Difficulties in land allocation
On December 10, at the discussion session of the 5th session of the 8th term of the People's Council of Quang Tri province, delegate Nguyen Viet Hai - Chairman of the Board of Members of Son Hai Group Limited (Son Hai Group) - raised a number of difficulties in the implementation of real estate projects in the area.
Mr. Hai said that the real estate sector has contributed an average of more than 40% of the provincial budget revenue over the years, contributing to changing the urban appearance and improving housing conditions for people. However, some projects still have inappropriate behavior, causing difficulties for investors.
Mr. Hai gave an example of the Nam Cau Dai Urban Area project invested by Son Hai Riverside Company Limited. Mr. Hai informed that this enterprise has its own legal status, its own seal, its own accounting and tax payment, and is not in common with Son Hai Group. However, as a subsidiary of Son Hai Group, Son Hai Group has some responsibility as a parent company.
According to the contract signed with the competent authority, the land price calculated at the time of land allocation and the minimum infrastructure cost must be adjusted to the same time to deduct when calculating land use fees and land rents.
However, the agencies advising the People's Committee to sign the decision to pay land use fees and land rents have not adjusted the minimum technical infrastructure cost to the same time as the land allocation for deduction. This leads to incorrect data requiring enterprises to implement projects to pay land rent and land use fees.
The delegate recommended that the Provincial People's Committee direct relevant departments and branches to review, calculate and adjust the value of land use fees and land rents in accordance with contract principles and legal regulations.
Mr. Hai also said that the decision dated January 14, 2022 determined financial obligations of VND 1,234 billion for an area of 27.1ha/36.8ha, while the remaining 9.7ha had not been allocated.
According to the financial plan attached to the contract signed with the competent state agency, the investor's equity capital is 396 billion VND, but the investor has participated in investing more than 500 billion VND in the project.
Proposal to remove remove obstacles for the project
The land rent and land use fees are loans from commercial banks. However, the bank did not lend because the province had not yet allocated the remaining land, affecting the project's progress.
Although the Provincial People's Committee has issued a document in 2024 committing to complete the embankment, hand over the site and hand over the land before December 31, 2025, the land allocation has not yet been implemented, affecting the reputation of the enterprise before the bank.
According to Mr. Hai, from the time of announcement of payment of land use fees and land rents until the province made a commitment, during that time, a late payment fine of VND 286 billion arose. Currently, Son Hai Riverside Company is under tax enforcement.
The Chairman of the Board of Members of Son Hai Group Company Limited recommended that the delay in tax payment is due to objective reasons, specifically that the province has not allocated land and has not committed to the enterprise, leading to the bank not lending, not the enterprise being late in paying taxes. When businesses are subject to tax enforcement, banks will not lend to pay the next obligations. Therefore, Mr. Hai suggested not to enforce tax in this case.
Mr. Hai suggested that the land allocation to calculate land use fees when the project is basically handed over so that the project can be put into operation, avoiding the case of the recent Nam Cau Dai Urban Area Project.
Director of the Quang Tri Department of Construction Truong Chi Trung said that he will review the contract and related legal bases. The Department will work with Son Hai Group and the site clearance unit to consider the proposal, ensuring legitimate rights for the enterprise.
