is under construction.

According to the Department of Construction, the investor has not yet deposited funds to ensure project implementation. The Inspectorate of the Department of Planning and Investment (old) has issued a Decision dated January 8, 2025 to impose an administrative fine of VND 60 million. After reviewing the subjects registering to buy, rent, and rent-purchase social housing at the project, they are all in accordance with the provisions of the Housing Law. The number of customers that the Department of Construction has commented on as eligible to buy and rent apartments at the project is 552 applications/570 apartments, the remaining number of apartments is 18.

Regarding the construction of Route 2, Hung Long Service - Park - Resettlement Area, Phan Thiet City, according to the opinion of the People's Committee of Phan Thiet City, the legality is currently being considered, and specific land prices are being built. A meeting of the City's Land Price Council will be held for approval, and construction is expected to start in June 2025 in accordance with the direction of the Provincial People's Committee.

After many meetings to resolve difficulties for the project, at the meeting on March 21, 2025 with the Provincial People's Committee, the investor committed to making efforts to speed up the construction progress and work 3 shifts a day in early April 2025 to meet the committed progress. Regarding the recommendations of customers buying houses at the project, the investor is still continuing to make efforts to deliver houses to customers on time. The investor has discussed with a number of customers buying houses, compared with the signed sales contract, if the investor does not perform the contract properly, the households have the right to calculate interest according to the bank for the delayed time and the investor will deduct it from the apartment purchase value. The investor commits that the completion time of the blocks is as follows: Block B, C at the end of September 2025, Block A in December 2025. However, according to a survey by the authorities by mid-April 2025, the investor had only completed the rough construction of 3 blocks A, B, C. Internal traffic infrastructure works, gardens, etc. have not been built and the project is "inactive".

The delivery date is more than 9 months overdue.

Stuck in capital disbursement procedures

On the afternoon of April 18, 2025, Standing Vice Chairman of the Provincial People's Committee Phan Van Dang had a meeting with the investor of the Phu Thinh social housing apartment project on the project implementation status. Reporting to the leaders of the Provincial People's Committee, the investor affirmed that the project has basically completed 80%, the remaining 20% ​​is mainly the equipment installation stage. In addition, the investor said that the project's credit capital has been guaranteed by the bank for loan approval. However, this credit is lent by the bank to the construction unit; the investor guarantees the loan of the construction unit. Because of this process, it affects the progress of capital disbursement. The investor affirmed that it will speed up the construction progress and complete the project as soon as it receives official notice from the bank.

Explaining the project's delay, the investor also added that the company has not yet paid or has the obligation to guarantee the deposit to ensure the project's implementation, the reason being that the company has spent a huge amount of money to compensate for site clearance for construction, this amount is larger than the project's investment deposit cost. In addition, the construction of Road No. 2 (the road to the project) is facing difficulties, leading to insufficient basis for the bank to disburse credit capital for project construction. In order to promptly hand over houses to customers, the Department of Construction recommends that the Provincial People's Committee take measures to handle according to legal regulations if the investor is behind schedule...

At the meeting, Standing Vice Chairman of the Provincial People's Committee Phan Van Dang shared the difficulties that the investor is facing and requested the Department of Construction to coordinate with the investor to review the customers who bought houses here, ensuring that they meet the criteria and comply with the provisions of the law. At the same time, he requested the investor to focus on completing the project and handing over houses to customers according to the schedule committed to the Provincial People's Committee, as soon as there is an official announcement from the bank. Emphasizing the importance of Route 2 to the project, the Standing Vice Chairman of the Provincial People's Committee also requested the People's Committee of Phan Thiet City to focus on all related work and soon complete Route 2, so that the investor can urgently construct and complete the project.

It is known that Phu Thinh Social Housing Project, Phan Thiet City has a total of 712 apartments, of which 540 are social housing units, the rest are commercial apartments. The project is invested by Phu Thinh Real Estate Investment and Trading Company Limited (Phu Thinh Company), with a total capital of more than 868 billion VND. The project started construction in early 2020 and is scheduled to be completed in July 2024.

Source: https://baobinhthuan.com.vn/vi-sao-du-an-khu-chung-cu-nha-o-xa-hoi-phu-thinh-chua-thi-cong-lai-129632.html