On July 9, the People’s Committee of Lam Dong Province issued a document to the Departments of Finance, Construction, and Natural Resources and Environment, and the People’s Committee of Da Lat City regarding Lam Dong Tourism Joint Stock Company’s request to continue leasing the Thuy Ta Restaurant at 01 Yersin, Ward 1, Da Lat City.
The People’s Committee assigned the Department of Finance to coordinate with the Department of Natural Resources and Environment, the Department of Construction, and the People’s Committee of Da Lat City to consider the enterprise’s proposal and make suggestions to the People’s Committee for a response to the enterprise.
Previously, on July 3, Dalattourist, the lessee of the land use rights and assets on the land at 01 Yersin, submitted a petition to the People’s Committee of the province.
The petition stated that Dalattourist leased the land use rights from the People’s Committee of the province according to decisions made in 1997 and a land lease contract signed in 2001, along with several related appendices. The lease term is 50 years, starting from January 1, 1996, and ending on January 1, 1946.
Currently, the People’s Committee of the province has made a decision in 2022 to retrieve the land that was leased to Dalattourist at Thuy Ta Restaurant.
Regarding the assets on the land, Dalattourist leased them from the People’s Committee according to an asset lease contract signed in 2010 and a document issued in April 2020 by the People’s Committee of the province regarding the extension of the lease term for Thuy Ta Restaurant. The lease term ended on December 31, 2020, which means it has now expired. In reality, Dalattourist is still managing and using these assets.
After receiving the land retrieval decision, Dalattourist submitted a document in September 2022 requesting to be considered for a continuation of the 2001 contract. On March 31, 2024, the company once again requested to consider continuing the contract. On April 26, 2023, the People’s Committee of the province responded, instructing Dalattourist to proactively contact the provincial authorities to participate in the auction if they genuinely wished to continue the lease. The enterprise considered this response to be inconsistent with current regulations.
The People’s Committee of the province has conducted an auction for the lease of the land and Thuy Ta Restaurant but has not achieved the desired results. Recently, the committee initiated a second auction.
Now, Dalattourist is petitioning the People’s Committee of the province to allow the company to continue leasing Thuy Ta Restaurant. The enterprise believes that the committee’s decision to retrieve the land and assets is unfounded and inconsistent with the actual use and lease of the assets. They argue that the land use rights and assets in question do not fall under the category of rearranging or handling state-owned land and assets, as per Decree 67/2021/ND-CP.
Based on Article 1 of Decree 67, Dalattourist asserts that the Thuy Ta Restaurant land, which includes historical and cultural relics and scenic landscapes, should not be subject to rearrangement or handling as per the regulations.
Additionally, regarding the committee’s decision to retrieve the land, the company believes it stems from the expiration of the asset lease contract (for Thuy Ta Restaurant) and the suggestion to continue the lease. As a result, the company considers the land retrieval decision to be incomplete, inconsistent with legal regulations, and failing to protect the company’s legitimate interests.
Dalattourist also states that throughout the lease, the company has used the assets for their intended purpose and fulfilled its financial obligations. The company claims to have complied with the terms of the land and asset lease contracts and the land lease decision. Neither contract mentions the case of revoking the land lease decision before the term expires, and the asset lease contract does not state that the land lease contract will automatically terminate upon the expiration of the asset lease contract.
According to Dalattourist, the reason for the retrieval is that the lease term for the assets on the land has expired, and the retrieval is intended to organize an auction for the lease of the assets and land based on the Land Law of 2013, Decree 43/2014/ND-CP, Decree 01/2017/ND-CP, and Decree 148/2020/ND-CP, as well as the proposal of the Director of the Department of Natural Resources and Environment. However, the company argues that there is no specific legal basis for the land retrieval in this case.
The company also points out that the land retrieval is not for the implementation of a project as stipulated in the Land Law. Dalattourist believes that Thuy Ta Restaurant, being state-owned and not under the management of a business unit, does not have a legal basis for organizing an auction for its lease.
Therefore, Dalattourist petitions for the continuation of the land lease contract, which is still valid until January 1, 2046, and for the People’s Committee to prioritize the company for the continued lease of the assets on the land when the current contract expires. Simultaneously, Dalattourist requests that the People’s Committee halt the auction for the lease of the land and assets at 01 Yersin.
Thuy Ta Restaurant is located in one of the most prime locations in the misty city of Da Lat.
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On June 21, the People’s Committee of the province approved the starting price for the second auction of the lease of assets on the land and the annual land lease for Thuy Ta Restaurant. The starting price for the land lease is 3.27 billion VND per year, and the restaurant lease is 378 million VND per year, totaling nearly 3.65 billion VND per year.
Thuy Ta Restaurant occupies an area of 3,876 square meters, with a floor area of 267.8 square meters. The land use purpose is commercial services (restaurant and dining business). The lease term is 10 years from the date of issuance of the auction results.
The new starting price is 20% higher than the one approved on July 27, 2023, with the land lease price increasing from over 2.66 billion VND per year to 3.27 billion VND per year, while the restaurant lease price remains at 378 million VND per year.
In the first auction held in November 2023, the winner was Mr. Doan Hai Ha, who bid 15.15 billion VND per year (equivalent to over 151 billion VND for a one-time payment for the entire 10-year period). However, Mr. Ha later withdrew his bid and decided not to invest after his request to change the name of Thuy Ta Restaurant was not approved.
Lam Dong auctions Thuy Ta Restaurant for the second time, with a starting price of over 3.6 billion VND per year
How has Dalattourist been performing in its business operations?
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Auctioning off Thuy Ta Restaurant in Da Lat
The starting price for leasing rights to land and assets at Thuy Ta Restaurant in Da Lat City is 3.6 billion VND per year, for the purpose of operating a restaurant and food service establishment.
