A number of provinces across Vietnam are calling for investment in key real estate projects, attracting the attention of real estate businesses with strong capacity.

Ba Ria-Vung Tau provincial Department of Construction deputy director Mai Trung Hung said 37 key projects, including 16 public investment projects, are seeking investment.

The department has been assigned by the provincial People’s Committee to invite bids for the South Vung Tau New Urban Area Project, he said.

Covering 69.46ha, the project, with a cost of 4.62 trillion dong ($200 million), includes townhouses, villas, apartments and shopping centres in wards 10 and 11 in Vung Tau city.

In addition, the province has agreed on the investor selection procedures for 12 projects.

There are five major projects that the province has not called for investors due to problems related to site clearance and investment procedures.

The province said it would solve the problems so that bidding for these projects could start this year.

In addition, Dong Nai province is calling for investment in two social housing projects, including one project covering 1.41ha in Long Binh Tan ward in Bien Hoa city, and another project covering 5ha in Long Thanh district’s Loc An commune, which has completed technical infrastructure.

Meanwhile, Binh Phuoc province is calling for investment in the Suoi Cam Lake resort with an area of nearly 1.8ha located in Tan Phu and Tien Thanh wards in Dong Xoai city’s Tan Thanh commune.

Long An provincial Department of Planning and Investment’s Foreign Economic Relations Division deputy head Thai Van Thang said the province would invite bids for investment in 10 projects, most of them property projects, in the first quarter.

The projects have been licensed for many years, but have had their licences withdrawn because of long delays. The province will have to conduct bidding again, he said.

DRH Holdings JSC deputy director-general Ngo Duc Son said many provinces have focused on calling for investment, especially in property projects, providing information on planning and criteria of each project to investors.

However, Son said the provinces should diversify investment promotion programmes.

“For large projects, investors need to prepare for investment plans, capital sources and seek partners, which takes at least two to three years to finish investment procedures,” he noted.

Potential investors with strong financial capacity should be selected, Son said. Many businesses just register for investment for land speculation and then transfer it to others to earn a profit.

In many cases, after cleared land was allocated to businesses, many projects were delayed for a long time, causing damage to localities, he noted.

Ho Chi Minh City Bar Association lawyer Nguyen Van Hung pointed out that although the Investment Law has specific provisions on the extension of projects, law enforcement remains weak. Many projects have been delayed for up to 10-15 years, and have not been handled well by localities.

Localities must improve investment promotion activities, choose better investors, and apply stricter sanctions on investment violations so that capable investors with a strong financial capacity will be attracted to the projects, he said.

VIET NAM NEWS/ASIA NEWS NETWORK