On the morning of June 5, speaking with a reporter from Lao Dong Newspaper, Mr. Nguyen Trong Ngoc - General Director of Giang Nam Petroleum Company Limited - said that the Company is asking to adjust the scale of the project to build a headquarters combined with a petroleum store in Thach Trung Ward, Ha Tinh City.
Accordingly, the scale of the office building should be adjusted from 5 floors to 3 floors.
Explaining the reason for this adjustment, Mr. Ngoc said that previously, due to mistakes by the consulting unit, the Company calculated to build a 5-storey office to combine with a rental office. However, in reality, the Company is not allowed to build an office for rent but only an office for staff and employees.
Therefore, Giang Nam Petroleum Company requested to reduce the scale of the head office to get a reduction in land rent.
"If the scale adjustment is approved, we will continue to implement the project. If it is not approved, we will return the land and stop the project," Mr. Ngoc shared.
As Lao Dong reported, 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 was under construction, at the end of April, 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 the Ha Tinh Provincial People's Committee's approval of specific land prices for the project's leased land plot of more than 19.5 million VND/m2, in the first 5 years, is too high.
Because, after implementing the 1-year land rent exemption regime, this Company still has to pay more than 8.5 billion VND.
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.
After that, representatives of relevant departments, branches and localities of Ha Tinh province had a meeting with Giang Nam Petroleum Company Limited to discuss, explain and resolve difficulties.
