Urgent need to remove obstacles for BT projects.

On December 8th, the draft amendments and additions to Resolution 98/2023/QH15 (on piloting some specific mechanisms and policies for the development of Ho Chi Minh City) will be discussed for the final time in the National Assembly hall before being voted on and passed.

Previously, during the group discussions on December 3rd, the issue of resolving obstacles in BT (build-transfer) projects attracted much attention from delegates, as many projects are facing difficulties with the mechanism for determining land prices for payment or land allocation procedures. This is also an issue that the Saigon Giai Phong newspaper has continuously addressed in a series of related articles recently.

The 2.7km section of Ring Road 2 from Pham Van Dong Street to Go Dua intersection (Ho Chi Minh City) has been under construction for a long time. (Illustrative image: SGGPO)

Representative Nguyen Tam Hung (Ho Chi Minh City) supports the regulation clarifying the responsibility for BT payments in accordance with the law at the time of contract signing.

However, delegates suggested considering adding a requirement to publicly disclose all information regarding the land fund used for payment, the value of the land fund, the method of determining the price, and the volume of works that have been audited before land allocation or leasing. This is a necessary mechanism to prevent the risk of loss of public assets – an issue that has caused many negative consequences in BT projects nationwide. When fully and transparently disclosed, payments will ensure community oversight and the legitimacy of the State.

Representative Tran Huu Hau ( Tay Ninh ) pointed out that the biggest shortcoming currently lies in the inconsistency between the Land Law and the Law on Investment under the Public-Private Partnership (PPP) method.

According to the Land Law, land prices must be calculated at the time the State allocates the land, while the PPP Law calculates them at the time of project planning or tender document preparation.

Delegates proposed determining land prices at the time of signing the BT contract or at the time of project handover, ensuring fairness for both parties.

Representative Phan Duc Hieu, a member of the National Assembly's Economic and Financial Committee, pointed out that many projects had completed construction 5-9 years ago but are only now being considered for land allocation. If the land price at the time of allocation continues to be applied, businesses will suffer significant losses.

Delegates proposed including regulations on the timing of determining land prices for BT (Build-Transfer) payments in the draft Resolution stipulating some mechanisms and policies to remove difficulties and obstacles in the implementation of the Land Law, which is currently under consideration by the National Assembly , or, if not, in the draft amendment and supplement to Resolution 98/2023/QH15.

Representative Nguyen Duy Thanh (Ca Mau) proposed establishing a transparent transitional mechanism for contracts signed before the Land Law 2024 came into effect, in order to avoid disputes arising from legal changes.

Previously, many economic experts also argued that the constantly changing laws regarding BT (Build-Transfer) projects made it difficult for investors to know when land prices would be determined.

Land expert, Professor and Doctor of Science Dang Hung Vo, emphasized that the principle of equal exchange in BT (Build-Transfer) projects is only guaranteed when land prices and obligations are determined at the same time.

In a document submitted to the National Assembly Standing Committee providing feedback on the draft amendments and additions to Resolution 98/2023/QH15, the Ho Chi Minh City Real Estate Association (HoREA) reflected that there are currently more than 160 BT projects nationwide that are "frozen" due to the inability to determine the land price for payment - even though the projects were completed a long time ago.

HoREA cited the case of MHL Company as a typical example in its proposal to demonstrate the urgent need to amend BT regulations to facilitate capital flow.

According to HoREA, this enterprise signed a BT contract in November 2016, then completed the project, which was audited by the State Audit Office. The project was handed over to the Ministry of National Defense in February 2018. However, the enterprise will only receive the land in 2025, and the land price has not yet been agreed upon.

Mr. Le Hoang Chau, Chairman of HoREA, believes that regulations should be added stipulating that the time for determining land prices for land used as payment under BT contracts should be the time of signing the BT contract, or the time when the investor completes the handover of the entire BT project. He argues that applying the regulation that the time for land valuation is the time when the State decides to allocate or lease land would disadvantage businesses that experience delays in land handover after many years of having already handed over BT projects to the State.

According to HoREA, thanks to Government Decree 91/2025/ND-CP regulating the time of land price determination, difficulties and obstacles related to land use for BT contracts in the Thu Thiem New Urban Area (Ho Chi Minh City) have been resolved. However, other BT project investors outside the Thu Thiem New Urban Area have not yet had their difficulties and obstacles resolved in determining land prices for the land area used for BT contract payments.

HoREA observes that the aforementioned situation reveals policy gaps that are causing numerous projects to be completed but the land for payment to remain unresolved for many years. With 162 BT projects "frozen," land resources are locked up, and businesses are facing the situation of having their capital tied up for many years.

MINH DUC

Source: https://www.sggp.org.vn/cap-thiet-go-vuong-cho-du-an-bt-post827028.html