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Why does Vicem want to continue investing in the trillion-dollar tower that has been abandoned for many years?

Công LuậnCông Luận13/05/2023


Accordingly, the Government Office has sent a document to the Ministries of Justice, Finance, Planning and Investment, and Natural Resources and Environment asking for opinions on the Vicem Operations and Transaction Center Project at Lot 10E6, Cau Giay New Urban Area, Hanoi.

In this document, the Government Office said that it recently received an official dispatch from the Ministry of Construction regarding the Vicem Operations and Transaction Center Project at Lot 10E6 of Cau Giay New Urban Area.

Therefore, in order to have a basis for submitting to the Prime Minister for consideration and decision, the Government Office requests that agencies give their opinions on the proposal of the Ministry of Construction in the above document.

According to the official dispatch of the Ministry of Construction, the Ministry has proposed that the Prime Minister approve the policy of allowing Vicem to continue completing the trillion-dollar tower, which is the Vicem operation and transaction center, to put it into operation after more than 8 years of abandonment and waste.

Why Vicem wants to continue investing thousands of billions of dollars in wasteland for many years through image 1

The project started in May 2011 but has not been completed yet.

It is known that the Vicem operation and transaction center tower was invested in since 2010, with a scale of 31 floors above ground, 4 basements, the total adjusted construction investment capital is about 2,743 billion VND.

The investment goal of the trillion-dollar tower of Vicem (a 100% state-owned enterprise) is to build the headquarters of the corporation, member units, conference hall and commercial center to promote products.

However, after 5 years of completing the rough construction of the tower, since August 2015, Vicem suddenly left it abandoned.

According to Vicem's report, to avoid wasting state assets, during the period 2016 - 2021, Vicem repeatedly requested the Ministry of Construction to allow it to develop a plan and find a partner to transfer the tower to recover investment capital.

The Ministry of Construction also reported and received approval from the Prime Minister for Vicem to transfer the project in 2017. However, the project has not been transferred yet due to many difficulties and problems with investment law, land, and the arrangement and handling of real estate assets belonging to state-owned enterprises.

At the same time, the project transfer took place during a period when the real estate market, especially the commercial center and office for lease segment, faced many difficulties.

In addition, in 2015, the project was temporarily suspended due to some problems arising during the investment process. Therefore, the project has not been transferred yet according to the Prime Minister's instructions.

Based on the above facts, Vicem has repeatedly sent documents requesting the Ministry of Construction to report to the Prime Minister for approval for the corporation to continue investing and completing the Vicem operations and transaction center tower. After receiving approval from the Prime Minister, Vicem will review the project to ensure it is appropriate, economical, efficient and in compliance with legal regulations.

Explaining the need to continue investing in the Vicem Operations and Trading Center project, Vietnam Cement Corporation said: Vicem's current headquarters is an old 8-storey building built in 1980, with a narrow area, infrastructure that has been renovated and repaired many times, and the railway safety line cutting across the entrance to Vicem's headquarters, posing potential traffic safety risks.

Therefore, the need for a new office for Vicem and its member units is necessary. Continuing to invest in completing the Vicem Operations and Transaction Center project with the main goal of being Vicem's office to meet the needs of development scale, working space for Vicem staff, traditional rooms, meeting rooms, conference rooms, archive rooms, group activity rooms, transaction offices, product introduction offices... of Vicem and its member units; This is a symbolic project of Vicem with advanced and modern facilities in line with Vicem's development strategy and expansion scale to meet the development strategy, enhance the position and brand of Vietnam Cement Corporation.

Specifically: Meeting the goal of implementing the Vicem restructuring project "Building and developing Vicem into a pillar enterprise of the Vietnamese Cement industry with a large enough scale, advanced technology level, modern management model, capable of competing regionally and internationally, playing an important role in regulating, stabilizing the market and orienting the development of the Cement industry in accordance with the development strategy of the Vietnamese Cement industry to 2030.

Meet the scale of operations as set out in Resolution No. 004/NQ-DH dated August 18, 2020 of the 3rd Congress of Delegates of the Vietnam Cement Corporation Party Committee, term 2020 - 2025, which includes the content: "Expanding the scale of operations of Vicem in both breadth and depth, in line with the strategic development orientation of Vicem with the goal of efficiency, striving to increase Vicem's market share by 2025 to 38% - 40%.

In accordance with the wishes of Vicem employees, there is a spacious and modern office building, meeting the needs for Vicem's future market share growth because the current office building has many disadvantages - said a document from Vietnam Cement Corporation.



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