The Ministry of Construction Identifies Nine Real Estate Projects with Violations in Phu Tho

Frequent Plan Adjustments

The Ministry of Construction has reported to the People’s Committee of Phu Tho province on the inspection results of the management of housing and real estate business activities in the province. Accordingly, at two projects (Vuon Vua Tourism, Ecological Villa and Resort in Dong Trung commune, Thanh Thuy district, and La Phu Floating Luxury Ecological Resort), the inspection team from the Ministry of Construction discovered that the approval and investment policy decisions have changed multiple times, and the planning has been adjusted excessively, leading to prolonged implementation progress.

Regarding the Vuon Vua Tourism, Ecological Villa, and Resort project (with a scale of 82.89 hectares) invested by Thang Long Phu Tho Joint Stock Company, the company has been trading real estate without fully meeting the conditions according to Article 55 of the Real Estate Business Law.

Based on the violations of the Vuon Vua project, the Ministry of Construction suggested that Phu Tho province needs to conduct more frequent inspections and supervision of real estate business activities to timely prevent violations by investors and protect the interests of home buyers.

As for the La Phu Floating Luxury Ecological Resort project, invested by Ao Vua Joint Stock Company, with a construction scale of 65.3 hectares (including 51.2 hectares managed by Phu Tho province and 14.1 hectares managed by Hanoi), the Ministry of Construction concluded that the project was licensed in 2007 but did not start construction until 2011.

After being licensed, the People’s Committee of Phu Tho province has adjusted the planning of the project several times. In June 2020, the project was granted a construction permit by the province, but so far, the investor has not had any products for sale, lease, or purchase, reducing the investment efficiency of the project.

Discrepancy in Approved and Actual Land Area

The Tay Nam Viet Tri New Urban Area project (with a scale of 58.5 hectares) is invested by Global Oil and Gas Investment Joint Stock Company. The project, commercially known as Palm Manor, is being implemented on a land area of 7.3 hectares, and site clearance is underway for the remaining area of Phase 1 (approximately 28.38 hectares).

According to the inspection team from the Ministry of Construction, there is a discrepancy of over 2 hectares between the approved land area and the actual land area of the Palm Manor project. The project owner’s name, as approved by the People’s Committee of Phu Tho province in Decision 523/2013, is Global Oil and Gas Investment Joint Stock Company, but in subsequent decisions (No. 117 and 3151), the project owner’s name was changed to Global Real Estate Investment Joint Stock Company.

Palm Manor, introduced by Global Real Estate Investment Joint Stock Company at the end of July 2024, is being offered for sale in its third phase by some brokerage units. However, in the report sent to the inspection team of the Ministry of Construction, the investor affirmed that they have not carried out any real estate business activities, including future formed real estate.

In this recent inspection, the Ministry of Construction also discovered several violations in other projects in Phu Tho province, such as the Lac Ngan Southern Urban Area project in Tan Dan ward, Viet Tri city, which did not carry out the procedure for approval of investment policies according to the Housing Law and illegally transferred land to people for building houses.

In the Viet Sec New Urban Area project, invested by Viet Sec Real Estate Investment and Trading Company Limited, the company has not reported on the business of villas and separate houses, nor has it provided documents proving the guarantee of future formed houses for the units that have been sold. They have also not provided documents on the fulfillment of financial obligations related to land.

According to the conclusion of the inspection team from the Ministry of Construction, among the nine inspected real estate projects in Phu Tho, two projects (Viet Sec New Urban Area and Tien Cat Urban Area) did not carry out the procedure for recognizing the investor according to the Housing Law.

To handle the violations in these nine projects, the Ministry of Construction requested the People’s Committee of Phu Tho province to inspect and review certain contents, including compliance with land, planning, and investment laws; the establishment and approval of planning and land use plans; and the approval of investment policies for some projects.