Property firms complain about HCM City’s procedures

27-Feb-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

Many enterprises have complained about the complicated six-step process for real estate projects, noting that it will raise their costs.

On February 22, the HCM City government held a meeting with the representatives of local real estate enterprises to remove obstacle facing these firms, the local media reported.

Specifically, the city announced a process for enterprises to conduct real estate projects. It involves completing procedures for investment; submitting the 1/500 detailed plan for approval; completing procedures to lease land; determining financial obligations and paying land use fees; applying for investment certificates; and having designs appraised, applying for construction licenses and starting work on the projects.

Nguyen Du Luc, chair of Hung Loc Phat Corporation, stated that the process is complicated and enterprises will not receive their construction licenses until the last step.

Meanwhile, they have to pay land use fees in the fourth step though it tends to take a long time for enterprises to be granted construction licenses, so they have to pay a large amount in land use fees and more on site clearance. Some of them have to ask for bank loans for these expenses.

If the projects are delayed for a long time, the investment required for their projects will surge and buyers will be put at a disadvantage.

According to Le Huu Nghia, director of Le Thanh Company, the sixth step should be completed before the fourth and fifth steps. If not, it will take property enterprises roughly five years to complete procedures before they can start work on the project.

The adjustment will help enterprises complete projects faster to meet the demand of local customers.

Chair of the HCM City Real Estate Association Le Hoang Chau stated that the municipal government should simplify the process. The requirement that real estate firms must pay the land use fees in the fourth step is not in line with prevailing regulations and causes losses for these firms.

The sixth step also goes against regulations on construction and urban planning.

Concluding the meeting, HCM City Chair Nguyen Thanh Phong remarked that the complaints of enterprises would force the relevant departments and agencies to put in more efforts to support the proposals of enterprises.

The city will report to the government the enterprises’ complaints on policies and administrative procedures that are beyond the city’s jurisdiction, Phong added.

He ordered the relevant departments and agencies to cooperate closely with each other to help local property firms quickly complete administrative procedures in line with the law and create the most favourable conditions for them to conduct projects.

HCM City vice Chair Vo Van Hoan was assigned to establish a working team that will hold weekly meetings to remove obstacles facing projects in the city. By April 30, the team must completely remove difficulties for the projects of 19 enterprises.

Municipal leaders will work with local real estate enterprises every three months to hear their grievances and proposals and remove impediments to property projects, Phong remarked.

https://english.thesaigontimes.vn/74954/property-firms-complain-about-hcmc%e2%80%99s-procedures.html

 


Category: Business, Vietnam

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