The biggest problem in determining specific land prices in recent years has been policy. The Government is amending and supplementing Decree No. 44/2014; the Ministry of Natural Resources and Environment is amending and supplementing Circular No. 36/2014. For many reasons, Binh Thuan has been "waiting" for the past 3 years, and by 2023, through review, there are 47 projects in the province waiting to determine specific land prices. The reality is as the Chairman of the Provincial People's Committee commented: Enterprises cannot wait any longer...
Lesson 1 : "Removing" land prices with caution
2/47 projects
At the end of December 2023, the Provincial People's Committee issued a decision to approve specific land prices to determine financial obligations for another tourism project in Phan Thiet city. Notably, this is the second project out of 47 projects in the province that are waiting for specific land prices and have not been able to implement the next steps. With the land area for commercial service purposes, the form of land lease by the State with one-time land rental payment for the entire lease term (calculated for the remaining time of the project is 35 years), these two projects have contributed to the State budget with a total land use fee of about 126 billion VND.
At the recent meeting to deploy the socio-economic development plan for 2024, Chairman of the Provincial People's Committee Doan Anh Dung emphasized that through the above 2 projects, the functional sectors in the province will have experience and methods to continue to conduct specific land valuation for the remaining projects. In fact, the implementation of specific land valuation for each project is entangled in many policy regulations, plus the stagnation due to the impact of related cases, making civil servants performing this task cautious and even companies with valuation functions hesitant. That is the main reason, not counting the impact of the Covid-19 epidemic, for the past 3 years, there has been a situation of "Old work left behind, new work piled up", creating the number of 47 projects. And by the end of 2023, only 2 projects had specific land prices approved.
Currently, the Provincial People's Committee has assigned specific thematic areas such as housing, trade, tourism services, minerals, etc. to the Chairman and Vice Chairmen of the Provincial People's Committee to direct. The Provincial People's Committee leaders have held meetings for each thematic project group and have issued concluding notices to direct the removal of difficulties and obstacles for each project and project group. At the same time, they continue to direct the review of projects that are eligible for specific land price determination to urge consultants to promptly complete land price plans for one-time land lease payments, land allocation with land use fees or remove them from the list of projects that do not have to determine prices or projects that are not eligible for land price determination and projects that need to seek guidance from the Ministry of Natural Resources and Environment.
Determined to complete 3 major projects by the end of the first quarter of 2024
Following the above two tourism projects will be three large projects that, according to the leaders of the Department of Natural Resources and Environment, will be determined to complete specific land prices by the end of the first quarter of 2024, including the NovaWorld Phan Thiet project and two industrial parks Tan Duc and Son My 1. For these three projects, consulting units have implemented the development of specific land prices. During the above process, many difficulties and obstacles have arisen from policies and practices, including the very limited collection of information on land rental prices in industrial parks. The Department of Natural Resources and Environment has advised the Provincial People's Committee to propose solutions and solutions to the central government. For example, the NovaWorld Phan Thiet project encountered many difficulties in policies and pricing methods during implementation; in addition, this project is very large in scale with many complex investment and business items, including specific business items that are not yet available in the province. Then, in August 2023, the Prime Minister's Working Group and the Ministry of Natural Resources and Environment gave instructions on how to resolve the issue. However, the valuation results of the consulting unit still had some items such as golf courses, villas, entertainment areas, etc. that did not ensure the information collected and calculation methods, so the Department of Natural Resources and Environment requested the unit to supplement and complete it. On January 10, 2024, the Department sent an official dispatch to the consulting unit to promptly send the valuation consultancy results for the NovaWorld Phan Thiet project.
“Currently, the Department of Natural Resources and Environment has directed the Department of Land Management to request the consulting unit to complete the valuation certificate of 2 tourism projects, including NovaWorld Phan Thiet, and send it to the department to organize a meeting to collect opinions from the Department of Construction, Department of Finance, Tax Department, Department of Planning and Investment, People's Committees of districts and cities where the project is located to complete the valuation certificate to submit to the Provincial Land Valuation Council.” – Mr. Tran Nguyen Loc, Director of the Department of Natural Resources and Environment said at the meeting to deploy the province's socio-economic development plan for 2024.
At the same time, Mr. Loc also informed that other projects in the 47 projects are also continuing to complete the certificates to organize meetings to collect opinions before submitting to the Provincial Land Valuation Council. As for the two projects of Son My 1 Industrial Park and Tan Duc Industrial Park, at the end of December 2023, the Department issued an official dispatch on approving the land price adjustment coefficient to determine the specific land price for calculating compensation when the State recovers land for the two projects, sent to the People's Committee of Ham Tan district, requesting to work again with the consultant to explain, in which special attention is paid to analyzing and excluding comparative assets of a sudden nature from the land price plan; reviewing the legal bases to ensure strictness and compliance with regulations. The consulting unit is editing. After Ham Tan district sends it back, the Department will synthesize the report for the Provincial Valuation Council to decide.
Once there is a specific land price for compensation, the site clearance progress will be more convenient, because as Ham Tan district proposed, the compensation plan has not yet applied a specific land price, only a temporary price according to Decision No. 37/2019/QD-UBND, so it has not received the consensus of the people whose land is recovered. Speeding up site clearance, helping the project land, which is currently not contiguous, to be contiguous, both helps the functional sector to make a specific land price to calculate a favorable rental price, and helps investors to implement construction according to the plan.
In another development, at the meeting held on January 16, 2024, Vice Chairman of the Provincial People's Committee Nguyen Hong Hai directed the Department of Natural Resources and Environment to coordinate with relevant departments, branches and the People's Committee of Ham Tan district, Sonadezi Joint Stock Company must complete the approval of specific land price adjustment coefficients for agricultural land located in residential areas and land rental prices in Tan Duc Industrial Park in February 2024.
Lesson 2: To retain and attract big projects
BICH NGHI - PHOTO BY N. LAN
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