Ghost towns haunt Hanoi outskirts

Dozens of planned urban development projects on the outskirts of Hanoi have not been completed, turning into ghost towns and a source of misery for residents and investors.
Hanoi (VNA) –Dozens of planned urban development projects on the outskirts of Hanoi have notbeen completed, turning into ghost towns and a source of misery for residentsand investors.

According to a report by the Tien Phong (Vanguard) newspaper, Me Linh district,for example, was a hot real estate market in 2008 and 2009. But now housing andurban development projects that were begun there have become deserted.

The Housing and Urban Development Corporation (under the Ministry ofConstruction) spent hundreds of billions of dong for ground clearance, roadpaving and compensation for local farmers, but the Thanh Lam-Dai Thinh 2 NewUrban Area located near the office of the Me Linh district People’s Committeehas not been completed.

Close by is a project named Spring Hill City, the infrastructure for which wascompleted, but the grass covering the unfinished villas has turned it into acow pasture.

Nearly 20 projects in Tien Phong commune which took over hundreds of hectaresof land, remain deserted. These include large-scale projects of Nam Son hotelsand villas located on an area of 60ha, Phuc Viet eco-villas on 24.3ha,buildings and houses for workers on 16ha, Minh Giang Dam Va Urban City on 22ha,Tien Phong Flower Village on 40ha, and Tien Phong International Village on30ha.

So far, only the Ha Phong Urban Area project with hundreds of villas and houseshas been completed but few people have moved in, the paper reported.

The district’s authority said that many out of the 47 projects undertaken inthe district have not been completed.

Hoai Duc district located on the western side of the city, which was expectedto develop fastest among 19 planned outskirts districts, is similarlyabandoned.

With the advantage of transport facilities connecting it with National Highway32, Thang Long Boulevard, To Huu and Le Van Luong roads, the district’s landswere targets of big real estate companies such as Sudico, Posco, Vinaconex,Lideco or Vietacimex.

However, a series of housing and urban development projects by the investors hasnot been completed.

“Many projects were approved since 2006 but they were not finished for manyreasons,” said Hoai Duc district Vice Chairman Do Duc Trung. Trung said he hadseveral meetings with relevant offices to push the investors, but the projectsare at a standstill.

"These were projects approved by the central city authority and land wasallocated to investors, so we [district] could not intervene but suggestrecommendations only," Trung said.

Luong Toan Thang, head of Me Linh District Urban Management Division said thatin the "land fever of 2008 and 2009, many projects in the districtmobilized capital from thousands of people. Project suspensions cause lossesfor people and prolonged sueing,” he told the paper.

Recently, the local authority asked project investors to update it on thesituation, but few complied, Thang said.

According to Pham Thanh Tung, chief manager of the Vietnam Architects’Association, abandoning housing and urban development projects was a violationof land regulations by investors.

“When investors applied for projects, there were concrete regulations on theduration and stipulations that the project licences would be revoked ifprojects could not be realized,” said Tung.

“The first reason was weak management. The second was interest groups,” Tungadded, explaining the cause of the problem.

“Actually, many investors transferred the land allocated to others to makemoney on the increased value of the land,” he said.

Meanwhile, Prof Dang Hung Vo, former deputy minister of natural resources andenvironment, said “this was the consequence of approving too many projects nottaking into account real demand”.

“It’s time for the city to revoke lands and give strict sanctions if investorsdo not restart their projects,” architect Tung said.

“Unfinished projects cause not only money waste but also socialconsequences.”-VNA
VNA

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