Concerns about housing projects becoming scarce

Regulations "puzzle" businesses

Not only does it limit the conditions for doing projects as in the article “Enterprises abandon projects due to residential land regulations” published by VietNamNet Newspaper; the draft Land Law (amended) also limits businesses from receiving land transfers to do projects.

Because the provisions in the draft law only allow the transfer of residential land and non-agricultural land that is not residential land for which land use fees have been paid or land rent has been paid once for project implementation.

In fact, investors are currently encouraged to negotiate the transfer of land use rights to implement urban and commercial housing projects. However, according to businesses, the requirement to have residential land and non-agricultural land that has paid land rent once as in the draft Land Law (amended) will make it impossible for many projects to be converted or implemented.

Sharing with VietNamNet reporter , Mr. Nguyen Quoc Hiep, Chairman of the Board of Directors of Global Real Estate Investment Joint Stock Company (GP.Invest) said that introducing such regulation is a "puzzle" for businesses.

Because according to him, no business in the process of using land for commercial or service purposes would pay land use fees for the entire 50-year project life.

“Almost 100% of land for service business pays land rent annually. Land prices can also change, very few projects pay land rent once for the entire life of the project and businesses do not have the money to do so. So if we apply the regulation, it will be very impractical,” said Mr. Hiep.

land long song 2.jpg — Both businesses and experts believe that the draft Land Law needs to be revised to harmonize interests. (Photo: Hoang Ha)

Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, further analyzed that when businesses develop projects, they will have to collect land. If the regulations are as in the draft, those who have land to be able to transfer will have to pay taxes at once, how will they have money to pay?

Furthermore, determining land tax is not easy because when asked by state agencies to determine the tax amount for 50 years to pay at once, they dare to determine it. And to establish a specialized agency to appraise the land price is very complicated and inappropriate. This will also make it very difficult to have land of sufficient scale to establish projects for large enterprises.

“There should be easy regulations for both businesses and land transferors, and the process should be unified in all laws. Otherwise, when implemented, it will cause difficulties for businesses and state management agencies,” said Mr. Quyet.

Need to listen and modify

Faced with the shortcomings in Point b, Clause 1 and Clause 6, Article 128 of the draft Land Law (amended), Chairman of GP.Invest Nguyen Quoc Hiep suggested that the Economic Committee and the Law Committee of the National Assembly should listen to all opinions of businesses to make adjustments to harmonize interests. If this issue is resolved, it will be favorable for socio-economic development, not just for any particular subject.

“If we follow the direction of Article 128 in the draft law, it will really hinder all projects. I am afraid that it will hinder the development of the economy and society because if real estate cannot do it, it will affect many industries,” said Mr. Hiep.

According to Lawyer Nguyen Thanh Ha, the draft regulation can be amended in the direction of developing commercial housing projects on the basis of residential land and other types of land, in accordance with land use planning , which will be more flexible. Such a regulation will support investors and be consistent with the policies of the authorities in removing obstacles and promoting the real estate market.

As someone who is “concerned” with the draft revised Land Law, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) assessed that Point b, Clause 1 and Clause 6, Article 128 of the Draft Land Law (amended) are not consistent with the policy of removing legal obstacles for real estate projects and are not as “open” as the 2013 Land Law.

The reason is that before the 2013 Land Law, there was a regulation that investors of projects using non-agricultural land were required to pay land use fees, but by the 2023 Land Law, there is only a regulation that investors of projects using non-agricultural land must pay land rent and can choose to pay land rent once for the entire lease term or pay land rent annually.

Therefore, Mr. Chau proposed to amend the draft Land Law in the direction that enterprises are approved for investment policy; investors in commercial housing projects are approved if they have land use rights or receive land use rights including residential land, a part of other land (which can be agricultural land, non-agricultural land rented with one-time payment or annual payment); then all can be used to implement commercial housing projects if they meet the conditions for permission to change land use purposes (in accordance with all types of planning...).

The Land Law plays an important role, affecting many other laws; therefore, businesses and associations expect that this amendment will provide regulations that are suitable to reality, harmonizing the interests of relevant parties.

The housing needs of people in big cities are very large. If legal problems are not resolved, it will be difficult to solve the current shortage of housing supply.

Source