Nghe An: Decisive action to reclaim stalled projects

(Baonghean) - At a recent meeting, the Chairman of the Provincial People's Committee, Nguyen Xuan Duong, requested that all departments, Vinh City, towns, and districts seriously review projects and resolutely ensure that no projects are overlooked.

We are determined to revoke or cancel slow-moving projects.

Over the years, hundreds of investment projects have been registered in Nghe An province across diverse sectors such as real estate, showrooms, shopping malls, manufacturing facilities, urban areas, hotels, and factories. Since 2014 alone, hundreds of investment projects have been registered, and among them, 357 projects are under review following scrutiny by relevant departments and localities.

According to a report by the Department of Planning and Investment, from 2014 to 2017, the Provincial People's Committee established four inter-agency inspection teams. Depending on the project group, the team leaders were from the following departments: Natural Resources and Environment (for projects already allocated or leased land), Construction (for projects with newly approved planning), and Planning and Investment (for projects newly granted investment certificates). These teams conducted 357 project inspections. Specifically, 75 projects were inspected in 2014; 74 in 2015; 103 in 2016; and 105 in 2017.

Provincial leaders inspect slow-moving projects along the Soviet-Nghe Tinh Boulevard. Photo: Chau Lan.

Accordingly, the Provincial People's Committee issued decisions to revoke or cancel 62 projects from 2014 to 2017. Specifically, 24 projects were revoked in 2014; 12 projects in 2015; 27 projects were canceled or revoked in 2016; and 3 projects were revoked in 2017. This number has shocked the public, as the large number of projects that were not implemented, and the fact that 88 projects are currently being extended and 29 projects are under review for revocation, further highlights the difficulties in production and business, and the less-than-stellar capabilities of many investors when registering projects.

Vinh City, the economic and political center of Nghe An province, is currently attracting hundreds of real estate and commercial center projects. However, many of these projects have been slow to develop and have yet to be licensed.

The project for a high-rise apartment complex, villas, townhouses, supermarket, and office space for rent in Block 13, Dong Vinh Ward, Vinh City, with the investor being the Railway Construction Joint Stock Company, is one example. The project covers an area of ​​41,989 m2 and its detailed construction plan for the "High-rise apartment complex, villas, townhouses, supermarket, and office space for rent" was approved by the Provincial People's Committee in Decision No. 1078/QD-UBND.DT dated March 31, 2009. However, construction has not yet commenced. On December 10, 2015, the Provincial People's Committee issued Decision No. 5813/QD-UBND approving the inspection results of the inter-agency inspection team on delayed and unimplemented projects in the province. This decision included the following: Termination of operations, revocation of the project, and assignment to the Department of Planning and Investment to notify the investor and advise on the termination of operations and revocation of the Investment Certificate for the high-rise residential, villa, townhouse, supermarket, and office rental project of the Vietnam Railway Corporation.

The Thao Nguyen Joint Stock Company's Hotel and Restaurant Commercial Center project (Nghi Phu commune, Vinh city) has been stalled for many years, and the Provincial People's Committee has decided to revoke it. In Vinh city, out of 12 projects inspected in 2016, the Provincial People's Committee revoked two projects: the Environmental Improvement and Construction Project of a Commercial Service and Housing Complex (planned area of ​​135.9 hectares) in Dong Vinh, Doi Cung, and Cua Nam wards, undertaken by the New Technology Investment and Construction Application Joint Stock Company; and the Central Vietnam University of Technology project (27.691 hectares) in Nghi An and Nghi Duc communes, Vinh city, undertaken by the Central Vietnam Human Resources Training and Development Joint Stock Company.

Previously, the inter-agency inspection team recommended the revocation of two projects: the Ecological and Ornamental Plant Center project in Nghi Phu commune, Vinh city, belonging to the Nghe An Ornamental Plant Association; and the Telecommunications and Information Technology Urban Area project, with a planned area of ​​7.78 hectares in Ben Thuy ward, Vinh city, belonging to the Post and Telecommunications Investment and Construction Joint Stock Company.

Following an inspection and meeting in Vinh City, the Chairman of the Provincial People's Committee instructed the Department of Planning and Investment to continue reviewing and revoking the licenses of the following four projects: the Lam Riverbank Ecological Mixed-Use Urban Area of ​​Ha Thanh Co., Ltd. (Thanh Hoa) in Hung Hoa commune (Vinh City) and Nghi Thai commune, Nghi Loc district, with a project land area of ​​1,033,707.0 m2; the high-end villa, hotel, restaurant, and entertainment complex of Saigon - Trung Do Vinh Joint Stock Company in Trung Do ward, Vinh City, with a project land area of ​​136,757.7 m2; the Son Ha Urban Housing Area of ​​Son Ha Construction Joint Stock Company in Nghi Lien commune (Vinh City); and the Housing Project in Yen Giang block, Vinh Tan ward (Vinh City) invested by Him Lam Nghe An Joint Stock Company. The Chairman of the Provincial People's Committee also assigned the Department of Natural Resources and Environment and the Tax Department to handle the BMC Vinh Plaza Commercial Center and High-Rise Apartment Complex project at 92 Nguyen Thi Minh Khai Street. For other projects that have already paid their investment deposits, the deadline for completion is extended to December 30, 2018 at the latest.

In Cua Lo town, there are up to 10 real estate projects that are behind schedule, with a total land area of ​​nearly 400,000 m2 allocated to these projects. The slow progress of these projects has affected the urban landscape and the socio-economic development of Cua Lo town. For example, some of the delayed projects include: The BMC Cua ​​Lo Plaza project, invested by BMC Construction Materials and Trading Company Limited, received an investment certificate from the Provincial People's Committee in 2008, with a land area of ​​over 5,000 m2, but no construction has been started to date. The Song Hong Resort project, implemented by Song Hong Construction Joint Stock Company, on an approved land area of ​​nearly 10,000 m2, was scheduled for construction from 2012 to 2015; currently, the project has only completed land leveling, site clearance, and the construction of a surrounding fence; other components have not been implemented. The high-end apartment and villa complex combined with commercial and tourism facilities is invested by Hanoi Construction Company No. 3; the Van Xuan University of Technology project; the Elderly Care Center project is invested by the Nghe An Elderly Care Center; the hotel and guesthouse complex project of Hanoi Tourism Joint Stock Company is granted over 27,000 m2 by the Provincial People's Committee...

The Provincial People's Committee assigned the Department of Natural Resources and Environment to handle violations of the Land Law (delayed project implementation) for 8 projects and revoke one project, the BMC Cua ​​Lo Supermarket and Hotel (0.52ha) in Nghi Huong ward, Cua Lo town, owned by BMC Construction Materials and Trading Company Limited.

The Cua Lo Town high-end hotel and villa complex project has been unfinished for many years. Photo: Tran Chau.

In other districts and towns, some projects were also canceled, such as the Nam Dan Plaza building of Ocean Bank in Nam Dan town, Nam Dan district, which had its operations terminated, its investment certificate revoked, and related documents canceled.

A clean investment environment starts with land management.

In recent years, many investors in Vinh and Cua Lo have complained about having to "buy back" existing projects or deal with issues from previous projects on new land, which is very troublesome, costly, and involves delays due to project liquidation and land clearance. Some investors are eager to invest but are hesitant because the land is already owned. The real estate market has experienced periods of booming investment, but in recent years it has declined, leaving many investors waiting for a better opportunity; others lack the capacity to invest and have to leave their land idle.

This is the reality on many prime routes such as Lenin Boulevard, Soviet Nghe Tinh Boulevard, or suburban wards and communes of Vinh City such as Hung Hoa, Nghi Phu, Nghi An... Many residents are frustrated that projects licensed from 2010 to the present day have not been implemented in Nghi Phu and Hung Hoa, yet the licenses have not been revoked.

At a recent meeting of the Provincial People's Committee, after hearing reports on the status of projects and proposals from the Department of Planning and Investment, Chairman of the Provincial People's Committee Nguyen Xuan Duong frankly raised the question: Is there a situation of "false land reclamation," are there any "overlooked" projects that are not implemented but are not reclaimed, and what should be done after reclamation, or will they be left abandoned? "In recent years, the Provincial People's Committee has been strong in the issue of land reclamation. Since 2012, Nghe An has reclaimed over 100 projects. However, this still does not meet the needs, and there is still a situation of too many project adjustments, and the reclamation of projects has not been completed. Therefore, the Provincial People's Committee will continue to reclaim projects, creating a new breakthrough in land management, cleaning up the investment environment, and attracting real investors, capable investors, and responsible investors," the Chairman of the Provincial People's Committee stated.

It is necessary to review the vacant project land plots along Lenin Avenue and Soviet-Nghe Tinh Avenue (Vinh City).Photo: Tran Chau

Also at the meeting, some localities argued that it is necessary to decisively revoke projects and not continue to extend them, especially for projects that have not yet been implemented. Mr. Doan Tien Dung - Chairman of the People's Committee of Cua Lo town - stated: Some projects in Cua Lo town were incorrectly advised by the provincial authorities, resulting in inappropriate handling during implementation, and many projects need to be revoked.

Regarding each project group, Chairman of the Provincial People's Committee Nguyen Xuan Duong concluded: For the 62 projects whose licenses have been revoked, it is necessary to continue attracting new investment. For the projects proposed for continued revocation (29 projects), a document must be submitted to the Provincial People's Committee for signing the revocation by August 30, 2017 at the latest. For the 88 projects currently under extension, the Department of Planning and Investment needs to review them and coordinate with relevant departments to monitor and review them by September 30. The People's Committee of Vinh City and other towns need to review the types of projects and submit them to the Provincial People's Committee for consideration and decision. The Chairman of the Provincial People's Committee also requested that from now on, projects should not be divided into groups led by different departments and agencies, but only inter-agency inspection teams should be established to conduct joint inspections.

In reality, the neglect of projects, the failure to reclaim land, the lack of decisive action, and the unclear stance on land reclamation have significantly impacted the local development progress, depriving other investors of opportunities and also costing the province its own. Restricting project transfers, preventing land reclamation that violates the Land Law, and avoiding attracting investment while leaving land idle are essential measures at this stage.

Pearl