The Vietnam Confederation of Commerce and Industry (VCCI) has just made some comments on the application to develop a Resolution to pilot commercial housing projects through agreements on receiving land use rights. or currently have land use rights for other land (hereinafter referred to as draft).
The Ministry of Natural Resources and Environment is expected to propose a pilot period of 5 years, starting from January 1.1.2025, XNUMX. Prioritize pilot implementation in urban areas and approved urban development planning areas.
According to VCCI, allowing businesses to transfer other land use rights and allowing businesses with other land to carry out commercial housing projects is one of the big and important recommendations of businesses in the process. drafting the Land Law 2024.
The new Land Law 2024 stops at the regulation that businesses are only allowed to receive transfers of residential land, businesses that already have residential land or residential land and other land are allowed to carry out investment projects to build commercial housing.
VCCI highly agrees with the development of a pilot Resolution allowing businesses to receive transfers of other land use rights, allowing businesses with other land to carry out commercial housing projects. This is a very necessary regulation, meeting practical needs, overcoming current problems and removing problems of many current projects.
Regarding the subjects of application, the draft report identifies the subjects of application as "enterprises with real estate business functions according to the provisions of law on real estate business; land users according to the provisions of the Land Law.
"Land users" as prescribed in Article 4 of the Land Law 2024 includes "enterprises with real estate business functions". Therefore, VCCI believes that it is not necessary to stipulate "enterprises with real estate business functions" as the applicable subjects.
Regarding transferred land, according to VCCI, Clause 2, Article 127 of the Land Law 2024 stipulates that in the land area to be transferred there is "land area managed by a State agency or organization but cannot be separated. into an independent project, the land area managed by State agencies and organizations will be included in the total land area for project planning and will be recovered by the State to allocate or lease to investors to implement the project. Not through auction of land use rights, not through bidding to select investors to implement projects using land.
The draft resolution provides for another mechanism for receiving land transfer to build commercial housing similar to the mechanism for receiving residential land use rights specified in Point b, Clause 1, Article 127 of the Land Law 2024. To facilitate During the implementation process, VCCI recommends considering adding a land recovery mechanism similar to the provisions in Clause 2, Article 127 of the 2024 Land Law mentioned above.
It is recommended to consider setting general criteria
Notably, in terms of implementation areas, the draft is proposing that localities will issue criteria on location, investment capital and other criteria consistent with local reality to select projects. in the area where the pilot is allowed.
Thinking that this proposal may create concerns about the ask-give mechanism when determining investment projects to apply the pilot mechanism, VCCI proposed to consider stipulating general criteria right in the resolution. Localities will rely on this criterion to determine suitable projects.
The Ministry of Natural Resources and Environment is proposing to develop a National Assembly Resolution on piloting commercial housing projects through agreements on receiving land use rights or having land use rights that are not residential land. .
According to this ministry, after the 2024 Land Law takes effect, the real estate market is forecast to only have commercial housing projects as investment projects to build urban areas and residential area projects. Rural housing is formed through land recovery by the State or projects that change the land use purpose to commercial housing due to existing residential land and other land as prescribed in Clause 6, Article 127 of the Land Law. year 2024.
This will lead to limiting the development of the real estate market, not fully implementing the policy of Resolution No. 18-NQ/TW on "continuing to implement the self-agreement mechanism between people and businesses". in transferring land use rights to implement urban and commercial housing projects.
In addition, the 2024 Land Law only allows investors who have the right to use residential land or residential land and other land to change the land use purpose to carry out investment projects to build commercial housing (paragraph 2). Clause 6, Article 127).
This will lead to production and business projects, for example industrial parks and tourist areas that have had their land use planning adjusted to residential land by the State, and will not be able to implement the adjusted planning, leading to to waste of state budget in the preparation and adjustment of land use planning.
The Ministry of Natural Resources and Environment believes that the above issues pose a requirement to develop a resolution of the National Assembly to allow pilot implementation of commercial housing projects through agreements on receiving land use rights or having existing rights. Use land that is not residential land to allow the organization to actually implement it.
The Ministry of Natural Resources and Environment plans to propose a pilot period of 5 years, starting from January 1.1.2025, XNUMX. Prioritize pilot implementation in urban areas and approved urban development planning areas.
