After 8 years of "shelving", Vicem proposed to complete the tower on Pham Hung Street, Hanoi for exploitation.
The Ministry of Construction has just proposed to the Prime Minister to allow the Vietnam Cement Corporation (Vicem - 100% state-owned capital) to continue completing the Vicem Operation and Transaction Center project (Vicem Tower - Lot 10E6, Cau Giay New Urban Area, Hanoi) for exploitation. This proposal is based on Vicem's own needs after many years of the enterprise leaving the building abandoned.
Vicem Tower was invested by this corporation since 2010 on a land area of nearly 8,500 m2, construction area of 2,800 m2; scale of 31 floors above ground, 4 basements. The initial total investment was 1,951 billion VND, then, in the 2011 decision, it was adjusted to 2,743 billion VND. The investment is to build the office of Vicem, member units, conference hall and commercial services.
The unfinished Vicem Tower has been "shelved" for the past 8 years. Photo: Ngoc Thanh
Explaining the proposal, Mr. Ha Quang Hien, Chief of Office of Vicem, said that they and their member units are lacking working offices. The office built in 1980 is now degraded, has a small area, and is located within the railway safety line, so it does not ensure traffic safety. The new headquarters will meet the development scale of the enterprise, with working space, meeting rooms, transaction offices, and product introduction.
In 2011, the tower was started, however after completing the construction of the entire underground structure, the main part of the building was shelved from August 2015 until now.
In the following period, Vicem repeatedly requested the Ministry of Construction to allow it to develop a plan and find a partner to transfer the tower to recover capital. The Ministry of Construction reported and the Prime Minister agreed to allow the Corporation to transfer in March 2017.
However, this activity could not be implemented because the project encountered many difficulties regarding investment law, land, and the arrangement and handling of real estate assets belonging to state-owned enterprises.
To avoid waste, Vicem proposes to continue investing in completing the project. If approved, the company will review the project to ensure it is appropriate, economical, and in compliance with the law.
The Government Office has sent this content to the ministries of Justice, Finance, Planning & Investment, and Natural Resources & Environment for comments to have a basis for submission to the Prime Minister.
As one of the key enterprises under the management of the Ministry of Construction, Vicem has recently encountered difficulties due to domestic and international fluctuations. Last year, this enterprise had a record low profit of more than 1,500 billion VND, since it announced information in 2015.
This year, the domestic cement market is forecast to continue to face challenges due to slow recovery of civil construction, slow implementation of projects due to capital congestion, slow disbursement of public investment, sluggish real estate market, while raw material prices remain high.
Duc Minh - Doan Loan
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