Removing the "bottleneck" of land clearance for businesses to access land

Easy access to land is one of the prerequisites to facilitate production and business activities of enterprises. The Draft Land Law (amended) also considers this as one of the key issues that need special attention.

In the process of accessing land for enterprises, site clearance (GPMB) is always considered a difficult activity and poses many challenges for many subjects participating in this process.

In particular, land acquisition so that businesses can access clean land without legal problems is an extremely difficult problem, posing a series of issues regarding disputes and lawsuits if not handled properly, promptly and balancing the interests of all parties.

Land clearance still has many shortcomings

From the perspective of a business directly participating in the market, with a great need to access land, talking to Nguoi Dua Tin , Mr. Nguyen Dang Go Ganh - Deputy General Director of Vina2 Investment and Construction Joint Stock Company said that the 2013 Land Law still has many shortcomings in site clearance work, the legal system is still overlapping and contradictory, causing difficulties for businesses.

In particular, the current land acquisition and clearance process is still being prolonged, disputes often occur, and people do not agree with the policies of the government and businesses.

The causes of the above situation come from many reasons such as the land price frame is different from the actual compensation price; the granting of land use right certificates to people in some places is still slow, leading to difficulties in the stage of confirming the origin during the process of land acquisition and clearance; the legal corridor for land acquisition and clearance work is overlapping, complicated and delayed (having to wait until the stage of approving the construction investment project) and at the same time, the private capital source has not been met in time to resolve quickly and synchronously.

Real Estate - Removing the — Mr. Nguyen Dang Go Ganh - Member of Board of Directors, Deputy General Director of Vina2 Investment and Construction Joint Stock Company.

Besides, people's attitude also makes it difficult for businesses and authorities in site clearance work.

“Due to frequent policy changes, many projects are prolonged, leading to loss of trust among the people, and support for temporary resettlement also faces many difficulties. Meanwhile, local authorities in many places have not done a good job in managing, mobilizing, and explaining to help people understand and support the general policy.

In addition, the mechanism for officials to carry out land acquisition and clearance has not been prioritized, leading to harassment, causing difficulties for people with land or possibly leading to many violations by officials in land acquisition and clearance work," Mr. Ganh emphasized.

Also clearly recognizing the above shortcomings, Mr. Dau Anh Tuan - Member of the Scientific Council of the National Assembly Standing Committee, Deputy General Secretary, Head of the Legal Department of VCCI said that currently, businesses are facing difficulties in accessing land because administrative procedures related to land are still cumbersome.

Meanwhile, land management such as land planning and provision of land information has not been well implemented. The situation of paying unofficial fees in handling land procedures is still relatively common.

Land finance is the key to solving the problem

Mr. Dau Anh Tuan said that many local authorities are still confused in implementing the State's policies, especially in determining land compensation prices when land is recovered. On the other hand, localities are also very confused when determining land compensation prices for site clearance.

In principle, the compensation price of land must be consistent with the “common land price on the market”. According to legal regulations, the land price framework is used as the basis for the People's Committees of provinces and cities to develop and adjust local land price lists.

The People's Committees of provinces and cities shall, based on local realities, prescribe the maximum land price in the land price list. The adjusted land price list shall not be higher than 20% compared to the maximum price of the same type of land in the land price frame. Due to this mechanism, the actual land price list of localities is often only 30-50% of the land price on the market.

“State agencies at the central and local levels need to step up efforts to improve the quality of public land governance at the local level. The revised Land Law is expected to help remove many bottlenecks in the institutional and legal framework.

Meanwhile, local governments need to improve the quality of economic management, focus on increasing information transparency and transparency, and support businesses in resolving problems. Localities also need to make substantial efforts to reform administration, simplify land procedures, and reduce harassment in the performance of public duties," said Mr. Tuan.

Lawyer Truong Anh Tuan - Director of Truong Son Law Company Limited also said that the land price before and after recovery is the same, the same land but there are many differences.

Accordingly, Mr. Truong Anh Tuan emphasized that the ultimate purpose of determining land prices is to divide benefits between the person whose land is recovered and the land developer. If the market operates stably according to the law of supply and demand, the land price will be determined in accordance with the internal market.

But when speculative factors appear, causing artificiality in supply and demand, prices will not be true to the nature of the market. Therefore, there will be a situation where prices are too high or too low, the market will freeze, sometimes hot, sometimes cold.

Therefore, Lawyer Tuan recommends that it is necessary to develop a specific and clear financial mechanism so that land prices are regulated at a certain level, creating conditions for the process of site clearance and exchange with people to take place quickly.

Besides, he said that if there are clear and specific regulations on land recovery, it will help local management agencies easily carry out land recovery, avoid disputes and complaints, waste time and affect the overall progress of site clearance work.

Therefore, the lawyer recommends that when deciding to reclaim land, there should be a plan for compensation, site clearance, and resettlement, thereby helping to synchronize the stages and make the process go smoothly. At the same time, it also avoids the situation of collecting first and then coming up with a compensation plan, which causes the site clearance process to be prolonged .

Source