At a meeting with businesses organized by the Da Nang Young Entrepreneurs Association on the afternoon of October 6th, Mr. Ho Ky Minh, Permanent Vice Chairman of the Da Nang City People's Committee, spoke about the local land prices in response to businesses' concerns about excessively high land lease fees.
Mr. Minh stated that the city's land price list has changed over several cycles. During the 2015-2019 cycle, there was an increase, but not a significant one. However, in the 2020-2024 cycle, land prices increased sharply, and the adjusted land price list is now closer to market prices.
Over the past period, the city has made great efforts to reduce land lease fees. During the 2021-2026 term, the Da Nang City People's Committee reported to the City People's Council to approve a reduction in the land lease fee rate from 3% to 1%; the ratio of commercial and service land and production and business land to residential land has been lowered from 90% to 70% for commercial and service land and 50% for production and business land.
Mr. Ho Ky Minh, Permanent Vice Chairman of the Da Nang City People's Committee, said that the land price list will be reviewed.
Mr. Minh explained that in 2019, the economy boomed, and land prices increased significantly, so the local land price list was calculated closely to market prices. Therefore, the high increase in land rent during the 2020-2024 period, coinciding with a difficult economic context, created difficulties for businesses.
The People's Committee of Da Nang City has reported to the City People's Council and the Standing Committee of the City Party Committee, and directed relevant departments and agencies to review the entire land price list, land price adjustment coefficients, revenue sharing ratios, land lease payment ratios, and the ratio between commercial and service land, production and business land, and residential land.
"It is expected that the relevant departments will report to the competent authorities, and then submit it to the City People's Council for approval at the December session this year," Mr. Minh said.
Many businesses leasing land along the coast of Da Nang have requested to continue leasing land at the price levels in effect before 2020.
Previously, the Nguoi Lao Dong newspaper reported that several tourism businesses along the coast of Da Nang had submitted a petition to the city's leaders regarding land lease fees.
According to businesses, the high land lease fees are exhausting them in the current difficult economic climate. Businesses are requesting to continue leasing land at the prices stipulated before 2020.
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