Dak Nong is thirsty for investment capital but public land is still empty.

285 unexploited public lands - To save or to waste?

Gia Nghia is an area with many vacant public lands. The Thong Xanh Hotel land located on 23/3 Street is considered a golden land because of its prime location.

The land of Thong Xanh Hotel, Gia Nghia City, occupies a prime location but has not completed the documents and procedures for the auction.

The location of this plot of land is being eyed by many businesses when they intend to invest in Dak Nong . However, for many different reasons, over the years, this plot of land has not yet developed its value.

According to the Land Fund Development Center (Dak Nong Department of Natural Resources and Environment), in October 2018, the unit received the field handover of this land according to Decision No. 1426/QD-UBND of the Provincial People's Committee.

The land plot area is approximately 4,255.6 m2. Previously, this land plot was under the management and use of Gia Nghia LLC.

Currently, the land is entangled with joint venture assets between Tan Phat Dak Nong Auto Company Limited and Gia Nghia Company Limited.

The valuation, relocation of assets, and handover of the site have not been completed. This means that the procedures and documents are not complete enough to conduct the auction.

The land belonging to the former Government Housing Area, Gia Nghia City, 29,998 m2 wide, is currently abandoned and overgrown with grass.

Not far away, the land belonging to the former Government Housing Area with an area of ​​29,998 m2 is currently vacant. This is also considered one of the "golden lands". Located in such a prime location, but because it has not been exploited, this area is overgrown with grass and trees.

According to the Gia Nghia City People's Committee, the land was previously stuck in site clearance for many years. Recently, the locality has resolved the issue and handed it over to the Provincial People's Committee. However, due to some mechanisms, the auction cannot be carried out yet.

Not only Gia Nghia City, in Dak Mil and Cu Jut districts, many public lands located on major roads are left empty. Many land plots are even being eyed by many investors but cannot be auctioned.

According to the Department of Finance, Dak Nong currently has 285 surplus land plots. Of these, 141 plots have been proposed by localities to be retained for arrangement and use according to planning. The remaining 144 plots are expected to be leased by the province through auction in the period 2023 - 2025.

Of the 285 surplus land plots, 97 plots can be auctioned immediately. However, for various reasons, in recent years, the rate of land use rights auctions in Dak Nong has remained low.

The public land of Nice Club Collective Area in Nghia Thanh Ward, Gia Nghia City has 10 rooms and has not been used for many years. Currently, it is temporarily arranged for some households whose land was recovered at Gia Nghia Lake Project.

In fact, the rate of conversion of public land use and successful auctions is very low. There are many reasons such as: entanglement in mechanisms and policies; entanglement in planning; coordination between related units is not really tight...

Thus, public land is being wasted, which means that the budget from this sector is inevitably low.

Regarding this issue, Director of the Department of Natural Resources and Environment Nguyen Van Hiep affirmed: "Land that has not been sold or leased is still there. However, in the short term, land that is left for a long time without developing its value will cause waste of resources and contribute to the budget."

If management and exploitation are not focused, it will be difficult to reinvest.

Annually, revenue from the land sector accounts for about 20-30% of the total budget revenue in Dak Nong. Revenue from land includes: land auctions; conversion of land use purposes; land lease; land allocation with land use fee collection...

In 2024, Dak Nong was assigned a state budget estimate of VND 3,300 billion. Of which, revenue from the land sector alone was VND 850 billion, accounting for nearly 26%. By early December 2024, Dak Nong's budget revenue was VND 2,800 billion, reaching nearly 85% of the year's estimate.

A vacant public land in Dak Mil (Dak Nong)

Of which, land use revenue accounts for very low. Up to now, the province's land use revenue has only reached 361 billion VND, reaching 42.5%. Of which, the revenue from land allocation and land auction accounts for very low numbers.

Since the beginning of the year, many areas have received almost no revenue from land allocation and auction activities. For example, Dak Mil, Gia Nghia...

In fact, a series of public lands in Dak Nong are not managed and used effectively. This situation has lasted for many years, causing waste of resources, not creating great benefits for development as well as local budget revenue.

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Dak Nong has 285 public land plots. Of these, nearly 100 plots can be put up for immediate auction (13 plots at provincial level; 84 plots at district and city level).

Deputy Director of Dak Nong Department of Finance Nguyen Van Pho

“We cannot yet calculate the exact figures. However, if we do a rough calculation, if only 100 “clean” plots of land are successfully auctioned, we can earn hundreds of billions of dong for the budget,” Mr. Pho affirmed.

Public land does not develop its value, which means that surplus value will not increase. This is a huge bottleneck in economic and social development. Annual state budget revenue includes: tax revenue, fees, land use revenue and other financial measures.

Revenue from taxes, fees and charges is mainly for regular expenditure. Revenue from land will be mostly used for reinvestment in infrastructure, urban areas, etc.

Thus, if land resources are wasted, low land revenue means that spending on development investment will be difficult. Once development investment spending is difficult, limited public investment will hinder local economic growth.

The old Dak Mil Tax Branch headquarters located in the center of Dak Mil town, Dak Mil district is abandoned, causing a waste of resources.

Regarding the land sector, especially public land in Dak Nong, Associate Professor Dr. Tran Hoang Ngan, Director of the Ho Chi Minh City Institute for Development Studies, said that Dak Nong's land area is very large, especially public land. However, the province's exploitation of this potential is still limited.

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If there is no attention and poor management in the exploitation of land resources, there will be difficulties in capital mobilization. Once capital mobilization is difficult, where will the province get resources for reinvestment?

Associate Professor, Dr. Tran Hoang Ngan, Director of the Ho Chi Minh City Institute for Development Studies

Source: https://baodaknong.vn/dak-nong-khat-von-dau-tu-nhung-dat-cong-con-o-khong-236947.html