The Vietnam Land Database and Land Information System – which is the only software HCMC uses to process property data – was shut down from June 6 to 10 by its operator, state-owned telecoms giant Viettel.
It handles around 2,000 applications a day and is linked to taxation and other government agencies’ databases.
It was developed by Viettel as part of a World Bank-funded project which began in 2017 and ended in 2022.
Without funding from the World Bank, Viettel cannot not keep offering free services and it has the right to shut the app down anytime, said Huynh Van Thanh, deputy director of HCMC Department Natural Resources and Environment.
HCMC has requested Viettel to resume its services but the company only agreed to do so for a number of days in a week, he added.
Deputy chairman of the city, Bui Xuan Cuong, said that he has tasked officials with beginning a bidding process to select a new service provider.
The bidding is set to be completed by August 30 and a number of companies will be invited to join.
HCMC Department of Information and Communications has requested the city to approve spending VND69 billion ($2.71 million) to pay for a software replacement to manage property-related processes until 2027.
The Vietnam Land Database and Land Information System is also being used 36 localities across Vietnam.
Some of them have not signed a contract to pay for the service even though the free trial period has expired, which poses risks of slowing down the property licensing process.