Developer Novaland gets legal hassles cleared for satellite urban area bordering HCMC

Major property developer Novoland has had legal obstacles for its Aqua City project cleared after Dong Nai Chairman Vo Tan Duc approved Tuesday a critical adjustment to the southern province’s urban development plan.

The company welcomed the approval as a “decisive step” in unlocking legal barriers that had hindered Aqua City, “a flagship development,” for more than two years.

It said concerted efforts were made by the government and relevant ministries to address legal issues affecting the project.

The approval “shows the government’s commitment to resolving legal hurdles for ongoing developments, thus restoring confidence in the business community,” a company statement said.

The focus of the approved adjustment is population density and land-use allocation for Sub-zone C4, part of an urban area to the west of the Bien Hoa-Vung Tau Expressway.

The adjustment, which ensures alignment with broader urban planning goals, will allow Novaland and other developers to proceed with their projects.

It also paves the way for the completion of detailed sub-division plans for Sub-zone C4 on a 1/500 scale, and Aqua City is expected to finalize its planning by early 2025.

Novaland said it had repeatedly proposed to central and local authorities, including the government’s special task force, the removal of legal obstacles to the Aqua City project.

The aim was to accelerate construction and ensure the delivery of thousands of homes to customers, restoring trust in the company's commitments, the Novoland statement said.

It noted it was progressing with construction plans supported by a significant financial push, with banks disbursing credit packages totaling VND3.25 trillion ($128 million) to fund the development of the project’s sub-zones.

Multiple financial institutions have committed to provide further loans of more than VND10 trillion ($393.7 million) for the company to continue infrastructure development and facilitate home deliveries in 2025-2026.

The Aqua City project, covering nearly 1,000 hectares in Dong Nai province - a manufacturing hub in southern Vietnam, is set to become a major satellite urban area on the eastern edge of Ho Chi Minh City.

Over 70% of the area will be dedicated to green space and modern amenities. To date, more than 700 villas and townhouses have been handed over to buyers, and construction in other areas was rapidly progressing alongside the completion of key facilities.

Other projects with legal challenges

Aqua City was not the only Novaland project navigating legal challenges. Over the past two years, the group’s developments in HCMC as well as the provinces of Dong Nai, Ba Ria-Vung Tau and Binh Thuan have encountered various obstacles, despite receiving government support.

“In HCMC, Novaland is still awaiting a resolution for the 100 Co Giang project (The Grand Manhattan), with final legal hurdles preventing its completion. Although the resettlement units have been handed over, construction on the remaining units is ongoing,” the company said.

Its 32-hectare Binh Khanh project (The Water Bay) and the 136-hectare Thanh My Loi project in HCMC’s Thu Duc city have also stalled pending a city decision on land clearance and compensation for affected residents (around 8% of the total land).

Meanwhile, the NovaWorld Phan Thiet project in Binh Thuan province was facing problems in finalizing land valuation.

NovaWorld Ho Tram in the southern coastal province of Ba Ria-Vung Tau was awaiting approval for an extension to its investment plan and land use duration, despite having obtained permits for technical infrastructure development, the company said.

Novoland’s NVL ticker on the Ho Chi Minh Stock Exchange (HoSE) closed Tuesday at VND10,750 ($0.42) apiece, up 1.9% from the previous session.