Is the Retrieval and Auction of the Da Lat Water Pavilion Land in Compliance with Regulations?

The team at Dalat Tourist believes that the lease for the well-known restaurant, Houseboat, in Dalat, extends until the year 2046. They assert that the land is not subject to early revocation and that their claim is valid until the said date.

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The Future of the Thuy Ta Restaurant: A Legal Conundrum

On July 10th, the People’s Committee of Lam Dong Province requested 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 proposal of Lam Dong Tourism Joint Stock Company (Dalat Tourist) regarding the continuation of their lease of the Thuy Ta Restaurant.

Thuy Ta Restaurant, located by the national scenic site of Xuan Huong Lake in Da Lat City.

Recently, the starting price for the auction of the lease rights of the Thuy Ta Restaurant was approved at VND 378 million per year for the building and nearly VND 3.3 billion per year for the land. The auction is expected to take place soon.

According to the legal representative of Dalat Tourist, their lease contract for the Thuy Ta Restaurant expired at the end of 2020, while the land lease contract is still valid until 2046. They argue that auctioning the property now is not in line with legal regulations for three reasons.

Firstly, the land lease contract between the company and the People’s Committee of Lam Dong Province, signed at the end of 2021, is valid until 2046 and is currently in effect, complying with legal regulations.

Secondly, based on the asset lease contract (for the physical structure of the Thuy Ta Restaurant), Dalat Tourist has the right of first refusal when the contract expires, so continuing the lease with the company is consistent and aligns with the land lease.

Finally, the Thuy Ta Restaurant’s land and building are not subject to rearrangement or disposal of public assets, nor are they subject to land retrieval. Therefore, the proposal to retrieve the property lacks a legal basis and mechanism, potentially affecting the legitimate rights and interests of Dalat Tourist.

Dalat Tourist maintains that the retrieval and auction of the Thuy Ta Restaurant’s lease are inappropriate.

According to experts, even though Dalat Tourist still has a valid land lease contract for the Thuy Ta Restaurant and does not fall under the category of land retrieval cases, the proposed retrieval and auction may lead to legal complications for all involved parties.

Additionally, as the property is located by the national scenic site of Xuan Huong Lake, the auction winner must maintain the current state of the building and land, without altering its function or constructing additional structures. This requirement may deter potential bidders from participating in the auction, as it limits their options for utilizing the property if they win. This could result in a significantly lower winning bid compared to the first auction, which reached over VND 15 billion per year, and the subsequent withdrawal of the winner, leading to the cancellation of the auction results.

This plot of “golden land,” along with Bich Cau, is one of two islands within the national scenic site of Xuan Huong Lake. It is a prime location in the city center, just 1-2 kilometers away from popular tourist attractions such as Lam Vien Square, Da Lat City Flower Garden, and Da Lat Night Market.

The unique 3,876 square meter property currently houses the Thuy Ta Restaurant (383 square meters), a flower garden (893 square meters), and a spacious courtyard (nearly 2,600 square meters).

In late October 2023, Mr. Doan Hai Ha from Hanoi won the auction for the 10-year lease of the Thuy Ta Restaurant with a bid of VND 151.5 billion. However, after his request to change the restaurant’s name was denied, he withdrew from the lease and forfeited his deposit. Consequently, the People’s Committee of Lam Dong Province decided to annul the auction results for this “golden land” plot.

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