Vietnam’s property firms face financial difficulties

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Mai Chi Tho Boulevard in the new Thu Thiem Urban Area in Ho Chi Minh City’s District 2. LE QUAN/ZING.VN/VIET NAM NEWS

HO CHI Minh City-based property developers listed their difficulties at a meeting between the Ho Chi Minh City Real Estate Association and city authorities on Wednesday.

A Cho Lon Real Estate Company executive urged the city to invest more money in the joint-venture projects with it, saying it is unable to raise funding for them.

Vietcomreal called on city authorities not to review the legal aspects of old property projects already sold to customers since it would cause anxiety among the public.

According to Dia Oc Xanh chairman Nguyen Van Duc, his company’s 5,000sqm project faces difficulties related to land-use fees for a 125sqm area.

He said this year developers would face challenges as land-use fees were set to increase.

Ho Chi Minh City Department of Construction director Tran Trong Tuan admitted there were “challenges and difficulties” related to land-use fees and identifying developers before a project gets under way.

He said only 25 per cent of property projects licensed for construction now were on lands approved for construction, with the remaining being agricultural lands for which taxes have not been paid to convert their purpose.

City authorities had twice asked the government to resolve these issues and urged developers to go ahead with their projects, he said.

Delays in these projects not only increased construction costs, but also had a negative impact on the real estate market and the city’s Housing for Low Income Group programme, he added.

Ho Chi Minh City deputy chairman Tran Vinh Tuyen said the city would provide sufficient information about the real estate markets to the public.

“The city authorities must safeguard citizens’ legal benefits.”

Projects which had been approved and licensed by relevant agencies must be allowed to be completed, he said.

The People’s Committee promised that officials would meet with the leaders of Districts Nha Be, 2 and 5 next week to guide them on these issues.

The city was also considering exemption of land-use fees for houses built under the Housing for Low Income Group programme, he added. VIET NAM NEWS/ANN