Department proposes not to return land price difference paid, businesses say 'unfair'

The Department of Natural Resources and Environment of Ho Chi Minh City proposed that the State not refund the difference in cases where the re-determined land use fee is less than the amount temporarily paid, but businesses and real estate associations did not agree.

Thuan Viet Construction and Trading Company Limited, the investor of the New City project, does not agree with the plan "The State does not refund the difference" - Photo: NGOC HIEN

The Department of Natural Resources and Environment of Ho Chi Minh City has just issued a document providing comments on the decree detailing Resolution No. 170 of the National Assembly on specific mechanisms and policies to remove difficulties and obstacles for projects and land in the conclusions of inspections, examinations, and judgments in Ho Chi Minh City, Da Nang, and Khanh Hoa, which will take effect on April 1.

In this document, the Department of Natural Resources and Environment of Ho Chi Minh City has provided methods to calculate land use fees and land rents that investors have paid and the amount of money investors must pay additionally.

Notably, this document mentions that in case the re-determined land use fee and land rent are smaller than the paid land use fee and land rent, the investor is determined to have fulfilled its financial obligations regarding land and the State will not refund the difference.

Regarding this proposal, Thuan Viet Construction and Trading Company Limited has submitted a written request because the 1,330-apartment project (trade name New City) in Thu Thiem of which this enterprise is the investor is subject to this decree.

Mr. Vo Van Be - Director of Thuan Viet Construction and Trading Company Limited - said that the land use fee re-determined for the 1,330-apartment project must be in accordance with the spirit of Resolution 170 of the National Assembly to be implemented like other enterprises with apartments in the new urban area of ​​Thu Thiem, and it is impossible to add a separate condition that the State will not refund the difference.

According to Mr. Be, the inclusion of this separate condition creates unfairness among businesses, so this business recommends not adding the above content to the upcoming decree. At the same time, this business said that it had paid more than 712 billion VND (land price of 26 million VND/m²) in 2018.

Meanwhile, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - said that the association also disagrees with the regulation that the State does not refund the difference that businesses have paid, and has sent a written request to the Prime Minister.

Instead, Mr. Chau said that in case the amount of land use fee or re-determined land rent that the investor has paid, temporarily paid or invested is less than the amount of land use fee or land rent that the investor has paid, this difference should be deducted from the land use fee, land rent or financial obligations of the investor in other projects within a maximum period of 5 years.

Mr. Chau said that after 5 years, if the deduction is not complete, the State will not refund this difference.

Land use fees have not been assessed, people have not been granted certificates

The project to invest in the construction of 1,330 apartments (New City) on a 38.4ha land plot in Binh Khanh ward, with a frontage on Mai Chi Tho street. Initially, the project was invested by a consortium of Saigon Real Estate Joint Stock Company (TTC Land) - Thuan Viet Construction and Trade Company Limited - Thanh Thanh Cong Production and Trade Joint Stock Company.

The apartments at New City apartment building are among more than 5,600 surplus apartments that the Ho Chi Minh City People's Committee no longer needs to use to resettle people being evicted in the new urban area of ​​Thu Thiem.

Although construction has been completed and handed over to home buyers, for many years, the land use fee at New City apartment building has not been appraised, causing residents to not be granted pink books due to many problems, including problems related to the time of determining land prices.

According to the current progress, Resolution 170 of the National Assembly will take effect from April 1, 2025, after which the Government will issue a decree detailing the implementation of the National Assembly's resolution as a basis for recalculating the land price of the project. After determining that the financial obligations have been fulfilled, residents will be granted pink books.

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Source: https://tuoitre.vn/so-de-xuat-khong-tra-lai-tien-dat-chenh-lech-da-nop-doanh-nghiep-noi-khong-cong-bang-20250327212828218.htm