Many localities considered the “paradise of resort real estate”, have granted a lot of investment licenses. However, the investors only registered the projects to reserve the land, as many do not have the capability to implement them.
Throughout 2011, The Ministry of Planning and Investment will send its inspectors to six provinces with the largest number of registered resort projects
Too many golf course projects
Binh Thuan, a small province with low income per capita, has recently been known for 12 licensed golf course projects.
According to the provincial investment and planning department, besides the two operational golf courses, other projects have not been implemented. These include South Fork (182.5 hectares) licensed in 2004, Hon Rom (197 hectares) licensed in 2007, Son My in 2006 which have been delayed due to the influences of the black sand. Other projects are in their first stage of implementation.
Of the 7000 hectares originally allocated only 1800 hectares have been reserved for golf courses, while the other 5200 hectares have been used for villas. If all the licensed projects in Binh Thuan become operational, there will be 2000 villas on sale located next to golf courses .
In the past, the Government itself approved golf course project. However, after the decentralization, local authorities have the right to issue licenses. As the result, the number of golf course projects has increased considerably.
Pending projects – the bitterness of local authorities
Meanwhile, the North Cam Ranh peninsula tourism complex is giving the authorities in Khanh Hoa province a real headache. When approving the project in 2004, which was expected to cover an area of 2300 hectares, the province’s authorities hoped it would boost the local economy and become a national resort. After calling for investment at the rate of 25 billion dong per hectare, 58 investors registered to develop sub-projects. However, later many of them withdrew. In 2007, the province had to revoke 27 licenses from the delayed the sub-projects.
To date, the North Cam Ranh complex has 30 sub-projects capitalized at 17 trillion dong in total. Of these projects, only five have been granted construction licenses, while the rest are still dealing with investment procedures. There are now over 80 tourism projects in Khanh Hoa province with the total investment capital of 30 trillion dong.
Meanwhile, Khanh Hoa is paying the cost of having torn big land plots into pieces for small investors, who only register to get the land use right. Meanwhile, Khanh Hoa cannot accommodate big investors who demand hundreds of hectares of land, because it is stilling settling the pending projects.
The project “indigestion”
The central city of Da Nang is known as a very hot real estate market. However, experts warn about the disastrous consequences of the land and resource waste and environment pollution.
Twenty resort projects have been developed along the coastal road in Da Nang City. Of these, 14 are going to market about 650 villas. In the next 5-7 years, 20 projects with 9300 apartments will be launched into the market.
Quang Ninh province in the north with 64 resort projects, will also be one of the destinations of inspectors in 2011.
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