Timely remove difficulties and stimulate growth in the Southeast region

Update: 14-04-2023 | 14:25:30

The Prime Minister's special working group led by Deputy Prime Minister Tran Luu Quang has worked with leaders of ministries, branches, and five provinces in the Southeast region (including Binh Duong, Ba Ria - Vung Tau, Binh Phuoc, Dong Nai and Tay Ninh) to review, find out, and solve difficulties and obstacles in the process of investment implementation and development promotion.

Difficulties due to overlapping laws

At the meeting, leaders of the five provinces in the Southeast region reported on socio-economic development in the first quarter of 2023 and informed about efforts to overcome challenges and difficulties in the current situation. Local leaders raised the overlap between Law on Investment, Law on Land, and Law on Environmental Protection, leading to difficulties and obstacles in management and administration as well as attracting investment and socioeconomic development.

At the meeting, Vo Van Minh, Chairman of Binh Duong Provincial People's Committee, pointed up difficulties facing the province in choosing a land price consultant. According to Vo Van Minh, the determination of specific land prices for compensation, resettlement support, and financial obligations to land in the province has been implemented strictly according to regulations, to be basically close to the common land transfer prices in the market, harmonizing the interests of the State and land users. However, the implementation process encountered some obstacles and difficulties due to the lack of specific and clear legal regulations, especially the consultancy on financial obligations on land faced many difficulties. Specifically, some units that used to take part in appraisal consultancy for the locality do not continue the consultancy; some units are no longer capable of conducting land price consultancy; all invited units refuse to participate in consulting services.

Vo Van Minh, Chairman of Binh Duong Provincial People's Committee, make a speech to raise problems and difficulties that need to be resolved by the Government.

Vo Van Minh asked the Deputy Prime Minister, the working group to consider and approve for Binh Duong to apply the land price adjustment coefficient method to calculate financial obligations to land plots valued at over VND 20 billion; have solutions to encourage units specializing in appraisal of prices to participate in consulting to help localities speed up the land price determination process, calculate the collection of financial obligations to land, contribute to the implementation of budget revenue and investment projects.

Also at the meeting, Vo Van Minh raised difficulties in determining the financial obligations of FDI enterprises when receiving the transfer of all or part of an investment project. Vo Van Minh said that according to provisions of Law on Real Estate Business, Law on Land, in case a project is transferred to a foreign-invested enterprise, the transferor must carry out procedures to voluntarily return the land to the Government; the transferee is allocated or leased land by the State to continue implementing the investment project according to the approved schedule.

Regarding the determination of financial obligations on land in this case according to the land law and the guidance of the Ministry of Finance in Circular 80/2017/TT-BTC dated August 2, 2017, for the transferor (voluntary return of land) to be refunded the value of land use rights and land rent by the State for the remaining time according to the unit price of the land price list issued by the Provincial People's Committee (at the time of land recovery). For the transferee (foreign-invested enterprise), the financial obligations (land use levy, land rent) must be re-determined and paid at the time of land allocation, land lease approved by the State according to a specific land unit price.

“Thus, although the transferor of the project has fully fulfilled its financial obligations, when carrying out the transfer procedures to a foreign investor, the transferee is not allowed to inherit financial obligations paid by the transferee," said Vo Van Minh. Facing the above difficulties, Chairman of Binh Duong Provincial People's Committee asked the Deputy Prime Minister, the working group to study and advise the Government to amend policies on land use levy and land rent in the direction of equality between domestic investors and foreign investors upon receiving the transfer of all or a part of an investment project.

Lack of land fund for industrial development

At the meeting, some provinces raised a problem of lack of land fund for industrial development. Tran Tue Hien, Chairman of Binh Phuoc Provincial People's Committee, said that currently, the actual industrial park land of Binh Phuoc province is over 6,800 hectares, but only 4,258 hectares have been approved; proposed the Government allow additional quotas of industrial land adjustment to meet investors' needs as well as create a foundation for the province to develop.

Cao Tien Dung, Chairman of Dong Nai Provincial People's Committee, said that the occupancy rate of industrial parks in this province has reached more than 80% and land fund in favorable locations has been exhausted. As a result, investment attraction has slowed down. Recently, the province has added 6,500 hectares for industrial development; thus, there have been investors who want to cooperate but have not been approved by the Government. Cao Tien Dung proposed the Ministry of Planning and Investment and the Government to consider and soon approve industrial park land for Dong Nai, creating favorable conditions for the province to attract investment.

Reported by Phuong Le - Translated by Ngoc Huynh

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Timely remove difficulties and stimulate growth in the Southeast region

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