A recommendation on the continuation of renting this land and conversion of the land use purpose into trade - services for production and business activities

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Name of recommendations: A recommendation on the continuation of renting this land and conversion of the land use purpose into trade - services for production and business activities

Status: Responded

Recommended by units: The Dak Lak Import - Export Investment Joint Stock Company

Official letter: 1602/ PTM - VP, dated: 2018-07-25

Recommended contents:

The Dak Lak Investment Import Export Joint Stock Company (INEXIM DAKLAK) - Precursor is the Dak Lak Investment Import - Export Joint Stock Company - Inexim Daklak (SOE) that was established in accordance with a Decision No. 591 / QD-UB dated 29 / September 1992 of the Dak Lak Provincial People's Committee on the basis of its initial activities, namely is the Dak Lak Foreign Trade Department (under the Ministry of Trade) established and operated since August 20, 1976 as the first unit operating in the import and export of the province, contributed a lot in the investment - development of coffee in Dak Lak Province.

In 2007, implementing the guideline of the Government on the equitization of state-owned enterprises in accordance with the Decision No. 377 / QD- UBND dated February 13, 2007 by the People's Committee of Dak Lak Province, Dak Lak Investment Export Company Lak was transformed into Daklak Import Export Investment Joint Stock Company and was established on April 21, 2007 by the Annual Meeting of Shareholders. The Business Registration Certificate No. 6000179365 issued by the Business Registration Office of the Department of Planning and Investment of Dak Lak Province. The first time on April 27, 2007, changed the 07th time on July 15, 2017.

On April 19, 2011, the People's Committee of Dak Lak Province issued a Decision No. 996 / QD-UB "on the name of organization using land; Adjust the land area for the Dak Lak Investment Import - Export  Joint Stock Company in accordance with Article 1, the Decision No. 3159 / QD-UB dated December 28, 1998 of the Provincial People's Committee. " Land area from 13,951m2 to 13,618m2,  In which the area of 2.125m2 located in the Ton Duc Thang Road; The remaining land area is 11,493m2: The East of Ton Duc Thang Street –, No 23 Chu Van An the area is 7.586m2; the West of Ton Duc Thang Street – No 23 Chu Van An, the area: is 3,907m2.

Since equitization has transformed SOEs into joint-stock companies, including state shareholders, shareholders being employees and shareholders who are initial investors. Up to now, in fact, the company has only been using land for less than 10 years. In addition, during this transition period, the company focused on strengthening its organizational structure, maintaining its operations, and at the same time, impacted by the new planning and the harsh market fluctuations for coffee-agro-enterprises. Since then, in the past 10 years, the company has suffered much in the use of leased land.

In the face of the reality, the Company has been moving its commercial - service (TM - DV) business and carried out procedures for changing the purpose of land use in accordance with general planning for the next lease period.

Throughout the land use process, up to now in 2018, the Company has fulfilled its obligation to pay taxes to the state budget on annual land rent and non-agricultural land tax according to regulations. and there is no outstanding land rent or land tax.

With the PPC's document No. 3834 / UBND-NN & MT dated May 18, 2018 issued by the People's Committee of the Dak Lak Province, in which: "... There is no extension of land area of 13,618 m2 at No 23 Chu Van An of the Company…."

- Pursuant to Clause 2, Article 73 and Clause 3, Article 126 of the Land Law 2013 and Article 69 of the Decree No. 43/2014 / ND-CP dated 15 May 2014 of the Government detailing the implementation of a number of articles of the Land Law; the Small and Medium Enterprise Assistance Law 2017; the Decree No. 39/2018 / ND-CP dated March 11, 2018 of the Government detailing some articles of the Law on Support to Small and Medium Enterprises;

- Pursuant to the Resolution 19 / NQ-CP, dated February 06, 2016; the Resolution No. 35 / NQ-CP, dated 16 May 2016 of the Government on Support and Development of Enterprises to 2020; the Directive 07 / CT-TTg, dated March 5, 2018 by the Prime Minister "on further strengthening the implementation and effective implementation of the Resolution No. 35 / NQ-CP dated 16 May 2016 on support and the Prime Minister's Directive No. 26 / CT-TTg dated June 6, 2017 on effective implementation of the Resolution No. 35 / NQ-CP dated 16 May 2016 in the spirit of the Government  accompanying to businesses in 2018 ".

The company would like to recommend as follows:

The fact that the Provincial People Committee has not renewed the lease of land has seriously affected the employment of employees and shareholders who have contributed capital since the transformation of SOEs into the stock companies. Therefore, we would like to ask the provincial People's Committee to consider and create conditions for enterprises to operate and develop.

1.      The time that the Dak Lak Investment Export - Import Joint Stock Co Ltd used land after transition from SOEs has only been nearly 10 years, but most of the companies have to maintain, consolidate and meet difficulties in urban development planning. In order to meet the realities of development, to ensure the livelihood of the employees, the existence of enterprises in the area, the company proposed to allow the company to change the purpose of land use.that are currently leasing to trade-service lease for the next period of 20-year land use cycle;

2.       To meet future development demand when the Ton Duc Thang Street was planned with an area of 2.125m2 in the total area of 13.618m2 land area, the remaining area is 11.493m2 and divided into 02 lots : Ton Duc Thang Street - 23 Chu Van An area: 7.586 m2; the West of Ton Duc Thang Street – No 23 Chu Van An area: 3,907m2.

In this document, the Company is pleased to propose to the Provincial People's Committee to continue leasing land and to convert the purpose of land use to trade - services to business activities.

Responded by units: The People's Committee of Dak Lak Province

Official letter: 6909/UBND - NN&MT, dated: 2018-08-17

Responded contents:

1. Dealing with the inspection report No. 431 / KL-STNMT dated February 28, 2018 of the Department of Natural Resources and Environment of Dak Lak Province, on the law on Enforcement of the management and use of land in a number of units in the area of Buon Ma Thuot City, March 7, 2018. The Provincial People's Committee issued an Official Letter No. 1744 / UBND-NN & MT, concluded:

The Dak Lak Investment Import -  Export  Company was assigned 13,618 m2 of land by the Provincial People's Committee, at No. 23 Chu Van An, Buon Ma Thuot City to build a warehouse and processing factory in 1976 (under the land lease contract that be expired on December 28, 2018). In the process of using the land, the company has leased or used the enterprise for other purposes; have been sanctioned for administrative violations by the provincial / municipal Services of Natural Resources and Environment. At present, the use of land for processing factories and warehouses is not suitable; the company has found that the land use is not effective, some of the area is not used for the right purposes. Therefore, the provincial People's Committee agrees on the policy of recovering the land area and assign it to the provincial land fund development center for use and management according to the land use planning and plan.

2. According to the Report No. 139 / BC-STNMT dated April 27, 2018 of the Natural Resources and Environment on land treatment of the Daklak Investment and Export -  Import Joint Stock Company, accordingly, the lease term of 13,618 m2 of land at 23 Chu Van An, Tan An Ward, Buon Ma Thuot City of Dak Lak Investment Export Import Joint Stock Company, requested the provincial People's Committee to recover the land area allocated to the Center Develop provincial land funds for management and use according to land use plannings and plans and the provisions of law. On May 16, 2018, the People's Committee of Dak Lak Province issued an Official Letter No. 3834 / UBND-NN & MT disagreed for the Dak Lak Investment Export-Import Joint Stock Company. To assign the Department of Natural Resources and Environment to coordinate with the concerned departments and branches in completing the procedures for land recovery and handling of assets on land (if any) according to the provisions of law when the units expire the land lease duration.

The Dak Lak Provincial People's Committee does not agree to extensd the term of land use. the Dak Lak Investment Import Export JSC; promulgating the policy of land recovery (when the unit expires the land lease term) at the above-said land position is in accordance with the provisions of law.

Dak Lak Provincial People's Committee clarified some contents about the meeting of the Daklak Investment Export and Import Joint Stock Company proposed to continue leasing land use and change of use purpose to carry out production and business activities in land area No 23 Chu Van An, Buon Ma Thuat City, please report to the Government,’s Office the Vietnam Chamber of Commerce and Industry for monitor and direction. 

 

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