Following a recent decision by the Da Nang People’s Committee, local relevant agencies will recheck and revoke the investment licences of delayed development projects which have not yet been implemented in accordance with their contracts and permits.

An incomplete project on the Son Tra Peninsula

The focus will be on stopping, or temporarily suspending, unnecessary and ineffective projects and enhancing the quality of the surveying and designing of construction projects in order to save between 10 and 15% of their total costs.

The municipal government’s move aims to cut waste and save money, and especially to deal with the inefficiency in the use of local land resources.

Currently, many large-scale urban development projects in prime locations in the heart of the city are progressing slower than scheduled.  Included are the Vien Dong Meridian Tower project at 84 Hung Vuong Street and the Da Nang Centre project at the corner of Phan Chau Trinh and Hung Vuong streets.

Meanwhile, no construction work has begun on development projects in the city’s suburbs, including the Thien Park residential area in Lien Chieu District, the Halla Jade Residence project on the southeastern side of the 2 September Peace Monument, and the Capital Square project on Ngo Quyen Street.

In a similar vein, many medium and small-scale projects in local industrial parks are also sluggish.  This has resulted in hundreds of hectares of abandoned land at the construction sites of these incomplete projects.

In an attempt to deal with these problems, local relevant agencies will facilitate the transfer of delayed inner-city projects to other better investors in order to accelerate their progress.

The Vu Chau Long Real Estate Company-developed Da Nang Centre project at the corner of Phan Chau Trinh and Hung Vuong streets has been transferred to the Co.op Mart group.

Importance will be attached to increasing the monitoring of the progress and quality of the delayed projects.  Also, stricter penalties will be imposed on the developers, management boards and construction units for violations of the city’s regulations about the management of basic construction investment.

The city authorities recently took back 25,008m² of land at the construction site of the Tuyen Son apartment building project due to delays in land lease fee payments by its developers.

The Deputy Head of the Municipal Taxation Department, Mr Nguyen Dinh An, remarked that many local businesses still owe debts of their land lease and use fees.  In detail, the Trung Nam company now owes over 222 billion VND, the PetroVietnam Insurance Financial Investment JSC owes 73.3 billion VND, and the Da Nang IT Park Development Joint Stock Company owes 51.7 billion VND.