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VietNamNet Bridge – Enterprises have voiced the same complaint that the land
leasing fee has increased by 10-30 times, which has put a heavy burden on them.
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Land leasing fee does the high jump
The survey conducted by VCCI shows that there is a big gap between the land leasing fee enterprises have to pay in 2010 and in 2011. In Hai Phong City, the gap is as high as 3-10 times on average. The representative from Hong An Equipment Company said the company has been so surprised when it was told that the total sum of money it has to pay for land leasing in 2011 is 18 times higher than that in 2010.
Pham Thi Be from the Song Da Industrial Company, has affirmed that she has received a notice which says that the sum of money her enterprise has to pay for leasing land would be 20 times higher than the previous level.
A production enterprise in Hung Yen province has also complained that it has been asked to pay the land leasing sum of money which is 30 times higher than the previous level--it now has to pay 1.5 billion dong instead of 49 million dong a year.
“We will not be able to take back the capital even after 100 years, if we have to pay such a high land leasing fee,” the representative of the company said.
“We are afraid of leasing land from the State, because the rents are not stable. I know that hundreds of enterprises in Hung Yen will not lease land any more. A lot of small enterprises are considering giving back the land to the state,” he warned.
The representative said that his enterprise had to made heavy investment on the workshop premises by spending a big sum of money for site clearance. Meanwhile, the rents prove to be unfair among enterprises. “We are leasing land in rural areas, which should have the lowest rents. However, in fact, the land leasing fee is even higher than that in cities”.
According to the Quang Ninh provincial Small and Medium Enterprises’ Association, the land leasing fee has increased by 1.5-5 percent over 2006, which has dealt a strong blow on Quang Ninh’s enterprises.
Trinh Xuan Long, Chair of the Thanh Hoa provincial Enterprises’ Association, has also confirmed that the land leasing fee in the province has increased by seven times in comparison with that in 2010.
Ministries promise “reconsideration”
An executive of the Ha Long Canned Food Company, who said that the land leasing fee has increased by 9.2 times, has proposed to keep the land leasing fee unchanged. He said that the land leasing fee applied in 2010 is reasonable which allows the company to pay wages to laborers, cover expenses and pay bank debts.
“The government should consider the time for applying new prices and consider specific conditions of enterprises,” he suggested.
Analysts also say that it is really unreasonable to charge high land leasing fee now, when businesses have to struggle with too many difficulties.
Representative from a footwear company said it would be better to impose land leasing fee based in accordance with the production and business fields.
“Production enterprises should not be charged the same fee as the service enterprises, though both of them have workshops on front-street places” he said.
Meanwhile, the Quang Ninh Small and Medium Enterprises’ Association believes that the best way is to charge leasing fee based on the land price frames promulgated annually by local authorities.
Deputy Minister of Finance Do Hoang Anh Tuan has promised to report the problem about the land leasing fee to the government for consideration prior to the upcoming National Assembly’s meeting.
Pham Huyen
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