Ho Chi Minh City Proposes Extension for Decade-Old Stalled Project

Ho Chi Minh City's Department of Agriculture and Environment has put forth a proposal to extend the deadline for Gotec Vietnam's stalled luxury apartment and commercial center project. This project, located in a prime area, has been languishing for over a decade, causing significant land waste and prolonged disputes, thereby negatively impacting the investment climate.

The department's review identified that the core issues stem from land-use transfer procedures from a previous entity, Rau Qua Port Joint Stock Company. However, the department asserts that whether through land-use change or land recovery and allocation, the financial obligations remain consistent. They believe there are grounds to resolve Gotec Vietnam's request to operationalize the project, particularly by safeguarding Gotec Vietnam as an "innocent third party" under civil law.

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The Department of Agriculture and Environment proposed granting the extension, emphasizing the need to protect Gotec Vietnam as a "innocent third party" according to civil law.

Gotec Vietnam has committed to settling any additional taxes and financial obligations once determined by the relevant authorities. This move aims to rectify procedural shortcomings without state asset loss and demonstrates the company's resolve to comply with regulations for the project's swift advancement. The proposal suggests a parallel processing of investment procedures and financial obligations, with the Department of Finance advising on the extension and the Department of Construction expediting the notification of future housing sales eligibility. The Tax Department will collaborate to determine any differential land value payments owed by the developer.

This decisive action by Ho Chi Minh City officials signals a strong commitment to alleviating business difficulties and unlocking stagnant resources for economic development. By prioritizing the developer's commitments and addressing past legal complexities, the city aims to get this valuable project back on track, contributing to the local economy and resolving long-standing issues.

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The company is determined to strictly comply with all regulations to ensure the project can proceed soon.