After equitisation, the land used for the wrong purpose will be withdrawn

Strictly regulate to prevent enterprises “holding golden land”. Photo: ST.

Prevent enterprises from “ holding golden land” for the wrong purpose.

Mr. Dang Quyet Tien, Director of the Finance Department of the Ministry of Finance, said that to prevent the phenomenon of "holding golden land" during the equitization process, causing budget losses and waste of infrastructure, the Ministry of Finance is urgently amending the relevant regulations to prevent the situation of enterprises taking advantage of the management of land under management, although it is not suitable for the business line, land use purpose as well as the local planning.

The scandal at the Vietnam Film Company after an equitization, in the use of the land of the Company, is one of the issues of public concern. It shows that land treatment and valuation of land use rights in the value of equitized enterprises are always a matter of concern in the equitization process.

Mr. Dang Quyet Tien said that in order to prevent the situation of enterprises to take advantage of holding the whole area of land under management, although it is not suitable for business lines and land use purposes as well as local planning, when approving the land use plan of the equitized enterprise, the State will review and decide to withdraw the land used by the enterprise that is not appropriate and not in accordance with the plan... At the same time, supplementing the law on land management for enterprises managing land with high commercial advantages in the direction of requesting enterprises to take responsibility for building land use plans and submit them to competent agencies for consideration before making a decision to transfer to a joint-stock company.

The arrangement and handling of real estates will be carried out in the period of being SOEs in accordance with the Land Law 2013, the Law on Management and use of State budget to invest in production and business at the enterprises. Accordingly, SOEs are not permitted to conduct real estate trade, so the land for lease or un using will be returned to the People's Committee of the province or city for further handling in accordance with the land law and budget management.

Equitized SOEs must comply with regulations on rearrangement and treatment of houses and land as stipulated by the Government; It must be sent to the People's Committee of the province or city in the locality before implementing the determination of the value of the enterprise.

Taking consideration of geographical advantages to prevent loss of state properties

According to Mr. Dang Quyet Tien, in order to avoid SOEs dodging law as not returning the land to the State while there is no need to use, calling for investment cooperation to exploit the available land fund, then reviewing all contribution capital, for many years, State agencies have rearranged, handled State’s houses, lands under the decision the Prime Minister.

“For SOEs, the Decree 91/2015/NĐ-CP regulates: SOEs without real estate business functions are not allowed to trade real estate. Therefore, the land use for a wrong purpose or unused will be recovered, handed over to the local”, said Mr. Tien.

According to Mr. Tien, in order to prevent enterprises from taking advantage of the “holding golden land”, causing the loss of state assets, the calculation of land value includes land leased and handover to the enterprise value, including the geographic location of the site is necessary. The calculation of geographic location is implementing in cases of an enterprise which chooses to pay annual land lease in accordance with the Land Law, in order to be included in the land rent and the evaluation price, it must ensure the regulations of market price.

Under the regulations of the Land Law, residential land in urban areas; commercial land and services in urban areas; Non-agricultural production or business land which is not commercial land or land for services in urban areas are highly lucrative and have advantages for production and business, land prices in land price index of each locality must contain 2 factors of a high profitability and a land position advantage (the locality must cite the land price in the land price list for this case higher but less than 30% of the maximum price of the land category in the land price bracket shall be stipulated by the Government. When deciding the land price for the lease of the land of different categories, the enterprise will calculate and pay the land rent under the increased price at the maximum rate of 3% of the land rent calculated by the provincial People's Committee. Land for lease has the advantages of geographic location, the advantage value will be calculated at the land price list and the land rent unit which the enterprise must pay to the State under the decision of the locality.