-
 The
first major land-related issue for investors in industrial zones
and export processing zones which we would like the draft Law to
address is that of land-lease tenure. Investors in
infrastructure development for EPZs and IZs are allocated land
or given the right to lease land for a specific time period,
usually 50 years. When these investors sub-lease land to
[manufacturing] businesses that then build factories on the
land, the maximum term of this lease can only be for the
remaining period of the original lease, for example 35 or 40
years. However, the manufacturing businesses may have operating
licenses that are valid for longer than [the 35 or 40 years],
and are not guaranteed they will be able to continue leasing the
land for the remainder of the validity of their operating
license. In addition, this time gap creates difficulties in the
calculation and payment of the rent.
Dr. Le Thai Hy
- Head of Administrative Department of
the Ho Chi Minh City Export Processing & Industrial Zones
Authority ("HEPZA")
-
 The
State should allow longer land-lease tenures for foreign
investors. Currently foreign investors are allowed to operate a
business for 30 to 40 years on average, after which they have to
transfer the infrastructure and facilities to the Vietnamese
partner. In the real estate business, many joint ventures don't
see a profit until this time period [of 30 to 40 years] is up.
Mr. Lai Boon Tuck
Director, Grand Horizon Joint Venture
-
The Law allows a
maximum land-lease tenure of 50 years, and we applied for a
50-year lease, but only got approval for a 30-year lease. At
present, the specific regulations on lease-tenure are not clear.
For a [manufacturing] business, a term of 30 years is too short.
A short lease-term causes businesses to shy away from making
large investments, speeds up depreciation which increases
production costs, and reduces competitiveness; businesses are
not comfortable to make long-term investments.
Mrs. Ngo Thuy Hoa
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