Localities, especially Hanoi and HCMC, have licensed real estate projects of their own free will, leading to an oversupply and spelling much trouble for the market, said Tran Ngoc Hung, president of the Vietnam Federation of Civil Engineering Associations.
In addition to reviews and strict controls, he suggested the Ministry of Construction consider canceling certain projects and do the job directly rather than assigning it to local authorities.
It may lead to delays and compromises when local authorities are assigned to review property projects because it is local governments that have granted certificates for such projects and investors have spent a lot on the projects, said Hung at a review conference of the construction industry.
Apart from rampant project licensing, construction quality was also a concern raised by the delegates attending the conference. Minister of Construction Trinh Dinh Dung said there were some 51,600 construction works nationwide in 2012, 0.08% of which had accidents.
“The quality of many projects is low. Although they do not collapse, their quality is poor,” Dung said.
To solve the aforementioned problems, property projects must soon publicize their scale, investment capital and development progress, said Hung. In big cities like Hanoi, HCMC and Danang, it is necessary to form inspection teams under the construction ministry in collaboration with local people’s councils and associations.
The authorities should issue a decree on houses for rent. Moreover, there must be priority policies for investors in this segment because the demand for houses for rent is very high, said Hung.
Sharing this view, Minister Dung said the ministry this year would continue to improve mechanisms and policies for the construction industry, tighten management and supervision, especially of the State-funded projects, and boost construction efficiency.
The Saigon Times Daily