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Unlocking the Potential: Revitalizing Stalled Real Estate Projects in Binh Duong to Prevent Resource Waste

26 November, 2024

Roxana Plaza, an ambitious real estate project, is located at the entrance to Binh Duong province, in Vinh Phu ward, Thuan An city. (Photo: VNA)

Binh Duong, a province renowned for its success in attracting investments and urban development, is now facing a challenging situation with several significant real estate projects grinding to a halt. These projects, once envisioned to transform the area, have instead become a source of distress for local residents. Notable examples include the Vo Minh Duc residential area, The Ky 21 residential area (in Thu Dau Mot city), and the Roxana Plaza apartment complex (in Thuan An city). These stalled developments not only result in resource wastage but also severely impact the lives and trust of the people.

The Elusive Dream of Homeownership

The Vo Minh Duc residential project, launched in 2010 in Chanh Nghia ward, Thu Dau Mot city, was once promoted as an ideal place for hundreds of families to settle down. However, 14 years later, that dream remains unfulfilled. The developer, Thanh Nguyen Real Estate Investment, Construction, and Business Joint Stock Company, has not only failed to complete the project but has also faced allegations of illegal construction.

Numerous households invested their savings to purchase homes here, hoping for a stable living environment. Instead, they have been met with nothing but prolonged promises. Mr. Tran The A, a customer, shared his frustration: “I spent over one billion VND as a deposit for a 5x15m house. I even took out a loan from the bank, but up to now, there is still no house, and the interest keeps piling up.”

Ms. Nguyen Thi M, another disheartened buyer, revealed that she had paid three billion VND for her dream home but received only requests for extensions from the developer. “We have hung banners and sent petitions to the authorities multiple times, but to no avail,” she said.

Similarly, the The Ky 21 residential project in Phu Cuong ward, Thu Dau Mot city, has been in the hands of Tan Vu Minh Construction, Investment, and Real Estate Business Limited Company since 2006. Despite nearly two decades of development, the project remains unfinished, disrupting the lives of those in the area.

In 2016, the People’s Committee of Binh Duong province decided to revoke the project and planned to convert the site into Phu Cuong Park. However, this idea has not yet materialized.

Residents living in the affected area expressed their frustration: “Our houses are deteriorating, but we dare not repair them because we fear losing everything if the project goes ahead. All we ask is for the government to return our land rights so we can live in peace.”

The Roxana Plaza project in Thuan An city is another example of stagnation in Binh Duong’s real estate sector. Initially named Contentment Plaza, the project commenced in 2017, with Tuong Phong Real Estate Construction Service Trading Investment Limited Company as the developer. However, the company has failed to deliver the apartments as promised.

Hundreds of customers find themselves in a dilemma. In response, the provincial authorities formed a special task force to address the issues. Buyers have pressing questions: When will Tuong Phong complete the construction and hand over the apartments to the people? What actions will the government take if the developer fails to fulfill their commitments?

Conclusion 308/KL-People’s Committee, dated August 22, 2023, of Binh Duong province, requires Tuong Phong to continue signing sales contracts with customers based on the agreements made with Naviland Joint Stock Company. Therefore, the contracts customers signed with Naviland remain valid. Why is it necessary to terminate the three-party contract between Tuong Phong, Naviland, and the buyers and instead require a new contract solely with Tuong Phong…

The project has two high-rise towers under construction, which are now dormant. (Source: Tien Phong Newspaper)

Challenges in Resolution and Government Efforts

Given the complexities surrounding the Vo Minh Duc project, the management of the Binh Duong Province Construction Department has demanded that the developer complete the assigned project. They have also suggested adjusting the planning and dividing the project into suitable investment phases. If the developer fails to comply, the authorities may involve the court and request an investigation to protect the rights and interests of the people.

Mr. Huynh Pham Tuan Anh, Deputy Director of the Binh Duong Province Construction Department, shared that while they do not wish to criminalize economic contracts between the parties, involving law enforcement may be necessary to resolve the issue conclusively. Revoking the project and compensating the people could be the optimal solution to end the stalemate. The province has granted an extension for the Vo Minh Duc project, with a new deadline set for 2028.

Regarding the Roxana Plaza project (formerly Contentment Plaza), Tuong Phong Real Estate Construction Service Trading Investment Limited Company is the developer. Blocks A and B of the apartment complex have been topped out and are in the interior finishing stage. However, Tuong Phong and Naviland Joint Stock Company have yet to reach agreements with all customers who signed the transfer contracts.

To address these issues, the provincial authorities issued Decision No. 2026/QD-People’s Committee on July 8, 2024, establishing a task force to dialogue with the involved parties. The task force has organized three rounds of discussions and is continuing to work on compiling reports to present to the provincial People’s Committee for a suitable solution.

Tuong Phong and Naviland have been dealt with according to legal regulations for their violations of construction and real estate business regulations.

Meanwhile, the Phu Cuong Park project (formerly The Ky 21 residential area), with the provincial Land Development Fund Center as the investor, has also encountered obstacles. The prolonged project has caused difficulties for households scheduled for resettlement.

From 2017 to 2021, the province directed the temporary use of the Land Development Fund to support temporary housing for the people, totaling 5.928 billion VND. However, the State Audit Office determined that this was not in accordance with regulations and requested a refund.

In response, the province halted the temporary use of the fund and instructed relevant departments to research alternative support measures. Meetings between the Department of Natural Resources and Environment, the Department of Finance, and Thu Dau Mot city were held to review and propose feasible solutions. On May 28, 2024, the parties agreed to submit a proposal to the province for temporary housing support for 2022 and 2023. Additionally, the task of resettling affected households was proposed to be coordinated by Thu Dau Mot city, ensuring compliance with legal regulations.

The delayed real estate projects not only waste resources but also erode the people’s trust. The Binh Duong provincial government is actively promoting solutions to revive these dormant projects by accelerating legal procedures, adjusting planning, and attracting investment.

Restarting these projects will help balance the interests of both the people and investors and contribute to sustainable urban development. Despite the challenges, Binh Duong is determined to build a modern city that meets the needs of its residents and drives socio-economic development.

Huynh Trang