Two Novaland projects have had their legal issues resolved by the National Assembly.

Novaland's Lakeview City project and 30,224ha Binh Khanh ward project have officially had their difficulties in determining the time to calculate land rent and land use fees resolved. Novaland has the opportunity to recover thousands of billions of VND in provisions related to this project in 2025.

Accordingly, from April 1, 2025, Resolution No. 170/2024 of the National Assembly on specific mechanisms and policies to remove difficulties and obstacles for projects and land in the inspection and examination conclusions in Ho Chi Minh City, Da Nang and Khanh Hoa province officially takes effect. In which, two projects of Novaland Group in Ho Chi Minh City will be removed after many years of waiting.

According to this Resolution, the problems related to land use fees at Novaland's Lakeview City project (Thu Duc City) will be officially resolved. Another project is the 30,224ha area of ​​Binh Khanh Ward (Thu Duc City) which is the land that Novaland will be compensated for when the state reclaims the 30,224ha land area of ​​Binh Khanh Ward for a resettlement project.

For these two projects, Resolution No. 170/2024 of the National Assembly clearly states the plan to determine land prices as the basis for collecting land use fees. Accordingly, the total amount of land rent and land use fees payable for the Lakeview City project is nearly VND 5,176 billion based on the tax authority's announcement on January 8, 2021, which will be re-determined.

For the exchanged land area corresponding to the amount of money the investor has invested in the 30,224ha land plot in Binh Khanh ward up to 2008 (compensation, support, and construction investment costs have been audited and appraised), the time to determine the land price is the time of completion of land recovery and compensation for the 30,224ha land plot in Binh Khanh ward (2008).

For the land area for which land use fees have not been paid, the time for determining land price is the time when the competent state agency issues the decision to allocate land for the 30.106ha Nam Rach Chiec land area (2017).

Two Novaland projects have had their legal issues cleared by the National Assembly. PHOTO: TONG TRANG

Thus, with this decision, from April 1, 2025, Ho Chi Minh City departments and branches will organize implementation according to procedures to thoroughly handle and remove difficulties and obstacles for the Lakeview City project. When the land rent and land use fees of the Lakeview City project are specifically determined, Novaland will have a basis to fulfill the financial obligations of this project, as a basis to proceed to issue certificates to project residents in the soonest time.

In particular, the provision of VND 4,358 billion for the Lakeview City project for Novaland's 2024 semi-annual financial report, according to the auditor's own opinion, will be adjusted and reversed when eligible in 2025. This is the basis for Novaland to have a strong source of cash to implement upcoming business plans, as well as ensure the fulfillment of obligations to related parties.

According to a leader of Novaland Group, the removal of the Lakeview City project is the result of the direction of the Government and ministries, departments and branches, a legal boost, creating confidence for the business community in the general policy of the Government in directing drastic removal of legal obstacles for projects that are still stuck. At the same time, it is a launching pad for Novaland to recover and accelerate after a challenging period. This result also reflects Novaland's efforts and determination in removing legal obstacles for the project. Currently, most of Novaland's key projects have reached important legal milestones, moving towards legal completion, restoring implementation, construction and handover activities.

Source: https://thanhnien.vn/hai-du-an-cua-novaland-duoc-quoc-hoi-thao-go-phap-ly-185250220154434003.htm