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CEO Phu Dong Group: ‘It is not capital, land fund is the biggest difficulty for investors’

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At the seminar ‘Identifying the driving force of real estate market development in the city. HCM expansion in 2021 ‘, the issue of the progress of implementing the planning of the city. Ho Chi Minh City’s adjustment as well as the impact on the real estate market have been discussed by experts and business leaders.

CEO Phu Dong Group: ‘It is not capital, land fund that is the biggest difficulty for investors’.

In the position of investor’s representative, Mr. Ngo Quang Phuc, General Director of Phu Dong Group, said that at present, the problem of capital is not a problem for investors, but the biggest difficulty is the land fund for implementation of real estate projects.

According to Mr. Phuc, over the past time, the land price has increased, the planning of suitable land funds to implement projects still has many shortcomings, so to harmonize this issue, the state needs to plan specifically for each area, specially acquired land to create large land funds then auctioned investor selection implementation

Mr. Phuc also emphasized on the inadequacies of legal procedures and the state. According to the General Director of Phu Dong Group, it is necessary to shorten the time to resolve the procedures, creating opportunities for investors to implement projects faster, thereby solving the problem of lack of housing supply. now on.

Reply to TS. Nguyen Anh Tuan, Editor-in-Chief of the Investor Magazine on the problem of private participation in transport infrastructure construction, Mr. Le Do Muoi, Director of the Institute of Transport Strategy and Development ( Ministry of Transport), affirmed that the resources for transport need to be very large, it is very difficult for each state to do it.

“Medium-term capital (2021-2025) for transportation is about 1.2 million billion VND. This is a very large number. The current legal corridor has the Law on Public Investment and the PPP Law, but unfortunately the PPP law has removed the BT form from the law, making it difficult for only forms such as BOT, PPP to call for resources. Asking the giants easily get a shake of the head when calling for PPP cooperation, ”he said.

The representative of the Ministry of Transport also affirmed that transport is a public need, not a private profit. Therefore, capital needs to be socialized with great demand.

“At present, the ring roads also call on investors to participate with many suitable solutions for the benefits of both the state-investors – the people. The Ministry of Transport will sit down with interested investors to dedicate resources to listen and find different, suitable forms for cooperation. The Ministry of Transport has an open policy mechanism to call for investors in projects with high feasibility, ”said Mr. Muoi.

Regarding the issue of calling for investment capital for transport infrastructure, continue with the presentation, PhD. Nguyen Anh Tuan said that investors have great expectations on the PPP Law, but the recently issued Decree of the Ministry of Finance is facing many “complaints” and says inequality. The problem mentioned by many opinions is the mobilization of foreign capital for transport infrastructure development, but so far no investors have participated.

Answer this question, GS-TSKH. Nguyen Mai said that if mobilizing FDI, the biggest risk will be encountered is delay, which is followed by capital mobilization.

Therefore, the most important thing of current management, according to Mr. Nguyen Mai, is overcoming delays from licensing, implementation, site clearance, cost effective calculation, … to Investor implemented on schedule.

“This is a long story. And to be enforced is a story forever. FDI has so far failed in BOT, PPP and even more failed to invest in transport infrastructure. For example, it is the case that investor IL&FS (India) has expressed interest in the Hanoi – Hai Phong expressway. Although the negotiation is almost completed, the problem of many problems has made the project unable to sell “, GS-TSKH. Nguyen Mai said.

“The first BOT Decree was born in 1993, 5 years later, the PPP Law was born, but in the end, it is nothing to do, because it cannot answer the legitimate interests of investors. If we do not have innovative thinking, we do not listen to irreverent criticism, we cannot correct fundamental mistakes. Currently, many foreign investors want to participate not only in road traffic, but also railways and airports. If we have a more reasonable law, more open and transparent, and ensure legitimate benefits, both domestic and foreign investors will want to contribute capital to implement projects with the state ”, Professor-TSKH. Nguyen Mai emphasized.

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