A proposal contained in the draft law on special economic zones (SEZs) to lease land for up to 99 years has faced fierce public opposition, with many National Assembly deputies asserting the public opinions need to be taken into account, according to local media.

The aerial photo shows a section of Van Don in Quang Ninh Province, which has been chosen for a special economic zone. A proposal on leasing land for up to 99 years has faced fierce public opposition - PHOTO: VGP

The proposal has heated the ongoing National Assembly (NA) sitting. Under the draft law, Van Don, Bac Van Phong and Phu Quoc are chosen as the sites for such zones, with the first two zoned for developing hi-tech sectors and Phu Quoc mainly for tourism. Potential investors may have the privilege to lease land there for almost a century, which sparks widespread concerns.

Deputy Truong Trong Nghia from HCMC vehemently objected to the proposal, saying only underdeveloped and indigent countries have to lease land for such a long time.

Few investors with genuine businesses need such a lengthy period for their projects, so the incentive will only encourage project owners to transfer land after wrapping up the primary business, or change the purposes of projects during the implementation as they do not have to return the land.

The country should create a level-playing and attractive business environment to lure hi-tech investors instead of casino and real estate investors only, Nghia said. He also suggested drafting the law applicable to all SEZs, not only the three ones mentioned in the law.

Deputy Duong Trung Quoc said the proposal, if approved, would only benefit real estate investors and land speculators, and not hi-tech enterprises.

On the sidelines of the NA meeting, Deputy Tran Hoang Ngan from HCMC proposed offering a land lease period of 70 years and extending the period by no more than 20-30 years if projects prove effectiveness and ensure the environment safety.

According to the draft law, the land will be handed over to investors of special projects, but there is no regulation to recognize a project as being special or not. It is a must to closely control national security and defense while granting investment certificates for foreign firms, Ngan said.

Over the past 30 years, Vietnam has attracted US$332 billion of foreign direct investment including US$178 billion of disbursed funds. The country is still a potential market for international investors due to political stability and economic growth potential.

Therefore, the country should improve the investment environment instead of focusing on new incentives, Ngan added.

“Listen to the people”

In Tuoi Tre, Deputy Nguyen Ba Son of Danang City ponders why the land lease term of 99 years is put forth, saying “the people are also demanding an answer over the term of 99 years.”

“In my opinion, we have to listen to the people, to voters. And we have to fulfill our roles as representatives of the people. The interests and benefits of the people and the nation must be held in high esteem,” Son is quoted as saying in the paper.

On the sidelines of the NA meeting, Prime Minister Nguyen Xuan Phuc also admitted to strong waves of objection, with numerous opinions via phone calls and messages forwarded to him, according to Nguoi Lao Dong.

The Government leader, however, asserted that “we will listen to opinions from experts and the people’s aspiration.”

Bui Trinh, an economic expert, was cited by Dat Viet news website as saying that the proposal is aimed at attracting investors but land use and tax incentives so far have proved to bring in little benefits.

Dinh Khoa Toan, chairman of Phu Quoc District, Kien Giang Province, where Phu Quoc SEZ will go up, affirmed the nation would suffer losses if the proposal is passed. Investors need only 10-20 years to recover capital and they will later earn profits, he said, adding land is limited and crucial to boost the socio-economic development.

Meanwhile, Minister of Planning and Investment Nguyen Chi Dung insisted on the ministry’s proposal, saying it is important to classify and entitle special investment projects to long land lease term. Classification procedures will be mapped out in a transparent manner, Dung said.

SGT