Difficulties in the project of craft village service area in Bac Ninh

Vân Trường |

In response to the opinions of people in the Dong Ky craft village service area (Dong Nguyen ward, Bac Ninh province) about land rent, the investor has repeatedly petitioned the authorities of Bac Ninh province.

District 8:00 a.m.

The commercial service land of Dong Ky craft village is invested by 295B Road Construction Company Limited, with a total area of nearly 18 hectares, deployed more than 10 years ago.

According to people's feedback, to clear the land for this project, the investor has proposed 3 options for people with agricultural land areas that must be reclaimed to implement the project.

The first option: 1 sao of agricultural land compensated in cash is 320 million VND, including support from the investor.

Option two: 1 sao of agricultural land will be exchanged for 40m2 of residential land.

Option three: 1 sao of agricultural land in exchange for 90m2 of craft village service land rented for 50 years.

There are about more than 100 households in Dong Ky ward who have chosen option 3.

However, when receiving land and constructing works, the investor requires these households to pay an additional annual land rent of more than 52,000 VND/m2. Thus, for each 200m2 plot of land, people will have to pay an additional 520 million VND for 50 years of use.

Speaking to Lao Dong Newspaper reporter, a representative of 295B Road Construction Company Limited said that the commercial and service land of Dong Ky craft village was previously agricultural land, and people were not farming effectively.

Realizing that Dong Ky people specializing in wood furniture production need a large construction area for business and production, the enterprise has proposed to the locality to build and implement the project. Currently, the project infrastructure has been completed.

Explaining why the contract does not have a provision to pay annual land rent, but the investor then requested to collect it, citing Clause 3, Article 8 of the Contract: "These issues arising during the contract implementation process, if the contract does not stipulate and the parties cannot reach an agreement, shall comply with the provisions of current law".

"According to the provisions of the Land Law, service land leased for 50 years must pay annual land rent" - said a representative of 295B Road Construction Company Limited.

The investor's representative affirmed that, in response to people's problems with land rental fees, the unit has also repeatedly petitioned the authorities of Bac Ninh province to consider not calculating land rental fees for the shared infrastructure land of the project to reduce annual land rental fees for people.

The Provincial People's Committee proposes a direction to remove obstacles

Regarding the proposal of 295B Road Construction Company Limited to request exemption from land rent for the land area for the construction of shared infrastructure in the Dong Ky Craft Village Trade and Service Area project, the People's Committee of Bac Ninh province recently issued a document responding that there was not enough basis for consideration.

The People's Committee of Bac Ninh province stated that in the case of the Dong Ky Craft Village Service and Trading Area Construction Project invested by 295B Road Construction Company Limited, the land rent is exempted in the form of Industrial Parks and Industrial Clusters (not including land rent for shared land such as roads, trees, technical infrastructure, drainage ditches, etc.) when converted into industrial clusters or exempted from land rent according to Decree 01/2017/ND-CP of the Government when meeting the conditions and criteria for craft villages in Article 5 of Decree No. 52/2018/ND-CP of the Government (at least 20% of households participating in activities; stable production and business for at least 02 consecutive years up to the time of application; meeting the conditions for environmental protection of craft villages).

The People's Committee of Bac Ninh province has assigned relevant units to review and prepare a dossier to recognize craft villages for Dong Ky ward (now Dong Nguyen ward - PV) to submit to competent authorities for consideration and approval according to regulations to ensure effective development of craft village projects in the area, meeting the socio-economic development situation of the locality; ensuring the rights of people and businesses.

Vân Trường
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