Planning differences hinder Novaland real estate projects in southern Vietnam: provincial authorities

Differences between master plan and subdivision plans have caused many difficulties facing real estate major Novaland’s Aqua City project in Dong Nai, provincial authorities say.

At a Friday working session with Construction Minister Nguyen Thanh Nghi on measures to clear obstacles and promote real estate market development, Vo Tan Duc, acting Chairman of the Dong Nai People's Committee, elaborated on the context in which the project’s problems had arisen.

He said the project to adjust the master plan of Bien Hoa town, capital of the southern province, was approved by the provincial People's Committee in July 2014; and another for the 1,500-hectare Subdivision C4 was passed in September 2016. However, at the time of approval of the two plans, detailed planning documents at the 1/500 scale of previously approved projects had not been fully updated.

Due to differences between these plans, residential and urban area projects, including Novaland’s Aqua City project, were suspended, he added.

The Aqua City project is located in Subdivision C4 in Long Hung commune and part of Tam Phuoc ward, Bien Hoa town.

In May 2023, the People's Committee proposed that the Prime Minister allows the province to adjust Bien Hoa town’s master plan in order to expeditiously remove difficulties and obstacles faced by several real estate projects, including Novaland's.

With the Novaland project running into legal problems, Ho Chi Minh City police recently requested documents related to Aqua City.

In response, on May 7, Novaland said petitions to the police had been lodged by some customers with financial difficulties, while many other customers have expressed solidarity with the group. Therefore, the police have been carrying out information verification under prescribed legal procedures to provide official feedback to customers, company officials said.

They acknowledged that the business was facing many difficulties. The Aqua City project, for instance, was still under construction and waiting for more cash flow for work to be completed.

Novaland officials noted that the company has also received requests for documents for projects other than Aqua City.

All such projects were under construction and on the priority list of ministries, agencies and local authorities for clearing legal obstacles, they clarified.

Regarding information on construction and planning violations with Aqua City, Novaland said steps were being taken to fix them in accordance with new plans. The project was also completing related legal procedures to continue construction and business for items meeting the approved detailed plan towards fully implementing commitments to customers, it added

In the past few years, several Novaland projects in Ho Chi Minh City as well as the provinces of Dong Nai, Ba Ria-Vung Tau and Binh Thuan have encountered various legal problems.

For example, the NovaWorld Phan Thiet project in the south-central province of Binh Thuan is facing problems in determining land prices and has not yet received approval because it is yet to satisfy many regulations.

The NovaWorld Ho Tram project in the southern province of Ba Ria-Vung Tau is having difficulty extending its investment policy and land use period. The company’s projects in HCMC are facing obstacles in calculating land use fees for issuing ownership certificates (pink books) to residents.