Da Nang resort developers cry foul as coastal land rents surge

By Nguyen Dong   October 13, 2023 | 05:11 pm PT
Da Nang resort developers cry foul as coastal land rents surge
A coastal resort in Da Nang. Photo by VnExpress/Nguyen Dong
Rents for coastal lands in the central Da Nang city have surged, leaving many businesses that lease them financially drained.

Nearly 300 of them, mainly resorts, have had their bank accounts frozen by authorities after they failed to pay rentals, which they say have become unaffordable.

Le Minh Kha, deputy general director of Thien Thai Hotel and Tourism Joint Stock Company, which owns the Ariyana Convention Center on Vo Nguyen Giap Road, said the rent for its 22 hectares was only VND2.4 billion (US$100,000) in 2007 but had risen to VND121 billion last year.

At the current rate, the company would have to pay nearly VND5 trillion for the land for the 37 years for which it is leased, he said. "The land rents are unreasonable and firms cannot continue doing business."

Nguyen Manh Trung, general director of Sao Viet Non Nuoc Company, which owns the Melia Da Nang Resort, said the rentals are too high since they are based on rates in 2019, when the real estate market was at its peak.

Land prices increased by 300-400% during the boom period.

Many businesses have petitioned city authorities use the previous land rents and unfreeze their bank accounts.

The latter have promised to discuss the issues with the petitioners.

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