Limitations of State Management of Urban Construction Investment Projects

on urban construction investment projects, contributing to promoting the development of the urban system, socio-economic development of localities and the whole country. The Ministry of Construction has pointed out: The work of establishing, appraising, approving, and managing the implementation of construction investment projects has been paid attention to by all levels and sectors, and is increasingly becoming systematic; the quality is increasingly higher, contributing to improving the efficiency of construction investment; improving the quality and safety of works; preventing waste and negative phenomena; and more closely controlling the project implementation process. (66) The arrangement of investment capital is more concentrated and effective than before, contributing to affirming the leading role of state budget capital as a source of capital to attract resources from other economic sectors. The outstanding debt of basic construction has been controlled and timely measures have been taken to resolve it. The planning of investment capital has closely followed the financial-budgetary plan, taking into account the total resources to ensure financial security and control overspending and public debt. ODA capital and preferential loans are only for development investment and not for regular spending tasks. The plan for allocating public investment capital is made in 5-year periods, and is detailed for each year, contributing to strict, public, and transparent management, in accordance with the prescribed criteria and norms. The investment proportion of the state sector is gradually decreasing, in line with the Party and State's policies and orientations on encouraging the participation of the non-state sector in development investment. (67)

Third , the organization of law enforcement in licensing, inspection, supervision of construction investment projects in general and urban construction investment projects in particular, ensuring order and discipline in construction activities is focused on and strengthened nationwide. The Ministry of Construction has guided and directed

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(66). At the Ministry of Construction, the rate of documents that must be returned for design revision and supplementation accounts for only 0.4% of the total number of documents requested for appraisal; the rate of cost reduction after appraisal of the total investment is 4.38%, the estimate is 2.59%. At the construction departments, the rate of cost reduction after appraisal of the total investment is 1.29%, the estimate is 3.91%.

(67). Nguyen Thi Lan Phuong (2018) , Issues arising in the management of capital for basic construction investment today , Electronic Finance Magazine,

http://tapchitaichinh.vn/nghien-cuu--trao-doi/trao-doi-binh-luan/nhung-van-de-dat-ra-doi-voi-quan-ly-von- dau-tu-xay-dung-co-ban-hien-nay-136234.html, accessed April 27, 2021.

Localities continue to promote the review and reform of administrative procedures and processes, and the application of information technology in the issuance of construction permits to create favorable conditions for businesses and people to carry out construction activities. Construction permit issuance and construction order management have become more systematic, and violations of construction order have decreased. Construction inspection and examination (68) have detected and corrected many violations by inspected subjects, helping subjects participating in construction activities to comply with the provisions of the law, contributing to raising awareness of construction law, rectifying the work of making and approving construction plans, post-construction permit management... minimizing loss and waste, and improving the quality of construction works. Inspection conclusions are guaranteed to be in accordance with the law and effective, with no complaints arising; At the same time, it has synthesized and proposed amendments and supplements to a number of inappropriate mechanisms, policies, standards, regulations and unit prices, contributing to transparency in construction activities and improving the effectiveness of state management of the Ministry of Construction.

3.2.2. Limitations of state management of urban construction investment projects

- Limitations in the construction and promulgation of laws

Firstly , there is a lack of some regulations on the basis for classifying construction investment projects according to the importance, service function, and specialized nature of the project; dividing construction investment projects into component projects or investment phases to create a basis for decentralizing state management of construction investment activities, regulations on the responsibility for appraisal, approval or giving opinions of investors, specialized construction agencies, and competent state agencies.

(68). In 2016, 2017, 2018 and the first 3 months of 2019, 293 specialized inspection teams were deployed in the fields of state management of the Ministry, 272 inspection conclusions were issued and 362 decisions on administrative sanctions were issued (the inspection teams in the first quarter of 2019 were in the implementation period and had not yet issued their reports).

other; some regulations on state management of construction investment projects have not been

consistent with the provisions of law on investment and public investment.

Second , a number of regulations on authority, content, order and procedures in construction investment project management have not been amended, supplemented or completed to ensure connectivity and avoid duplication and conflict between regulations in different legal documents. (69)

Third , some regulations on appraisal time, form of organization and management of construction investment projects; on content, order, authority to appraise and approve construction designs implemented after basic design; on rights, obligations and responsibilities of investors in construction design, authority and responsibilities of specialized construction agencies in construction design appraisal; on permits and construction order management have not been amended, supplemented or completed.

Fourth , urban construction and development investment activities are regulated by the Investment Law, Public Investment Law, Construction Law, Housing Law... which basically form a legal framework for investment activities in general, but do not cover all the specific characteristics of the field of construction and urban development (large scale of land occupation, long implementation time, large investment resources...). Although the Government has issued Decree No. 11/2013/ND-CP dated January 14, 2013 on urban development investment management regulating many contents in the field of construction investment and urban development, there are still some missing regulations or some regulations are not specific on urban renovation and embellishment, and there are also detailed regulations on construction investment and urban development towards the goal of sustainable urban development, green, ecological, and smart urban development... (70) Currently, the amended Law,

(69). Ministry of Construction (2019), Report No. 70/BC-BXD dated May 31, 2019 sent to National Assembly deputies on "Some contents on groups of questions and answers in the construction field at the 7th Session of the 14th National Assembly" .

(70). Ministry of Construction (2019), Report No. 50/BC-BXD dated April 19, 2019 reporting on the implementation of Resolution 113/2015/NQ-QH13 on continuing to implement resolutions of the 13th National Assembly on supervision activities.

Topics, questioning activities (sent to the National Assembly, deputies of the 14th National Assembly) .

Supplementing a number of articles of the 2014 Construction Law and the 2020 amended Investment Law have new regulations on urban construction investment projects. Therefore, it is necessary to have regulations to replace the regulations of Decree No. 11/2013/ND-CP on urban construction investment projects, which provide specific guidance on project implementation according to different types, properties, and scales and are consistent with the laws on investment and construction. (71)

- Limitations in law enforcement

Firstly , the quality of project preparation, control (appraisal, approval) of urban construction investment projects has not met the requirements. According to the Ministry of Construction, “ The quality of preparation, appraisal, and approval of some projects is not high; the procedures, contents of documents, standards, and related standards have not been seriously and fully implemented according to regulations; there are still errors in calculations... leading to prolongation of implementation time and the need to adjust the project .” On the other hand, “ the qualifications, capacity, experience, and sense of responsibility of some cadres and civil servants participating in the development of institutions and policies, and participating in state management of preparation, appraisal, approval, and management of the implementation of construction investment projects have not met the requirements .” (72)

Second , compliance, enforcement, and application of the law in state management of urban construction investment projects are not strict. The awareness of compliance with the law on management of construction investment projects of a number of enterprises and entities participating in construction investment is not good, there are still cases of intentional violations; some project management boards operate illegally, have low management efficiency, and lack coordination and connection with investors and relevant agencies. Although there have been changes in recent times, violations of the law on urban construction, especially in Hanoi and Ho Chi Minh City, are still occurring.

(71). Ministry of Construction (2020), Summary report on the implementation of Decree No. 11/2013/ND-CP and related legal documents , https://moc.gov.vn, accessed March 25, 2021.

(72). Ministry of Construction (2019), Report No. 70/BC-BXD, dated May 31, 2019, reporting on a number of contents on groups of questions and answers in the construction sector at the 7th session of the 14th National Assembly.

quite complicated. Many construction investors blatantly violate the provisions of the law and have not been thoroughly handled. There are even some investors who "dodge", taking advantage of the lax management of the authorities to build without permission, without permits... causing people to be upset. The situation of building without permission, without permits is still quite common, there are even subjects who deliberately violate, willing to pay fines to survive, reducing the effectiveness of policies and regulations in state management of urban construction. For example, right in Hanoi, the number of houses, hotels, and offices built exceeding the prescribed number of floors is quite large. This goes against the urban development orientation of limiting the development of high-rise buildings and controlling the increase in mechanical population. Not to mention the inspection and review of regulations in construction investment project management such as: construction licensing, ensuring fire safety, water supply and drainage... Not only in the inner city, projects in other districts and counties are also quite complicated, especially in newly established districts and counties on the outskirts. However, in Hanoi, the most pressing issues are still violations in large projects that are slow to be completely resolved, such as the low-cost mixed-use apartment complex in Linh Dam or the building at 8B Le Truc Street. In Ho Chi Minh City, typical violations include the Phuc Yen apartment project at the intersection of Truong Chinh-Phan Huy Ich, Ward 15, Tan Binh District. Although after residents had settled down, the investor suddenly brought in workers to build an additional 18th floor with a total area of 1,627 m2, of which 1,095 m2 was used to build an office area and the rest was used as a garden. The transparency in bidding for urban construction projects also reveals many shortcomings. According to regulations, all information about the project must be public and transparent, especially the "golden land" areas, to avoid the phenomenon of asking and giving. However, the auction of many of these land areas is still quite ambiguous, although up to now, initially there have been a number of projects and land areas that have been auctioned and brought in more revenue for the budget than originally planned. (73 ) According to the assessment of the Ministry of Construction,

(73). Xuan Thuy, Tung Quang (2018), Lack of determination in construction order management , Nhan Dan Electronic Newspaper,

The structure of urban construction products in the market is still unbalanced, while the products of mid-range and high-end projects, tourism products (condotels, resort villas...) show signs of surplus, the products of social housing projects, low-cost commercial housing are currently in a state of slow development, serious shortage and many problems. (74)

Third , the coordination between ministries, ministerial-level agencies, local authorities at all levels, and relevant units in some places in the state management of construction investment projects in general, in the establishment, appraisal, approval of construction investment projects, and management of construction order is still not tight, timely, and consistent; the participation of consulting organizations, professional social organizations, experts, businesses, and communities in the management and supervision of urban construction investment projects is not proactive, regular, and effective.

Fourth , the activities of inspection, supervision, and handling of violations of the law in the management of construction investment projects and construction order are not strict, and there are even signs of violations of the law and corruption among the law enforcement and anti-corruption forces. (75) The situation of "ignorance" of the law and "punishment for existence" is quite common in many places across the country. Many violations have only been handled as administrative violations without properly implementing the State's criminal policy on criminal acts in the management of construction investment projects.

https://www.nhandan.com.vn/nhandan.com.vn/kinhte/item/35428702-thieu-quyet-liet-trong-quan-ly-trat-tu- xay-dung-do-thi-ky-1.html, accessed April 28, 2021.

(74). According to the proposal of the State Bank, in the period of 2016-2020, the amount of public investment capital that needs to be arranged for the Social Policy Bank and 04 commercial banks (Foreign Trade Bank, Industrial and Commercial Bank, Development Investment Bank and Vietnam Bank for Agriculture) to implement preferential loans to solve the social housing problem according to the Housing Law 2014 and Decree No. 100/2015/ND-CP is 19,000 billion VND (9,000 billion for the Social Policy Bank, 10,000 billion for 04 commercial banks). However, up to now, the State has only arranged 1,260 billion VND for the Social Policy Bank (reaching 13% of the demand); 4 Commercial banks have not been allocated capital to compensate for interest rates as prescribed (Ministry of Construction (2019), Report No. 70/BC-BXD, dated May 31, 2019, reporting on a number of contents on groups of questions and answers in the construction sector at the 7th session of the 14th National Assembly).

(75). A typical case is the case of a number of officials of the Ministry of Construction Inspectorate being prosecuted and detained for investigation of the act of demanding

bribery while performing official duties recently in Vinh Phuc province.

Urban, hidden crime in this field is still at a high level. Violations of the law in state management of construction investment projects, especially in construction investment projects from state budget capital sources, are often violations of the law in investment policies; in survey, design; in compensation, construction site clearance; in contractor selection (bidding, designated bidding). (76) These types of violations of the law are mostly related to the responsibilities of agencies, organizations, individuals with authority in state management of construction investment projects.

3.3. Current status of state management of construction quality

urban

3.3.1. Advantages of state management of construction quality

urban

- Advantages in building and promulgating laws

In general, legal regulations on construction quality management have been developed, issued, amended, supplemented, and increasingly improved by competent state agencies, meeting at a basic level the requirements for state management of urban construction quality.

Legal regulations on construction quality management in general are reflected in the 2014 Construction Law and detailed regulations and implementation guidelines. Accordingly, state management of urban construction quality is implemented in all stages of the urban construction investment process, from planning, urban construction architecture to investment policy decisions, construction investment project establishment, survey, design, construction, acceptance and handover, putting works into use, warranty and maintenance of urban construction works. In particular, for the construction stage, quality management is meaningful.

(76). Trinh Quang Bac (2017), Violations of the law in basic construction investment with state budget capital in Vietnam - Doctoral thesis, Ho Chi Minh National Academy of Politics, Hanoi, pp.81-97.

extremely important. Construction works must be supervised in terms of quality, quantity, progress, labor safety and environmental protection during construction. The State encourages the supervision of individual housing construction. Construction supervision must ensure the 3 requirements stipulated in the 2014 Construction Law. The selected construction supervision contractor must have a proposal on supervision solutions and quality control procedures... inspection and acceptance procedures, measures for managing documents during the supervision process and other necessary contents.

Construction quality management is the management of competent agencies, organizations and individuals, carried out according to operational methods such as specialized construction testing; construction monitoring; construction surveying; construction inspection; construction appraisal; construction judicial appraisal; conformity assessment in construction activities; conformity assessment in construction activities... (77) Construction quality management is determined to be the responsibility of entities participating in construction activities and of agencies and organizations with authority to manage the state in this field. In 2015, the Government issued Decree No. 46/2015/ND-CP on construction quality management, stipulating the content and responsibilities of agencies in state management of construction quality. Accordingly, the responsibility for state management of construction quality belongs to the Ministry of Construction and specialized construction management ministries. Provincial People's Committees manage the state on the quality of construction works in the area. The Department of Construction and specialized construction management departments assist the Provincial People's Committees in managing the quality of specialized construction works in the area. The content of state management on the quality of construction works has been

(77). See also the definition of related concepts in Article 3 of Decree No. 46/2015/ND-CP dated May 12, 2015 on quality management and maintenance of construction works. This Decree takes effect from July 1, 2015, replacing Decree No. 114/2010/ND-CP dated December 6, 2010 on maintenance of construction works and Decree No. 15/2013/ND-CP dated February 6, 2013 on quality management of construction works, except for contents related to design examination by state management agencies on construction.

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