Name of recommendations: Recommendations that the Danang People's Committee (the Danang City) has the policy of revoking the land use rights’ certificates granted by the Da Nang City for lands with the purpose use as ''commercial lands'' or '' Lands

Status: Has not been responded

Recommended by units: Associations and the Business Association of Danang City

Official letter: No 0228/PTM -VP, dated: 2018-02-09

Recommended contents:

Through the study of the appeals and recommendations of entrepreneurs, enterprises and fact finding, our associations and the business association have recognized that the revocation of land use rights’s certificates has been approved by the City. Grant of lands for use purposes is "lands for commercial service", "lands for production and business establishments" for a term of "long-term  use of lands "; Compulsory conversion of types of lands into lands with a land use term of 50 years and a refund of land use levy which has been reduced by 10% previously; and stopping the right to make transactions on lands for commercial services, business production without conversion of the City People's Committee is not satisfied, do not solve the true nature of the case and not for the benefit of people and businesses. Continued implementation will lead to bad consequences for the city, people and businesses. Because:

- Firstly, the policy of "exchanging land for infrastructure" of previous localities (including the Da Nang City) has been agreed by the Government, supported by  people and has been actively implementing. In the period July 1, 2004 - July 1, 2014, in order to have funds to renovate and improve the city's infrastructure, the Da Nang People's Committee (after reaching agreement with the City’s Party Committee and People's Council) has issued a formal notice to invite people, businesses and investors to buy lands planned by the city. To encourage people and businesses to respond, the city has reduced 10% of the parcel of lands to previous payers within 1 to 2 months (adopted by the City People's Council). After completion of procedures, the City issued a certificate of land use rights (LURC) to buyers, stating the long-term (irrespective of residential land or commercial land). Therefore, the "long-term" land use rights of citizens and enterprises in this case are legitimate and legitimate.

- Secondly, contracts of lands allocation of entrepreneurs and enterprises signed with the Da Nang Land Development Company are civil transaction contracts; The contract has terms agreed by the two sides, there are not any businessmen, enterprises that  apply for policy reduction and exemption, so the retrospective collection of 10% due to the provisions of the payment contract right now is totally unreasonable. In cases where enterprises buy and sell real estate which have transferred many times but now are responsible for retrospecting that are not right according to provisions at Point d, Clause 2 and Clause 3 of Article 106 of the Land Law promulgated in 2013 and Clause 5, Article 87 of Decree No. 43/2014 / ND-CP.

- Thirdly, the City has allocateds land to enterprises and collected the land use rights according to prices of residential lands - the highest land price at that time (determined by the price appraisal council). The term wrote "long term”, but the City  has requested to adjust the land for a period of 50 years, greatly affecting the asset value and causing great damage to enterprises. On the other hand, there are projects at the same time, the same area, but the priority is to convert to long-term land, other projects require the change to commerce – production – business lands with a 50-year use period is any public and unfair competition, causing grievances in the business community.

Following are some of the most damaging consequences for the Da Nang's business community:

In fact, the value of property and property rights in the long term is much higher than the same property but with a fixed term (when the land use term is changed from 50 to 50 years, The market price of that land is estimated to fall by more than half. The transfer of land use rights in this case is almost obstructed

+ Due to the long-term use of land under the LURC, many investors have built large projects on lands (factories, hotels, offices for rent). When lands areconverted into 50 years will cause great damage to investors. Nowadays, businesses want to renovate and build their houses.

+ For loans up to the maturity date, it is necessary to revalue the value of assets is much lower, can not guarantee the old loan so the bank does not lend at the old level, causing difficulties for businesses. needs to raise capital.

+ For project land, if the land use term is 50 years, the investor wants to sell the product for a long term, then it is necessary to carry out procedures for changing the purpose of land use from commercial land to production. and need to pay a huge conversion fee, which increases the cost and reduces the investment efficiency of the project ...

- Fourthly, we urge the Nuclear Authority to carefully consider solutions to harmonize the interests of people, businesses and the City in implementing the concluding opinion of the Deputy Prime Minister. in TB No. 396 / TB-VPCP datedAugust, /2017 on the cancellation of incorrectly granted land use rights certificates for new issuance in accordance with the law.

Recently, at the sixth session of the People's Council, the IX course chose the theme of 2018 as "Year to boost investment attraction". Enterprises respond to the policy of land conversion for infrastructure, over the past 10 years has contributed not less to the city budget, creating jobs for thousands of workers. Inconsistent policy of the city government will create bad public opinion, causing distrust of people, businesses and investors (domestic and foreign) are looking to invest in Da Nang.

Solutions are proposed to the People's Committee of Da Nang: Mistakes are undesirable but have occurred. Correcting and complying with the provisions of law is necessary, but appropriate measures must be taken to protect the legitimate and legitimate interests of affected organizations and individuals. As a representative body protecting legitimate interests of the business community in the city, please make the following recommendations:

1/ While waiting for a feasible and reasonable solution to implement the Government Inspectorate's conclusions and the direction of the Deputy Prime Minister, the Prime Minister should immediately cancel the administrative decisions and acts. as mentioned above;

2 / It is proposed that Danang People's Committee hold a meeting with businessmen and enterprises related to the implementation of Announcement No. 396 / TB-VPCP dated August 25, 2017 by the Government. the participation of associations, business associations in the city, in the spirit of open minded to listen to the opinions of the concerned parties, considering losses, difficulties and obstacles of enterprises, partiestogether unify and agree on the plan, mechanism and process of handling.

3. It is recommended that the city collect statistics and fully assess the impacts on the business investment environment of the city and the Danang business community as a result of the implementation of the administrative measures to report, propose to the Government and the National Assembly for consideration and guidance (as required by the Government as stated in Notice No. 396 / TB-VPCP dated August 2, 2017: "In the course of implementation If there are any difficulties or problem arised, it shall promptly report it to the Prime Minister and the concerned branches for consideration and direction. "