[NEWS] - HoREA proposes to retain the "Land Development Fund"

Ho Chi Minh City Real Estate Association (HoREA) has just issued a written proposal to amend and supplement regulations on bidding for projects using land to select investors and propose to retain regulations on the Land Development Fund of the Draft Land Law (amended).

According to HoREA, the previous proposal "The State only conducts bidding for projects using land for land that has been cleared (clean land) in Article 126 of the Draft Land Law (amended)" can only be implemented. in the next 10 years or so, when the State has abundant budget resources to fund the "Land Development Fund" to provide capital to the "Land Fund Development Organization" ("Land Fund Development Center") at the current provincial level).

On the other hand, the "Land Fund Development Organization" has enough capacity to perform the task of "developing, managing and exploiting the land fund" as stipulated in Chapter VIII of the Draft Land Law (amended).

However, the current Draft Land Law (amended) removes the regulation on "Land Development Fund", so it does not ensure the synchronization and consistency of the provisions of the Land Law, and also lacks a mechanism to Implement Chapter VIII on development, management, and exploitation of land funds. Therefore, the Association proposes to retain the "Land Development Fund" to advance capital to the "Land Fund Development Organization" to develop the land fund, creating a land fund to implement public investment projects and investment projects under the public-private partnership (PPP) method, or to conduct auctions of land use rights, bidding for projects using land to select investors.

Along with that, the Association continues to propose amending and supplementing regulations on "land allocation and land lease through bidding to select investors to implement investment projects using land" for the case of " land that has not yet been cleared" in Article 126 of the Draft Land Law (amended) as follows:

Firstly, the Association recommends that it is necessary to complete the content of Point C, Clause 3 and Clause 6, Article 126 of the Draft Land Law (amended) in the direction of clearly stating "compensation, support, and resettlement costs residence" in the bidding documents. At the same time, stipulate that the actual "compensation, support, and resettlement costs" incurred do not exceed 20% of the "compensation, support, and resettlement costs" in the contractor’s bid documents. If the investor wins the bid, "the winning investor is responsible for advancing capital to carry out compensation, support, and resettlement at the request of the competent state agency". From there, minimize "risks" that can damage the state budget.

Second, in addition to the regulations on bidding for projects using land for land that has not yet been cleared in Article 126 of the Draft Land Law (amended), the Association proposes to add regulations on bidding for projects using land. land use for land that has been cleared, to ensure uniformity and consistency with Clause 27, Article 79 of the Draft Land Law (amended).

Third, the Association proposes to add the condition "having a 1/500 construction plan" for land plots and land areas for bidding on projects using land, because point b, clause 3, Article 126 of the Draft Law Land (amended) only stipulates "conditions for bidding to select investors to implement projects using land", the land plot or land area must "b) Have a 1/2000 construction planning with the competent approval authority" is correct but not enough.

Because, if the land plot or area has a 1/2000 construction plan, there is a basis for establishing an investment project for investors to participate in bidding for projects using the land. If the land plot or area has a 1/500 construction planning, the investor will have more specific technical criteria to complete the investment project and participate in bidding for projects using the land.

Fourth, the Association proposed to add more cases of bidding for projects using land to implement "commercial, service, health, education, tourism, entertainment, and fitness projects." sports, economic zones, export processing zones, industrial parks, industrial clusters, non-agricultural production establishments" in Clause 1, Article 126 of the Draft Land Law (amended).

Fifth, the Association recommends that the Provincial People’s Council only stipulate criteria for selecting investment projects using land that must be bid to select investors by the actual situation of the locality and Provincial People’s Committees decide that investment projects using land must conduct bidding to select investors.

Sixth, the Association proposes to add the regulation "encouraging bidding investors to commit to voluntarily contributing to the state budget in addition to the financial proposal in the bid documents" to point d, clause 5, Article 64. Draft Land Law (amended) and this is also an additional plus point (+) in case there are 2 bidding investors with the same highest evaluation score.

Seventh, the Association proposes to assign authority and responsibility to the Provincial People’s Committee to decide whether to conduct "bidding for projects using land" or conduct an "auction of land use rights" to choose from. investors suitable for each plot of land, land area, and local practices.

Eighth, the Association proposed to supplement the regulation "Within 30 days from the date of issuance of the decision recognizing the winning bidding results, the People’s Committee at the competent level must allocate and lease land for houses. investment winning bid" in the case of bidding for projects using cleared land, to ensure the legal and legitimate rights and interests of the winning investor.

HoREA believes that, after the next 5-10 years, when the "Land Development Fund" and "Land Fund Development Organization" have operated smoothly and effectively, creating a land fund "guaranteed to meet the requirements of socio-economic development", while also creating an important source of revenue for the state budget to fund the "Land Development Fund" to provide capital to the "Land Fund Development Organization".

Thus, at that time, the State can completely proactively carry out compensation and site clearance "first" and then auction land use rights and bid for projects using land to Choose investors and maximize the "land rent difference" for the state budget to serve national and public interests, there will certainly not be a "conflict of interest" between state agencies and people whose land is recovered and will reach the consensus of people whose land is recovered and the entire society and create a transparent, fair, equitable and competitive investment environment. Indochina Holding also caught up with the situation and introduced to investors and businesses BT, PPP, and BOT projects along with projects currently having bad debt at DATC and VAMC credit institutions. At this time, investing in this project will also be extremely beneficial for customers and businesses. Typically, VNExpress recently reported that a unit has earned huge profits from BOT, this source of revenue accounts for about 25% of total revenue and brings more than 900 billion VND in gross profit. Despite having lower revenue, the BOT segment has a super high gross profit margin of up to 63%.

Thanh Long (Collection source)