Increasing resources for the Land Development Fund is a strategic step in attracting investment.

Adjusting the charter capital of the City Land Development Fund to more than VND1,724 billion will help Hai Phong proactively clear land and create clean land funds to attract investment.

Increasing the charter capital of the Land Development Fund will help the city proactively clear land and create clean land funds to attract investment. In the photo: Tien Lang Industrial Cluster. Photo: TRUNG KIEN

Inefficient operation

Before the merger, Hai Duong province and Hai Phong city both had funds to serve the task of site clearance and land fund development. From 2021, the People's Committee of Hai Duong province decided to establish a fund with a charter capital of 100 billion VND, aiming to facilitate localities to prepare clean land to attract investors through land use rights auctions. However, the fund's operation has not met expectations.

The reason is that the land development fund was established under Decision No. 40/2010/QD-TTg dated May 12, 2010 of the Prime Minister . At the time the fund was put into operation, Decision No. 40/2010/QD-TTg was no longer consistent with the provisions of the 2013 Land Law and the State Budget Law. This caused difficulties in advancing and repaying capital for site clearance.

In Hai Phong , the task of the Land Development Fund was previously assigned to the City Development Investment Fund. The implementation of the integrated task had shortcomings, failing to ensure risk management in the fund's operations. In addition, the large cost of site clearance made it difficult to balance the budget for implementation. Production and service business projects were implemented according to the mechanism of investors pre-paying capital for site clearance, which was then deducted from land rent and land use fees.

After the merger, Hai Phong city has promoted investment attraction, site clearance and clean land fund creation are the top factors to attract investors and implement key socio-economic projects. Therefore, on August 11, 2025, the City People's Committee issued Decision No. 3222/QD-UBND on renaming the Hai Duong province land development fund to Hai Phong city land development fund. Along with the decision to establish the fund, the city has solutions for effective implementation.

VSHIP Industrial Park creates clean land fund to improve investment attraction efficiency.

Define clear goals, add resources

The city's land development fund was established in accordance with the provisions of the 2024 Land Law and Decree No. 104/2024/ND-CP of the Government regulating the land development fund. Overcoming previous limitations and difficulties, Decree 104 specifically stipulates the fund's operating mechanism.

Accordingly, the land development fund is responsible for managing the fund's operating capital (charter capital and other legally mobilized capital) according to regulations. At the same time, Decree 104 also clearly stipulates the advance capital according to the decision of the competent authority and person; the recovery of advanced capital. The suspension and recovery of advanced capital when detecting that the organization receiving the advanced capital violates the regulations on the use of advanced capital or is slow to repay the advanced capital, or the inspection of the use of advanced capital and the recovery of advanced capital are also regulated in Decree 104. Along with establishing a clear and correct operating mechanism, the use of the fund's capital is prioritized for the tasks of compensation, resettlement support and the creation and development of resettlement land funds, and the creation of land funds to organize auctions of land use rights.

Implementing the current legal regulations on the Land Development Fund, the City People's Committee has submitted to the City People's Council to adjust the charter capital of the land development fund of the new Hai Phong city; continue to implement the model of entrusted capital management. The fund currently has the actual charter capital (approved) of the converted Hai Duong Land Development Fund of more than 724 billion VND. And the capital source for land development tasks, advance capital for site clearance of the Hai Phong Development Investment Fund transferred 1,000 billion VND, of which 600 billion has been allocated from the city budget; 400 billion has not been arranged. After the charter capital is approved, the City People's Committee, based on the ability to balance the budget for the 5-year period and annually, submits to the City People's Council to arrange additional charter capital for the fund.

Deputy Director of the Department of Agriculture and Environment Duong Dinh On said that compensation, support, resettlement and clean land fund creation are difficult and complicated tasks, affected by many objective and subjective factors. Without resources available for payment, project progress will be affected. Site clearance and clean land fund creation for land use rights auctions contribute to realizing the Party's policy and State law on promoting land allocation and leasing through auctions. The land development fund is a strategic tool to help localities proactively meet this requirement, while timely compensation and resettlement support also ensure people's rights, helping them stabilize their lives soon.

BAO CHAU

Source: https://baohaiphong.vn/tang-nguon-luc-cho-quy-phat-trien-dat-la-buoc-di-chien-luoc-trong-thu-hut-dau-tu-525269.html