Nguyen Toan Thang, Director of the HCM City Department of Natural Resources and Environment, has confirmed that HCM City will terminate contracts with the two companies as they have not made payments for the land plots in Thu Thiem.

The State Bank of Vietnam (SBV) has submitted to National Assembly’s deputies a report on issues raised at the third session of the 15th National Assembly, noting risks in real estate, securities and corporate bond lending.

The National Assembly’s Economics Committee has given its opinion about the land-use rights auction at the Thu Thiem new urban area in HCM City, assessing positive and negative impacts of the auction on socio-economic development.

Experts say that the State should improve the legal framework on the auction of land use rights but should not interfere greatly in the auction process.

Though there were problems in the case of the Thu Thiem land auction, experts say that auctions should not be restricted, and businesses should not be treated as if they are a plague.

At a meeting on March 21 between the department and the two firms, representatives of the two companies said they were trying to mobilize funds for the payments, the local media reported.

Inflating land prices via auctions is one of the biggest problems of the real estate market. It creates an artificial land fever in the market and deprives people of opportunities to own accommodations.

Though the winners of Thu Thiem land auctions withdrew their purchase contracts, the land market in HCM City remains hot, and the prices of some projects are escalating.

After Tan Hoang Minh Group, Binh Minh Trading and Development Investment Co. Ltd., which won the auction for the land lot coded 3-9 in the Thu Thiem New Urban Area in HCMC’s Thu Duc City, has proposed canceling a contract to buy the land lot.