Tighter policy proposed for FDI realty projects

16 May
VNREThe Ministry of Construction has proposed inspection over foreign-invested real estate projects to prevent their stagnation.

The move is intended to identifying unfeasible projects and to heighten efficiency of FDI investment, according to the ministry’s Deputy Minister Nguyen Tran Nam.

He added that several large FDI realty projects have been sluggish in their implementation; some others have had their investment licenses revoked, but no strict sanctions have been levied.

“The inefficiency of these projects has been negatively impacting the investment environment in Vietnam. The current capital mobilisation quota for FDI firms discourages them from utilising all their resources,” he said.

Last year, realty projects represented 36.8% of total FDI pledges in Vietnam, according to the Ministry of Planning and Investment’s Foreign Investment Agency.

FDI projects for the country totalled at USD18.58 billion in 2010, of which USD6.832 billion were pledged for real estate industry, according to the agency.

Reported by Lan Huong | Dan Tri

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