Minister of Natural Resources and Environment Do Duc Duy. Photo: VGP/Nhat Bac
At the Conference of the Government’s Standing Committee working with joint-stock commercial banks, Minister of Natural Resources and Environment Do Duc Duy made three proposals related to his ministry’s domain.
First, regarding the content mentioned by the representative of ACB Bank about tax accounts relating to land-use rights, land-use fee exemption or reduction, land rent… Minister Do Duc Duy stated that this content is specifically prescribed in Point b, Clause 3, Article 33 of the 2024 Land Law.
Accordingly, for organizations that are assigned land by the State with land use fee collection, or land lease with one-time land rent collection for the whole lease period to implement projects for business purposes and are subject to land use fee or land rent exemption or reduction by the State, their rights and obligations regarding the land will be no different from cases without such exemption or reduction.
“In short, during the process of using it as a secured asset at banks or credit institutions, there is no impact on rights and obligations. Only when the organization transfers the land-use right or contributes capital with the land-use right, will the State collect an amount corresponding to the amount of land use fee or land rent that was previously exempted or reduced when allocating land or leasing land,” said Minister Do Duc Duy.
Second, regarding TPBank’s proposal to allow investors with land-use rights, provided that the land is not for residential purposes and complies with construction planning and land-use planning, to be the investors of commercial housing projects.
Minister Do Duc Duy said that the 2024 Land Law does not currently regulate this issue. The Land Law only stipulates that for large-scale projects with synchronous technical and social infrastructure, the State will revoke the land and conduct bidding or auctioning for investors.
For other cases not subject to land revocation by the State, it is not stipulated that investors can access through the form of transfer or currently have land-use rights but not for residential purposes, they are allowed to implement social housing projects. In reality, the Ministry of Natural Resources and Environment has reported to the Government, and the Prime Minister has given strong directions.
The Minister of Natural Resources and Environment also added that the Ministry is developing a Resolution on piloting the implementation of commercial housing projects through the form of receiving the transfer of land-use rights or currently having land-use rights. This pilot includes cases such as those proposed by TPBank, involving both agricultural and non-agricultural land, not for residential purposes.
“We hope that when it is submitted to the National Assembly and approved, this will resolve this issue. This will then solve problems for many businesses and localities. The draft Resolution has passed the appraisal of the Ministry of Justice. Next week, we will report to the Government for their opinion before submitting it to the National Assembly for approval,” said Minister Do Duc Duy.
Third, regarding green credit, Minister Do Duc Duy of the Ministry of Natural Resources and Environment said that this content was first mentioned in the 2020 Law on Environmental Protection in Articles 149 and 150. These articles stipulate that projects investing in environmental protection or having environmental protection value will be able to access green credit and issue green bonds. Examples include projects for garbage and wastewater treatment, afforestation, etc.
Minister Do Duc Duy said that during the process of constructing Decree 08 guiding the 2020 Law on Environmental Protection, the Ministry of Natural Resources and Environment coordinated with the State Bank and the Ministry of Finance to incorporate four articles into Decree 08. However, the content is not yet comprehensive because, to implement green finance and green bonds, it is necessary to specify which categories and projects can access them. To address this issue, the Ministry has submitted a dossier to the Prime Minister for the issuance of a decision announcing the list of projects eligible for green finance and green bond issuance.
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