Project Approval Process

At a discussion meeting held in late February, the Ho Chi Minh City Department of Construction proposed simplifying the investment procedures for commercial housing development projects into four straightforward and practical steps.

Step 1: Simplifying Policy Approval

The Ho Chi Minh City Department of Construction proposed that, within 35 days, the Department of Planning and Investment should complete the procedures for the investment proposal of commercial housing projects, including evaluation and approval.

Step 2: Simplifying Detailed Planning Approval

For the approval of detailed 1:500 planning drawings for commercial housing projects, the local People’s Committee and the Ministry of Construction would complete the relevant evaluation and approval procedures within 40 days.

Step 3: Simplifying Land Use Procedures

For land-use-right procedures handled by the Department of Natural Resources and Environment, the ownership certificate for land-use rights, commonly known as the “red book,” would be processed within 20 days. Approval for changing the land-use purpose stated in the “red book” would be completed within 15 days.

Step 4: Simplifying Investment, Design, and Construction Permit Procedures

The final three procedures completed by the Department of Construction include investment approval procedures, which take 35 days; basic design appraisal, which takes 20 days; and issuance of the construction permit, which takes 20 days.It is worth noting that while these three procedures are being carried out, the land-use-fee valuation and payment procedures with the Department of Natural Resources and Environment may also be conducted at the same time. The Department of Construction proposed that this entire step should be completed within 45 days.

Although this plan is still at the proposal stage, it has already brought some optimism to professionals in related sectors.

At the meeting, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, also known as HoREA, said that if this proposal can be signed and issued soon, the investment procedures for commercial housing construction in Ho Chi Minh City could be shortened from more than three years to around 215 working days.He also noted that some of the four steps could be carried out at the same time to further shorten the process. For example, during the 35 days required for the Ministry of Construction to handle investment approval procedures, the approval process for the construction permit could also be considered at the same time.

Empire City in Ho Chi Minh City under construction, along with its design model. With its 88-story tower, it is expected to become the second-tallest building in the city and a new local landmark. Image source: livinginasia.co

The real estate sector in Ho Chi Minh City has received a number of positive signals over the past month or two. The local government has not only publicly stated that it will speed up the issuance of housing ownership certificates for commercial housing, commonly known as the “pink book,” as mentioned in “How to Solve the Stagnation in Commercial Real Estate? Here Is What Ho Chi Minh City Officials Say,” but has also cracked down on ultra-thin houses to further improve local urban planning, as discussed in “Ho Chi Minh City Cracks Down on Ultra-Thin Houses — Are Land Prices Along These Routes Set to Keep Rising?”

As Vietnam’s real estate market may see a wave of recovery in 2021, Ho Chi Minh City’s property sector may also deliver stronger performance under an increasingly improved administrative environment.

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