Vietnam to inspect land use at 60 state-run firms over suspicions of legal violations

By Ngoc Tuyen   May 10, 2017 | 04:10 pm GMT+7

The companies leased land to private companies and real estate projects, but the finance ministry said this had cost the state budget.

Vietnam's government has approved a proposal put forward by the finance ministry to inspect land use at several state-run companies over suspected violations that have caused losses to the state budget.

The government office said that inspectors will be deployed to look into land use at 60 state-run firms.

The ministry said that between July 2014 and November 2016, the companies were given permission to rent out 45.2 hectares (112 acres) of land to private companies and real estate projects.

However, the ministry said this may have violated the Land Law. The fees charged for land use did not match market rates, causing losses to the state budget, it said, adding that some locations were located on prime real estate.

Vietnam does not technically allow private land ownership, but grants land-use rights. Users have to apply for official permits if they wish to switch the use of their land, such as from residential to commercial purposes.

The inspection will look over the whole process to clarify who was responsible and exactly what went wrong.

The black list includes eight projects in Hanoi and five in Ho Chi Minh City. One of them is a shopping and apartment block built on land allocated to the Southern Rubber Industry Joint Stock Company in HCMC.