Construction of many real estate projects in the central economic hub of Da Nang has been postponed for a long period despite their downtown locations.
Right at the city's heart stands a cluster of three long-delayed projects - Vien Dong Meridian Towers, Da Nang Center, and Golden Square. Their investment licenses were granted over 10 years ago, but little work has been done.
Vien Dong Investment Consulting and Technology Transfer JSC obtained an investment certificate for the Vien Dong Meridian Towers project in 2008.
Located at 84 Hung Vuong street in Hai Chau district, the project was envisaged as a complex of 550 high-class apartments, a shopping mall, a conference center, and a 6-star hotel with 260 rooms. Currently, the 11,170 square meter project comprises an empty site covered in weeds.
Not far off, at 8 Phan Chau Trinh street, is Da Nang Center. Vu Chau Long Real Estate JSC, the project owner, had planned to build high-class apartments, a shopping mall, a 5-star hotel, a conference center and other utilities.
The project site of 7,878 square meters is now fully surrounded by an iron fence to prevent outside intrusion.
Also in the quarter, the Golden Square project, developed by Dong A Real Estate JSC, has seen long delays. Some work was recently restarted, but prolonged postponements often reoccur. The site is also surrounded by an iron fence.
The trio used to be seen as a new driving force for Da Nang’s downtown development. But support from city authorities has done little to advance progress.
At a recent press briefing for the first quarter of this year, To Van Hung, Director of the Da Nang Department of Natural Resources and Environment, said that the city was facing difficulties handling these projects.
Under the Land Law, infringements include cases where developers do not start construction 12 months after they obtained the land site, or construction falls 24 months behind the approved schedule.
Hung said the regulators can allow a 24-month extension. After that, the investment certificate would be withdrawn if construction does not commence.
“The fact here is developers must deal with a lot of procedures. Therefore, it is very hard to start construction within such 12 months,” he said.
Hung noted Da Nang authorities used to grant land sites to developers without specific project proposals. Only after securing the land would developers draw up specified plans.
“Many projects in Da Nang have surpassed their 24-month extensions. Withdrawing investment certificates under the Land Law is obvious, but this relates to other laws like those on investment and construction. This is a headache that the whole country is facing.”
“Not just the three projects mentioned above, many projects in Da Nang have finished off that 24-month extension. Withdrawing their investment certificates under the Land Law is obvious, but this has many things to do with other laws such as the laws on investment and on construction. This is a headache that the whole country is facing.”
Hung added that the developer of the Da Nang Center project will continue its work, while the other two projects would be transferred to other developers. He did not give any names.