Ministry of Finance orders crackdown on real estate projects

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Báo Dân Trí English - 2 week(s) ago 1 readings

The Ministry of Finance has proposed to investigate the number of commercial areas that were converted from state-owned land.

The Ministry of Finance has proposed to investigate the number of commercial areas that were converted from state-owned land.

Ministry of Finance orders crackdown on real estate projects

The Ministry of Finance has called for the Government Inspectorate to review real estate projects and converted land used for commercial purposes across the country, including major projects like Riva Park in HCM City, Pandora project in Trieu Khuc, Hanoi and PVV-Vinapharm in Hanoi.

The ministry also asked provincial and city authorities to halt all high-rise building constructions in cities that haven't followed required procedures. The local authorities must auction the lands close to the market prices in cases that are allowed by the prime minister. There are also a number of cases where the city and provincial people's committees haven't consulted with the local people's councils about the land rental fees.

According to the General Department of Taxation, about 60 state-owned enterprises were given permission to convert land use from July 1, 2014 to November 30, 2016.

When state-owned enterprises are equitised and the lands are converted for commercial use, the lands must be auctioned by Land Law. However, this regulation was ignored even though many plots in Hanoi and HCM City have been given conversion permits by the city and provincial people's committees.

The suggested land rental fees by consultancy firms are not close to market prices and their surveys are inadequate, the ministry said. Moreover, the city and provincial people's committees failed to follow the rules by not submitting the land prices and land rental fees for the people's councils' opinions.

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