Promote socialized investment with land rent exemption policy

Nam Son Industrial Cluster, Ba Che Commune is creating jobs for many local workers.

At the 29th Session, the Provincial People's Council considered to pass the Resolution regulating the preferential regime of land rent exemption for projects using land for production and business purposes in the investment incentive sectors (investment incentive sectors and occupations) or in investment incentive areas, and at the same time meeting the conditions in the list of types, scale criteria, and socialization standards decided by the Prime Minister or non-profit projects in Quang Ninh province. This is a strategic step, clearly demonstrating the province's orientation in attracting private investment in areas serving the community, contributing to improving the quality of public services, improving social security and promoting sustainable growth, especially in difficult areas.

According to the draft Resolution, cases exempted from land rent include: Non-profit projects and socialized projects according to the list, scale criteria, and standards decided by the Prime Minister and will be applied to state agencies, organizations, and individuals involved in the process of land leasing and land rent management. The exemption level is classified depending on the nature of the project and the implementation area.

Specifically, non-profit projects are exempted from all land rents for the entire lease term. For socialized projects implemented in areas with particularly difficult socio -economic conditions such as Ba Che, Binh Lieu, Co To or in rural areas, the entire land rent period is also exempted. In strongly developing wards in urban areas such as Hong Gai, Ha Long, Bai Chay, Tuan Chau, the proposed maximum land rent exemption is 15 years. Meanwhile, wards with more difficulties after the 2025 administrative arrangement are exempted for up to 30 years from the time of completion of basic construction.

The proposed policy closely follows the land rent exemption framework stipulated in Clause 3, Article 39 of Decree 103/2024/ND-CP of the Government, ensuring practicality, flexibility, and suitability with uneven development conditions among regions in the province. An important principle is not to apply land rent exemption to commercial and service projects, even when there are socialized elements, to avoid taking advantage of the policy and ensure the goal of encouraging investment for the community. In addition, investors are not allowed to include the exempted land rent in the cost of social services to ensure effective use of resources.

One of the projects in Ba Che commune that may be eligible for the land rent exemption policy is the cinnamon processing factory of Ba Che Cinnamon One Member Co., Ltd., deployed in Nam Kim village, Ba Che commune. The project has a total investment capital of VND 40 billion, using a land area of more than 20,000 m² in Nam Kim village, has completed land use conversion procedures and signed a land lease contract with the authorities since June 2025. Expected to start construction in the third quarter of 2025, the factory will be put into operation from the second quarter of 2026. When operating, the factory will have a processing capacity of 80 tons of cinnamon essential oil, 150 tons of cinnamaldehyde, 80 tons of benzaldehyde, 10 tons of cinnamylacetate and 3,000 tons of dry cinnamon bark per year. The project creates stable jobs for 35 local workers and creates indirect jobs for hundreds of other workers in the stages of planting, collecting and transporting raw materials.

With a 50-year operating period, the project is expected to contribute 200-300 billion VND per year to the industrial production value of Ba Che commune; driving the development of forestry economy, building a deep processing chain linked to cinnamon raw material areas in and outside the province. Mr. Vi Thanh Vinh, Chairman of Ba Che Commune People's Committee, said: "The approved policy is a great boost for mountainous localities. Exemption from land rent not only helps businesses reduce financial pressure but also creates conditions for them to reinvest in machinery, technology, and expand production. This is a positive signal from the government in accompanying and attracting long-term investment. Reducing or exempting land rent will directly help localities gain more competitive advantages in attracting investment. For projects with long payback periods, land rent costs are a heavy burden, especially in remote areas. Ba Che really needs breakthrough policies to develop the forestry economy associated with deep processing, enhancing the Ba Che cinnamon brand.

If the Resolution is passed, the Provincial People's Committee will direct departments, branches and localities to promptly implement it in a synchronous, public and transparent manner, to ensure that the policy is soon put into practice. Many businesses in the province believe that the Resolution will bring about clear positive impacts. First of all, it will promote social capital investment in essential areas where the State still lacks resources such as education, health, environment, culture and sports. This policy contributes to the synchronous development of the social infrastructure system, improving the quality of public services, improving people's lives and increasing the province's competitiveness in attracting investment. Projects enjoying incentives also create many new jobs, attract high-quality human resources, increase income for workers, and at the same time reduce investment pressure from the state budget.

The province’s policy of exempting land rent for socialized and non-profit projects is a practical solution to attract investment in essential sectors, improve the quality of public services and people’s lives. This is a strong commitment of the province in creating a favorable investment environment, accompanying businesses to promote comprehensive and sustainable development.

Pham Tang

Source: https://baoquangninh.vn/quang-ninh-thuc-day-dau-tu-xa-hoi-hoa-bang-chinh-sach-mien-tien-thue-dat-3366780.html