Phan Van Mai, Chairman of the Economic and Financial Committee, voiced this concern at the Standing Committee of the National Assembly meeting on 22/9, during discussions on the draft Law on Thrift Practice and Waste Prevention.

According to the government's report, the draft law outlines 9 groups of wasteful behaviors and 9 groups of violations in the implementation of waste prevention. The government will detail each wasteful act, violation, and sanctions for heads of agencies, organizations, units, and relevant individuals.

Mr. Mai expressed concerns that the draft law isn't comprehensive enough in empowering those responsible within agencies and units. He cited the recent case of Lotte requesting to halt and return the Thu Thiem project (Thu Thiem Eco Smart City complex).

According to the Chairman, the project's land valuation and usage fees were determined long ago. However, due to project delays, the investor had to pay several trillion Vietnamese dong in late fees. "The enterprise, feeling the delay wasn't their fault, returned the project," Mr. Mai explained.

He argued that the project's return means the land may remain unused for years, representing "a waste." Furthermore, this impacts the business environment and investor confidence, compounding the waste. Therefore, he suggested the draft law needs stronger decisions to empower authorities and responsible leaders.

Chairman of the Economic and Financial Committee, Phan Van Mai, presents the Preliminary Examination Report. Photo: *National Assembly Press Center*

The Thu Thiem Eco Smart City project, located in functional area 2A (now An Khanh ward, Ho Chi Minh City), was proposed in 1997 with an investment of over 20,100 trillion Vietnamese dong. This complex was planned to include a financial center, services, and a multifunctional residential area.

In July 2017, Lotte signed a contract with the Ho Chi Minh City People's Committee and held a groundbreaking ceremony in September 2022. The project, featuring 11 50-story towers on over 7.4 hectares, was considered a key highlight of Thu Thiem's center. Nearly 8 years after the investment contract signing and 3 years after the groundbreaking ceremony, the multi-billion dollar project remains stalled due to financial obligations and legal procedures. In June, the land was valued at over 16,190 trillion Vietnamese dong. Lotte had previously requested the city to resolve these issues, but these requests were denied. The South Korean corporation stated that the prolonged land appraisal process, coupled with policy changes, increased investment costs and altered project conditions, making further development unfeasible, leading to their decision to terminate the contract.

Beyond the Lotte case, National Assembly Vice Chairman Vu Hong Thanh pointed out the fine line between thrift and waste. He cited previous highway investments with inconsistent lane configurations and a lack of emergency stopping lanes in certain sections, resulting in numerous accidents and the need for costly renovations and upgrades.

"This process becomes more expensive than initial proper investment," he said, suggesting the draft law should clearly define the distinction between thrift and waste.

Additionally, the draft law should differentiate between waste caused by negligence or legal violations and objective risks inherent in implementing new policies and pilot programs.

"Delayed projects and constructions waste social costs and opportunities. The principle is correct, but specific regulations are needed for feasibility," Mr. Thanh added.

In a prior review, the Economic and Financial Committee also suggested adding principles to distinguish between wasteful acts due to negligence or legal violations and objective risks, such as implementing pilot policies. They also recommended including principles for disciplinary actions, dismissal, or resignation in cases of serious waste within management, and mechanisms for public consultation and oversight.

The draft Law on Thrift Practice and Waste Prevention is scheduled for National Assembly review in October.

Phuong Dung