The stalled projects need to be resolved definitively.

(Baonghean) - Implementing Decision No. 796/QD-UBND.DT dated March 6, 2014, of the Provincial People's Committee on the establishment of inter-agency inspection teams to inspect delayed and unimplemented projects in the province; the two inspection teams have worked diligently and seriously. According to the report of Inspection Team No. 1 (chaired by the Department of Natural Resources and Environment), the current situation of delayed and unimplemented projects makes handling them very difficult.

For projects that have dragged on for many years without implementation, causing land waste, the most positive solution is land reclamation. However, after land reclamation, many issues arise: Should another investor be found to continue the project, or should the land be returned to local management? How should the investor's invested capital be handled? Should the land lease fees be refunded to the investor? Adjusting the detailed planning of items and works to suit actual conditions is a solution to increase the project's feasibility. But in the 17 projects inspected (first phase), only 3 investors requested planning adjustments. These are: The project to build a showroom for processing and trading forest products and handicrafts by the private enterprise Hai Linh requested an adjustment to the purpose of building a construction materials business; The Hoàng Minh Company Limited's project to build a shopping mall, hotel, and office building is requesting a change from a 6-story hotel to a restaurant or commercial warehouse. Similarly, the Quyết Thắng Investment and Development Trading Joint Stock Company's project to build a shopping mall and hotel is requesting a partial adjustment to the hotel construction to build a shopping mall to fit the land plot (essentially removing the hotel component). Thus, these investors are requesting adjustments to the planning aimed at reducing investment in the project, not stemming from actual needs.

For other projects that haven't had their land reclaimed or their planning adjusted, the only solution is to continue implementation. But will these projects be effective if they continue? For example, out of 8 commercial service projects, 2 have had their land reclaimed, while the remaining 6 continue to build hotels, restaurants, and shopping centers. Will these projects be effective when the market for these types of service facilities in Vinh City is already saturated? Most projects have only just leveled the land and built perimeter walls; the land has been left fallow for many years, unused or used for purposes other than intended. Continuing these projects is a difficult problem, and investors must reconsider everything from scratch. In the approved plans, these projects all include "grandiose" structures such as high-rise hotels, modern office buildings, supermarkets, and shopping centers. As long as the real estate market remains frozen and bank bad debts are not fully resolved, investors will find it difficult to secure funding for projects of this scale.

The inspection team's report specifically stated the following requirements for the projects to be continued: "Urgently implement the investment project and put the leased land into use according to the plan and law. Construction of the works according to the approved plan and the entire project must be put into use according to the committed schedule by June 30, 2015 at the latest." The primary responsibility for the projects' prolonged delay lies with the investors. However, setting such a short completion deadline makes it very difficult for investors to achieve the project under current conditions. Of the projects allowed to continue, only three have constructed some structures, but these are temporary buildings, bamboo and thatch structures, and foundation pillars. The rest have only leveled the ground and built surrounding fences. Yet, the investors still commit to completing the projects by 2015 at the earliest and 2017 at the latest. In reality, this is a reactive commitment, incapable of being implemented.

It must be acknowledged that during the previous land boom, some investors created projects to profit from land speculation and raise capital for construction. When the real estate market "froze," investors had to "hold onto" project land, waiting for a better opportunity. This is the underlying reason why many projects are delayed, not implemented, and land is left idle and wasted for many years. The current issue is to find highly feasible solutions to help investors implement projects effectively. Licensing agencies must survey the market to recalculate the actual needs of each project, based on the financial capacity of each investor, to decide which projects can continue. Projects that are not feasible or whose investors lack sufficient financial capacity must be decisively revoked.

While it's understood that revoking a project will create many complex issues, this shouldn't lead to prolonged delays. A stalled project not only affects economic development but also impacts people's lives and creates negative public opinion; therefore, it must be resolved definitively.

Tran Hong Co