Public land requested to be converted into urban area without auction, risk of causing damage

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Viet Bo Viet Joint Stock Company requests to change the land use purpose from non-agricultural production land to residential investment in Tan Hoa ward, Bien Hoa city, Dong Nai. If this land area of ​​more than 26,000m2 is converted without auction , it will risk causing damage to the State budget.

The winding road of the "golden land"

According to the documents we have, the land that Viet Bo Viet Joint Stock Company requested to change its purpose of use has an area of ​​26,358m2, considered a "golden land" because it is located in the center of Bien Hoa City and adjacent to the frontage of National Highway 1A. Previously, the land was used by Thong Nhat Textile Factory (Vietnam Textile and Garment Group). At that time, Thong Nhat Textile Factory contributed capital with the value of the factory and equipment to establish Dong Nai Bochang International Limited Company under investment license No. 86/GP dated June 1, 1990 issued by the State Committee for Cooperation and Investment (now the Ministry of Planning and Investment).

After that, Bochang International Limited Company changed its name to Bochang Company Limited and was granted an investment certificate by the Management Board of Industrial Parks of Dong Nai province on June 26, 2008. On August 26, 2008, Bochang Company Limited was renamed to VIETBO Company Limited, then VIETBO Company Limited signed an appendix to the land lease contract on September 3, 2009 with the Department of Natural Resources and Environment of Dong Nai province.

On September 29, 2017, VIETBO Joint Stock Company signed a contract to sell assets attached to land to Viet Bo Viet Joint Stock Company. Then, Dong Nai Provincial People's Committee issued Decision No. 73/QD-UBND dated January 9, 2018, reclaiming 26,358m2 of land (including 1,366.1m2 of land area belonging to the safety corridor of National Highway 1) in Tan Hoa Ward, Bien Hoa City used by VIETBO Joint Stock Company. At the same time, it approved Viet Bo Viet Joint Stock Company to lease the land with a land use term until June 1, 2030 (the remaining land lease term of VIETBO Joint Stock Company), in the form of land lease by the State with annual payment, the purpose of land use is non-agricultural production land.

On April 3, 2018, Viet Bo Viet Joint Stock Company sent a document to the People's Committee of Dong Nai province requesting approval for the company to invest in a commercial service area and office for lease on the land it is renting.

The land plot is adjacent to 4 frontages, of which the main frontage is adjacent to National Highway 1A passing through Bien Hoa City. Photo: Huan Cao
The land plot is adjacent to 4 frontages, of which the main frontage is adjacent to National Highway 1A passing through Bien Hoa City. Photo: Huan Cao

Considering conversion or auction

On January 15, 2024, Viet Bo Viet Joint Stock Company sent Document No. 2405/CV-VBV to the People's Committee of Dong Nai province to continue to request the province to approve the investment policy of the Project of commercial, service, apartment and office for rent area (Tan Hoa Residence Apartment) in Tan Hoa ward, Bien Hoa city.

Then, in February 2024, Dong Nai Provincial People's Committee issued Document No. 1675/UBND-KTN conveying the opinion of the Chairman of the Provincial People's Committee assigning the Department of Planning and Investment to preside over and coordinate with relevant departments, branches and units to study the content of the proposal of Viet Bo Viet Joint Stock Company, advise and propose to the Provincial People's Committee for handling according to regulations.

On July 15, 2020, the Ministry of Natural Resources and Environment issued Document No. 3789 in response that the decision on investment policy for the project in this case is under the decision-making authority of the People's Committee of Dong Nai province; The People's Committee of Dong Nai province is responsible for determining the legality of the document approving the investment policy or selecting the investor according to the provisions of the law on investment and the law on housing.

If necessary, the Ministry of Natural Resources and Environment requests the People's Committee of Dong Nai province to consult the Ministry of Planning and Investment and the Ministry of Construction on the legality of the above investment policy approval document as a basis for resolving the change of land use purpose to implement investment projects in accordance with the provisions of law.

"Golden land" is left unused, causing waste

Speaking with Lao Dong Newspaper reporters, Mr. Pham Thanh Phong - Vice Chairman of Tan Hoa Ward People's Committee (Bien Hoa City) - said that from the perspective of local management, the ward has reviewed and reported to superiors on the situation of land management and use of Viet Bo Viet Joint Stock Company.

According to Mr. Phong, the above land has been abandoned for many years, affecting the urban beauty and local environment.

"Previously, the province had a policy to allow VIETBO Joint Stock Company to build a commercial center combined with high-rise housing. After a period of time when VIETBO Joint Stock Company did not complete the project, it transferred the lease back to Viet Bo Viet Joint Stock Company, but until now it has not been implemented. Now, with the grass growing like this, to be honest, the ward is very miserable" - Mr. Phuong said.

Caution should be exercised before approval.

Lawyer Le Trung Phat - Director of Le Trung Phat Law Firm, Ho Chi Minh City Bar Association - said that to avoid budget loss and violations of the provisions of the Land Law, Housing Law, and Investment Law, the authorities in Dong Nai province need to be cautious before approving the application for land use purpose change to build a residential area of ​​Viet Bo Viet Joint Stock Company. "This land currently has a land use purpose clearly stated in the land lease contract "non-agricultural production land". Therefore, the tenant is only entitled to use the land for the right purpose as stated in the contract, the change of land use purpose must be based on and in accordance with the law" - Lawyer Phat said.

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