A view of HCM City. — File Photo

Compiled by Le Hung Vong

The recent decision by HCM City authorities to revoke 298 development projects, mainly public works, reveals a determination to take stronger measures against delays.

According to the city Department of Natural Resources and Environment, most of the works to be called off this year relate to widening roads, dredging canals, and building embankments, schools, hospitals, tenements, and houses for the poor spread over all districts. Thirty eight of them are in Binh Chanh District while Hoc Mon and District 8 account for 28 each.

These include projects the city administration had decided in past years to pull the plug on. Like the Dam Sen Residential Complex in District 11, widening of Pham Van Bach Road in Tan Binh District and Ung Van Khiem Street in Binh Thanh District, and construction of a bus-transit station at 152 Dien Bien Phu Street in Binh Thanh District.

The land taken back from delayed projects will be allocated to other works requiring more land.

This year land has been allocated in this manner to the second phase of the widening and upgrade of Hang Bang Canal in Districts 5 and 6 .

Metro route No 2 linking Ben Thanh Market (in District 1) with Tham Luong Bus Station (in District 12) will need an additional 10.75ha of land in Districts 1, 3, 10, 12, and Tan Binh.

The work to drain water to mitigate the pollution in the Tham Luong – Ben Cat – Rach Nuoc Len canals in District 12 needs 14ha, while a flood-control embankment in Binh Chanh District needs 65ha of land.

A delay in the construction of metro line No 2 has affected the progress of other related works. Construction of the $20 million multi-storied Tan Tien parking facility for the vehicles of passengers using the metro has, for instance, come to a standstill.

According to Nguyen Van Tien, CEO of Tan Tien Co., if construction of line No 2 goes on schedule, it would take his company 15 to 20 years to break even.

Under such delay situation, it could take up to 50 years to recoup the investment, he said.

Pham Sanh, a former lecturer at the HCM City Polytechnic University, said the plan to scrap 298 delayed projects are in conformity with construction and investment laws, which allow the city to cancel works delayed for two or three years.

But this process is happening slowly, not just in HCM City, but everywhere else in the country, he said.

Double the price

Land rents at industrial parks in HCM City are much higher than in Ha Noi. The highest rate in HCM City is US$242-286 per square metre per year compared with just $120-190 in Ha Noi, according to a recent report by property services provider Savills Viet Nam.

HCM City has 16 IPs, with the highest rent being at Tan Tao IP, followed by Tan Binh IP at $220-250 and Vinh Loc A IP at $180-190.

Tay Bac Cu Chi IP offers the lowest rent of $40-50.

Figures from the report show that the average rent at HCM City IPs is double that in its neighbouring provinces like Binh Duong, Long An, and Dong Nai.

Apart from the 16 operational IPs, HCM City is preparing to build seven new ones to attract foreign investment in the apparel, services, and food processing sectors.

Ha Noi has a dozen industrial and hi-tech parks where rents are double that in other northern areas.

It costs $120-190 at Nam Thang Long IP, $130-150 at Noi Bai and Ha Noi-Dai Tu IPs, and $90-150 at Quang Minh, Phu Nghia and Thang Long IPs.

The lowest is $50-60 at Hoa Lac Hi-tech Park.

According to the Ministry of Planning and Investment, Viet Nam has 299 IPs with a combined area of 84,000ha. Of the number, 212 are operational and 87 are under construction.

Around 26,000ha out of the 56,000ha available for lease have been taken.

In the southern region, Dong Nai has the largest number of IPs followed by Binh Duong, Ba Ria-Vung Tau, HCM City, and Long An. Bac Ninh Province has the most in the north, followed by Ha Noi, Hai Phong, Thai Nguyen, and Hung Yen. — VNS