PM Nguyen Xuan Phuc talks to the media

PM Nguyen Xuan Phuc talks to the media on the sidelines of the ongoing fifth session of the 14th National Assembly on June 7

The draft law which was expected to be voted on June 15, has proved controversial, especially with the land lease term of 99 years instead of the current maximum 70 years for special economic zones (SEZs).

The Government Office has just announced that the submission will be delayed to allow more time for the revision of the draft.

According to the government office, the draft law has been carefully drafted to create the legal foundation for the establishment of three special economic zones, Van Don in the northern province of Quang Ninh, Bac Van Phong in the central province of Khanh Hoa, and Phu Quoc in the southern province of Kien Giang.

"The bill had been proposed to legislators for the first time at the fourth session of the 14th National Assembly," the office said.

"But after listening to opinions from economic experts, scientists, and the wide public, we've decided to delay the submission time to revise this draft law to ensure the success of these SEZs."

Talking to the media on June 7 on the sidelines of the ongoing fifth session of the 14th National Assembly, PM Nguyen Xuan Phuc also said that he saw the need to reconsider the leasing time following opinions from the public.

"We will propose reducing the leasing time to the National Assembly," Phuc told reporters. "But it is the NA who will decide on the exact time."

Bui Van Xuyen, member of the Standing Committee of Law of the National Assembly also stated that the land lease term would probably be reduced to 70 years, the same as the prevailing Land Law.

Economist Pham Chi Lan suggested that the maximum land lease mechanism of 99 years was unnecessary as corporate production life circles could be faster.

“In the era of rapid technology development as currently, hardly any business could operate in the same industry for 70 years let alone 90 years. If the business is bankrupt in 10 years or 20 years then who will manage the transfer or change of land use rights,” said Lan.

In line with economist Pham Chi Lan's point of views, Duong Trung Quoc, deputy of the National Assembly said that this regulation would only benefit real estate investors.

dtinews