Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam’s property firms face financial difficulties

Vietnam’s property firms face financial difficulties

Content image - Phnom Penh Post
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

Vietnam’s property firms face financial difficulties

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

MOST VIEWED

  • Archeologists find ancient phallic statue

    An archeological team has found a metre-long tipless stone linga (penis) of the Hindu deity Shiva in the foundations of a temple in Kratie province’s historical Samphu Borak area, a former capital of the pre-Angkor Empire Chenla period. Thuy Chanthourn, the deputy director of

  • Man arrested for fake PM endorsement

    The owner of currency exchange company GCG Asia Co Ltd was temporarily detained by the court yesterday for attempted fraud after Prime Minister Hun Sen reacted to the company using his name and pictures to allege his endorsement of the firm. Phnom Penh Municipal Court

  • Sihanoukville authority orders structure dismantled

    The Preah Sihanouk provincial administration has ordered owners of two unauthorised construction sites to immediately dismantle them and warned of legal action if the owners failed to comply. Ly Chet Niyom, development management and construction bureau chief at the provincial hall, told The Post on

  • Police seek arrest of Chinese ‘gang’

    Cambodian police remain on the lookout for 20 Chinese nationals who earlier this month posted a video clip threatening to stoke insecurity in Preah Sihanouk province, though the Chinese Embassy in Phnom Penh maintained the group posed no threats to Cambodia’s national security. National Police