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The city People's Committee sought this in an official communication on adjusting the German carmaker’s project timeline. The 30-year lease expires in 2025.
According to the city government, extending the land lease by five years is "very necessary" to safeguard its revenues. It could also have a significant impact on relations with partner countries, it said.
Mercedes-Benz Vietnam Co., Ltd. is a joint venture between Saigon Transportation Mechanical Corporation, which owns a 30% share, and Mercedes-Benz AG Group.
In 2021 the company had sought a five-year lease extension for the land at 693 Quang Trung Street so that it could make plans to relocate to a new site by 2030.
In June 2021 the city government agreed in principle, and the company made an official request for the extension in September.
Because it is public land, government regulations on the management and use of public assets mandate that it be repossessed by the government and re-auctioned.
In March 2024 Deputy Prime Minister Tran Hong Ha instructed the Ministries of Planning and Investment, Natural Resources and Environment and Finance to guide HCMC on the issue. But it remains unresolved.
Mercedes-Benz Vietnam employs around 800 workers.
