Quang Ninh Province will revoke 179 delayed projects, stopping investors from hiring land in order to change the ownership right transfer to earn profits.
Vietnam Oil and Gas Group's
commercial and office building project has had its land withdrawn
The authorities have decided to withdraw around 15,859 hectares from land lease decisions and project plans.
Although many investors rented the land for nine to ten years, they haven't taken any action to implement their projects. This has damaged the local economy because most of the allocated lands are converted agricultural and forestry lands.
The worst offenders include a tourism and commercial centre project operated by Hong Gai Tourist and Service Company and a three-star hotel project under the Viet My - Ha Long JSC, both of which are located in Bai Chay Ward.
Some big investors have sold their projects, earning tens of billions of VND in profits.
Nguyen Van Doc, Chairman of Quang Ninh Province's People Committee said, "Investors complained about difficult site clearance tasks but didn't or were unable to carry out the project when they received the land."
The authorities have decided to tighten controls to prevent incapable investors from renting land and are determined to create a healthy investment environment.
Many investors have attempted to lobby or threaten the authorities after the announcement to withdraw the land from stagnant projects.
Doc said start from 2013, investors would have to deposit 20% of the total project capital in a bank. This money would receive normal interest rates and the authorities would disburse the money in accordance with the progress of construction.
If the investors do not carry out the project, the money would go to the province's budget.
In 2013, Quang Ninh Province will also put more land and projects that relate to land-use up for bidding.
Doc said the authorities would try to create the most favourable conditions for investors and asked for a proper working attitude in return.
