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Site clearance costs and rent |
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The other issue of
concern for investors in EPZs and IZs is the fact that site
clearance and compensation to displaced households is both
time-consuming and expensive, which results in higher rents,
affecting the overall business environment. Furthermore, because
it is so expensive to clear land and compensate households,
there is not enough money left to invest in necessary
infrastructure, such as a good waste-water treatment system,
plants and greenery, environmental protection as a result, the
quality of infrastructure of EPZs and IZs is very poor. We
strongly believe that it should be the State's role to manage
land planning and site clearance, so that businesses can focus
on infrastructure investment, and the Law should address this
thoroughly. [The State should also] make a distinction between
true infrastructure developers and [short-term] real estate
investors, and more favorable incentives should be given to
infrastructure developers, which would help create a better
investment environment.
Dr. Le Thai Hy
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Under current
regulations, businesses incur many costs in addition to rent on
land, such as compensation for site clearance, fees for changing
land-use purpose, providing employment to displaced farmers,
etc. that are unknown at the outset, making it impossible for a
business to determine accurate total investment costs at the
outset. There should be a way to price rent so that it accounts
for these other costs, so that businesses can accurately
estimate their costs.
Mrs. Ha Thi Vinh
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