Delay in determining land rental prices affects progress of investment in industrial park infrastructure

Currently, the progress of investment and construction of infrastructure for industrial clusters (ICs) in the province is very slow and is a "hot" issue in parliaments. In addition to many reasons such as difficulties in site clearance; overlapping, complicated, cumbersome legal procedures; weak capacity of investors; difficulty attracting secondary investors, making infrastructure investors not interested in "investing capital"... the slow determination of land rental prices is also a "barrier" that makes many capable investors "give up" and wait.

Delay in determining land rental prices affects progress of investment in industrial park infrastructure The inter-commune industrial park of Dan Luc, Dan Ly, and Dan Quyen (Trieu Son) was established in 2020 but has not yet started construction investment due to many related problems.

Dong Van Industrial Park (Thanh Hoa City) was established in October 2018 with an investment capital of more than 267 billion VND on an area of about 20 hectares. With a favorable geographical location for trade and labor resources, this industrial park is expected to bring new vitality to Thanh Hoa City's industry with operating industries such as: Group of projects producing construction materials, unburnt brick concrete components; mineral processing, kaolin processing, liquid glass production, stone and sand processing of all kinds; warehouse rental services, product display and introduction, transportation and delivery of all kinds of goods; group of projects on processing industry, supporting industry; group of projects on electricity, electronics, telecommunications, refrigeration; group of projects on food processing, wood processing, agricultural product processing; group of projects on stationery...

According to the initial decision, this industrial park was expected to be completed and put into operation in 2021 and the Urban Development Investment Corporation - a joint stock company was the investor. However, by mid-2021, this industrial park had to adjust its schedule. According to the newly approved schedule, by the end of the fourth quarter of 2021, the project will complete legal procedures on investment, basic design, site clearance and land handover. The infrastructure of the industrial park will be constructed from the first quarter of 2022 to the second quarter of 2023 and is expected to be put into operation in the second quarter of 2023. However, once again, this project continued to "miss the appointment" due to problems in determining land rental prices. After resolving difficulties in other procedures, by January 2022, this project was leased land by the Provincial People's Committee. However, for nearly 2 years now, the project has not been granted a land use right certificate due to problems in completing land valuation documents, leading to delays in investment and construction.

According to the Department of Industry and Trade, many other industrial parks have also been delayed in investment procedures in the past due to the delay in determining the land rental price as the basis for granting land use rights, affecting the progress of project implementation such as Thuong Ninh Industrial Park (Nhu Xuan), Quan Lao Town Industrial Park (Yen Dinh) both took more than 1 year to complete. Vinh Minh Industrial Park Phase 1 (Vinh Loc) was established in December 2018, was leased 12.7 hectares of land by the Provincial People's Committee and submitted the application for land use rights from June 2023, but is still waiting to determine the land rental price to issue a land use right certificate. Xuan Lai Industrial Park (Tho Xuan) was established in March 2020, was leased land by the Provincial People's Committee in April 2023, submitted the application for land use right certificate from June 2023, but has not yet determined the land rental price as the basis for granting the certificate.

The delay in determining land rental prices has directly affected the progress of granting land use rights and allocating land to enterprises to implement projects. Meanwhile, these are "few" projects that have completed basic procedures and are given priority in converting the purpose of land for two-crop rice cultivation to implement projects, attracting secondary investors to production and business.

According to statistics from the Department of Industry and Trade, out of 45 established industrial parks, only 2 industrial parks have completed the entire industrial park infrastructure and are eligible to attract secondary investment projects, namely Thai Thang Industrial Park (Hoang Hoa) and Van Ha Town Industrial Park (Thieu Hoa). There are 3 industrial parks that have completed the industrial park infrastructure in stages and are eligible to attract secondary investment projects, namely Bac Hoang Hoa Industrial Park (Hoang Hoa); Hoa Loc Industrial Park (Hau Loc); Quan Lao Town Industrial Park (Yen Dinh).

In addition to the above project group, there are 9 industrial parks that have basically completed investment procedures, completed site clearance for the entire project or in phases, have been allocated land by the Provincial People's Committee, leased land, and are applying for land use right certificates to invest in technical infrastructure; 13 industrial parks have completed investment procedures and are conducting site clearance; 15 industrial parks are completing investment procedures but have not yet implemented site clearance; 2 industrial parks have completed investment procedures, but have not implemented procedures to conduct site clearance compensation, are considering terminating the validity of the establishment decision (revoking the project) and 1 industrial park has temporarily suspended the completion of investment procedures under the direction of the Provincial People's Committee. Currently, if considering the progress of technical infrastructure investment according to the initial approval, all 45 industrial parks are behind schedule.

Article and photos: Tung Lam

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