According to the Ministry of Construction, investors have to fulfill 33 formalities on average to start a construction project. It takes them an average of three years after the day they initiate formalities to break ground.
The figures were announced at a workshop on administrative formality reforms in construction held by the Ministry of Construction in Hanoi.
According to Minister Nguyen Hong Quan, administrative formalities for construction projects are abundant and time-consuming. There are many unnecessary and overlapping formalities. Moreover, some officials intentionally create difficulties for investors, Quan said.
Nguyen Van Duc, Deputy Director of Dat Lanh Estate Company in HCM City, said his company needed 3.5 years to complete all documents to start a project. It took him several months to travel between his office and the HCM City Department of Planning and Architecture because he had to adjust the design tens of times at the request of related officials.
To deal with this problem, the Ministry of Construction will issue an 8-step procedure on approving projects to build new residential areas, housing projects, and projects to build technical infrastructure for industrial zones.
With this procedure, the Ministry has annulled seven formalities and changed 8 others. If this process is applied, investors may need only one year, or even 9 months, to begin construction of their projects.
To have this 8-step procedure, the Ministry of Construction combined with the Hanoi and HCM City governments and some businesses to conduct research of formalities of some new residential area projects in Hanoi, HCM City and Ha Tay province.
The Ministry also asked local governments to take initiative in checking for and removing illegal formalities in their areas.