Businesses struggle to be recognized as project developer

Mr. Do Dinh Hue, a member of the Board of Directors of Dong Duong Real Estate Investment Corporation, the investor of the Vn Xuân project in Vng Tàu City, was visibly emotional during the online dialogue meeting between the provincial leaders of Bà Rà - Vng Tàu and over 200 businesses and investors on November 7.

Many challenges 

Mr. Hue stated that the high-end residential project Vn Xuân in Vng Tàu City has acquired investment permission, with Dong Duong Real Estate Investment Corporation named as the investor since 2010. Despite this obvious truth, the corporation is currently fighting to gain recognition from various provincial authorities, moving from one office to the next in order to identify itself as an investor.

"If we are not recognized as the investor, how can we proceed with the subsequent steps to develop the Vườn Xuân project as it stands today? Yet, the province has been conducting inspections for the past two years. Our company has been going around different departments and agencies, presenting documents. Even the police investigation concluded that our investment process was legal, but we still find ourselves in this difficult situation," stated Mr. Huế.

The issue that led to the need to prove their investor status originated from the inspection of whether the Vườn Xuân project had allocated 20% of the land fund for social housing construction. The Ministry of Construction’s Inspectorate has twice confirmed that the project did not need to allocate 20% of the land fund for social housing. Specifically, in Conclusion No. 371/KL-TTr dated November 4, 2019, the Ministry of Construction Inspectorate stated that the project was implemented in accordance with the approved regulations, including adjustments to the planning and compliance with all legal procedures.

In Conclusion No. 03/KL-TTr dated January 9, 2023, the Ministry of Construction Inspectorate explicitly stated: "The Vườn Xuân project does not need to allocate 20% of the land fund for social housing, which is in line with the provisions of Article 4, Article 5 of Decree No. 100/2015NĐ-CP dated October 20, 2015."

In Document No. 72/BXD-QLN dated April 13, 2018, the Department of Housing and Real Estate Market Management instructed that if a company had been selected as the project investor before the effective date of Decree No. 100/2015NĐ-CP, the project was not required to allocate 20% of the land fund for social housing construction within the project.

Project Operations Director Mr. Nguyễn Thanh Toàn shared that Document No. 19/QĐ-CSKT dated July 10, 2023, from the Provincial Police Investigative Agency, also affirmed: "The Department of Construction and Vũng Tàu City People's Committee have issued documents related to the approval of the detailed planning project at a 1/500 scale for the Vườn Xuân project, confirming that the project does not need to allocate 20% of the land fund for social housing, in compliance with legal regulations."

Vũ Hồng Thuấn, Vice Chairman of Vũng Tàu City People's Committee, emphasized that the high-end residential project Vườn Xuân had been approved, and Dong Duong Real Estate Investment Corporation had been designated as the investor in Document No. 6370 issued on September 17, 2010. Over the past 13 years, various provincial authorities and departments, along with Bà Rịa - Vũng Tàu Province, recognized Dong Duong Company as the investor. They guided the company to follow all legal procedures for investment, including issuing investment decisions, approving plans, and granting construction permits, resulting in the prestigious urban area we see today.

Urgent need for revisions and support for businesses

The Vườn Xuân project story is just one example of the challenges faced by businesses due to prolonged inspections, caused by the phenomenon of government agencies shifting responsibilities among themselves.

Many businesses have expressed the need for more administrative reforms, especially changes from the policymakers to eliminate obstacles in production and business activities.

Mr. Hà Nam, the CEO of a company with a project in Bà Rịa - Vũng Tàu, stated that businesses need comprehensive and smooth policy mechanisms, coupled with sanctions for individuals or departments deliberately causing difficulties for businesses. The most significant wish of entrepreneurs and businesses is for the government not only to listen but also to acknowledge and take immediate and specific actions. "Listening without concluding, directing, and resolving specific issues is not helpful," Mr. Nam emphasized.

According to lawyer Phạm Ngọc Hưng, the state must consider supporting business development and prevent certain officials from exploiting their positions and powers to hinder business activities. The government should also demonstrate that it values the suggestions and feedback from businesses by accepting and implementing them promptly.

Vũ Tiến Lộc, former Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of Vietnam International Arbitration Center (VIAC), affirmed that no one understands the conveniences and challenges in production and business better than businesses themselves. Therefore, the government should be receptive to the suggestions and pleas of businesses. After listening and understanding, the crucial step is to promptly make necessary revisions and additions.

Nguyễn Xuân Quang, Chairman of the Board of Directors of Nam Long Investment Corporation, previously highlighted that overlapping policies, contradictions, impracticality, and complicated procedures, coupled with prolonged inspections lasting 2-3 years or even without resolution, have left real estate businesses uneasy and uncertain. This situation led to a financial burden, with capital costs skyrocketing, high bank loan interests, and, most importantly, lost business opportunities.

The real estate market's stagnation can be attributed to legal framework issues. Excessive government reviews, inspections, and audits have exacerbated the situation. Moreover, these inspections are not just lengthy but also, in some cases, without resolution.

Many entrepreneurs argue that the overlapping regulations create complicated and prolonged procedures for real estate projects. This situation provides opportunities for lengthy inspections, where businesses are forced to express their gratitude behind the scenes.

According to a lawyer from the Ho Chi Minh City Bar Association, if a business is distressed to the point of tears, it undoubtedly signifies unbearable stress. The government needs to address these issues at their root. Otherwise, it will seriously affect the investment environment. The government should acknowledge the phenomenon of officials lacking competence and avoiding responsibility in dealing with real estate-related matters. Those who are responsible for the province but lack the courage to take responsibility should strongly voice their concerns to higher authorities, ensuring that unresolved business issues are not passed up the hierarchy.

During the 6th session of the 15th National Assembly on November 1, National Assembly delegate Nguyễn Thị Việt Nga (Hải Dương) urged the government, at all levels, to pay special attention to the evaluation and arrangement of officials, considering it a prerequisite for all future development and work.

Referring to the capacity and ethics of a portion of public officials, Ms. Việt Nga stated that the government's report highlighted one of the limit   ations and difficulties in implementing economic and social development in 2023: the tendency among officials and public servants to avoid responsibility, fear making mistakes, and reluctance to provide recommendations, leading to delayed work, reduced efficiency, and diminished public trust in the government and businesses.

"It can be said that this is a sad and shameful reality that has been widely discussed in the past. I agree with the government's guidelines and directives for the economic and social development in 2024, which include correcting and strictly addressing the phenomenon of avoidance and shifting responsibility in the execution of duties," emphasized Ms. Việt Nga.

Returning to the Vườn Xuân project, regarding the legal basis of the project, the latest document from the Department of Construction sent to Bà Rịa-Vũng Tàu Provincial People's Committee affirmed: "Document No. 6370 from the Provincial People's Committee is the document approving the investment proposal and simultaneously selecting the investor at the time in 2010 in accordance with legal regulations." This document followed the procedures outlined in Decision No. 23/2007/QĐ-UBND of the provincial People's Committee dated April 19, 2007, regulating the procedures for implementing domestic and foreign investment projects outside industrial zones, export-processing zones, and high-tech zones within the province. At that time, dozens of other projects also followed these procedures. The Provincial Department of Construction has submitted a request to the Provincial People's Committee for a response, confirming that Dong Duong Real Estate Investment Corporation's selection as the investor and the issuance of Document No. 6370 on September 17, 210 were legal. This response would conclude the inspection process conducted by the Ministry of Construction.

Mr. Huế urgently requested Bà Rịa-Vũng Tàu Provincial People's Committee to strongly affirm this obvious truth that the province has recognized for the past 13 years. He emphasized the need to protect the correctness and consistency of the legal process that the Provincial People's Committee and local authorities guided the investor to follow.