According to statistics from the Ho Chi Minh City Real Estate Association (HoREA), Ho Chi Minh City currently has about 126 commercial housing projects that are behind schedule or have stopped construction due to interspersed public land, although the public land ratio only accounts for about 10% of the area of these projects.
The leader of a real estate company in Ho Chi Minh City said that his company has not yet been able to complete the procedures to implement an apartment project on an area of more than 6,500 square meters in Thu Duc City because several hundred square meters of public land are canals located in the project.
Previously, the locality requested to separate the auction to select investors according to regulations. He worked with the departments and branches many times but the answer was to separate the auction.
Since Decree 148/2020, it seemed that the biggest problem had been solved, but until now the project is still "stuck in place".
Previously, Ho Chi Minh City had implemented the exchange of public land areas interspersed in real estate and commercial housing projects according to the mechanism of exchanging interspersed public land areas equal to 8% of the residential and business land area of projects with infrastructure.
This rate was then gradually increased to 10%, 12% and 15%, but then had to be stopped because it was not in accordance with the provisions of the Land Law 2003 and 2013.
In 2020, the Government issued Decree 148 allowing localities to provide detailed regulations to remove obstacles for interspersed public land.
Since then, many provinces and cities have issued regulations to resolve the issue. However, many provinces and cities have not yet issued regulations, including Ho Chi Minh City.
From August 1, 2024, the 2024 Land Law and Decree 102, which will take effect, have specifically stipulated the policy on land allocation and lease for small, narrow, and interspersed plots of land managed by the State. This is aimed at effectively managing this type of land and avoiding exploitation for profit.
To resolve hundreds of projects that are stuck with interspersed public land, recently, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong assigned the Department of Natural Resources and Environment to be the agency in charge of drafting regulations for the allocation and lease of interspersed public land in Ho Chi Minh City.
The Department of Natural Resources and Environment will draft: "Decision to promulgate regulations on reviewing, publicly announcing, and making a list of small, narrow, and interspersed land plots managed by the State and land allocation and leasing for small, narrow, and interspersed land plots in Ho Chi Minh City".
The drafting of regulations will follow the simplified procedures and order according to the Law on Promulgation of Legal Documents 2015 (amended and supplemented in 2020).
The Ho Chi Minh City People's Committee assigned the Department of Natural Resources and Environment to preside over drafting regulations on reviewing, publicly announcing, and listing small, narrow, and interspersed land plots managed by the State, and on land allocation and leasing for small, narrow, and interspersed land plots in Ho Chi Minh City to implement the 2024 Land Law and remove obstacles for hundreds of commercial housing projects that are stuck with interspersed public land.
The Department of Natural Resources and Environment is responsible for coordinating with the Department of Justice, Department of Construction, Department of Planning and Architecture, People's Committees of districts, Thu Duc city and relevant agencies to develop the above regulations.
Drafting of regulations must be completed by December 31, 2024.
