The delay in determining annual land rental prices and one-time land rental prices has affected the investment environment, affecting production and business planning, mortgages for investment loans, especially for investment projects with large areas and large investment capital (LNG Port Warehouse Project, Son My I Thermal Power Plant Project, Son My II Thermal Power Plant Project and Wind Power Blade Manufacturing Project...). If there is no early and decisive policy, it will affect the investment environment and investment attraction results of the province - the Provincial Industrial Park Management Board commented.
One side is impatient, the other side is cautious.
While NovaWorld Phan Thiet is waiting for specific land prices to "unlock" many activities to continue to build and complete a tourism economic urban area by the end of 2025, new industrial parks in Ham Tan are also waiting for specific land prices to rent. From here, there will be a basis for construction according to the outlined roadmap. For example, Tan Duc Industrial Park will start construction in the second quarter of 2023, but it is considered difficult to implement, because the work of establishing, appraising and approving the determination of specific land prices (for residential land and agricultural land in residential areas) is still slow, having to be revised and supplemented many times, affecting the compensation and clearance work. Currently, the investor of the Industrial Park has submitted an application for land allocation/land lease with an area of 61.17 hectares. However, non-adjacent plots of land will be difficult for land allocation/land lease, and applying for a construction permit to start construction. At Son My I Industrial Park, the investor was allocated land by the Provincial People's Committee in the first phase with an area of 76.78 hectares. However, to implement construction, it is also necessary to have a specific land price to sign a land lease contract. Previously, the Department of Natural Resources and Environment organized a bidding and signed a contract with a consulting unit (TMS Consulting Co., Ltd.) to determine the land lease price. After many urgent dispatches, the consulting unit reported the delay in completing the determination of specific land prices for Son My I Industrial Park due to the survey and information collection to determine revenue and costs for valuation work related to industrial park projects being very limited and facing many difficulties, not enough basis to fully prove according to the provisions of Circular 36/2014/TT-BTNMT dated June 30, 2014 of the Ministry of Natural Resources and Environment. Therefore, on April 5, 2023, TMS Consulting Company Limited sent a document requesting relevant units to support the review of information for land valuation, along with a draft report explaining the valuation results. And until now, we are still waiting for... the results.
Therefore, at the end of April 2023, the Provincial Industrial Park Management Board reported to relevant authorities to support Tan Duc Industrial Park in completing procedures to start construction in the second quarter of 2023, from determining specific land prices for investors to sign land lease contracts on an area of 61.17 hectares. Similarly, Son My 1 Industrial Park is over 76.7 hectares and submitted to the Provincial People's Committee for approval in May 2023 at the request of IPICO Company, so that the unit can pay land rent, sign land lease contracts and organize construction of industrial park infrastructure on this area.
Notably, the investors of the industrial parks that have been carrying out compensation and clearance work and preparing for investment all want to lease land at once. Then related projects such as LNG Port Warehouse, Son My I Thermal Power Plant Project, Son My II Thermal Power Plant Project with an area of approximately 300 hectares also have a need to lease land at once. Meanwhile, according to information from the Provincial Industrial Park Management Board, because the specific land price has not been determined, there are currently 4 projects (with an area of 4.72 hectares) in Ham Kiem I Industrial Park and 1 project (with an area of 2.41 hectares) in Ham Kiem II Industrial Park that have been approved by the Provincial People's Committee to pay land rent at once, but have not yet resolved the issue for the industrial park investors to pay at once, which has lasted for 3 years now. The desire of the investors to lease land at once is to facilitate the attraction of secondary investors and in accounting and borrowing capital to implement the project.
Why be in such a hurry?
The representative of the Department of Natural Resources and Environment said that the specific land valuation (applied to projects with land value over 20 billion VND) is slow due to many reasons. According to Circular 36 of the Ministry of Natural Resources and Environment, there are 5 methods for valuation, but the 3 commonly applied methods are surplus, income and comparison. However, through information from a number of cases, consulting units are concerned that these methods are not guaranteed, if applied to each specific project, especially if the input factors are not stable, leading to incorrect output results. For example, the comparison method, that area has always been farmland, there has not been any transaction so it cannot be compared. Or the surplus and income methods need to determine development revenue, investment capital rate, unit price... which is very complicated. Therefore, the consulting units have done it over and over again, the Department has been helping the consulting units but the results are not convincing. Because it is necessary to assume and estimate, and these projects are all very large in area, the risk of errors between people, even very small, can create a large loss. In addition, the Ministry of Natural Resources and Environment is also revising Circular 36, focusing on valuation methods.
That is also one of the reasons why the Provincial People's Committee has just issued a document requesting the Ministry of Natural Resources and Environment to propose to the Prime Minister to consider and direct the establishment of a Working Group consisting of members from the Ministry of Natural Resources and Environment, the Ministry of Construction, the Ministry of Finance, and related ministries and branches to support and guide Binh Thuan province in determining land prices in general and at the Ocean Valley Tourism Complex project in particular. Currently, the Central Government has issued a document agreeing to support Binh Thuan in appraising specific land prices at the NovaWorld Phan Thiet project...
According to the representative of the Department of Natural Resources and Environment, compared to NovaWorld Phan Thiet, land valuation in industrial parks is simpler. However, in the current situation, it is also necessary to have a specific valuation calculation with the help of the Central Government to be more confident. In the shortest time, the removal of obstacles related to specific land prices of large projects in the province will be resolved.
The official dispatch that the Provincial People's Committee sent to the Ministry of Natural Resources and Environment also emphasized that the current land valuation work is very complicated because it involves many sectors and fields that regulate parameters on investment, planning, construction, land, finance, banking, market, etc., requiring the implementer to have general knowledge and experience related to many fields in order to fully understand the contents of the valuation method to implement, appraise and evaluate appropriately. Meanwhile, the personnel of the Provincial Department of Natural Resources and Environment do not have much experience in specialized fields of price, finance, construction, etc. to meet the requirements of the very complicated valuation work as it is today. Therefore, the Provincial People's Committee proposed that the Ministry of Natural Resources and Environment recommend the Prime Minister to consider and direct the establishment of a Working Group to support and guide Binh Thuan province in determining land prices in general and at the Ocean Valley Tourism Complex project in particular, so that the projects can be soon deployed, put into operation, and develop the local socio-economy.
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