Tens of thousands of students who will be travelling to Hanoi for their first year at university next month are likely to be left searching for accommodation because the construction of two dormitory buildings has fallen behind schedule.
Figures from the municipal Department of Construction showed that construction of the two projects began in 2009 to provide accommodation for around 30,000 students.
Specifically, the My Dinh 2 dormitory, with a capacity of 7,400 students, and the Phap Van-Tu Hiep dormitory, with a capacity of more than 21,900 students, were among the key projects that needed to be completed by late 2011.
However, work on the two projects has yet to be completed due to a shortage of capital. The My Dinh 2 construction, with an area of 17,000 square metres and total capital of VND979 billion ($46.9 million), has been delayed since early this year.
The Phap Van-Tu Hiep dormitory, with capital investment of VND1.4 trillion ($67.2 million) for six buildings covering 12,000 square metres, is in the same situation.
Chairman of the Hanoi Housing Development and Investment Corporation Nguyen Ngoc Tuan said the allocation of capital by the Ministry of Construction had failed to match the progress of the projects, causing serious delays.
Tuan said that the exteriors of the two projects had been completed, and once the interiors had been painted and fitted out, they would be put into use.
According to estimations from the department, the two projects needed about VND1.3 trillion ($62.4 million), including the debt capital the contractor spent in advance, to finish the last steps.
Head of the department's Housing Development Unit Vu Ngoc Dam said the city had approved funding of about VND300 billion ($.14.4 million) for the two projects, but affirmed this was not enough for their completion.
Dam said the city had asked the Government to allocate more than VND400 billion ($19.2 million) for the two projects.
Around 800,000 students from other provinces and cities live and study in Hanoi. Despite a marked increase in the number of newly-established universities and colleges, authorities have paid little attention to building accommodation for students, with only 20 percent currently housed in custom built dormitories.