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During a group discussion on the draft Resolution 98 amendment regarding pilot mechanisms and special policies for Ho Chi Minh City’s development, National Assembly delegates, experts, and businesses proposed adding a mechanism to determine land valuation timing for delayed Build-Transfer (BT) projects. This aims to ensure fairness for investors.
Proposals suggest land valuation at the time of signing the BT contract or upon project completion by the investor.
Delegate Tran Huu Hau (Tay Ninh) highlighted that many projects face delays of 5–7 years, or even 8–10 years, before land is allocated. This results in a “double loss” for businesses due to significant land price differences and capital being tied up in projects without recovery.
Hau proposed amending the resolution to set land valuation at the time of signing the BT contract or upon project completion by the investor, ensuring genuine fairness between the state and businesses.
Delegate Phan Duc Hieu (Specialized Member of the National Assembly’s Economic and Financial Committee) noted that many businesses have completed and handed over BT projects 5–9 years ago. However, due to legal changes and other reasons, land allocation for contract settlement has only recently begun. Under the Land Law, land valuation is based on the time of land allocation, which Hieu deemed unreasonable.
Hieu recommended: “In cases where the state delays land allocation after the investor completes and hands over the project, land valuation for BT contracts should be set at the time of project handover to minimize losses for businesses.”
He emphasized: “If the opinions expressed by some National Assembly delegates during the afternoon session on December 1st are not included in the resolution, Ho Chi Minh City should adopt this mechanism and incorporate it into the draft resolution. Such a provision is essential to unlock resources for the city and ensure land is put to use.”
From a business perspective, a representative of MHL Company stated that they had submitted a proposal to amend Resolution 98 concerning BT projects.
The company signed a BT contract in November 2016, completed the project, and handed it over to the Ministry of National Defense in February 2018, as verified by the State Audit Office.
The BT contract specified land allocation to MHL Company by November 30, 2016. According to the legal framework at the time, Decree 15/2015/ND-CP and Decision 23/2015/QD-TTg, investors were entitled to receive land upon signing the BT contract.
In October 2016, the Ministry of National Defense requested Ho Chi Minh City’s People’s Committee to guide and facilitate the Air Defense – Air Force’s use of the land to recover investor capital as per regulations. The Ministry and the Air Defense – Air Force subsequently sent eight requests to the People’s Committee for land allocation. However, it was not until March 2025, nine years later, that the land was handed over, with no agreement yet on land pricing.
MHL Company urged the National Assembly to amend Resolution 98 and issue detailed regulations for completed BT projects handed over before the Public-Private Partnership Investment Law took effect on January 1, 2021, but not yet settled.
The company proposed: For BT projects completed before July 1, 2025, based on audited volumes, the Ho Chi Minh City People’s Committee should allocate or lease land for contract settlement. Land valuation should be based on the time of signing the BT contract.
Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, suggested adding a provision to set land valuation for BT contract settlements at the time of signing the BT contract or upon project completion by the investor.
According to Chau, valuing land at the time of state allocation would disadvantage businesses facing delayed land allocation after completing BT projects for the state.
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