VP GP Invest talked about building permits: ‘Our troubles!’

Nguyen Quoc Hiep, Chairman of the Board of Directors of PetroVietnam Investment Corporation (GP.Invest), pointed out the inadequacies of issuing building permit

Speaking at the “Seminar for comments on improving the law on business investment in the construction sector,” Mr. Nguyen Quoc Hiep said he happened to see a construction permit issued under the French colonial period, about 1921.

Mr. Nguyen Quoc Hiep – Chairman of GP.Invest

“The paper is very beautiful, printed as a university degree, but the contents of which include only the boundary of land, frontage means that with this paper, inside the land, what do you want to do because it is the land of his house “said Mr.Hiep.

“I think we need to study it,” continued Hiep. “Now the content of our permit, to change the toilet from one place to another, must be allowed, subject to a license amendment.

“That is in my land, I do not violate the boundaries of others, I do not violate the façade, my construction density is so, I do not violate the height of that … That is the The basic parameters of the license must be there, but in my opinion the content of the license needs improvement, which is the content we are looking forward to, “the chairman of GP.Invest proposed.

Mr. Nguyen Quoc Hiep spoke at a seminar organized by VCCI

On the draft of the Law on Amendment of and Addition to a number of articles of the Law on Construction, the Law on Housing, the Law on Real Estate Business, the Law on Urban Planning, Hiep highly appreciated the breakthroughs of Ministry of Construction .

However, Mr. Hiep said that the drafting agency should consider carefully the sentence, because only one error sentence can make people understand differently.

“As Decree 09, stipulates that conversion of use purposes must be auctioned, but the drafting agency lack one sentence is only those enterprises, the source of land has more than 50% of state ownership to new There is only one sentence that the projects in Hanoi in the past one year can not move, even with the license, “said Mr.Hiep.

One of the shortcomings of the Construction Law is that contractors are obliged to guarantee the performance of the contract but do not have the right to guarantee the payment.

This leads to 100% of contractors having arrears in capital construction. And what can be claimed is a complex problem. “It can be said that depending on the investor, also filed civil lawsuit is never resolved because no law provides for payment guarantee.

“We recommend the Construction Law require the owner of the payment guarantee, at least the last 30%, as this is a risky period to fall into the contractor.

“For example, Coteccons is in dispute with Nha Trang Bay Company in the Panorama project, and Coteccons owes VND 120 billion to the company and asks the company to withdraw it. Civil court must be two more years to claim, “said Mr. Hiep.

Another shortcoming is that Article 136 still stipulates the price norm set by the Ministry of Construction. Mr. Hiep said that this is only true for projects funded by budget and private projects must be removed.

“The 2005 Construction Law we have opened, but the 2013 Law re-enters quotas.” In the revised draft law, the ministry still left the reference to the law. This will be very complicated because the tax authorities still have the basis for requesting finalization at the unit price, “said Mr.Hiep.

Taking his own project as an example, Mr. Hiep said that GP.Invest’s project in Hai Ba Trung District is a typical example of policy distress.

“My project has 42 adjacent houses and a 9 storey building.” The law says ironically, while 42 low-rise buildings need only county licensing, a nine-storey building has to go to work. The Department of Construction said this has to cut out, 42 low-rise houses to the district level, but when we cut then, the district again did not say, have to get Department. So it took 3 months. “

“So I suggest, if there is a 1/500 plan, then the level of the work should be clear: who is licensed, it must be clear that the business does not take time because of administrative procedures.

“We would like to ask the Vietnam Association of Contractors, Vietnam Association of Real Estate to have a dialogue with the Ministry before the Law is issued,” said Mr.Hiep.

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