After more than 2 years, Da Nang has again held auctions of land rental with annual payment for 3 large land plots and the collection of land use levy for 10 residential land lots. This shows the dual benefits for people, businesses and the State budget, contributing to promoting the city’s socio-economic recovery and development journey.

Da Nang is implementing procedures to auction many large land plots so as to call for investment in socio-economic development projects, including land plots along Pham Van Dong Street. Photo: HOANG HIEP

Increase revenue for the State budget

When COVID-19 was put under control, the Da Nang People's Committee has directed the municipal Department of Natural Resources and the Environment to focus on auctioning off large land plots and residential plots at intersections to increase revenue for the State budget, creating conditions for businesses and people to do business.

On July 1, the Da Nang Land Fund Development Centre under the municipal Department of Natural Resources and Environment) and Lac Viet Auction Partnership Company have jointly held an online auction for land use rights in the form of lease with the State annual payment and land use term of 50 years for 3 commercial and service land plots in Hoa Vang District.

At the auction, there were 7 units participating in the auction to rent a 1,877m² land spot in Hoa Ninh Commune for the selling of souvenirs for tourism, in which one company won the auction with the rental price of VND160,719/m²/year, which is 5.8 times higher than the starting price.

Meanwhile, 8 others competed in the auction to rent a 233m² land spot in Hoa Phuoc commune in front of National Highway 1A to build a mini supermarket. The winner company won the auction to rent land with unit price of 2,717,464 VND/m²/year, 19.2 times higher than the starting price.

In a similar vein, 27 units participated in the auction to rent the land coded C2-7 belonging to the stretch of land fund exploitation along National Highway 1A in Hoa Chau Commune to make a warehouse. An enterprise won the auction with the unit price of 507,873 VND/m2/year, 9.8 times higher than the starting price.

With the number of businesses participating in the auction and the high auctioned unit prices, it shows that the demand for land lease to deploy business investment is very large. The total rent collected for the State budget for the 3 above-mentioned land plots is 10 times higher than the starting price.

Then, at the auction over the right to use 4 large land lots in the city in the form of indirect secret ballot on the afternoon of August 19, 4 people won the auction with a total amount of VND21,336 billion, higher than the starting price of VND 4,295 billion.

Mr. Nguyen Van Tri, residing in Lien Chieu District, a land auction participant said: “We highly appreciate Da Nang’s functional units who have assessed, appraised and determined the starting price of the plots. The land is very close to the market price. With the characteristics of land plots at junctions and intersections and having a prime location, suitable for business services, such a starting price is very highly attractive. The unit selected to organize the auction is also very professional. With the organisation of auctions for land use and lease as the city is doing, it will not only bring benefits to the State, but also to people and businesses".

Representatives of Da Nang relevant agencies and those participating in auctions for the use right over residential land plots, jointly closely monitor the price announcement process. Photo: HOANG HIEP

Continue to organise land auctions

Director of the Land Fund Development Centre Huynh Tan Quang informed that, in the near future, his agency will continue to select an auction organiser for the remaining 3 large land plots and the remaining 6 residential land lots.

According to the Department of Natural Resources and Environment, in Notice No. 278-TB/TU dated March 15, 2022, the Da Nang Party Committee directed, in the immediate future, to organise an auction of land use rights for small plots of residential land and call for investment flows for large land plots.

Particularly for large land plots already interested by investors and with high feasibility, auctions of land use rights shall be carried out in accordance with the national regulations.

On that basis, the municipal Department of Natural Resources and the Environment has sought for approval from the People's Committee on the list of auctions for land use rights for the second phase of 2022, including 14 large land plots.

According to Director of the Department of Natural Resources and Environment To Van Hung, in order to continue to open and mobilise land resources and projects to promote socio-economic development, his agency has always directed the Da Nang Land Fund Development Centre to organise the effective and correct implementation of auctions for the land use right in 2022 according to the list of land plots and zones approved by the municipal People's Committee.

As for the public land fund that has not been auctioned, the Department will also ask for approval from the municipal People's Committee on the project ‘Management and exploitation of public land fund in Da Nang managed by the Land Fund Development Centre’.

In detail, the Centre shall submit the municipal administration the list, the plan for the lease of premises with a certain term and the draft decision on the auction for the lease of the premises with a term for the large land plots pending the implementation of the auction of the right to use the land.

Reporting by HOANG HIEP - Translating by A.THU