The 2013 Land Law has recently become the topic of numerous heated debates due to a number of situations where investors managed to rent the land and use it at their discretion. The law has been beneficial in general, as it ensures the specification of the type of project that is to be constructed. Nevertheless, there are still options for government officials and investors to undervalue the lot. Moreover, they can sometimes pay less to the state when renting the land and perform actions that may lead to financial and environmental problems.
The recent case that drew much attention included the allocation of the valuable lot on Le Duan street to private investors. The issue has proven to be extremely controversial due to the numerous inefficiencies in the entire undertaking. The media report that Mr. Nguyen Thanh Tai has just been prosecuted, arrested, and detained 8-12 days for a crime of violating regulations on governance management and the use of state property that caused losses.
8-12 Le Duan are big lots covering almost 5,000 m2 in total. They were previously used as headquarters by the 4 units under the Ministry of Industry and Trade. In 2011, the People’s Committee of Ho Chi Minh City decided on a plan to transfer the land lots of 8-12 Le Duan to LaVenue History Investment Joint Stock Company. The contract that featured all the details of the transfer was designed to last 50 years. 8 Le Duan covering 3,433 m2 and 12 Le Duan covering 1,463 m2 were to be leased annually. In 2016, the City People’s Committee decided to alter the rules. 12 Le Duan could be rented for 50 years after a single payment.
Mr. Tai, who was the vice-chairman of the People’s Committee Ho Chi Minh City, handed over the lucrative 8-12 Le Duan to Joint-Stock Investment Company Lavenue. Thus, one of the key aspects of the 2013 Land Law was undermined, as the largest part of the abovementioned company’s stocks belongs to the enterprises that do not have the necessary ties to the government’s land leasing institutions.
One of the most controversial issues is that Mr. Nguyen Thanh Tai has allocated the land without any auction, which further raises concerns about the sustainability of the law implementation process. Therefore, a number of amendments to the 2013 Land Law should be considered to prevent the possibility of similar activities performed by officials. The most important alteration should center around the procedure of allocating the land that prevents government officials from avoiding certain stages. A detailed step-by-step guideline is needed with a compulsory endorsement of each crucial action.
Work Cited
“‘Golden Land’ on Le Duan Street to Private Hands: What is Wrong with Mr. Nguyen Thanh Tai?” Tuoitre. 2018. Web.