Under the provisions of the current Vietnamese Land Law, businesses applying for the conversion of residential land into commercial-service land for the construction of hotels and high-rise complexes, or for production and business purposes are not required to obtain permission from the competent authorities.

However, in Da Nang, the application of these provisions, in fact, faces some problems. Therefore, the city’s Department of Natural Resources and Environment has proposed the Ministry of Natural Resources and the Environment to considering removing any obstacles.

Mr Nguyen Quang Vinh, the Deputy Director of Department of Natural Resources and the Environment, said that many businesses have recently used many residential land plots they bought from local residents to build hotels and high-rise complexes.

On a residential land plot, the building of a house of only 7 - 9 storeys is permitted. Meanwhile, as residential land is converted into commercial-service land, a building of up to 20 storeys is allowed. In this case, the coefficient land use increases, but there are no specific regulations on the financial obligations to be fulfilled when conducting the change of residential land into commercial-service land.

According to the Ministry of Finance, financial obligations are determined based on the national government-released Decree No. 46/2014 / ND-CP. However, the Decree only stipulates land and water surface rental.

So far, the determination of this financial obligation has still been entangled, and it is impossible to know whether or not the change of land use purpose incurs any financial obligation, and it is not known what regulations should be applied to collect land use fees.

Therefore, it is proposed that the General Department of Land Administration and the Ministry of Natural Resources and the Environment instruct the city to solve problems facing businesses which want to complete land procedures for the construction of hotels and high-rise complexes.

Likewise, in accordance with the Land Law, in case a business wants to change urban residential land into one for production and business purposes, it is not required to obtain any permission from competent State agencies, but it must comply with the approved urban and land use planning.

In reality, in Da Nang, the aforementioned change of land use purposes by businesses is not consistent with the approved land use and urban planning.

So as for the change of land use purposes to be permitted, the approved urban and land use planning must be adjusted. However, the procedures for these adjustments are really complicated. .

Therefore, the city has urged the Ministry of Natural Resources and the Environment to make appropriate adjustments to ensure a consistency between the Land Law and the present situation of land use.