$235 billion in need of unblocking

This figure, if compared with the statistics of only 160 backlog projects worth 59,000 billion VND that the Ministry of Planning and Investment announced in October 2024, surprise can turn into... astonishment.

And most likely, this is not the final number. The more we check, the more likely the number of “shelved” projects will continue to increase.

Buried resources

The total investment of 235 billion USD is "shelved" equivalent to about half of the country's GDP, a huge number. This is not only money, but also a series of job opportunities, growth, infrastructure development, urbanization and improved livelihoods that have been put on hold indefinitely.

From industrial parks, roads, resort real estate, tourism, coastal urbanization... all are key areas, stimulating the economy .

Many laws are being amended, including the Land Law (amended) expected to be passed later this year. Photo: Hoang Ha

A local leader once complained that dozens of coastal real estate projects in his province had been licensed, built, and even sold to the people. However, all of them were "tied down" because they violated... the Mineral Law. The reason: those projects were located in areas with sand mines, and according to regulations, they cannot be built on mineral mines.

Thus, the entire system from the government, project investors, banks, satellite businesses and buyers are all hanging on an ever-growing pile of debt.

Where is wrong: the law, the approving authority or the investor?

The problem lies in this: most of the current suspended projects are illegal – either in terms of land, investment, planning, environment, or procedures.

But instead of holding accountable the agencies that approved illegal projects, some localities and ministries... blamed the law for being wrong and requested that the law be amended.

This raises an unavoidable question: Who signed off on projects that cannot be implemented under current law?

We need to face two possibilities:

Firstly, the approving agency does not understand the law, so it just approves "to get it done", and when problems arise, it pushes the responsibility onto the law and the institution.

Second, or worse, they know it's wrong but still approve it – and now want to legalize it by asking for… a law amendment.

This is not only a legal risk, but also an institutional and national governance risk. Because if we accept the principle of “if there is a mistake, then amend the law to make it right”, the National Assembly will have to run after legitimizing the endless mistakes of the apparatus.

Laws entangled

There is no denying that there are problems within the legal system.

For example, the Investment Law stipulates that if a project is not implemented after 12 months, it must be terminated. Meanwhile, the Land Law allows an extension of 24 months if additional money is paid.

As a result, the same project, according to this law, is terminated, but according to another law, it is... continued to be extended. Local authorities are confused, not daring to make decisions for fear of violating this law or breaking that law.

Not only that, a real estate project can be subject to more than 15 different laws at the same time: Investment Law, Land Law, Housing Law, Construction Law, Environmental Law, Bidding Law, Fire Prevention and Fighting Law, Real Estate Business Law, Urban Planning Law...

These laws overlap, contradict, and even contradict each other – leaving investors unsure where to start, where to end, and whether they can see their project through to completion.

A "special decision" from Congress is needed

The Government is showing great determination in reviewing and removing difficulties. Many laws are being amended, including the Land Law (amended) expected to be passed by the end of this year.

However, the reality is that many legal barriers are beyond the Government's authority. It is unknown when the 2,887 stalled projects will be resolved if we wait for each law to be amended and follow all the procedures.

Perhaps, we should aim for the National Assembly to issue a special Resolution – a resolution to comprehensively handle investment problems, especially in the fields of land, construction, and real estate.

In addition, it is necessary to clearly classify groups such as projects suspended due to investor errors (lack of capacity, land occupation, slow implementation...); projects suspended due to state management errors (wrong approval, inadequate planning...); projects stuck due to conflicting and overlapping laws.

For each group, different solutions are needed: elimination, forced revocation, planning adjustment, re-licensing, or conditional legalization.

Each plot of land in those 2,887 projects has a specific investor, has been allocated or leased land, and has clear rights to use it, so it is not easy for the Government to "reclaim" it even if it wants to.

The most practical and feasible solution is still: removing complicated procedures, amending conflicting regulations, creating a clear and unified legal corridor so that investors can continue to implement. In case of non-implementation, deliberately delaying, then the State will not be too late to reclaim.

If we can unlock this capital source equal to half of GDP, then the double-digit growth target is not too difficult.

Vietnamnet.vn

Source: https://vietnamnet.vn/235-ty-usd-dang-can-duoc-khoi-thong-2420350.html