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Insufficient land use affects Can Tho’s economy
Trung Chanh
Wednesday,  Aug 30, 2017,22:41 (GMT+7)

Insufficient land use affects Can Tho’s economy

Trung Chanh

A vast area of land for the residential purpose is left unused in Can Tho City - PHOTO: TRUNG CHANH

CAN THO – The division of land into small lots for sale may hamper economic growth in Can Tho City as land for trade and services has shrunk, said Vo Thi Hong Anh, vice chairwoman of Can Tho, at a meeting on August 29.

Anh said a majority of real estate projects in Can Tho focus on dividing land into small lots for sale. The situation will solve housing demand in the short run, but will not help generate as good revenue as commercial and service facilities.

The vice chairwoman noted that this situation will lead to a shortage of land for infrastructure projects aimed at developing the local economy, trade and services, and will have negative effects on the city’s budget revenue.

For instance, she said, the city’s domestic budget revenue was around VND9 trillion, of which Ninh Kieu District – the driving force behind Can Tho’s economic growth – contributed VND2.2 trillion.

However, she explained, the district has used up 2,200 hectares of land out of its total area of 2,900 hectares in order to generate revenue for the city’s budget. As such, the revenue of VND2.2 trillion from 2,200 hectares that has been used up is meager.

Notably, she said the district has used land plots in an inefficient manner, as much of the land has been divided into small residential lots. This has made land for commercial purposes scarce.

As such, the district’s budget collection did not fare well, she noted, adding the local government should change its mindset in the allocation of land plots. Otherwise, the local and municipal economies may slow down in the long run.

Under the city’s economic plan for the coming years, Ninh Kieu District is assigned to contribute some VND7 trillion to the municipal budget by 2030. With only 700 hectares of land available now, the goal will be unattainable if the district relies on land the same way as in the past.

Meanwhile, Van Kim Khanh, a member of the Mekong Delta Association of Realty Brokers, said the real estate market in Can Tho City has shown positive signs, as housing projects like Hong Phat, Nam Long and Hoang Quan Can Tho have seen their transactions and selling prices rising, compared to late last year.

Truong Dinh Thao, general director of Hoang Quan Can Tho Real Estate Investment JSC, said the segment of apartments having their selling prices of less than VND2 billion has fared well.

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