Heads scratched over vacant land

According to Ministry of Finance’s (MoF) Public Asset Management Department, state and public administrative organisations are managing 1.5 billion square metres and housing area, with 1.2 billion square metres occupied by public administrative units.

In 2011, the Ministry of Natural Resources and Environment (MoNRE) inspected land usage in 118 property projects in Hanoi. Inspectors later uncovered around 30 projects facing delays due to developers’ poor finance or site clearance woes.

In fact, unused land plots surfaced in most Hanoi districts like Cau Giay, Long Bien, Thanh Tri, Tay Ho, Tu Liem, Dong Anh and Gia Lam.

“Golden land areas are mostly occupied by state administrative units, particularly state groups and corporations,” said MoF’s Asset Management Department head Pham Dinh Cuong.

Topping the list of businesses with unused land plots in Hanoi’s inner districts is Handico.

Handico owns several dozen well-placed land plots in the city’s areas. A multistory housing complex in Hanoi’s Nam Trung Yen urban area is one of them which covers around 5.4 hectares and saw construction kick-off in 2008. However, the project remains vacant.

According to Handico’s general director Nguyen Van Cuu, this modern design housing complex aimed to provide dwellings to 13,000 people once completed. However, the corporation decided on delaying the project on the back of a dormant property market.

Big property developers occupy unused land plots such as South Korea-based Booyoung Vina Company Limited with hi-end Booyoung Vina apartment project in Ha Dong district’s Mo Lao street, Vinaconex Hoang Thanh with Park City urban area in Ha Dong district’s Van Khe area, Sudico with Nam An Khanh urban area in Hoai Duc district and Tien Xuan urban area in Thach That district.

Head of Institute of Urban Research and Infrastructure Development Pham Sy Liem said land usage in Hanoi was causing a huge waste.

“Using land resources in a scientific manner could generate billions of US dollars to the state budget every year.

“The government and localities have taken back many projects from foreign businesses and investors. The same should be applied towards unused land plots of state organisations and local businesses,” Liem asserted.

The prime minister recently asked Hanoi People’s Committee to join efforts with MoRNE and Ministry of Construction to ramp up checks at unused golden land plots across Hanoi.

Hanoi authorities required diverse districts to report on the situation in their areas. According to Hanoi People’s Committee deputy chairman Vu Hong Khanh projects showing signs of illegal land appropriation and improper usage would be taken back to transfer to capable developers.

“Part of the retrieved land will be used for building public welfare works like parks, parking lots and part will go to the city’s investment development land fund,” said Khanh.