Due to the overlapping provisions of the law on land, 126 commercial housing investment projects in Ho Chi Minh City had to be “covered with blankets” for more than 3 years.
Regulations cause congestion
In the latest proposal sent to the Ministry of Construction after this agency spoke out about Decree 30/2021/CP-ND related to “facilitating investors to participate in housing construction investment”, the Association Ho Chi Minh City Real Estate (HoREA) said that the Ministry of Construction’s statement that Decree 30/2021/ND-CP “does not cause congestion and troubles like some opinions, but also expands and creates more favorable conditions for many investors.” investors are allowed to invest in housing construction compared to the previous regulations” is inaccurate and inconsistent with reality.
Specifically, HoREA cited, according to Clause 1 (new), Clause 4, Article 23 of the Law on Housing 2014 and Clause 2, Article 18 of Decree 99/2015/ND-CP (amended and supplemented in Clause 5, Article 1 of Decree No. 30/2021/ND-CP) only allows one more case to be determined as an investor of a commercial housing project, for an investor who “has legal residential land and other types of land” is not satisfactory.
As a result, all commercial housing projects in which the investor has the right to use land “other than residential land”, in accordance with the planning… will not be recognized as the owner. commercial housing projects.
Cases in which project investors are not recognized include 100% of agricultural land; 100% non-agricultural land is not residential land; have mixed land including agricultural land and non-agricultural land which is not residential land. Although, the investor’s receipt of land use right transfer is completely appropriate and allowed by the competent state agency, according to the provisions of the law on land.
HoREA said that, for some reason, the Ministry of Construction did not recognize the investor of a commercial housing project in the case that the investor “has other types of land other than residential land”. Meanwhile, the Land Law 2013 allows investors to “receive the transfer of land use rights” including residential land, agricultural land, non-residential non-agricultural land, in accordance with the planning to implement the project. invest.
Accordingly, because there is no form of administrative document on “approval of investment policies”, “in the decision to approve the investment policy and at the same time approve that investor as the investor of the commercial housing project ” (specified in Clause 2, Article 18 of Decree 99/2015/ND-CP, amended and supplemented in Clause 5, Article 1 of Decree 30/2021/ND-CP), so all commercial housing projects “Having 100% residential land”, or “having residential land and other types of land”, after having written “approval of investment policy concurrently with investor approval”, it is not clear which housing authority Which competent country will issue the document recognizing the investor. If this issue is not handled, it may lead to a situation of “blockage” in the procedure to determine the investor of all commercial housing projects in the near future.
Loss of tax revenue
Due to problems with Clause 4, Article 23 of the Law on Housing 2014 and Clause 2, Article 18 of Decree 99/2015/ND-CP, which stipulates that investors must have “100% residential land” to be appointed as an investor in a housing project. in trade, leading to hundreds of commercial housing projects throughout the country being “congested” and unable to be implemented.
Among them, in Ho Chi Minh City alone, in the period from December 2015 to September 2018 there were 126 commercial housing projects “covered”, causing great damage to businesses, causing a serious decrease in the number of commercial housing projects. the supply of housing projects and products, is a direct cause of the hot increase in house prices and makes middle-income people, urban low-income people, state officials and employees, officials It is difficult for the armed forces to create housing.
Particularly, the Ministry of Construction said that the recognition of investors in commercial housing construction projects for investors who “have the right to use other types of land other than residential land” causes loss of revenue to the state budget, waste of land resources, HoREA representative said that this is more beneficial than harmful.
Specifically, according to the calculation of this unit, if it is not “congested”, with 126 housing projects in Ho Chi Minh City, on average, each investment project is 1,000 billion VND, the total investment is up to 126,000 billion VND. copper. The State has lost about 10,000 billion VND in land use fees (accounting for about 15% of the cost); loss of 10% value-added tax, equivalent to 12,600 billion dong; if the profit is 20%, equivalent to VND 25,000 billion, the State has lost about VND 5,000 billion in corporate income tax revenue of 20%; If the enterprise has to borrow 70% of the total investment, equivalent to a loan of VND 88,000 billion, with an interest rate of 9% per year for the past 5 years, it has to pay interest up to about VND 40,000 billion.
Therefore, the “blockage” of commercial housing investment projects leads to both businesses and the State, as well as the real estate market and consumers being damaged.