General Secretary and President To Lam: The Mercedes project extension issue is absurd

Báo Tuổi TrẻBáo Tuổi Trẻ18/08/2024


Tổng Bí thư, Chủ tịch nước Tô Lâm: Vướng mắc gia hạn dự án Mercedes là vô lý- Ảnh 1.

General Secretary and President To Lam speaks at a working session with the Ho Chi Minh City Party Committee - Photo: SGGP

Mechanism and policy problems "hinder" development

Speaking at a working session with General Secretary and President To Lam (afternoon of August 17), Mr. Phan Van Mai pointed out many shortcomings and limitations of a number of current laws and respectfully requested: "The General Secretary and President direct the Party Committee of the Government and the Party Delegation of the National Assembly to consider and review to amend the law, following the motto of one law amending many laws to remove obstacles for localities."

According to Mr. Mai, currently some regulations in the Law on Urban Planning, Law on Public Investment, Law on Public-Private Partnership (PPP), Law on Budget... are inadequate and need to be revised.

If there is a special meeting to study and fix this early from now until the end of the year, many problems will be resolved.

The law amendment, Mr. Mai suggested, must be associated with stronger decentralization and delegation of power to localities. In particular, coordination in resolving cases in the area must be faster and more effective.

"Currently, there are projects that are asking for approval and extension of investment policies, but it takes a long time to resolve. If the law is removed, public investment projects, public-private investment projects, social housing projects, and commercial housing projects will be removed, promoting the development of the real estate market," said Mr. Mai.

There must be policies to remove

The head of the Ho Chi Minh City People's Committee shared a specific problem regarding the joint venture between Mercedes-Benz Group AG (MBG AG) and Saigon Transport Mechanical Corporation (Samco).

According to regulations, this project will expire after 30 years of joint venture in 2025. Mercedes-Benz Group AG has requested a 5-year extension, but due to regulations, the land must be reclaimed and rearranged when the joint venture expires. Therefore, although it seems reasonable, Ho Chi Minh City is still struggling to resolve the issue.

"We will probably struggle for 5 years. This is a problem that needs to be solved, not to collect that much budget, but to solve it later for other projects," Mr. Mai suggested.

In the conclusion, General Secretary and President To Lam said that through the working session, he personally learned many practical issues, pressing and complicated matters. For example, the absurdity in the Mercedes joint venture "is unacceptable".

General Secretary and President To Lam said: "The locality really hopes to have an automobile project because on average, an automobile project contributes at least 5,000 billion VND to the local budget per year. Whoever has two automobile projects will earn tens of thousands of billions, like Ninh Binh with that project, which is already 10,000 billion VND.

Now, when entering the market, the license expires and is revoked, then a new license is created from scratch. I don't know what these regulations are. I will also contribute to talking about these things."

General Secretary and President To Lam said that the issues discovered by Ho Chi Minh City will continue to be studied with other agencies to have appropriate policies to resolve.

More than 2 years after submitting the application, the extension license has not been granted yet.

The Mercedes-Benz automobile assembly plant project on Quang Trung Street (Ward 8, Go Vap District, Ho Chi Minh City) is a joint venture project between Mercedes-Benz Group AG (MBG AG) and Saigon Transport Mechanical Corporation (Samco).

In April 1995, Mercedes Company (hereinafter referred to as the company) was licensed to operate in Vietnam, with the project completion date being April 14, 2025.

Therefore, in September 2021, the company sent a document requesting to extend the project's operating period by 5 years, until April 2030.

Although the Ho Chi Minh City government has approved the policy of extending the land lease term, the procedures have not yet been completed.

In March 2024, the company continued to send documents to the Prime Minister and many ministries and branches, proposing to remove obstacles.



Source: https://tuoitre.vn/tong-bi-thu-chu-tich-nuoc-to-lam-vuong-mac-gia-han-du-an-mercedes-la-vo-ly-20240818080921447.htm

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