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State-owned corporation seeks to restart $115mn Hanoi tower project after 8-year halt

State-owned corporation seeks to restart $115mn Hanoi tower project after 8-year halt

Thursday, May 11, 2023, 10:18 GMT+7
State-owned corporation seeks to restart $115mn Hanoi tower project after 8-year halt
An aerial view of the abandoned Vicem office and transaction center tower on Pham Hung Street in Cau Giay District, Hanoi. Photo: B. Ngoc / Tuoi Tre

The Vietnamese Ministry of Construction has proposed that the prime minister allow Vietnam Cement Industrial Corporation (Vicem) to resume work on a multimillion-dollar high-rise project which has been put on hold for eight years.

The state-owned corporation has paid parts of its total investment of over VND2.7 trillion (US$115 million) in the Vicem office and transaction center tower, which is located on Pham Hung Street in Cau Giay District, Hanoi.

The project includes 31 stories and four basements and is expected to function as the headquarters of the firm and its member units, as well as a hall and commercial center.

The construction of the tower started in 2010 and its rough construction was completed after five years, but Vicem abandoned the project in August 2015 and it remains unfinished, with Bui Xuan Dung, chairman of Vicem’s member council, citing financial issues.

In 2016-21, Vicem requested the Ministry of Construction multiple times to approve their search for partners to transfer the tower and recoup their investment.

The Ministry of Construction made a proposal and received approval from the prime minister for Vicem to transfer the project in 2017.

Despite this, the project has not been transferred yet due to challenges related to investment laws, land issues, and the complicated procedures to handle real estate assets owned by state-run companies.

Additionally, during the real estate market downturn, particularly in the commercial center and office leasing segments, Vicem faced more difficulties in transferring the project.

As the current condition has improved, according to Dung, Vicem has recently put forward proposals to the Ministry of Construction to seek approval from the prime minister for the corporation to resume the construction of the tower project in order to prevent wastefulness.

Following Vicem’s proposals, the Government Office has dispatched documents to the four Ministries of Justice, Finance, Planning and Investment, and Natural Resources and Environment for their comments on issues related to the project.

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Bao Anh - Bao Ngoc / Tuoi Tre News


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