THE PEOPLE’S
COMMITTEE OF DA NANG CITY
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.: 12/TB-UBND
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Da Nang, January
19, 2013
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ANNOUNCEMENT
ON FEEDBACK FOR THE GOVERNMENT INSPECTORATE’S CONCLUSIVE ANNOUNCEMENT
ON THE COMPLIANCE WITH LAWS ON INSPECTION, COMPLAINTS, DENUNCIATION, CORRUPTION
PREVENTION AND COMBAT, AND A NUMBER OF INVESTMENT PROJECTS RELATING TO LAND
MANAGEMENT AND USE IN DA NANG CITY
In the afternoon of January 17, 2013,
the Government Inspectorate publicized the Announcement No. 160/TB-TTCP, of
January 17, 2019, on conclusions in inspection on the responsibility of
the Chairman of the Da Nang People's Committee in the compliance with laws on
inspection, complaints, denunciation, corruption prevention and combat, and
inspection of a number of investment projects relating to land management and
use, and the Vietnam Television also informed the full of above conclusions
in the main news of VTV1 at 7:00 PM of January 17, 2013.
Regarding these conclusions, the Da
Nang People’s Committee has feedback as follows:
I. FOR ELABORATION
OF LAND ZONNING AND USE PLANS:
All projects which the Government
Inspectorate have conducted inspection are implemented in accordance with land
use zoning have been approved by the Prime Minister at the Decision No.
503/QD-TTg, of May 31, 2000, the Decision No. 465/QD-TTg, of June 17, 2002, the
Resolution No. 11/2006/NQ-CP, of May 26, 2006, the Resolution No.
41/2007/NQ-CP, of July 31, 2007; are promulgated in annual land use plans by
the city People's Committee.
The master plan of Da Nang city have
been elaborated with participation of foreign and domestic design and
consulting organizations with experiences, which contribute in Da Nang’s zoning
elaboration to be larger, and anticipate the development general trend. Da
Nang has had a master plan which is a step ahead, with an
invested-synchronously infrastructures, thus investors see that Da Nang is a
attractive destination. Practically, the city has very many projects which
have been carried out and put into use, so the city’s urban areas are more and
more spacious and modern as today. Going along with the zoning work, the
city has concentrated on premises clearance in a wide area in order to
create many land funds in service of resettlement arrangement for people in
clearance areas helping them to have a life better than life in their old
residence. (This way has created consensus and support of all people
classes for the city’s guidelines). The remaining land
fund under the plan, the city has and shall continue calling investment,
organizing land use right auction as prescribed aiming to create revenue in
order to spend on development investment. The profuse land fund source has
created a suitable land price, the people are enjoyed benefits on social
security, the investors have condition to approach and invest in projects with
feasibility.
However, because the economic
situation is facing many difficulties, some projects have not yet carried out.
The city shall urge investors to carry out projects sooner.
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II. FOR AUCTION
AND HANDING OF LAND USE RIGHT:
Da Nang People’s Committee affirms
that all cases of handing land for organizations, individuals are publicized
in land use right auction and transfer in accordance with laws on land at the
performed time, specifying:
- The Government's Decree
No. 181/2004/ND-CP, of October 29, 2004, guiding implementation of the Land
Law;
- The Government's Decree
No. 17/2006/ND-CP, of January 27, 2006, amending and supplementing a number of
articles of Decrees guiding implementation of the Land Law and the Decree No.
187/2004/ND-CP, on conversion of state owned companies into shareholding
companies;
- The Decision No. 216/2005/QD-TTg,
of August 31, 2005, of the Prime Minister, on auction of land use right;
The auctions of land use right are publicized on press by units, they are ensured to be right with
time and contents as prescribed: Places of construction, requirements of
zoning architecture, land area, unit price, land use purpose, time and location
of registration, etc, for investors to have information of auction
registration.
So that, the Government
Inspectorate’s conclusions with content as: "The auctions of land use
right, which had been carried out by Da Nang People’s Committee in last years,
are not well, from the stage of promulgation of auction regulation to the stage
of implementation do not comply with regulations of the Land Law and the
Decision No. 216/2005/QD-TTg of the Prime Minister. Rate of successful auctions
is too low, not create an equal and objective market upon transferring the land
use right in order to collect amounts for the State budget… Situation of
handing land which not performed through auctions is still popular and make the
land prices of land use levy collection not be very close to the prices of land
use right transfer in the market, facilitating for a few of investors to
speculate and collect benefit” are conclusions with insufficient grounds.
III. THE SIGNING
OF CONTRACTS OF LAND USE RIGHT TRANSFER:
In furtherance of program on
administrative procedure reform, aiming to facilitate for investors,
organizations and citizens in contacting with state agencies when doing
procedures of land receipt, land use levy payment, etc, according to guideline
of the city People’s Committee, and based on the realities of localities,
(Because the problem of compensation and clearance are implemented in a wide
area, the pressure from solving damage compensation, resettlement, management
of revenue source is very big) hence after having guides for handing land
specified in writing by the city People’s Committee, the city has assigned
units to sign contracts of land use right transfer. This guideline has been
implemented in many last years and attained much effectiveness in state
management of land (handing land, management of implementation of land
financial obligations, duties between state and organizations, individuals
being assigned land), brought very big effectiveness in social aspect and kept
firmly investment environment, which comprise: These units implement all necessary
procedures in accordance with regulation. Organizations, individuals contact
with only one unit in order to do procedures from clearance, compensation,
handing land, paying levy land, grant of land use right certificate, etc. These
units have operation function as an one-stop Team according to the city’s
current process on administrative procedure reform while resolving work of
people, organizations.
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This way of the city is arisen from
the objective demand and realities of localities, responsibilities of state
agencies with people, program on administrative procedure reform, and has
promoted effectiveness, contributed a very big part for success of compensation,
clearance, resettlement, implemented well administrative procedure reform,
create very big consensus of people, kept firmly investment environment (this
is an important element for Da Nang to be ranked high of 3 years ranked 2, 3
years at the lead position of whole country on provincial competition index PCI
and at the lead of whole country on public administrative procedures according
to assessment of Ministry of Internal Affairs published in May 2012).
So that, the Government
Inspectorate’s conclusions with content as: "This is the basic reason
leading to arise many mistakes such as: There are not sufficient grounds, basis
to define land price to collect land use levy; the approval of construction
detailing plans and approval of adjustment of approved detailing plans are
arbitrary; many investors have not implemented investment after signing
contracts of land use right transfer, being granted certificate of the land use
right, and continue to transfer for other investors and get differences with a
big amounts, causing loss of revenues for the State budget, causing big
economic damages” are conclusions with insufficient grounds.
IV. FOR THE
GOVERNMENT INSPECTORATE'S CONCLUSION ON CAUSING LOSS FOR 6 PROJECTS
The Government Inspectorate has inspected
46 projects, in which, for some projects, the Government Inspectorate has taken
land price of the city land price appraisal Council as main basis for
comparison with the land prices which are decided by the city People’s
Committee and have differences, and not calculated construction density when
defining land prices, then concludes on causing loss, which have no grounds.
As prescribed, approval of land
prices in order to collect land use levy is in competence of the city People’s
Committee. The city council of land price appraisal is established by the city
People’s Committee, it including representatives of the Service of Finance, the
Service of Natural Resource and Environment, the Service of Construction and
the city Tax Department, the Office of city People’s Committee is only a
division in charge of consulting and proposing to leaders of the city People’s
Committee for consideration and decision on land prices.
Due to this thing, the acceptance for
reduction, increasing or keeping intact of land prices at the request of the
city council of land price appraisal is a normal work and under competence of
the city People’s Committee.
The specific land prices which are
defined by the city People’s Committee are suitable with each planed position
and location, conditions on infrastructure, calculation of coefficients as
prescribed as: concealing coefficients, coefficients of three-way crossroad,
four-way crossroad, coefficients of getting three fronts or more, etc;
classifying the depth of land lot, market land prices in that location at the
time and all land lots are brought to auction publicly. Defining prices of
large land lots must calculate construction density, which often is between 60%
and 70% in comparison with the area of land zone. The reality shows that there are some land lots with depth of hundreds meter, and area
of several hectares to dozens of hectares. When applying the method to define
land prices according to regulation of Government, guides of the Ministry of
Finance, the land prices may be lower than the land price table prescribed by
the city People’s Committee. This is of course because the price table
prescribed by the city People’s Committee is applied for the small land lots
with area of about 100 m2, construction density of 100%, and full
infrastructure.
For this problem, the Ministry of
Finance gave opinion at point 1 and point 3 of the Official Dispatch No.
11021/BTC-QLCS, on August 16, 2012, specified as follows:
- “The implementation of provincial
inter-branch council of land price appraisal which based on the annual land
price table and methods of price determination as prescribed by law (the Decree
No. 198/2004/ND-CP, of December 3, 2004, the Decree No. 188/2004/ND-CP, of
November 16, 2004, the Decree No. 123/2007/ND-CP, of July 27, 2007 of the
Government and guiding Circulars) to define specific land prices for
calculation to collect land use levy, and submit them to the provincial
People’s Committee for decision, is exact with regulation on competence of
deciding land prices for calculation to collect land use levy”.
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Separately for this problem, the
Central Inspection Committee had very specific conclusions at item 4 of the
Conclusion No. 94, of April 25, 2007 of the Central Inspection Committee:
“The sale of the area of 18,000 m2
at the end of Pham Van Dong road, Phuoc My ward, Son Tra district, the Vinh
Trung mall, the area in 8 Phan Chau Trinh, the quadrilateral area Pham Hong
Thai – Nguyen Chi Thanh – Nguyen Thai Hoc – Yen Bai, the areas sold for Mr.
Nguyen Huu Sinh, Mr. Nguyen Huu Binh, the Duc Manh Limited Liability Company,
Trung Nguyen Coffee Limited Liability Company, Dong A An Cu Company. After
considering, the Central Inspection Committee of Party realizes that the sale
of above areas has guideline of the parts of Da Nang People’s Committee in
order to implement for purpose of trade and tourist, not under dwelling house
prices, the construction density of buildings is between 50% and 60% of the
area of land zone. The remaining area is in service for public. So that, it cannot
compare between the land prices for service in accordance with the city’s plans
with the land prices of foundation land sale or the land prices of the facade
positions on main streets.”
* In each specific project:
1. The project of Phuc
Thien Long Company:
On the basis of proposal of the city
land price appraisal Committee, the city People’s Committee has approved the
reserve price of 2,570,000 dong/m2 for auction of the land lot.
After publicizing auction in
accordance with regulation of law, upon expiry the above time limit, there is
no organization or individual participating in auction and there is only the
Phuc Thien Long Company requesting to receive the land use right. The leaders
of city People’s Committee unified that the guideline of assigning land for
Phuc Thien Long Company is conformable with provisions in point d clause 5
Article 2 of the Government's Decree No. 17/2006/ND-CP, of January 27, 2006,
amending and supplementing a number of articles of the Decree No.
181/2004/ND-CP, guiding implementation of Land Law;
Regarding the unit price to assign
the land-use right for the Phuc Thien Long company, the city People’s Committee
unified to approve the land price to assign the land-use right according to the
proposal of the city Committee of land price appraisal with the unit price of
3,030,000 dong/m2 (it is higher than 1.2 times of unit price
approved for auction). The approval of the unit price of 3,030,000 dong/m2 is
right with competence of the city People’s Committee, and conformable with the
market price at that time.
Reasons of not re-defining the land
prices and allowing Phuc Thien Long Company to be prolonged time of land use
levy payment are:
- After signing the contract of land
use right transfer to Phuc Thien Long Company, real estate situation of whole
country in generally and of Da Nang city was decreased and frozen, concurrently, banks almost refused to supply
loans for investment in real estate; hence the finance of enterprises met many
difficulties.
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- From December 2007 to September
2009 (from time of deciding land price to time of paying the land use levy by
the company), the land price tables in 2008 and 2009 in Da Nang city had had no
change; the real estate market had been decreased and frozen, inflation had
lasted. At this time, the storm number 6 had just come in Da Nang city and
destroyed many houses, construction works at coastal areas which caused
psychology to be afraid of investment in coastal areas. So that, the land
prices in coastal areas in this duration had been decreased. On the other hand,
this area near by the Nuoc Man airport, many people are afraid that the dioxin
waste in the preceding time in the airport are still remained, and affect to
healthy; the area of villas along to fence of Nuoc Man airport, adjacent this
area had been reduced price for many times, often advertised on mass media but
in many consecutive years, there is no client contacting for receipt of the
land use right.
If calculating under the market price
of land use right transfer at time of 2009 (applying the 2009 land price table
promulgated by the city People’s Committee) the average unit price of all area
is 2,691,319 dong/m2. So that, the price to assign the land
use right for Phuc Thien Long company is higher than 338,681 dong/m2
in comparison with the market unit price at that time (3,030,000 dong/m2
– 2,691,319 dong/m2) in the land price frame prescribed by the
Government.
* Regarding transfer among
organizations, individuals:
Clause 2 Article 3 of the
Government’s Decree No. 188/2004/ND-CP, of November 16, 2004, on method to
define land prices and price frame of land types, prescribes:
“The actual market price of land use
right transfer under normal conditions means the amount of VNdong calculated on
a land acreage unit formulated from the results of common actual transactions
between people who wish to transfer and people who wish to be transferred
without being affected by such factors as price rise due to accumulation,
change of planning, transfer under conditions of coercion, blood relations”.
The city People’s Committee affirms
that the unit prices of land use right transfer of individuals, organizations
for this area are not market price under normal conditions, because:
- After the Phuc Thien Long Limited
Liability Company had been allowed to transfer name of land
owner for Mr. Nguyen Huu Binh. After finishing the financial obligation and being granted the
certificate of use right, Mr. Nguyen Van Binh transferred for ATS Company
(Director is Ms. Nguyen Thi Thoa). Ms. Thoa and Mr.Binh are siblings (having
blood relationship).
- This transaction is not common, but
in reality, it proved that the increasing of land price upon transferring land
use right of above individuals aims to increase too high fictitious value of
land use right transfer in order to borrow loans of banks with big amounts
(This is actual situation which leading to bad debts in banks at present).
- Apart from purpose of increasing
fictitious value as mentioned above, transfer of land use right among
individuals, organizations is civil relationship among parties, contracts had
been certified by the notary agencies, names of owners have been changed and
registered as prescribed by law. This issue not in powers and duties of the
city People’s Committee.
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2. The Southern land area
at the end of Pham Van Dong road assigned for Mr. Hoang Hai and Ms. Trung Thi
Lam Ngoc (21,000 m2):
* The Government Inspectorate has
opinion:
“The Southern land area at the end of
Pham Van Dong road. In 2006, the city People’s Committee transferred it for Mr.
Hoang Hai and Ms. Trung Thi Lam Ngoc, with total contract value of 84 billion
dong. In 2008, Mr. Hai and Ms. Ngoc failed to carry out project, and authorized
for Mr. Phan Van Anh Vu to transfer it for Mr. Pham Dang Quan with the transfer
price of 581,526 billion dong (collecting difference of 495,374 billion dong).
In 2009, Mr. Pham Dang Quan continued to transfer it for the Phuong Trang
automobile - real estate investment joint-stock company with the price of 585
billion dong. Actual state of the land area is still vacant, have not yet been
invested”.
* For this content, the city
People’s Committee has feedback:
- Mr.Phan Van Anh Vu is person who
implemented transfer of land use right for Mr.Hai and Ms. Ngoc according to the
authorization contract; he is not person who received the land use right from
Mr.Hai and Ms. Ngoc.
- Mr. Pham Dang Quan is Director
General of the Phuong Trang automobile - real estate investment joint-stock
company. So that, Mr. Quan is not other than this company. This issue shows
that unit price of land use right transfer between these organization and
individual is not market price under normal conditions;
- The transfers of land use right
among individuals, organizations mentioned above are civil relationship among
parties, contracts had been certified by the notary agencies, names of owners
have been changed and registered as prescribed by law. This issue not in powers
and duties of the city People’s Committee.
However, through the reality of real
estate market in city, it have happened many cases which organizations,
individuals increased too high fictitious value of land use right transfer in
order to borrow loans of banks with big amounts but in actual market the value
is not at that price and lower than very much. In reality,
it has happened bad debts in banks as situation at present.
3. Area A2, A3, at the head
of Son Tra – Dien Ngoc route:
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Clause 2 Article 3 of the
Government’s Decree No. 188/2004/ND-CP, of November 16, 2004, on method to
define land prices and price frame of land types, prescribes:
“The actual market price of land
use right transfer under normal conditions means the amount of VNdong
calculated on a land acreage unit formulated from the results of common actual
transactions between people who wish to transfer and people who wish to be
transferred without being affected by such factors as price rise due to
accumulation, change of planning, transfer under conditions of coercion, blood
relations”.
The city People’s Committee affirms
that the unit prices of land use right transfer of individuals for this area
are not market prices under normal conditions because:
After finishing the financial
obligation, Ms. Pham Thi Dong transfer (the area of A3) for Ms. Truong Thi Chi,
Ms. Le Thuy Huong. Ms Dong and two persons have relation in a family and have
business relation with together,...
The area of A2, of which use right
was assigned for Ms. Pham Thi Dong, granted certificate of land use right
number AP986789, of November 04, 2009, by the People’s Committee of Son Tra
district. Then, Ms. Dong has transferred it for Ms. Nguyen Thi Xuan and
contract has been certified by the notary agency as prescribed.
The area of A3, after being granted
certificate of land use right, Ms. Truong Thi Chi and Ms. Le Thuy Huong
transferred it for Mr. Truong Dinh Trung. And after that, Mr. Truong Dinh Trung
transferred it for the Phuong Trang real estate joint-stock company (Mr. Trung
is Deputy Director of Phuong Trang real estate joint-stock company). Because
Mr. Trung and Phuong Trang real estate joint-stock company have relation, share
same rights and benefits, they increased fictitious value of the area in order
to borrow loan of banks with big amounts but in actual market the value is not
at that price and lower than very much. In reality, it has happened bad debts
in banks as situation at present. So that, the prices of land use right
transfer of this area are not market prices under normal conditions as
prescribed.
Apart from purpose of increasing
fictitious value as mentioned above, transfers of land use right among
individuals, organizations are civil relationship among parties, contracts had
been certified by the notary agencies as prescribed by law. This issue not in
powers and duties of the city People’s Committee.
4. The area assigned for
Tan Cuong Thanh Company:
* The Government Inspectorate’s
conclusion with content as:
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Is is considered that this area is
near Phuoc Tuong hills and mountains, infrastructure has not yet been invested,
Hoang Van Thai road has not yet been invested for upgrading and expansion, the
rural residential area is scattered, near by area exploiting soil, stone, near
by Khanh Son landfill which make environment to be influenced, the city
People’s Committee have approved unit price of land for business and production
purpose being 410,000 dong/m2. After Tan Cuong Thanh Company had suggested changing
purpose of land use from land for production and business into rural
residential land, the city council of land price appraisal proposed price for
change purpose of land use of this area being 175,800 dong/m2.
The city People’s Committee decided in accordance with the above-mentioned
proposal of the land price appraisal council.
According to that, the price of rural
residential land which was assigned for Tan Cuong Thanh Company is 585,800
dong/m2 (410,000 dong/m2 +175,800 dong/m2)
and right with competence and conformable with market price at that time, with
consideration of change of land use purpose under condition which this company
must pay funding for moving production establishment as actual state (the city
had not paid compensation for workshops, architectural objects, support for
moving equipment, investment in infrastructure, ground leveling, etc) in
according to the guideline of the city People’s Committee at the official
dispatch No. 4865/VP-QLDTh, of November 25, 2010. This unit price is in the
land price frame prescribed by the Government.
5. Two areas A4, A5, at the
head area of Son Tra – Dien Ngoc route assigned for Phu My Company:
* The Government Inspectorate’s
conclusions with content as: “Areas A4, A5 (residential areas at the head of
Son Tra – Dien Ngoc route). In 2007, these areas were
transferred for the Phu My Trading and Construction joint-stock company in
service for construction of apartment buildings, high-grade apartments, offices
for lease and tourist hotels, leaders of the city People’s Committee and
People’s Council did not define under the residential land price but kept
intact price under the production and business land price (equal 0.7
residential land price) which caused loss for budget. Till 2010, the Phu My
Trading and Construction joint-stock company transferred these areas for Phuong
Trang real estate Company with amounts of 285,645,920,000 dong. The difference
in comparison with the price defined by the city in 2007 is 22,680,432,000 dong"
is conclusion with insufficient grounds because:
The City Council of land price
appraisal had proposed the reserve price level for land auction with
non-agricultural – production and business purpose being 2,570,000 dong/m2
which were decided by the city People’s Committee under the proper unit price
as mentioned above.
After auction had been published on
newspaper as prescribed by law, but after the provided time limit had been
expired, there was no organization or individual participating in auction and
there was only the Phu My Trading and Construction joint-stock company which
applying for receipt of land use right and being unified by the city People’s
Committee to assign the land use right of two areas A4, A5 with the unit price
of non-agricultural-production and business land of 2,570,000 dong/m2.
After this company had paid all land
use levy of two areas and had been granted the land use right certificate by
the city People’s Committee. According to the certificate which had been
granted for Phu My Company (Number AK280458 and AK280459), the use purpose of
these areas is non-agricultural – production and business land.
So the city People’s Committee
collected the land use levy from Phu My Company for production and business
land, not for residential land like as the opinion of the Government
Inspectorate.
6. The urban area and Da
Phuoc Golf course project:
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On November 16, 2006, Cantavil Daewon
Limited Liability Company and Da Nang People’s Committee signed a principle
agreement on investment in the compound urban area and Da Phuoc golf course
project, specifying on the basis of the price to collect water surface levy
which was unified previously consisting of 300,000 dong/m2 and unit price to
collect land rents being USD 0.1 m2/year. Assigning the land use
right with area of about 29 ha, unit price of 300,000 dong/m2
for a Vietnamese company joining venture with Daewon
Company was stated in this principle agreement.
In this project, because the state
assign water surface for investors and investors must spend out 100% cost for
doing embankment, ground leveling, collecting land use levy with price of
300,000 dong/m2 of the city is suitable with the market price at that time.
The unit price of 300,000 dong/m2 of
water surface under a condition which the investors must handing over for the
city an area of 25 ha which is perfected infrastructure in the Da Phuoc urban
area with cost of about USD 5 million, in which the city may build a public
interest area. According to the current land price of the city, the value of
this 25ha area is 955 billion dong.
So for the 29ha area, beside the unit
price of assigning water surface being 300,000 dong/m2, the value attaining
from the above-mentioned 25ha area has been allocated for the 29ha area, hence
the land use levy of 1m2 is 3,407,000 dong/m2 (988 billion/
29ha).
The city People’s Committee affirms
that the land price to assign for Daewon Company is water surface price. Beside
that, in reality, collection of land use levy for 1 m2 of the 29ha area is
3,707,000 dong/m2 (3,407,000 dong/m2 + 300,000 dong/m2). This is unit price of
land levy which in reality the city attained benefit with the 29ha area which
was assigned for Daewon Company together with its partner being Vietnamese
enterprise.
Actually, the city collected and
attained benefit of 1,075 billion dong (988 billion dong + 87 billion dong),
specifying: 955 billion is amounts attained from 25ha and 87 billion is the
water surface levy collected from 29ha.
V. THE PROBLEM ON
REDUCTION OF 10% OF LAND USE LEVY UPON PAYING SUFFICIENT LAND USE LEVY WITHIN
60 DAYS AS FROM THE DAY OF SIGNING CONTRACT:
The city People’s Committee sees that
reduction of 10% is a form to support and promote clearance householders in
payment for budget and support on loan interest for investors when transfering
land use right. On other hand, reduction of 10% of land use levy will mobilize
quickly revenue source into budget in order to re-invest in development, instead
of the city budget’s having to borrow money with the lowest average interest
rate of 12%/year. This is conformable with clause 2, Article 14 of the
Government’s Decree No. 38/2000/ND-CP, of August 23, 2000 on the collection of
land use levy “Land users that fully pay the land use levy in lump-sum
according to notices of the tax agencies shall enjoy 20% reduction of the
payable land use levy amount” and applies clause 2, Article 9 of the Decree No.
61/CP, of July 05, 1994, on dwelling house purchase, sale and business: “… If
the buyer pays the full amount upon signing the contract, he/she will enjoy a
10% discount…”; in conformity with the Decision No. 13/2006/QD-TTg, of January
16, 2006 of the Prime Minister on a number of preferential budget financial mechanism
for Da Nang city and the Circular No. 34/2006/TT-BTC, of April 19, 2006 of the
Ministry of Finance.
So the competence of decision is
belong to the city People’s Committee. The city considered, saw actual
effectiveness before making decision. This is the revenue which local budget is
kept 100%, not divided under rate with central budget and this revenue source
is used for only investment in development. So, according to the Budget Law,
local authority has right to decide reduction of 10% of land use levy, the city
People’s Committee affirms that implementation of this policy is one of
flexible and creative application of the city bringing actual effectiveness,
the revenue of budget is increased every year.
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If calculating the interest rate in
case the land users postpone payment and slippage in prices in comparison with
immediately collecting money, how effective it is (?!). In 2011, because of the
difficulties of economy, the city failed to collect land use levy debts; in
2012, still failed to collect them because the Government issued the Resolution
No. 13/NQ-CP; in 2013, the Government continues rescheduling of debts according
to the Resolution No. 02/NQ-CP and it is possible not to be easy to collect
these land use levy debts. If calculating the interest rate of 12%/year, in 4
years, the interest rate is 48%. It shows that the city’s 10% reduction is
lower than very much in comparison with the interest rate of 4 above-mentioned
years.
Result of land use levy collection
during 10 last years (2002-2011) is 24,617.61 billion dong, in order to put
into balance of basic construction expenditures, getting rate of 73.81% /total
capital sources for basic construction expenditures (33,353.79 billion dong).
In brief, when defining prices for
assigning land use right, the city had based on the annual land price tables
promulgated by the city People’s Committee, with calculation of coefficients as
prescribed such as: Coefficient of classifying depth of land lots, concealing
coefficients, construction density, coefficient for are with advantage
position, market coefficients, etc in arcodance with methods of determining
land prices specified by the Government in the Decree No. 188/2004/ND-CP, of
November 16, 2004, on methods of determining land prices and assorted-land
price brackets, guides of the Ministry of Finance in the Circular No.
145/2007/TT-BTC, of December 06, 2007 guiding implementation of the
Government’s Decree No. 188/2004/ND-CP, of November 16, 2004. The unit prices,
which are specified for each area by the city People’s Committee, are in the
land price frame and higher than many times of minimum price prescribed by the
Goverment.
Individuals, organizations that had
transferred land use right for each other are one beneficiary (because they are
siblings or person of company and company) Example if the actual value of an
area is 100 billion dong, they may borrow 60 billion dong (60%), but when
making the contract of transfer, they lift its fictitious value up to 600
billion dong aiming to borrow bank for 360 billion dong in order to invest in
other project. Case of Phuc Thien Long Limited Liability Company, which is
stated in the Government Inspectorate’s conclusions, is a example. In fact, the
siblings transfer land for each other by this way. So it is impossible to use
that fictitious values to compare with the values which had been approved by
the city People’s Committee with differences in order to conclude causing loss.
From analyze above, the city
People’s Committee affirms:
1- Reduction of 10% of land use levy
is guidelines of the city in application of regulations of law, which brings
actual effectiveness, the city’s budget revenues is increased every year, and
restraints slippage in prices in order to increase investment effect, gets
benefit for budget when performing investment in economic- social development,
especially construction works for urban technical infrastructure structure,
social security, defense and security, etc On the other hand, the city People’s
Committee assumes that 10% reduction is a form to support and promote people in
clearance areas in payment for city’s budget and support on loan interest rates
for investors when receiving land use right.
2. Determination and decision on
prices for handing the land use right, which had been discussed by collective
leaders of city People’s Committee are proper with its competence, have grounds
according to regulations of the Government, guides of the Ministry of Finance,
and in conformity with the market prices at that time.
So the Government Inspectorate's
conclusion of causing budget loss of 3,434,254,712,950 dong is insufficient
grounds and unpersuasive.
This conclusion impacts strongly the
city’s revolution movement and the process of implementation of the Resolution
No. 33-NQ/TW, of October 16, 2003 of the Political Ministry, on construction
and development of Da Nang city in the period of national industrialization and
modernization.
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For a long time, Da Nang has been
assessed by the Central that being a local with good movements and new,
effective methods. Inspection may show mistakes in the course of leading, aim
to learn by experiences for better implementation but not conclusions which are
unpersuasive and impact the city’s revolution movement.
According to direction of the Prime
Minister in the official dispatch No. 1930/VPCP_VI, of November 19, 2012, the
city People’s Committee is working with the affair delegation of the Ministry
of Public Security now and it took the initiative to have the official dispatch
No. 475/UBND-NCPC, of January 16, 2013, proposing the Ministry of Natural
Resources and Environment, the Ministry of Finance, the Ministry of Planning
and Investment as soon as possible to arrange time in order to work with the
city for clarifying as direction of the Prime Minister.
The above is feedback of Da Nang
People’s Committee for conclusions of the Government Inspectorate in the
Announcement No. 160/TB-TTCP, of January 17, 2013.
ON BEHALF OF
PEOPLE’S COMMITTEE
THE CHAIRMAN
Van Huu Chien