Two megaprojects in Danang threatened by revocation
Two megaprojects in Danang threatened by revocation
Two well-placed multi-million dollar mixed-use development projects in the central region’s Danang city face having their investment certificates revoked and there are different opinions about the optimal use of these golden land plots.
The first project, Vien Dong Meridian developed by Vien Dong Investment Consulting and Technology Transfer JSC, received its investment certificate in May 2008.
Covering 11,170sq.m of space in one of the best positions in Hai Chau District, the project aims to build a premium residential complex with 550 premium apartments for sale and for lease, a trade centre, a convention hall, a hotel area providing 260 rooms of six-star grade, a premium offices for lease area, and other utilities.
According to the investment certificate, the project is worth $180 million in total investment capital and was set to kick off construction in May 2008 to become operational in the second quarter of 2011.
The other project, Danang Centre developed by Vu Chau Long Real Estate JSC, seeks to build a premium residential complex for sale and for lease, a shopping mall, a five-star hotel, a convention hall, and related utilities.
With $125 million in total investment capital and 7,878sq.m of space, the project was set to begin the construction of the first phase in March 2008, and the second phase one year later in March 2009. It was supposed to be put into use in 2011.
At the time these projects were licensed, they were expected to contribute enormously to the city’s development. Nearly a decade has passed by since and these projects remain unfinished despite receiving active support from Danang city’s authorised agencies.
In November 2016, the Danang Department of Planning and Investment approved the proposals on extending the schedules of the two projects by an additional 24 months. Accordingly, the investors were allowed to restart the projects in October 2018, or next month.
Although the deadline is approaching, at this point in time the projects are no more than perspective sketches drawn by the project developers.
Vu Quang Hung, director of the Danang Construction Department, unveiled that they have proposed the city’s management authorities to take back several delayed projects in the city, including Vien Dong Meridian and Danang Centre.
“The Danang People’s Committee has instructed relevant management agencies to review related procedures,” Hung said.
With respect to these two projects, a source from the Danang Department of Planning and Investment said that if the developers fail to restart the projects by the October 2018 deadline, the city management will consider revoking their investment certificates.
Currently, there are a multitude of proposals on using the spaces granted to these two projects for public activities.
According to the Danang People’s Committee Office, the management has reached consensus on using the Vien Dong Meridian project site to build a four-floor underground parking area and a public park.
Nguyen Duc Quynh, Deputy Chairman of the Danang Hotel Association, however, holds a different view.
“Building a park, an entertainment area or an underground parking space needs vast space. Further considerations are necessary to optimise the use of the project spaces that are located in the heart of Danang city,” Quynh opined.
