For years, FDI projects in real estate have always attracted attention and favourable vision of people due to their high commitment to creating urban zones for homebuyers. Besides, such projects have good financial capacity so they offered the best reassurance for customers. However, up to now, the construction progress of some projects are not deployed as committed and still being delayed, some projects even are now fallow land.
In 2006, that the Booyoung Co., Ltd of Booyoung Group of South Korea invested in the Booyoung Vina project with a scale of 4.3 ha and total investment of US$171 million, including 6 luxury apartment buildings on 30 floors located in prime location drew great public by its size as well as capital. The Booyoung Vina project is considered one of the most significant projects at that time.
In 2007, the project was put into operation and became one of the most attractive projects that many secondary investors invested large sums to buy the whole floor but after that, the market started slowing down and fell into a recession, leading freezing real estate. Until 2011, although the project continued to be restarted, this created little positive effects. Since September 2015, when the real estate market has shown signs of recovery, the investors have suddenly restarted building 2 plots of CT-06 and CT-07.
By this time, after nearly 10 years after the starting date of the project, the work has not yet been completed and the basement and foundation are under the risk of inactive status. The Booyoung Vina project is one of the FDI projects frequently named in the list of delayed projects that are inspected and revised by the authorities. However, so far, no agency has come up with solutions.
Other FDI projects with largest investment capital that are left behind the schedule include Daewoo Cleve (Ha Dong district) and Inpyung Corporation (Korea) that is considered the biggest projects with total of 5,000 luxury apartments but after the first phase, the investors have suddenly stopped deployment.
Specifically, only 6 floors of two buildings, CT2B and CT2A, were completed and after that, delayed from 2012 to the present. The real problem is that many concerned customers asked the investors for money withdrawal but the investors are constantly giving many reasons for this delay. In a latest move, the investors requested to change the commitment of constructing 15 floor high rise apartment building to lower-rise buildings.
The incident has nothing worth saying if after doing this, the investors will accelerate the unfinished project to be handed over to customers. The investors are now dismantling the unfinished machinery of the two apartments and stopping implementing the entire operation of the project. This raises concerns among customers.
Despite being in a better situation than Daewoo Cleve or Booyoung Vina, the Splendora- North An Khanh project of An Khanh JVC investors have slowed down their progress. This raises many concerns among their customers. With a scale of up to 260 hectares and a total investment of about US$2.5 billion, the project was started in 2006 and scheduled for completion by 2018 but so far, the project has only finished the first phase. Although the project is moving to the second phase, its speed and scale has greatly reduced so it is not safe to say the project will be finished as scheduled.
Another project is Garden City of Berjaya- Handico 12, with a scale of more than 31 hectares. Although constructed since 2009, and scheduled to be completed in 2012, to date, only some parts of the project have been implemented, with fairly limited facilities.
Luong Tuan
Vietnamese
