Binh Dinh province strives to resolve real estate stagnation

Many significant real estate projects in Vietnam's south-central province of Binh Dinh are "standing still" due to market conditions, legal challenges and human resource problems.

Authorities in the south-central province said that they are actively working with businesses to identify and solve difficulties.

Several projects in Binh Dinh’s Nhon Hoi Economic Zone are facing roadblocks, including five that are grappling with investment-related issues.

The most notable is the Merry Land Quy Nhon Entertainment, Trade and Tourism Complex which covers 623.71 hectares in Hai Giang village, Nhon Hai commune, Quy Nhon town.

While the 50-year project has a total registered investment capital of more than VND30,405 billion ($1.23 billion), disbursement since 2009 has amounted to just VND4,202 billion ($170.43 million). At present, work on the site has paused “temporarily”, citing “influence of real estate market conditions”.

The Green Paradise Luxury Tourism Area, currently the Laimian project, which has an area of 112.95 ha and a total registered capital of VND13,000 billion ($527.27 million), is set to have construction completed by December 2027. However, after investment disbursement to date of approximately VND3,000 billion ($121.67 million), the project has stalled due to the real estate market crisis and issues involving the company's senior executives.

Meanwhile, four of six projects initiated by the FLC Group JSC and its member units have begun operations, covering about 350 hectares and disbursing over VND6,388 billion ($259 million). Two of these, covering about 127 hectares with an investment capital of around VND794 billion ($32.2 million), are under construction or partially operational.

Recently, due to the real estate market crisis and issues involving senior company executives, FLC projects halted infrastructure investments, resulting in complaints and lawsuits from homeowners.

The Phuong Mai Bay Tourist Area project, which covers 30.3 hectares and has a total registered capital of VND1,780 billion ($72.2 million), was expected to be completed this year. However, a mere VND180 billion has been disbursed and project implementation has been extremely slow. The economic zone management board of Binh Dinh province has urged the investor to hasten things, but the stalemate continues.

Finding solutions

The management board of Binh Dinh's economic zone has proposed that the provincial People's Committee invite investors of the Merry Land complex to discuss measures for overcoming obstacles and continue to develop the project.

The board has also proposed inviting the Green Paradise Luxury Tourism Area project investors to discuss problem-solving measures and project implementation plans.

For the FLC projects, the board has arranged conversations with complaining households while urging investors to adhere to the projects’ timetables and pay attention to customer concerns.

For the Phuong Mai Bay Tourist Area project, the investor has announced plans to implement infrastructure packages and the Villa 01 area this year for a total cost of around VND300 billion ($12.16 million).