Requesting to return land because they think the land rental price is high
On May 13, a reporter from Lao Dong Newspaper was present at the Project to build a working headquarters combined with a petroleum store of Giang Nam Company in Thach Trung Ward, Ha Tinh City.
Observation shows that this project is under construction, surrounded by a corrugated iron fence. The foundation of the project has been under construction for a long time, and the overgrown grass shows that the project has been stopped for quite a long time.
According to the reporter's investigation, in February 2023, the People's Committee of Ha Tinh province approved the investment policy for the project to build a working headquarters combined with a Giang Nam gas station in Thach Trung commune (now Thach Trung ward).
The project is invested by Giang Nam Petroleum Company Limited (headquartered in An Duong district, Hai Phong city), with a total cost of more than 45.5 billion VND. The project is implemented on an area of over 9,000 m2.
The goal of the project is to build a 5-storey office building and a level 3 gas station to trade in petroleum and gas products.
The People's Committee of Ha Tinh province assigned Giang Nam Company to implement the project within 24 months from the date of the decision on land allocation and land lease. The project's operation period is 50 years.
However, while the project is under construction, Giang Nam Petroleum Company suddenly issued a document requesting to stop the project and return the land to Ha Tinh province.
The reason is that Giang Nam Petroleum Company believes that with the land rental price of more than 19.5 million VND/m2, in the first 5 years from August 1, 2024, the company must pay more than 8.5 billion VND (after implementing the 1-year land rental exemption regime) is too high.
This enterprise also explained that the determination of land prices after 5 years still has no solid basis, and according to the law, it may increase further. Therefore, with the above land rental price, it is likely that it will not be effective for businesses, so they should ask to return the land and stop the project.
Re-calculating, may not withdraw the project
On May 13, speaking with a reporter from Lao Dong Newspaper, Mr. Nguyen Trong Ngoc - General Director of Giang Nam Petroleum Company Limited - said that after the Company sent a document to the People's Committee of Ha Tinh province to request to stop the project and return the land in Thach Trung ward (Ha Tinh city), on May 12, Ha Tinh province held a meeting with the Company.
According to Mr. Ngoc, at the meeting, the representative of the People's Committee of Ha Tinh province explained that the price of the leased land is comply with the regulations so it cannot be reduced, the price is based on many facilities, including the project's investment level. Therefore, the company is considering to be able to adjust the investment level.
"We have not yet decided to continue implementing the project but still have to wait between the enterprise and the provincial committee to review the investment terms," Mr. Ngoc shared.
Mr. Tran Bao Ha - Vice Chairman of Ha Tinh Provincial People's Committee - said that after Giang Nam Petroleum Company asked to return the land and stopped the project because it thought the land rental price was high, the province assigned the Department of Agriculture and Environment to work with the enterprise.
Through the work, relevant departments and branches have also clearly explained to businesses how to calculate land rent based on regulations and clearly explained the application period.
According to Mr. Ha, after being explained, Giang Nam Petroleum Company has understood, so they may recalculate so as not to withdraw or stop the project anymore.
