The Government assigned the Ministry of Construction to remove difficulties for Novaland's $5 billion project.

The NovaWorld Phan Thiet project has a scale of nearly 1,000 hectares, with an investment capital of about 5 billion USD, invested by Delta - Valley Binh Thuan Company Limited - a subsidiary of Novaland, in Tien Thanh commune, Phan Thiet city. In the report, Binh Thuan province pointed out 5 obstacles and proposed specific solutions to the problems that need to be resolved.

Regarding investment policy, the project was first granted a certificate by the province in 2008 and changed for the 5th time in 2014. In April 2019, Binh Thuan issued a new investment policy decision (replacing the two decisions above), keeping the same scale, but the goal changed to "Investing in villas, commercial areas for sale and business according to the project life cycle"; high-class hotel area; combined investment in commercial and service works; golf course, bungalow, restaurant...

However, Binh Thuan said that current laws do not have specific regulations on the concept and types of villas for sale and business according to the project life cycle. Therefore, the province finds that the approval of the project investment policy with the above objectives and types does not ensure a legal basis.

The Government assigned the Ministry of Construction to remove difficulties for Novaland's $5 billion project - 1 — NovaWorld Phan Thiet project has been partially completed.

According to the Provincial People's Committee, the investor has signed about 3,000 contracts with customers, so canceling or adjusting the investment policy will greatly affect the project, as well as the interests of customers and the local socio-economy. The investment policy decision is also the basis for implementing the following procedures. Therefore, the province requested the Working Group to consider and agree on the plan to maintain the investment policy in Decision No. 934 issued in April 2019.

Regarding land leasing, the project has been leased by the province in 8 installments with a total area of 963 hectares in the form of the State leasing land with annual rental payment. The land leasing in multiple installments at that time was due to the provincial authorities' awareness of the progress of compensation, support and resettlement due to the project's very large scale. At the same time, the province's professional agencies also assessed that leasing land after completing all compensation, support and resettlement is very difficult.

Binh Thuan said that through review, there are currently no regulations on land leasing according to the progress of compensation, so leasing land in multiple phases in the same project is not strict and does not ensure a legal basis. This is also the cause of difficulties in determining specific land prices at many times. Therefore, the province proposed to reprocess 8 land leasing decisions into one at the time of August 2021.

Next is the problem of temporarily collecting land rent and issuing land use right certificates. Due to difficulties in determining land prices, the investor has only temporarily paid nearly 386 billion VND in land rent from 2011 to the end of 2022. The Department of Natural Resources and Environment has issued 67 land use right certificates for the area that the Provincial People's Committee has issued a lease decision (963 hectares).

However, the province admitted that allowing the temporary collection of land rent as above is not in accordance with the law. Currently, the province is directing to speed up the process of determining land prices for the project so that the company can fulfill its financial obligations.

"The working group is requested to review and provide guidance on handling this case (whether to strictly and legally revoke or cancel the temporary collection policy?) ," the People's Committee of Binh Thuan province stated in the report.

Similarly, the issuance of land use right certificates when enterprises have not fulfilled their financial obligations, according to the province, is also not in accordance with legal regulations. Binh Thuan is directing units to handle the matter, including considering revoking the issued land use right certificates. However, the province is also concerned that it may have to compensate investors for losses because some certificates have been mortgaged at banks.

"The province recognizes that this is a difficult and sensitive issue, and the law has not yet clearly defined it," Binh Thuan said, and proposed that the Working Group provide guidance to minimize damage to the province as well as investors.

Binh Thuan also pointed out many difficulties in determining the specific land price of the project, including the time, method of determining land price and determining land price when adjusting detailed planning leading to an increase in land use coefficient. Regarding the time of determining land price, the province also proposed to allow reprocessing 8 land lease periods into 1 at the time of August 2021.

Finally, there is the problem of changing the land use form to one-time land lease according to the investor's proposal. In early May, the company requested the province to allow changing the land use form of the villa, resort, and commercial street area from annual payment to one-time lease.

According to Novaland, the NovaWorld Phan Thiet project has completed a number of works and is completing procedures to put into operation such as a 36-hole golf course, resort villas, restaurants, amusement park and H4 hotel (Movenpick hotel). The enterprise plans to continue construction of the remaining items according to the schedule and construction permit and complete the entire project by the end of 2025. However, Binh Thuan informed that the project is temporarily suspended mainly due to unresolved legal problems.

(Source: tienphong.vn)

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