Ho Chi Minh City: Wasted public land has caused a great loss to the budget

VCN - According to experts, the urban land fund in the process of urbanization is a “golden-egg-laying hen”, but many public land areas in Ho Chi Minh City have been abandoned, misused, and rendered ineffective, causing great budget losses
2931-2204-19-lang-phi-nhieu-khu-dat-cong-o-cac-quan-0901-2019-11-14
Public land resources are being wasted while the real demand for residence is in short supply. Photo: ST

"Golden land" is wasted

According to the statistics by the Ho Chi Minh City Department of Natural Resources and Environment and the Department of Construction, there are more than 11,000 vacant apartments and land plots for resettlement; nearly 200 public land plots have been misused and 110 public plots are vacant.

According to the Ho Chi Minh City Inspectorate, in May 2020, Cu Chi District alone had 81 public housing addresses for rent without auction and hundreds of other addresses that need to be reviewed and rearranged because they were abandoned or leased for the wrong purposes.

Additionally, according to a survey by the Ho Chi Minh City Land fund development center, there are 1,104 land plots managed by 28 state-owned corporations and companies. Among these, there are hundreds of land plots that are used for the wrong purposes such as business cooperation, lease, and improper housing arrangement. In particular, many "golden" areas managed by corporations and companies with 50-100% of state capital occupy a large area of land but cause waste and big losses to the budget due to improper use.

Typically, in the conclusion of wrongdoing at the real estate project No. 33 Nguyen Du, 34-36-42 Chu Manh Trinh, Ben Nghe Ward, District 1, Ho Chi Minh City, the Government Inspector pointed out a series of mistakes made by the Vietnam Southern Food Corporation (Vinafood 2) in converting public land to private land. Accordingly, after being assigned the four above real estate establishments by Ho Chi Minh City, Vinafood 2 has cooperated with Viet Han Company to illegally convert public land to private land, setting up a short project on the land to borrow a trillion VND from banks.

Notably, the Government Inspector said in the process of cooperation with private investors to convert public land into private land, Vinafood 2 had four times deliberately contravened the Prime Minister's direction. Specifically, Vinafood 2 did not re-establish the plan to arrange the four real estate establishments according to the Prime Minister's Decision No. 09 dated 2007 to submit to competent authorities for appraisal and submit to the Prime Minister for decision; and Vinafood 2 voluntarily cooperated with Viet Han Company, did not make procedures for association and capital contribution to submit to the Ministry of Agriculture and Rural Development and the Ministry of Finance for appraisal before submitting to the Prime Minister for a decision.

Besides, although the Ho Chi Minh City People's Committee, Ministry of Finance, and Ministry of Agriculture and Rural Development have issued many guiding documents, asking Vinafood 2 to develop a plan to divest its capital contribution at Viet Han Saigon Company, submit to competent authorities for approval, Vinafood 2 did not comply.

Effective and transparent management

The Ho Chi Minh City land fund development center said that in the past five years, this agency has successfully auctioned eight land lots, paying more than VND1,700 billion to the State budget. The remaining houses and land were assigned to other units for management under the direction of the Ho Chi Minh City People's Committee. Currently, the Land fund development center is managing 123 land plots that need to be rearranged and handle public property. Of these, the center has temporarily exploited 41 land plots in the form of short-term lease. Up to now, the proceeds from short-term leasing have reached more than VND110 billion. All of these revenues are remitted into the State budget.

Ho Chi Minh City has strictly handled many cases. However, land acquisition is facing many difficulties. Many businesses have subleased land, enjoyed its difference but have not paid taxes, causing losses of budget revenue. However, the punishment is just an administrative sanction, so it is not strong enough to deter firms.

Facing difficulties in public property management, Phan Thi Thang, Vice Chairman of the Ho Chi Minh City People's Committee, said the Ho Chi Minh City People's Committee asked the Land fund development center to develop a treatment plan for each housing group, including the auction plan in accordance with the law.

For misused or vacant houses and land, it is necessary to develop management plans to use them for the right purposes, avoid wastefulness and resolve shortcomings in land allocation and land lease. Simultaneously, the Ho Chi Minh City Department of Natural Resources and Environment was assigned to coordinate with relevant agencies to research and update on the map the list of state-owned properties for effective and transparent management.

Public land resources are being wasted while the real demand for land funds to serve the needs of residence is in short supply. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), said to solve the "abandoned house" situation, it is necessary to have measures to create liquidity for the market by stimulating demand, providing financial support, interest rates, and taxes to attract investors to effectively use land resources.

By Thu Diu/ Ha Thanh

Related News

Without resolving three significant bottlenecks, real estate market

Without resolving three significant bottlenecks, real estate market's revival will face numerous challenges

VCN - Economic expert Vu Dinh Anh shares insights on the real estate market's recovery trajectory in 2024.
Credit package of VND120 trillion: must be disbursed as soon as conditions are met

Credit package of VND120 trillion: must be disbursed as soon as conditions are met

VCN - According to the State Bank of Vietnam (SBV), so far, only 28 out of 63 provincial People's Committees have sent documents or announced the list of projects participating in the VND120 trillion credit package, including 30 out of 68 projects with capital borrowing needs.
Many real estate businesses face difficulties of cash flow

Many real estate businesses face difficulties of cash flow

VCN - Although many policies to overcome difficulties have been put forward by the Government, ministries and branches but many real estate businesses face the situation of being "thirsty for money". Finding solutions to unlock capital sources for the real estate market to promote recovery and development is essential.
Several real estate businesses were forced to pay taxes

Several real estate businesses were forced to pay taxes

VCN - Many real estate businesses with tens of billions of VND in tax debt have been forced by the Customs authority to stop customs procedures at the request of the Tax authority.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version