Tuesday, 19 Feb 2019

Vietnam finance ministry proposes halting exchanging land for infrastructure

Updated at Tuesday, 07 Aug 2018, 14:10
The Hanoitimes - The use of land, a type of public property, for payment to investors in the Build – Transfer (BT) format should be stopped until the Vietnamese government issues a new regulation.
The Vietnamese Ministry of Finance (MoF) has just sent a dispatch to the other ministries and localities, proposing limiting the use of public property in return for infrastructure investments.
Illustrative image
Illustrative image
Specifically, the ministry emphasized that from January 1, 2018, the use of public property (land) for payment to Build – Transfer (BT) investors should be stopped until the Vietnamese government’s new decree on this aspect takes effect.

The MoF in October 2017 submitted to the government a draft decree regulating the use of public property for payment to investors of projects in the form of BT. Up to now, this document has not been issued and the exchange of land for infrastructure will be stopped in the meantime.

In Vietnam, the BT form is commonly used in major cities that need to build costly infrastructure works but fall short of finances, and in turn, the investors usually get paid with land.

The MoF has recently sent an official document requesting the Hanoi People's Committee to review the the policy on using land to pay for investors of BT projects in accordance with law and government leaders’ directions.

This request was made after the Hanoi People's Committee gave in-principle approval to five transport infrastructure projects in the form of BT, and would give land in exchange for them.

In addition, on the management of public property, the MoF requests the units to stop considering, deciding on delivery, transfer and sale of cars in agencies, organizations, units, project management units (except for cars of Vietnamese agencies in foreign countries), until the Vietnamese government issues new decrees on standards and usage norms of automobiles.

The MoF also requests to stop handling property formed through the implementation of state-funded scientific and technological projects until a relevant decree comes into effect.
Anh Kiet
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