Wednesday,  Jul 24, 2019,13:37 (GMT+7) 0 0
CEO: Novaland guarantees customers’ interests, projects’ normal operations
Thursday,  Jan 10, 2019,16:15 (GMT+7)

CEO: Novaland guarantees customers’ interests, projects’ normal operations

Novaland CEO Bui Xuan Huy

Over the past few days, many customers have expressed concern about the HCMC government’s decision to suspend the conversion of the land use purpose of seven land lots in Phu Nhuan District where Novaland has developed commercial and housing projects. These projects have either been completed or neared completion, and some customers have even received certificates of land use rights and ownership of houses and other landed assets. This interview with Novaland CEO Bui Xuan Huy helps clarify this issue.

The HCMC government has put on hold the process of changing the land use purpose of seven land lots where Novaland has developed projects, can you talk about this problem?

Bui Xuan Huy: The HCMC government had suspended changing the land use purpose of seven land lots to review the legal documents of these projects at the State Audit of Vietnam’s request. The move is aimed at making clear the use of land at these projects is in compliance with regulations. Such a decision by the HCMC government is normal but has caused numerous difficulties for both Novaland and its customers.

What are these difficulties?

- The Novaland stock price has plunged. When the news broke to January 9, Novaland has suffered losses of VND7 trillion. However, the biggest problem for the group is the damage of our image. Our customers may misunderstand our purposes when developing these projects.

Novaland was the pioneer to reboot the real estate market which fell into crisis between 2009 and 2013. The group acquired a couple of suspended property projects, including those having already got off the ground and those having remained idle. The seven above-mentioned projects were also transferred to Novaland in this crisis period.

Our stock, which is in the VN30 basket, has attracted many foreign investors, including Singapore’s investment fund GIC. Therefore, the group has attached much importance to law compliance. The HCMC People’s Committee approved Novaland’s projects at the seven sites. The municipal Department of Construction also granted the construction and capital mobilization licenses to the group. Novaland completed these projects in line with the construction licenses and is in the process of handing over the apartments to its customers. Further, the municipal Department of Natural Resources and Environment has issued the certificates of land use rights and ownership of houses and other landed assets for customers in some projects. This means that the competent authorities have recognized the legality of these projects.

How does the suspension of the handover of the apartments affect Novaland’s business operations? How does the group ensure the interests of apartment buyers at the seven projects?

- We are most grateful to the HCMC government as well as the relevant departments and agencies for their prompt handling of the case. When they know that the suspension of the conversion of the land use purpose at the seven sites has made Novaland’s customers worried and heavily affected the firm’s operations, the HCMC government has asked the relevant departments and agencies to accelerate a review of the legal documents of the seven projects to dispel any misunderstanding and prevent further losses for the group. The city has confirmed that it has temporarily suspended the conversion of the land use purpose at these sites and would protect the legitimate interests of Novaland and its homeowners. All transactions of the apartments in the seven projects are as usual.

Can you talk about the legality of the seven projects? Which is the biggest concern of your customers?

- During the execution of the seven projects, Novaland has complied with all relevant laws and regulations.

The authorities have endorsed the completion of the projects at 128 Hong Ha Street, 17-19-21 Nguyen Van Troi Street and 8 Hoang Minh Giam Street in Phu Nhuan District. The company has handed over the apartments in these projects to homebuyers. Owners of the apartments have already got certificates of land use rights and ownership of houses and other landed assets.

Meanwhile, the projects at 119 Pho Quang Street, 130-132 Hong Ha Street, the corner of Nguyen Van Troi and Hoang Van Thu streets and 38 Truong Quoc Dung Street, the group has completed main legal procedures and paid land use fees. Some components of the projects have been completed in line with the construction licenses.

Given the current difficulties, will Novaland expand its investment in 2019?

- Novaland has proposed the authorities in HCMC remove obstacles to its operations. I believe that these agencies will ensure the legal rights and interests of Novaland and our customers.

As for our development strategies, we will continue executing the development plan approved by the management board. This year, Novaland will continue focusing on the HCMC housing market by launching some 4,400 apartments, houses and villas, and handing over 5,900 units to customers.

In addition, we will implement the second phase of Novaland Group’s development strategy that is developing tourism services and resorts in potential localities such as Phu Quoc, Can Tho, HCMC, Ba Ria-Vung Tau, Phan Thiet, Ninh Thuan, Cam Ranh, Quang Nam and Danang. The group’s targets are to work with professional consultants and operators to offer “perfect destinations” for both local and foreign tourists, to turn these places into tourism and entertainment hubs of the region and to highlight Vietnam on the world’s tourism map.

Also, the group has plans to develop the NovaTourism plan this year with three main brands: NovaHills, NovaBeach and NovaWorld, and introduce about 2,300 new resorts.

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