Ho Chi Minh City still has nearly half of its problematic projects unresolved.

Ho Chi Minh City: Nearly Half of Real Estate Projects Remain Unresolved, Many Constructions Stalled Causing Major Losses

The Ho Chi Minh City People’s Committee has reported that among 64 real estate projects reviewed and identified as facing difficulties, only 35 projects have been resolved, achieving a rate of about 55% (an increase of 1 project compared to the January report). This means that 29 projects remain unresolved, many of which have been halted for years, causing significant economic and social losses.

Classification and Resolution Progress

• 3 projects fall under the jurisdiction of central government agencies.

• 26 projects are still being monitored and addressed by municipal departments according to their respective issues, including investment procedures, urban planning, land matters, and financial obligations.

According to the city government, many projects are stuck in land clearance, land use condition compliance, planning index adjustments, or require changes to investment decisions under new regulations. Some cases involve reallocation of state-owned properties managed by ministries, prolonging resolution timelines.

Losses from Stalled Projects

• Idle land waste: Dozens of hectares of prime land in central and suburban districts are left abandoned.

• Housing supply shortage: New housing supply has fallen for four consecutive years, pushing property prices higher and leaving the market short of new projects.

• Economic losses: Developers lose investment opportunities and face rising capital costs; the state budget suffers revenue losses from taxes and fees.

• Social impact: Residents in planned zones are affected by “suspended projects,” unable to renovate, rebuild, or freely transact their properties.

City Government Actions

Ho Chi Minh City has established a Special Task Force led by Chairman Nguyen Van Duoc, aiming to completely resolve long-standing stalled projects. Meanwhile, Prime Minister Pham Minh Chinh has requested the city to take decisive action to remove obstacles, set clear deadlines, and immediately approve cases with sufficient legal basis; unresolved cases must undergo continued review and information collection before handling.

In addition to the 64 housing projects, the city is also working on 12 key projects (6 under central government jurisdiction). Furthermore, 3 projects and 3 state-owned assets are awaiting decisions from central ministries.

The city is also compiling information on over 200 other projects to report to the central government for subsequent action.

Positive Developments

Alongside resolving legal obstacles, in Q2 2024 Ho Chi Minh City approved investment policies for 14 new projects, including 9 commercial housing projects, 1 social housing project, and 3 land auction projects for housing construction, with a total area exceeding 300,000 m² and an expected investment capital of over VND 15 trillion.

• 3 projects have been granted construction permits.

• 31 projects are under construction.

• 1 project has been completed.

• 2 projects meet conditions for selling future-formed housing, supplying nearly 1,400 housing units to the market.

Once legal obstacles are cleared, a large number of “dormant” projects can be revived, boosting market supply, helping to cool property prices, and restoring confidence among investors and homebuyers.