Many investors expect that the projects will soon be resolved, unlocking investment resources and contributing to the economic growth of this locality.
Regarding PPP investment projects (also known as public-private partnership investment projects), there are currently about 31 projects nationwide that need to be resolved, of which 10 are in Ho Chi Minh City. With the spirit of urgent direction to resolve difficulties and obstacles of the Prime Minister in the recent telegram No. 13, many investors expect that the projects will soon be resolved, opening up investment resources, contributing to the economic growth of this locality.
The first phase of the tidal flood prevention project has a total investment of nearly VND10,000 billion, and was started in 2016. Due to payment procedures for investors, the project has been delayed for 6 years compared to the plan, although 90% of the work has been completed. According to the investor, the delay in implementation has generated a profit of about VND2,000 billion. Therefore, the investor expects to restart the project, specifically the City will continue to refinance and adjust the total investment.
Mr. Vu Dinh Tan, Director of Trung Nam BT 1547 Project Enterprise, said: “The investor’s wish is, first, that the City re-finance soon. Second, to implement the project, the total investment must be adjusted. Currently, the interest rate is up to nearly 2,000 billion, so adjusting the total investment for the project is a prerequisite for implementing the project. If the City implements early, the project will be put into operation in the 2025 rainy season.”
Having been involved in the Phan Dinh Phung Stadium BT project for more than 10 years, the contract has now been suspended. However, the representative of this investor said that there are still plans to carry out many other BT projects based on the new regulations and laws on this cooperation method. The problem that needs to be resolved is to more clearly define the payment methods for investors.
Mr. Duong Quoc Tuan, Chairman of the Board of Directors of the Compensation and Clearance Joint Stock Corporation, shared: “I think the biggest thing is determining the value of the land fund, just like determining the land funds to continue implementing BT projects. It is having a stopping point and we don’t know when it will run smoothly.”
The representative of the Ho Chi Minh City Real Estate Association said that the major problem with PPP projects lies in the law enforcement of localities. Specifically, Article 101 of the 2020 PPP Law does not allow the implementation of new BT projects, but for projects that have been approved for investment policy and have signed BT contracts, this law still allows continued implementation.
Recently, the National Assembly amended the Law on Investment under the public-private partnership (PPP) method, which took effect from mid-January 2025, approving the continued implementation of the build-transfer contract form for new projects.
Mr. Le Hoang Chau – Chairman of the Ho Chi Minh City Real Estate Association commented: “Thus, there is no reason not to allow the continued implementation of projects under build-transfer contracts and approved investment policies, and previously signed legal contracts, so we have recommended to the Government to remove this obstacle.”
The latest information, the leaders of Ho Chi Minh City said that they are outlining a roadmap to remove a series of obstacles for the projects. Specifically, for the flood prevention project, it is expected that there will be a resolution to handle the difficulties and obstacles. With the drastic participation of the Government and localities, it is expected that the project will soon restart and be completed this year.