Ho Chi Minh City Appeared Many “Lying Buffalo” Project

The projects appear on the planning map for a dozen years, but not deployed, become a herd of buffaloes and cows.

Pleasure, suffer from the project “lying Buffalo”

In the development planning of Ho Chi Minh City, Binh Tan district is planned specialized in industrial development, high-rise housing projects. However, this is also the district has many projects are planned with the purpose of industrial clusters, new residential projects were delayed.

For example, at the inter-zone 5-6, Binh Hung Hoa B Ward, according to people here, more than 10 years ago, the district has a compensation plan to clear the land area of more than 40 hectares at the end of this road to do industrial cluster projects. However, up to now, the project has not been realized, the road to the land was built by the people to sell the house, the area of grass to grow luxuriant. In spite of this waste, many households have bought cattle for grazing.

Mr. Hoang Van Cuong, people living here said, currently, his family is raising more than 20 buffalo herd. Each year, there are from $8,700 to nearly $17,400 by the waste land. Not only Cuong’s family, there are nearly 10 other households also cow poop.

“Thanks to this deserted project, the people here are living well, earning a thousand of dollars each year thanks to the herd of buffaloes”, Mr. Cuong said.

The one-billion-dollar PVN Tower project is expected to be the pride of the oil and gas industry, now the cattle grazing area.

Aso located in Binh Hung Hoa B Ward, right in Vinh Loc new urban area is a vacant lot of about 50 hectares. It is known that this is a park and condominium project, but has not been built for nearly 5 years and now turns into a cattle dropping place for people. Also in the plan of Binh Hung Hoa B Ward, more than 10 years ago, at Ward No.6 of this award has a park project of dozens of hectares, however, so far the project has been wiped out, but no project is replaced. Therefore, this area of grass grows luxuriant, surrounded the whole residential area.

“The rainy season is flooded, in the sunny season, the grass grows, people put to waste here, causing flies, mosquitoes. The people here are suffering from this grassy meadow”, Mr.  Le Quang Canh, who lives next to this project.

Similarly, Binh Hung Commune, Binh Chanh District is also the hot spot for the city’s “lying Buffalo” projects with a series of abandoned projects, people from which grazing cattle. At hamlet 5 of this commune, nearly 15 years ago, the residential project of Binh Minh Construction Company appeared.

However, because of not being implemented by investors, in the past time, when heavy rain, the people here have to wade because of the kneading in the state flooded knees. The house was demolished but not built because the land was in the project.

“The grass grows well, many people buy cattle and grazing, there are houses also grow vegetables here. Since they do not know how to implement the project, the people here have to make use of it”, Nguyen Thi Be, who lives here said.

Another case of “Buffalo lying” in Binh Chanh district is the 41-hectare Hanh Phuc residential area, located in front of Nguyen Van Linh Street.

The project is currently compensating 40% (7.7 ha). On the compensation was completed, the investor built a block apartment, but stop at the 7th floor. Now people also turn this place into a cattle grazing.

Meanwhile, in District 9, there is also the project “Buffalo lying” is Phong Phu Ecological Villas of Trien Phong Service Co., Ltd. This project has a total area of 380,000 m2, in 2009, Ho Chi Minh City People’s Committee has approved the investment location, but by 2013, the Department of Natural Resources and Environment Ho Chi Minh City requested the termination of the project due to low compensation rate, less than 50%. Now, the project is also in the grassy landscape.

Find the reasons

Mr. Tran Trong Tuan, director of the HCM City Department of Construction, explained to the reporter why there were too many abandoned projects because the legal system for the real estate market was lacking synchronism, sometimes overlapping.

“In my opinion, the real estate market in HCM City in the past 10 years has revealed many shortcomings, weaknesses, lack of market stability and lack of transparency. When it is hot, supply exceeds demand, product is not suitable with demand, when it is quiet, even frozen, many projects are withdrawn because the investor delayed the project, but then when the withdrawal did not find new investors and as a result, the project was abandoned, ” Mr.  Tuan said.

Around the building, weeds grow wild, turn into cattle grazing cattle for local people

Master Nguyen Thai Son, Head of the Ho Chi Minh City Real Estate Market Development Project, 2016-2020, said that if the city had 85 projects canceled in 2013, the number of projects withdrawn has reached 162 and it has reached 189 projects by August 2015. This data demonstrates the consequences of complex management as well as prolonged project implementation.

“It is worth noting that these projects are mostly large-scale, with an average area of up to 13.5 hectares per project, including land acquisition projects that can reach up to 50 hectares.”

These projects require large capital investment, professional capacity, and expertise of the developer in project development and a long development period, with many divergent development rationales.

In addition, it is noteworthy that some investors do not have the capacity to develop projects but still seek to get the project and keep the land in order to make a profit. However, when the market enters the leg cycle, the project cannot be transferred and deployed, leaving the project abandoned”, Mr. Son said.

Working with Binh Tan District People’s Committee, Mr. Nguyen Ngoc Toan, Deputy Chief of District Office, said that the projects mentioned by the correspondent in Binh Hung Hoa B ward may be located in the territory of Binh Chanh district.

As for the district, the district has recently submitted to the People’s Committee of Ho Chi Minh City on the project delay and review to recover any project is slow progress as well as solution to this problem.

However, the reporter went down to Binh Hung Hoa ward to look at the planning and ask people here, all of these projects are located in Binh Tan district, not in Binh Chanh district.

According to a new report published by the HCM City Department of Natural Resources and Environment, Binh Chanh District is one of the largest number of “hang” projects in the city. Most of these projects are in the South. Of which, four communes of Binh Hung, An Phu Tay, Phong Phu and Hung Long have the most abandoned projects.

However, according to the Department of Natural Resources and Environment, this agency only proceeds to recover the investment policy of the project, while the project planning remains unchanged. Therefore, many projects because there is no new investor, should continue to let grass grow.

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