Tuesday,  Jun 19, 2018,10:13 (GMT+7) 0 0
HCMC seeks nod for market-based land compensation
Thursday,  Jun 7, 2018,17:08 (GMT+7)

HCMC seeks nod for market-based land compensation

A housing project in District 9, HCMC - PHOTO: PHAM LE

HCMC – The HCMC Department of Natural Resources and Environment has requested relevant ministries and agencies to calculate land compensation in line with the market price when the State recalls land, news website VnEconomy reports.

The department suggests the Ministry of Natural Resources and Environment quickly flesh out the scheme “Completion of a land recall, compensation, resettlement support mechanism, policies and laws to boost site clearance for implementing investment projects” as demanded by the Prime Minister on May 2017.

The ministry should hire a consultant to survey land price for calculating compensation once a certain project is associated with land recall so as to solve sticky issues related to land compensation and resettlement over the years.

Simultaneously, the municipal People’s Committee should be allowed to approve the calculated price for compensation and resettlement before consulting the local people’s viewpoints.

Also according to the proposal, ministries and agencies are requested to issue new regulations on dividing the jobs of compensation, support, and resettlement into smaller projects instead of having all included in an investment project, and these criteria should also apply to Public-Private Partnership (PPP) projects.

According to the municipal department, between 2011 and June 2018, as many as 133 projects in the city have failed in land compensation, support, and resettlement and could not recall land of over 27.7 million square meters for development. Some 24,500 people affected by these projects have refused to receive compensation or resettlement support.

Most projects have seen slow speed of site clearance and hand-over which leads to additional costs. Incomplete and fast-changing procedures have impeded the compensation process and as a result, residents have complained and filed lawsuits against relevant entities over the years.

HoREA proposes adjusting land use term

In related news on land, the HCMC Real Estate Association (HoREA) has sent a proposal to the National Assembly Standing Committee and the Prime Minister requesting that terms for land use should be adjusted so that the time limit could be set from the date of a project being completed and opened for business, Phap Luat newspaper reports.

According to HoREA, once the proposal is approved, investors’ rights will be protected, while the State budget will be increased, as the value of certain projects are accurately calculated.

Prevailing rules normally set a land use term for an investment project at no longer than 50 years, as regulated in the 2013 Land Law. Projects of houses for sale, including those for sale, rent, or lease, see land use terms set according to the duration of the project that begins from the date of the decision on land hand-over or land leased by authorized agencies.

However, these regulations show some inadequacies, for instance, after completing preparatory investment procedures of a project, it takes the main investor some three years to carry out the project phases. The investor then hands over houses to buyers and keeps offices or serviced apartments for lease, but with a reduced land use term due to the time needed for project development.

The land use term is even much shorter in case projects are left undeveloped or paralized for several years, or when projects are transferred to new investors. Consequently, the time limit has been decreased by over ten years, causing serious losses for investors, clients, or resulting in bad debts.

Therefore, according to HoREA, the land use term for projects should start from the date the projects are completed and opened for business.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.