The Abandoned Landscape: Hanoi’s Tax-Debt Urban Area Awaits its Fate

The Phu Luong New Urban Area in Ha Dong District, Hanoi, is facing financial troubles with its investor consortium, represented by Trung Viet Construction Investment Joint Stock Company, owing significant taxes. This has left the project in disarray, with a mix of abandoned, half-built villas and townhouses alongside completed "castles," creating an eyesore of a project.

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The new Phu Luong urban area is located in Phu Luong, Phu La, and Kien Hung wards in Ha Dong district, Hanoi. The project is developed by Song Da 2 Joint Stock Company, Trung Viet Investment and Construction Joint Stock Company, and Hong Quang Construction Joint Stock Company.

According to the approved plan, the project covers an area of more than 34 hectares. Of this, the residential area accounts for 157,678 square meters (43.76%), including high-rise apartments with commercial services, detached houses, and villas, totaling nearly 500 units. The expected population is approximately 6,400 people.

As per the schedule, the developers expected to complete construction by 2019 and achieve an occupancy rate of over 80% by 2020.

However, as observed by our reporters, the Phu Luong new urban area is sparsely populated, with many completed villas and detached houses left abandoned and overgrown with weeds, creating a desolate and untidy scene.

Image of completed villas left abandoned, with weeds growing wildly in the Phu Luong new urban area.

The basements of these abandoned villas have turned into stagnant pools of water, causing environmental pollution.

Some of these abandoned properties are being used by construction workers as living quarters, which poses safety and security risks.

The Phu Luong new urban area remains sparsely populated, with only a handful of residents, despite being developed for several years.

The most notable structure in the Phu Luong new urban area is a massive four-story “castle” built in the European classical architectural style. This building, located in the TT01 area, was constructed next to abandoned villas in 2017.

At the time, this “castle” was found to be constructed without a permit, and the authorities fined the owner and ordered a halt to the construction. However, the building has since been completed and is now in use.

Some of the massive villas in the BT10 area and the structure in the TT02 area feature unique designs and architecture, standing out from the other villas in the project.

The diverse designs and architecture of the villas and low-rise houses in the project create a disjointed and inconsistent appearance in the Phu Luong new urban area.

It is worth noting that the Phu Luong new urban area project is on the list of major land tax debtors awaiting handling.

Regarding this project, the tax authority has requested the People’s Committee of Ha Dong district to urgently review the approved compensation plans and provide a written confirmation of the compensation costs for site clearance to the Department of Finance as a basis for considering the deduction of these costs from the land use fees to be paid by the project, as per regulations.

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