Many tourism projects in southern Ba Ria-Vung Tau province face a
dilemma.
Land procedures and rental rates
were a hot topic on the agenda of a recent mid-October meeting co-hosted by
provincial Department of Planning and Investment, Ba Ria-Vung Tau Tourism
Association with representatives from diverse state agencies, about 40 travel
businesses and investors attending.
Firms voiced their great concern
over constantly increased land lease rates, which were adjusted, based on
market prices, significantly driving up their investment costs.
For example, according to
US-based Skybridge Intercontinental Development Corporation - developer of
Dragon Sea international tourism and exhibition-convention centre project in
Vung Tau city’s Chi Linh-Cua Lap area, the project was licenced in February, 2010
to cover 43 hectares worth over $900 million.
The project had completed terrain
and topographic surveys, environmental impact assessment reports and is
awaiting approval for its detailed planning scale1/500. However, it faces
hardships due to constantly revised land lease rates which were significantly
higher year-on-year.
A representative from Binh An
Tourism, developer of top-notch Binh Chau-Phuoc Buu resort project in Xuyen Moc
district, said the company was handed 8ha coastal land costing more than VND30
billion ($1.4 million) in land rental, averaging VND400,000 ($19) per square
metre.
The company argued the land value
set pursuant to Decree 69/2009/ND-CP was unreasonable since the project area is
now under management of Binh Chau-Phuoc Buu nature reserve and did not incur
land use rights hand-over so the land value should not be subject to constant
changes.
Decree 69 additionally provides
for land use planning, land prices, land recovery, compensation, support and
resettlement.
Surveys by provincial Economic
and Budget Committee also mirrored land procedures as key reason behind delays
of a number of tourist projects.
Ho Tram O Cap Resort in Xuyen Moc
district’s Ho Tram site developed by O Cap Dai Duong is a typical example.
This 2.8ha project had its
investment proposal approved by provincial management in June 2011 and reached
an agreement on investment location in July 2011. Shortly after that, the
developer completed site clearance and associated financial obligations.
However, in March 2012 the
project record was suspended by the Department of Natural Resources and
Environment upon hand-over by the developer because the province’s land use
planning for 2011-2016 had yet to be approved.
The department said the project
needed to wait for approval of the province’s land use planning for 2011-2020.
When such planning will be ratified remains unknown at present.
Many other projects got stuck due
to land procedure dilemma. This practice requires the southern province to ramp
up efforts sourcing breakthrough remedies to tackle investors’ land woes.
Gia Han | vir.com.vn
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