Hanoi to recover 5.3 hectares from billion-dollar Bitexco property project

Authorities in Hanoi will reclaim nearly 5.3 hectares of land from The Manor Central Park, an urban area project to the south of the city’s Ring Road 3, from the investor Bitexco JSC before September 15.

The land was intended to be used for public works and social housing, but instead Bitexco had been using it for commercial purposes.

The entire project covers around 90 hectares in Hoang Mai district’s Dai Kim ward and Thanh Tri district's Thanh Liet commune with a total investment of about $1.9 billion.

In late July, the municipal Department of Natural Resources and Environment (DNRE) reported to the Hanoi People's Committee that Bitexco had failed to hand over the land as requested.

In a document dated August 17, Hanoi Vice Chairman Nguyen Trong Dong asked the DNRE to coordinate with the Department of Planning and Investment to instruct Bitexco to hand over the land before September 15. The Hanoi People's Committee also assigned the two departments to propose administrative measures to recover the land in case the investor failed to cooperate.

The authorities also requested the people's committees of Hoang Mai and Thanh Tri districts to coordinate with the two departments to take measures to stop illegal business activities and services in the areas managed by Bitexco.

The project was approved by Hanoi authorities in April 2011 and construction kicked off in 2014. Part of the land for the project was exchanged for infrastructure under a build-transfer (BT) project to build roads surrounding a monument dedicated to famous teacher Chu Van An. Currently, many works at The Manor Central Park project have been handed over to residents and put into operation. Villas and shophouses in the park sell for $1-3 million.

Under a decision made in late 2019, the Hanoi People’s Committee requested the land be handed over for 2.3 hectares of public works and nearly 3 hectares for social housing construction.

In response, a Bitexco representative said the 5.3-hectare plot consists of reciprocal land for the BT project and land that was being used for the first phase of the project.

The first phase was approved by the Hanoi People's Committee on June 30, 2015, covering a total area of 65.8 hectares, including 20.8 hectares of reciprocal land for the investor’s business activities to recover capital and take profits.

To ensure complete and effective investment, the Hanoi People's Committee assigned Bitexco to invest in technical infrastructure for the entire urban area, low-rise housing projects, public works and social infrastructure, he said.

Up to now, the company has completed site clearance and invested in technical infrastructure on the entire 65.8 hectares. It has also used 14.2 out of the 20.8 hectares of reciprocal land according to the approved plan, he added.

According to the representative, Bitexco has also completed documents to be submitted to local authorities for the approval of its second phase. In the second phase, 6.6 out of 20.8 hectares of reciprocal land will be developed into high-rise apartment buildings.

"Bitexco has always coordinated with competent state agencies to complete reports and submit them to the municipal People's Committee to report to the Ministry of Planning and Investment and the Prime Minister for solutions,” he said.

On December 22, 2022, Bitexco had a meeting with the Hanoi Land Fund Development Center on the land recovery plan, he said, adding that his company wanted to continue implementing the project on the specified land lots.

He noted that Bitexco had repeatedly asked Hanoi authorities to approve the project’s second phase and allow the firm to build on the 5.3-hectare plot.

In late November 2022, Bitexco asked the Department of Natural Resources and Environment and the Hanoi Land Fund Development Center to consider extending the land handover deadline until a final decision was made by competent authorities.

Formerly a textile company in Thai Binh province, Bitexco was established in 1985, with Vu Quang Hoi as chairman. After more than 30 years of operation, it has become one of the largest multi-industry corporations in the country, concerning real estate, electricity and manufacturing.

The firm currently owns Bitexco Financial Tower in Ho Chi Minh City, The Manor Urban Area in Me Tri, Hanoi, JW Marriott Hanoi Hotel, and a number of projects in Lao Cai and Thua Thien-Hue provinces.