Of 3401 projects totaling 33,143 hectares of land licenced from 2002-2008, over 500 projects are considered “idle” in various aspects, says Hanoi City Vice Chairman Vu Hong Khanh.

Thousands of hectares of land in Hanoi is fallow.

For nearly nine percent of the 3401 projects, site clearance delays were the major reason for the slow implementation. The area of these 294 projects totals nearly 3500 hectares. One hundred eighty-seven are ‘state-invested.’

“Changes in government policies have caused difficulties for site clearance, especially site clearance for large projects. There are protests by landlords whose land is claimed for these projects,” Khanh said.

However, other investors have intentionally waited for the revival of the real estate market to implement their projects. In many cases, investors received licenses but didn’t have enough capital for site clearance or lacked the capacity to to carry out big projects.

Hanoi’s city government also counted 48 projects with a total area of 131.5 hectares that were begun, but which have stood idle for 12 consecutive months, including 11 State-invested and 37 private projects.

Some 39 projects totaling 425 hectares of land were being implemented but over two years behind schedule, including 7 State-owned and 32 private projects.

The remaining ‘hanging’ projects are slowed by capital shortages, pending adjustments of construction planning, requests to change the land use purposes or simply stalling until the real estate market warms up.

Notably, 26 parcels totaling 7.3 hectares were found to have been been transferred illegally, encroached on, illegally used or contested, representing 11 State-funded and 15 private projects.

Hanoi authorities also discovered 98 housing projects with 3186 hectares of land where investors ought to have paid 15 trillion dong in land use fees but had actually rendered only five trillion. Investors explained that the real estate market has been so quiet that they couldn’t get back their investment in construction, they had to pay huge amounts of money for site clearance and land compensation and so, they pled, it is difficult for them to pay land use fees immediately.

The Hanoi government reclaimed fallow land from 67 organisations in 2001-2005, totaling 59.73 hectares. District administrations also reclaimed 23.6 hectares of land in this period.

The city claimed back another 250 hectares from 29 idle projects in 2006 and four hectares from four companies in 2008.

In the first half of 2009, the city has withdrawn permits for 1.2 hectares of unused or wrongly-used land.

People’s Council to review idle projects

Vice Chairman of the Hanoi People’s Council Nguyen Van Phuc told the press last week that the city legislature’s upcoming session from July 14-17 will consider idle projects within Hanoi’s expanded boundaries, including golf course projects.

In June, Minister of Planning and Investment Vo Hong Phuc told the National Assembly that Hanoi and Binh Thuan have the highest numbers of golf course projects in Vietnam, with 19 projects each. However, Hanoi’s Chairman Nguyen The Thao countered that the city has only licenced four golf courses in total.

City People’s Council deputies will review developments since the entire province of Ha Dong and several districts of other neighboring provinces were merged into greater Hanoi a year ago. They will also consider the implementation and effects of the government’s stimulus package and environment, the privatization of education, health, and other issues.

A question and answer session between deputies and representatives of the Hanoi People’s Committee will be aired live on the Hanoi Television (HTV) in the morning of July 16.

Trang An Nguyen