Real Estate Newsletter on 9/6/2023

Phat Dat wants to build an urban service industrial park with an area of 805ha in Quang Ngai

The People’s Committee of Quang Ngai province said that it has received a written proposal to invest in the construction of an Industrial Park (IZ) and a Service City in Dung Quat EZ, from the Industrial Park Development and Investment Joint Stock Company (hereinafter referred to as the Company). Obtain.

Accordingly, Phat Dat Company proposed to invest in building Phat Dat – Dung Quat Service Urban Industrial Park, with a total area of 805ha, located in 2 locations, including area 2 with an area of 495ha and area 4 about 310ha, belongs to Binh Thanh subdivision, Dung Quat economic zone.

Thereby, the People’s Committee of Quang Ngai province has directed the Management Board of Dung Quat Economic Zone and industrial zones, to consider and advise the Provincial People’s Committee, to settle according to current regulations.

Elsewhere, the Management Board of Dung Quat Economic Zone and new industrial zones awarded the investment certificate to the Korean investor for the investment project of construction and business of infrastructure in Binh Hoa – Binh Phuoc light industrial zone.

Accordingly, the project implementation location is in the communes: Binh Hoa, Binh Phuoc and Binh Thanh, Binh Son district (under Dung Quat EZ). The project is divided into 2 investment phases, from now to the fourth quarter of 2025, with an area of about 249 hectares, a total investment of nearly 1,300 billion VND.

The objective of the Project is to invest in the business of technical infrastructure of the Industrial Park to attract secondary investors in the fields of: textile, garment, footwear; making jewelry, precious stones; crafts; petrochemical, paint, general chemical industry.

In addition, there are mechanical engineering, electrical appliances, electronics, telecommunications, building materials, ceramics, glass, furniture, household appliances; manufacturing and assembling auto parts and accessories… and other light industries.

Separating the section through Binh Phuoc from the HCMC expressway project. Ho Chi Minh City – Chon Thanh

According to the Ministry of Transport, splitting the section through Binh Phuoc province into an independent project will have more advantages by mobilizing resources for local participation, ensuring convenience in site clearance and relocation. and proactively supply materials to implement the project.

Regarding the capital source to ensure the project implementation, the Ministry of Transport said that the Ministry of Planning and Investment has agreed to report to the Government on the policy of allocating about VND 5,000 billion for the entire HCMC expressway project. Ho Chi Minh City – Chon Thanh, including 1,000 billion VND to support the 7.1km section passing through Binh Phuoc province.

Previously, the People’s Committee of Binh Phuoc province sent a document to the People’s Committee of Binh Duong province to unanimously propose the Prime Minister to allow the separation of about 7.1km of the Ho Chi Minh City highway project. Ho Chi Minh City – Chon Thanh on the territory of Binh Phuoc province into an independent project.

At the same time, improve financial efficiency and investment attractiveness under the PPP method for the section through Binh Duong province.

Regarding the separation of site clearance into an independent project for the section through Binh Duong province, the People’s Committee of Binh Duong province proposed a plan to separate the site clearance work of the section through the province with a total cost of about VND 7,388 billion into an independent project. and implemented in the form of public investment; for the remaining construction components, it is implemented by PPP method with a preliminary total investment of 8,808 billion VND.

The People’s Committee of Binh Duong province believes that the separation of site clearance into an independent project will help the locality to proactively implement and ensure favorable conditions for the implementation of BOT projects. The site clearance work has also been basically completed, and at the same time in accordance with the provisions of the Law on Public Investment.

According to the road network plan for the period of 2021 – 2030, with a vision to 2050, the Ho Chi Minh City expressway. Ho Chi Minh City – Chon Thanh has the starting point at Ring Road 3 of the city. Ho Chi Minh City, the end point is at Chon Thanh (Binh Phuoc), about 60 km in length, 6 lanes, investment progress before 2030.

Ho Chi Minh City has paid compensation for site clearance nearly 4,000 billion VND for the Belt 3 project

Accordingly, Binh Chanh district has an area of nearly 146 hectares of land acquired, with 393 affected cases. Up to now, 165 cases have handed over the premises with more than 126 hectares (reaching a rate of more than 87%). The amount paid for compensation in Binh Chanh is VND 360 billion.

Hoc Mon district has 286 out of 332 cases that have handed over the premises with an area of 92/99 ha (accounting for 93%). The amount of compensation in Hoc Mon is more than 1,140 billion VND.

There are 269 out of 408 cases in Cu Chi district that have handed over 53/65 hectares (reaching the rate of 81%), the amount of compensation is more than 1,025 billion VND.

In the city. Thu Duc has 116 out of 556 cases, has handed over 71.5/100 ha (reaching the rate of 71.5%), with the amount of compensation is 1,425 billion VND.

Up to now, in 4 localities, there have been 836 out of 1,689 cases of site handover, with a total area of more than 344/410 hectares (reaching 83.5%). In which, 71 cases of handing over residential land.

At the launching ceremony of the content of emulation for site clearance for the implementation of the Ring 3 project at the end of April 2023, Chairman of the City People’s Committee. Ho Chi Minh City Phan Van Mai suggested the districts, districts and the city. Thu Duc until June 30 must clear the ground at least 70% to be eligible to start projects in the area.

With the current situation of ground clearance, the Management Board of the construction investment project of traffic works in the city. Ho Chi Minh City (investor) will kick off the Ring 3 project on June 18.

Belt 3 City Project. Ho Chi Minh City has a total length of about 76.34 km, passing through Ho Chi Minh City. Ho Chi Minh City and 3 neighboring provinces (Dong Nai, Binh Duong, Long An); The project is divided into 8 independently operated component projects. The total investment of the project is up to 75,378 billion VND.

The project is expected to create regional linkages and promote economic and social development in the Southern Key Region.

Real estate businesses are exhausted, 23% can only hold on to the third quarter of 2023

Up to 23% of businesses can only maintain until the end of the third quarter of 2023

Directly contributing 15% of the GDP of the country, along with spreading to 40 key industries of the economy such as construction, banking – finance, securities, insurance, tourism, and agriculture. … real estate plays an important role in the economic “ecosystem”, affecting the production chain and affecting macroeconomic stability, growth, social security, and employment.

However, since mid-May 2022 until now, due to many objective reasons such as epidemics, market growth cycle, reduced economic growth, market difficulties, a series of tightening credit policies, etc. applications, corporate bonds… as well as legal problems in the project implementation process have not been thoroughly removed, causing the market to fall into a quiet state. Interest rates have remained high since the end of 2022, slightly decreased at the beginning of this year but still at a high threshold for business endurance.

The pressure of financial expenses increased while cash flow was scarce because of not being able to sell goods, not being able to raise capital from bonds, not being eligible for credit loans… . The prolonged difficult situation not only affects the real estate market participants but also leads to the stagnation of a series of other related industries.

Survey data of the Vietnam Association of Realtors (VARS) with members who are real estate service businesses shows that, if the market situation continues to be difficult, up to 23% enterprises can only maintain operations until the end of the third quarter of 2023, 43% of enterprises can survive until the end of 2023.

If the exit is not found in time, it is likely that the market will face the exit scenario of a series of subjects, from investment enterprises, real estate developers to real estate service businesses. brokers and agents. Many workers will lose their jobs, which will affect their social security life.

You have to save yourself, so as not to “sink on the pile of assets”

The government has issued a series of policies to help businesses relax and postpone debts. However, in order to save themselves, real estate businesses must actively review their resources, review existing projects, should only keep potential projects that businesses are capable of developing. deploying or calling for investment, joint venture, association, sale of part or the whole project that cannot continue to be implemented.

According to VARS, businesses need to actively search for customers/investors or contact professional units to assist in connecting with those wishing to cooperate in investment or acquire projects. In order to reach an agreement soon, businesses need to lower their expectations, even be willing to accept losses, “cannot be difficult to claim profits.” In addition, it must be balanced between reducing expectations in order to reach an agreement. reduce the burden of costs, bring cash flow to re-establish the apparatus, implement feasible projects by continuing to “embrace” the project, bear the cost, “muck” in the increasing profit, for face the risk of “drowning on the pile of assets”.

The reality shows that there are many businesses just because they are trying to hold out, while their capacity is not enough, they have pushed themselves into the road with enough “earnings of the mother and children” to then receive bitter fruits with a pile of debt. huge but the interest is many times higher than the principal.

In the difficult context, the Brokerage Association said that some businesses have aggressively spent money on M&A to seek opportunities to expand the market and improve the profit margin of the business segment. Many groups of investors with “large” cash flow are also looking for opportunities, ready to pour capital into potential projects.

In which, capital flows from foreign investors have been and will continue to land in Vietnam in the near future. Most of these investors are aiming for projects with relatively complete legality, to avoid risks. This is an opportunity for investors who are holding many “clean” projects, which can sell projects or cooperate, creating value for both parties, and at the same time a way to help businesses manage cash flow to repay debt, avoid collapse, dissolution or bring cash flow to continue implementing other projects.

In order for foreign capital to continue to flow strongly, becoming a “bump” for the market, VARS recommends that authorities continue to improve the legal framework as well as investment encouragement policies for foreign investors. to invest in Vietnam. At the same time, the state needs to continue to have solutions to thoroughly remove difficulties and legal obstacles for projects that are not eligible for transfer, prioritizing urgent projects that are suitable to the needs of the public. market demand.