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A high-rise residential, office, and service project on a 2,291 m² plot at 120 Hoang Quoc Viet Street (Cau Giay district, Hanoi) by VNSteel was handed over in 2012 and remains unexecuted. Photo by Thach Thao.

Voters have expressed concerns that while many low-income people are without housing, numerous real estate projects remain abandoned and inaccessible to those in need. In light of this reality, voters from Long An have urged the central government to introduce further mechanisms and policies to address this issue.

Similarly, voters in Lam Dong province have requested that the government form an inspection team to thoroughly review longstanding, unimplemented "zombie projects" or plans that disrupt and negatively impact residents' lives. If a plan is found unfeasible, it should be revoked.

Observations indicate that while land resources are becoming scarcer and housing demand is high, supply has been limited in recent years. Yet, in major cities like Hanoi and Ho Chi Minh City, many residential and urban projects remain stalled or abandoned.

The Ministry of Construction stated that according to land law, real estate projects must be initiated, and land use within two years of the handover to the developer. If this period passes without utilization and without justifiable reasons, the land may be repossessed.

The Ministry emphasized that developers will be penalized if they fail to commence or progress projects as approved by competent authorities. To prevent abandoned or slow-moving projects as raised by public concerns, local authorities must strengthen their supervision, ensure compliance, and enforce adherence to construction and management regulations.

Reclaiming dormant projects and addressing bureaucratic delays

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Vacant resettlement buildings left exposed for years in Hanoi. Photo by Thach Thao.

Addressing "zombie projects" and inactive plans, the Ministry of Construction pointed out that efforts have been made to mitigate such issues, which impact residents. Notably, the Ministry has advised the government, leading to the adoption of the revised Construction Law No. 62/2020, which allows temporary construction permits for areas approved in plans but not yet executed or with no land reclamation orders.

Each year, the Ministry issues plans for inspecting and guiding local authorities in planning and architectural management to reinforce compliance with urban development plans. Inspections have been conducted in various regions to promptly detect and address violations.

The Ministry highlighted the need for coordinated efforts between ministries, sectors, and local governments to resolve these issues comprehensively. This includes finalizing legislative documents, standards, and regulations related to construction planning and investment. Additionally, institutional frameworks for overseeing plan implementation must be refined.

Moreover, the Ministry urges enhancing the oversight of local management to promptly address violations, reclaim delayed projects, and act against officials responsible for bureaucratic hurdles that harm investors, the state, and citizens' legitimate rights.

Local governments should review and update plans to match socio-economic development conditions. This review process should also identify impractical or non-implementable plans for amendment or cancellation. Authorities must actively supervise project progress and reclaim any significantly delayed developments to prevent further “zombie projects.”

Hong Khanh