Binh Thuan proposes to remove difficulties for Novaland's tourism project in Phan Thiet

The law has no regulations on the type of villas for sale and business according to the project life cycle.

Specifically, the Prime Minister's Working Group on reviewing, urging, and guiding the removal of difficulties and obstacles in the implementation of real estate projects for localities and enterprises (the Working Group) has just received a transfer note from the Government Office on the report of the People's Committee of Binh Thuan province on the Ocean Valley Tourism Complex project. The project is located in Tien Thanh commune, Phan Thiet city (Novaworld Phan Thiet project) of Delta-Valley Company Limited (Delta-Valley Company) Binh Thuan under No Va Real Estate Investment Group Joint Stock Company (Novaland - stock code: NVL).

Novaworld Phan Thiet project faces many legal difficulties

The project was granted an investment certificate by the People's Committee of Binh Thuan province in July 2008. The project has a detailed plan; the Environmental Impact Assessment Report was approved by the Ministry of Natural Resources and Environment; the People's Committee of Binh Thuan province leased land and paid the annual land rent in 8 installments with more than 786 hectares of commercial and service land and nearly 200 hectares of golf course land ( sports and physical training facilities land)...; the project has been granted nearly 70 land use right certificates; the Department of Construction of Binh Thuan province has also granted nearly 30 construction permits for works under the project...

Up to now, this project of Novaland in Binh Thuan has completed some construction works, and is completing procedures to put into operation the following items: 36-hole golf course, resort villas, restaurants, cafes, amusement parks, hotels, etc. At the same time, continue to construct other works to meet the expected schedule of completing the entire project by the end of 2025.

However, the Novaworld Phan Thiet project encountered problems: after many changes to the investment certificate, in April 2019, the People's Committee of Binh Thuan province issued an investment policy decision to replace the previous investment certificates.

According to this decision, Delta-Valley Company is allowed to implement the Novaworld Phan Thiet project on a land area of over 986 hectares in Tien Thanh commune, Phan Thiet city with the goal of building villas, commercial areas for sale, business according to the project life cycle (commercial land, services), hotels, public works, trees, water surface, swimming pool...

Through reviewing the current legal system, there are no specific regulations on the concept and types of villas for sale and business according to the project life cycle. Therefore, the People's Committee of Binh Thuan province finds that the approval of the investment policy of the Novaworld Phan Thiet project with such goals and types does not ensure a legal basis.

Notably, according to the report, the investor has signed about 3,000 contracts with customers, but the Novaworld Phan Thiet project is having to temporarily suspend construction because legal issues have not been resolved.

Regarding this issue, the People's Committee of Binh Thuan province proposed that the Working Group consider and agree on the plan to maintain and not adjust the investment policy decision issued in April 2019.

Difficult to determine financial obligations on land

Regarding land lease, the project is leased by the People's Committee of Binh Thuan province according to decisions issued from 2011 - 2021, the land price for calculating land tax of the project applies the 2003 Land Law and the 2013 Land Law, calculated according to market price.

Novaworld Phan Thiet has difficulty determining financial obligations for land

The project investor has temporarily paid land rent according to the land price list multiplied by the land price adjustment coefficient in the policy of the Provincial People's Committee, which is more than 385 billion VND. In addition, the investor also temporarily paid nearly 194 billion VND for site clearance...

However, it is currently very difficult to accurately and fully calculate the financial obligations of the investor of the Novaworld Phan Thiet project because there are many complicated factors: land lease decisions are made over a long period of time, the market fluctuates a lot, and it is difficult to have a basis; the company leases land according to the progress of site clearance, so most of it is in the form of "rice, beans, leopard skin" which is very fragmented, making it difficult to determine cadastral information as a basis for determining land prices; according to the approved investment policy, the Novaworld Phan Thiet project has an area of up to nearly 1,000 hectares but does not divide the investment into stages according to the progress of compensation, support, and resettlement, while the law currently has no regulations on land lease according to the progress of compensation, support, and resettlement.

The People's Committee of Binh Thuan province proposed to overcome this problem by re-processing land lease decisions in the same batch in August 2021. Last April, the Ministry of Natural Resources and Environment issued instructions to resolve the issue of land price determination, but there are still some difficulties regarding the time of land valuation, land price determination method, determination of development costs, development revenue, etc.

Source link: https://thanhnien.vn/binh-thuan-kien-nghi-go-kho-cho-du-an-khu-du-lich-cua-novaland-o-phan-thiet-185230625134823935.htm