Reform the word on firms’ lips

Land compensation payments are a source of discontent for firms

A conference to collect opinions on land, housing, tax and customs, organised by the National Assembly’s Standing Committee and Vietnam Chamber of Commerce and Industry, witnessed a range of hotly expressed opinions from companies’ representatives.

Le Tien Dung, deputy chief of Vietnam Railways’ Administrative Office, said land and housing administrative procedures have not created ideal conditions for enterprises.

“Many decrees, circulars and other different types of documents covering houses and land have been issued. However, they are not as good as earlier,” Dung said.

Dung said the government should permit companies which have leased state land and develop property projects to mortgage the properties.

Meanwhile, Hai Duong  province Enterprises Association chairman Nguyen Huu Doan said companies faced difficulties, especially the regulation that companies’ owners must negotiate land compensation with local people.

“This is an infeasible mission to many companies because the demand of local people has never stopped and many companies could not afford that,” Doan said.

He said there was a big gap on the compensation price between rural and urban areas and this gap caused petitions from local people and companies have to give up if the people do not agree with the compensation level.

Ngo Hai Phan, deputy director of Government Office’s Administrative Reform Department, said property sector administrative procedure reforms were one of the key missions stated by the government.

To June 2011, Hai said,  more than 5,200 procedures would be reviewed and amended.

Hai said that during the process of reviewing administrative procedures, his department would suggest changes that could be made to conflicting documents and regulations.

At present Hai’s department suggested the government amend 402 procedures and delete 526 others.

The review had to go along with simplification of at least 30 per cent of existing administrative procedures and ensuring a 30 per cent cost reduction for residents and enterprises.

Phan said the project’s objective was to save costs for people and enterprises and stop officials using  administrative procedures to take advantage of people.

Pham Gia Tuc, vice president and secretary general of the Vietnam Chamber of Commerce and Industry and a member of the Advisory Council for Administrative Reform, said that in land and house management, the reform must focus on proposing suitable policies in major fields such as land clearance and compensation and resettlement. Apart from that outstanding issues in supporting for changing jobs and creating jobs for local people also must be wiped out.