Creating capital from land fund for socio-economic development

Dau Tieng district has just approved a plan to create capital from the local land fund for the period of 2021-2025. This is an important premise opening up new steps in the local socio-economic development. With its total capital collected from bidding to select investors, auctioning land use rights, etc. amounting to more than VND 1.26 trillion in the coming years, the district expects to continue planning and investing in more spacious infrastructure facilities.

Development opportunities

According to the local plan on exploiting land fund to generate revenue in the 2021-2025 period, Dau Tieng district will hold auctions and tenders to select investors for its 6 large land plots with the estimated amount of more than VND 1.26 trillion. The implementation of the plan to generate revenue will be assigned to the People's Committees of communes and townships. The specialized departments of the district are responsible for supporting localities.

Dau Tieng district’s traffic and urban infrastructure system has got more spacious and modern investment

Speaking at a recent meeting to approve the plan to create capital from the district's land fund, Nguyen Phuong Linh, Chairman of the district’s People's Committee suggested localities, departments and specialized units to continue being more drastic in formulating planning on new rural construction and urban development. They should base on the practical needs of the locality to develop master plans and plans on land use in accordance with the law. Especially, for public land fund not being allocated for effective use, Mr. Linh suggested localities to have plans to use them more effectively, serving the needs of the local socio-economic development.

Mr. Linh said that through the plan to exploit the local land fund to generate revenue from land in the 2021-2025 period, the district expects to have more financial resources to supplement the local public investment. In particular, the land fund plays an important role in attracting investment, mobilizing resources for the local socio-economic development, contributing to increasing investment attraction, developing urban space, generating revenue from the State budget, creating open opportunities for investors to do business in the locality.

The implementation of land use planning in accordance with socio-economic development has long been implemented and applied flexibly and effectively by localities. Through revenue from activities of searching, selecting bidding and auctioning land use rights for public land lots that are being used poorly or inefficiently, localities can easily create capital to continue investing in infrastructure. Through bidding and auction activities in accordance with regulations and assignation of land use rights for right purposes to right organizations and individuals, the function of the land will be further confirmed.

Great capital needed

According to the reporter's research, Dau Tieng district’s People's Committee's approval of the plan to create capital from the land fund in the 2021-2025 period is based on the district's actual need for investment capital in the 2021-2025 period. Accordingly, during this period, DauTieng needs a large amount of public investment capitalto meet the needs of the local new rural construction and rapid urbanization process.

In the period of 2021-2025, the whole district will need about VND2.6 trillion in public investment capital, including VND620billion in economic production capital (arranged for 25 projects), VND 780 billion in capital directly managed by the province (arranged for 8 projects), VND400 billion in provincial target-based support (arranged for 14 projects), VND800 billion in decentralized capital source under the regulation rate (arranged for 73 projects and 8 planning and supporting tasks for 12 communes and towns).

Despite having adjustment under the local development situation, the district’s demand for public investment capital under the resolution of the district People's Council (mid-term plan) in the period of 2021-2025 is about VND2.77 trillion, comprising of VND 810 billion in capital for economic production,  VND 737 billion in capital directly managed by the province, VND229billion in provincial target-based support capital, VND 844 billion in decentralized capital source undẹr the regulation rate, VND 151 billion in the auction capital of land use rights.

According to the list of projects that have been approved, but have not yet been allocated capital in the medium-term plan for the period of 2021-2025, the district’s additional capital need is estimated at more than VND 1,97trillion. Of these, provincial State budget at demand is more than VND 1.35 trillion for 6 projects on upgrading and expanding the road to Dau Tieng reservoir tourist area; upgrading and expanding DT744 street at the section from KM24+ to Cat bridge intersection; building Thanh Tuyen high school; upgrading and expanding DT749A street at the section through the center of Long Hoa commune; investing in the road to Nui Ong Information Station

Reported by Dinh Thang-Translated by Kim Tin