At a meeting on Thursday, Da Nang People’s Committee Vice Chairman Phung Tan Viet stressed the need to effectively resolve the delays in the deployment of some local development projects in prime locations in the heart of the city.  This issue is of deep concern and has been mainly attributed to the negative impacts of the problem of real estate bubbles and the global economic downturn over recent years.

In 2008, the Vien Dong Land company was granted an investment licence by the city’s authorities to develop its Vien Dong Meridian Tower project at 84 Hung Vuong Street.  Covering an area of 11,170m², the over 3.4 trillion VND project will feature 260 5-star hotel rooms and 600 high-class apartments, plus trade centres and conference halls.   Once it is completed, the project will become a new local architectural landmark on the city’s skyline.  However, after 7 years, construction work has yet to start on the project. 

The existing fences around the site of the Vien Dong Meridian Tower project

Meanwhile, no construction work has begun on the Golden Square project which is being developed by the Dong A Real Estate Company.  The 10,664m² project features 4 facades on Pham Hong Thai, Nguyen Thai Hoc, Yen Bai and Nguyen Chi Thanh streets.  So far, only the foundations of the project’s hotel have been constructed at the site.

The Vu Chau Long Real Estate Company-developed Da Nang Centre project at the corner of Phan Chau Trinh and Hung Vuong streets is also progressing slower than scheduled. 

It would seem that the delays to these projects are due to shortages of capital and poor strategies for promoting the sale of apartments at the projects.

These delayed projects have adversely affected the local urban landscape and the daily lives of many households living near their construction sites, as well as caused environmental pollution.

At the meeting, Vice Chairman Viet gave the developers of the delayed projects until 15 November to give their final decisions about whether they will recommence their work or not.  If the developers decide to proceed with their projects, they will be required to make commitments to ensure on-schedule construction, and the effective management and inspection of their projects.

Representatives from the municipal Department of Construction proposed that the construction sites of some projects, including the Vien Dong Meridian Tower and the Da Nang Centre project, should be temporarily made into parks or special areas for displaying local souvenirs.

It is reported that the city authorities have already revoked the investment licences of public park and underground parking projects which were being developed by the Vien Dong Land company.  The delayed projects cover a total area of 5,900m² with facades onto Nguyen Chi Thanh, Hung Vuong, Nguyen Thai Hoc and Yen Bai streets.  Currently, a park is being constructed at the sites of the projects, which is expected to be put into use before the upcoming Tet Festival (Lunar New Year) in February 2016.