 Contrary to all predictions, businesses all say that they want to negotiate directly with investors on site clearance, instead or receiving ‘clean land’ from the state.
State management agencies and businesses met yesterday to make suggestions on the land bill.
The bill compilers suggested two methods for site clearance: either investors negotiate directly with landowners on the land prices to be applied for site clearance, or the state clears land and then allocates ‘clean land’ to investors through a state agency, the Centre for Exploiting and Developing Land Fund, for example.
The former method, direct negotiations between landowners and investors, is preferred by businesses, which was really a surprise to state management agencies, local authorities and experts.
Prior to that, in a meeting with local authorities on the content of the land bill, state officials of 22 local authorities agreed that the state should clear land and then allocate land to businesses.
Le Hoang Chau, Chairman of the HCM City Real Estate Association, also agreed with the method. Chau said that this would help businesses avoid confrontations with people in clearing sites, while helping shorten the time needed for project implementation. In fact, site clearance always takes most of the time of investors in developing projects.
However, businesses still insist that they would be better negotiating directly with landowners.
One of the biggest worries with the compensation for site clearance is that landowners may lose money if the state comes forward and compensates for site clearance. The agency responsible for site clearance may force land owners to accept low compensation prices.
However, Deputy Minister of Natural Resources and the Environment Tran The Ngoc has denied the opinion that landowners may be forced to accept low compensation levels.
Le Ngoc Tu, Business Director of Binh Dan Housing Development Company, said that landowners have been suffering losses due to low land compensation levels. For example, the land compensation prices were different for the same land plot. The state compensated several million VND per sq m for the area that served business project, and VND250,000 for the area that later turned into a school.
Ngoc said that for a long time, businesses have been unilaterally offering high compensation prices that are much higher than the land price frame stipulated by local authorities, and higher than the actual prices.
If the state comes forward and compensates for site clearance, it will set the most suitable price levels, acceptable for landowners.
Source: Dang Vy - Viet Nam Net |
