Regulation requiring registration of changes within 30 days makes it difficult for industrial parks

The regulation that within 30 days from the date of change, land users must register the change with the competent authority is making it difficult for businesses leasing land in industrial parks.

The regulation that within 30 days from the date of change, land users must register the change with the competent authority is making it difficult for businesses leasing land in industrial parks.

Mr. Huynh Bao Duc, General Director of Hiep Phuoc Industrial Park Joint Stock Company (HIPC), has just signed an official dispatch to the Management Board of Ho Chi Minh City Export Processing and Industrial Zones, the Ho Chi Minh City Industrial Park Enterprises Association and the Ho Chi Minh City Real Estate Association, to raise difficulties in the implementation of the 2024 Land Law and Decree No. 123/2024.

Accordingly, the 2024 Land Law stipulates that within 30 days from the date of change, land users must register the change with the competent authority.

Decree No. 123/2024 also stipulates that in cases of leasing, subleasing, or mortgaging land use rights without meeting the conditions or without registering land changes, administrative sanctions will be imposed on the person who leased, subleasing, or mortgaged the land.

HIPC believes that registering changes after 30 days from the date of signing the contract will be very difficult for businesses doing business in industrial park infrastructure. Photo: Trong Tin.

Mr. Duc said that in Hiep Phuoc Industrial Park (Nha Be District, Ho Chi Minh City - invested by HIPC), there are currently cases of signing sublease contracts with payment according to progress, divided into many installments and taking place over many years.

Therefore, after the investor fulfills the payment responsibility on time as stipulated in the contract, HIPC will carry out the procedure of separating the red book for the partner. This can take place for many years from the time the contract is signed by both parties.

Therefore, HIPC cannot carry out the procedures to register for granting land use right certificates to the land lessee within 30 days as prescribed by law.

Meanwhile, the re-leasing of land in industrial parks in the form of deferred payments in many installments and taking place over many years is based on the needs of businesses and market reality.

However, Decree No. 123/2024 will impose a penalty on those who have leased or subleased land if they are late in registering changes after 30 days from the date of signing the contract. This is not in line with reality and will be very difficult for businesses operating in industrial park infrastructure.

Therefore, HIPC reports to the competent authorities to support in removing the above difficulties and obstacles and considers supporting recommendations to the competent authorities for amendments to make them practical and convenient in the process of implementing the industrial park project.

In particular, no administrative sanctions and remedial measures are applied for leasing and subleasing land in industrial parks.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the difficulties and problems of HIPC are not unique and can occur in all industrial parks, export processing zones, high-tech zones, and industrial clusters in cases where the enterprise investing in the construction and business of industrial park infrastructure is the lessor or sub-lessor of land use rights.

The regulations are not yet consistent, not yet connected, and do not include cases where the parties agree to pay rent in installments according to the 2015 Civil Code. Therefore, industrial park infrastructure enterprises can be administratively sanctioned in cases of leasing or subleasing land use rights where the parties agree to pay rent in installments.

Therefore, it is necessary to amend Decree 123/2024 in the direction of not applying the 30-day deadline from the date of change, land users must register the change with the competent authority for enterprises doing business in infrastructure leasing, subleasing land use rights where the parties agree to pay land rent by term.

Source: https://baodautu.vn/quy-dinh-phai-dang-ky-bien-dong-trong-30-ngay-lam-kho-cac-khu-cong-nghiep-d232321.html