Firms bemoan legal conflicts, delays in construction investments

Thứ Hai, 09/09/2019 - 04:00

Complex procedures and overlapping regulations have caused construction projects, including housing developments, to progress slowly, according to speakers at a seminar held on September 6.

Condo buildings in HCMC. (Photo: Le Anh)

At the seminar on legal conflicts in construction investment, chairman of the HCMC Real Estate Association (HoREA) Le Hoang Chau mentioned procedures which normally take investors some three years before obtaining the rights to use land and clear sites.

According to HoREA, investors need roughly two more years to carry out procedures preparing for construction, such as investment approval, approval of 1:500 scale planning, land recall decisions and transfers, design assessments and construction licenses, among others. Due to such procedures, it takes investors roughly three years to begin projects.

In case of problems arising from carrying out the procedures and site clearance, it may take investors up to ten years before being able to sell their commercial housing projects.

Experts, enterprises, lawyers and representatives of management authorities attending the seminar agreed that construction investments experience overlapping regulations, and legal conflicts could cause investors to spend more time and expenses on their projects.

As shared by Dau Anh Tuan, head of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), procedures for construction investment concern different laws. This is not to mention that the way a particular law is implemented in various localities is not the same as elsewhere, and authorities are sometimes confused and passive when handling applications from enterprises.

For instance, there are conflicts concerning the time of assessing land use demands in the land law and investment law, and overlaps with regard to planning and investment approval of the Prime Minister in the laws of investment, urban planning and housing. There are also inconsistencies in the minimum capital required of investors in the law on real estate business and the land law.

Further, there exists differences among laws when dealing with one matter.

According to enterprises and experts, construction investment activities are subject to 12 different laws and a number of decrees, resolutions and circulars. In addition, there are more than 20,000 requirements of different kinds relating to capital demand, investment preparation, investment implementation, operations and others.

This has resulted in serious consequences, much time needed, investment opportunities missed and increases in costs and risks.

Phan Duc Hieu, deputy director of the Central Institute for Economic Management (CIEM), said that there needs to be a law which harmonizes regulations of various laws to end current conflicts. If laws which are being amended fail to solve conflicts and overlaps at their roots, the enforcing of such laws will be questionable.

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