| Ministry okays private participation in site clearance |
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(Listed May 10, 2008) |
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 The Ministry of Construction has agreed with a scheme prepared by HCMC in allowing the establishment of joint-stock companies in charge of site clearance which so far has been covered by State-owned public companies.
In March, the HCMC government wrote to the Government and relevant ministries to seek approval for private firms to be involved in site clearance and compensation services.
The city wants to encourage private participation to accelerate development of major projects that are often hindered by land clearance and compensation problems as affected people in many cases refuse to move out over compensation disputes.
If such a joint-stock company is set up, it would work with investors to make sure site clearance keeps up with projects' timelines.
The HCMC government has suggested the Ministry of Planning and Investment allow it to set up a company in charge of site clearance and compensation services.
Because this is a new business service, the relevant ministries should add it to the list of existing business sectors and issue operation regulations for this type of service to create favorable conditions for the potential investors, according to the city government.
In a recent conference over real estate issues, Pham Sy Liem, deputy secretary general of Vietnam Construction Association, said one of the greatest challenges for property developers in Vietnam was site clearance and compensation.
To attract investment flow into the real estate sector, HCMC planned to issue regulations to further attract investors, among which is the establishment of a company specializing in preparing land and conducting public services related to land.
In early March, Duc Khai joint-stock company has sent a proposal to the city government seeking to establish a company in charge of site clearance and compensation with a chartered capital of VND1.65tril (US$103mil).
The company will do site clearance and compensation and receive fees based on the contracts signed with owners of property projects.
* In related news, the HCMC government has formed a steering board to make a detailed geological and hydrographic map of the 1/50,000 scale for the city.
The map once completed will facilitate the preparation of short- and long-term zoning master plans of construction works in the city.
The Department of Science and Technology, which is a member of the board, will define the scale of scientific maps as well as set up a science council to appraise the project before submitting it to the city government.
Source: SGT |
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