Hiep Phuoc Industrial Park Joint Stock Company recently sent a document to the Management Board of Ho Chi Minh City Export Processing and Industrial Zones, regarding the difficulties and obstacles in the implementation of the 2024 Land Law and Decree No. 123/2024 (on administrative sanctions for violations in the field of land) at Hiep Phuoc Industrial Park.
Hiep Phuoc Industrial Park said that according to Clause 3, Article 133 of the 2024 Land Law, in cases of registration of changes, within 30 days from the date of change, the land user must register the change with the competent authority.
And according to point d, clause 5, Article 5, Decree 123/2024/ND-CP dated October 4, 2024 of the Government, in case of leasing, sub-leasing, mortgaging land use rights without meeting the conditions, without registering land changes, administrative sanctions will be imposed on the person who leased, sub-leased, or mortgaged.
Currently, in Hiep Phuoc Industrial Park, there are cases of signing sublease contracts with payment according to the contract progress, divided into many installments and taking place over many years.
After the investor fulfills the payment responsibility on time as stipulated in the contract, Hiep Phuoc Industrial Park will carry out the procedure of separating the land use right certificate and this can take place for many years from the time the contract is signed by both parties.
Therefore, Hiep Phuoc Industrial Park cannot carry out the procedures to register for granting land use right certificates to the land lessee within 30 days as prescribed above.
Meanwhile, if businesses are slow to carry out the registration of changes, they will still be fined for those who have leased or subleased the land. Subleasing land in the form of deferred payment in many times and taking place over many years depends on the needs of the business and the reality of the market.
Hiep Phuoc Industrial Park believes that the penalty for those who have leased or sub-leased land when they are late in registering changes after 30 days from the date of signing the contract is not suitable to reality and will be very difficult for businesses doing business in industrial park infrastructure.
Talking to the Lao Dong newspaper on this issue, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said the problems and difficulties of Hiep Phuoc Industrial Park are not specific cases and can occur in all industrial parks, export processing zones, high -tech parks and industrial clusters.
According to Mr. Le Hoang Chau, comparing the provisions between the 2024 Land Law and Decree No. 123/2024/ND-CP, it is found that the provisions are not consistent, not connected and do not include the case where the parties agree to pay rent periodically according to Article 481 of the 2015 Civil Code.
Article 481 of the Civil Code stipulates: The lessee must pay the full rent on time as agreed. In case the parties agree to pay the rent in installments, the lessor has the right to unilaterally terminate the contract if the lessee fails to pay for three consecutive installments, unless otherwise agreed or otherwise provided by law.
"Industrial park infrastructure enterprises can be administratively sanctioned in cases of leasing or subleasing land use rights where the parties agree to pay rent periodically.
Therefore, the Association finds it necessary to amend Point d, Clause 5, Article 5 of Decree 123/2024/ND-CP to ensure consistency and uniformity of legal regulations and suitability to practice," said Mr. Chau.
