Solution to land lease problems of mineral processing factories in Quy Hop: Is it feasible?

According to the report of the People's Committee of Quy Hop district, at present, there are 42 mineral processing factories in the area that have not yet had land lease procedures, including 22 organizations and 20 individual households. Of the 22 organizations using land, 13 organizations used land before July 1, 2014, 9 organizations used land after July 1, 2014. Of the 20 individual households using land, 13 individuals used land before July 1, 2014 and 4 individuals used land after July 1, 2014.

For the factories in industrial clusters that used land before July 1, 2014 (11 enterprises, 2 individual households), there are 3 factories that are not in accordance with the detailed planning of the Industrial Cluster. Regarding the current land use status, the factories have built factories, worker houses, rock storage areas, waste settling pits and other production facilities. Through review, the factories were built and operated from 2004 to 2019, the land originated from the transfer of agricultural land use rights of households and individuals in the area, and they arbitrarily built factories to serve mineral activities.

Một xưởng chế biến khoáng sản ở huyện Quỳ Hợp. Ảnh tư liệu: Văn Trường
A mineral processing factory in Quy Hop district. Photo: Van Truong

Recently, the People's Committee of Quy Hop district has inspected, reviewed, and requested organizations and individuals to complete land lease dossiers according to regulations; at the same time, it has worked to resolve existing problems and difficulties (issued Notices No. 199/TB-KL dated June 9, 2022 and Notice No. 192/TB-UBND dated May 15, 2023). In addition, it has directed communes and towns to review, draw up records of temporary suspension of operations, and draw up records to handle violations according to their authority (or transfer records to handle violations according to their authority).

Up to now, 4 organizations have been approved by the Provincial People's Committee for investment policy and are completing the land allocation and lease documents; 15 organizations have submitted documents for investment policy to implement the project at the Provincial Public Service Center; 4 organizations have not submitted documents for land lease. 16 individual households have submitted documents for land use demand assessment at the District People's Committee; 1 individual household has not yet prepared documents for land lease; 3 individual households have committed to dismantling the factory due to not meeting the requirements on environmental distance and land lease area.

However, according to the opinions of relevant departments and branches, in the process of preparing documents for investment policy and land lease documents, organizations encountered difficulties and problems such as: Not ensuring safe distance to residential areas, safe environmental distance, not having environmental license for the project of investing in building infrastructure for industrial clusters and not building synchronous environmental protection infrastructure. Therefore, not ensuring regulations according to the Law on Environmental Protection.

Hạ tầng các cụm công nghiệp trên địa bàn huyện Quỳ Hợp còn nhiều vấn đề bất cập, tồn tại. Ảnh: Nhật Lân
Infrastructure of industrial clusters in Quy Hop district still has many shortcomings and problems. Photo: Nhat Lan

Due to the above difficulties, on June 28, 2022, the District People's Committee issued Official Dispatch No. 832/UBND-TNMT reporting the results of the inspection and review of land use of stone processing factories in the area to the Provincial People's Committee. On August 1, 2022, the Department of Natural Resources and Environment issued Official Dispatch No. 4504/STNMT-QLDD drafting a handling plan to seek opinions from the Departments of Justice, Planning and Investment, Construction; Tax Department and Quy Hop District People's Committee. Based on the opinions of the departments and branches, Quy Hop District People's Committee has finalized the proposed plan in Report No. 765/BC-UBND dated August 16, 2023. In order to have a basis for synthesizing and completing documents to submit to the Provincial People's Committee for handling, on August 18, 2023, the Department of Natural Resources and Environment continued to issue Official Dispatch No. 5631/STNMT-QLDD requesting the Departments of Justice, Planning and Investment, Construction, and Industry and Trade to give their opinions on the plan to handle stone processing factories that have not completed land lease procedures in Quy Hop district. Up to now, the Department of Natural Resources and Environment is synthesizing related issues.

Quy Hop District People's Committee determined that when there are opinions on the handling plan from relevant departments, branches and Nghe An Provincial People's Committee, it will direct organizations to complete land lease dossiers in accordance with the provisions of law, resolutely organize the demolition of factories for organizations that do not lease land. At the same time, propose the Provincial People's Committee, Department of Natural Resources and Environment, Department of Planning and Investment and provincial departments and branches to allow organizations to complete land lease procedures according to the draft attached to Document No. 4504/STNMT-QLDD dated August 1, 2022 of the Department of Natural Resources and Environment.

Một xưởng chế biến khoáng sản trong Cụm công nghiệp huyện Quỳ Hợp. Ảnh: Nhật Lân
A mineral processing factory in the Quy Hop District Industrial Cluster. Photo: Nhat Lan

Specifically, for 13 organizations that used land before July 1, 2014, the People's Committee of Quy Hop district will inspect and handle violations of land and construction laws... After the land users comply, for organizations that have used the land stably without disputes, have completed compensation and site clearance work, in accordance with the land use planning until 2030, ensuring environmental safety distance, allowing organizations that use the land to review and establish land lease procedures according to the provisions of Point b, Clause 1 and Point b, Clause 2, Article 20; Point b, Clause 5, Article 22, Decree No. 43/2014/ND-CP dated May 15, 2015 of the Government and Decision No. 81/2014/QD-UBND dated October 27, 2014 of the Provincial People's Committee (amended and supplemented in Decision No. 32/2019/QD-UBND dated August 19, 2019).

For organizations using land after July 1, 2014 (8 enterprises), the District People's Committee shall inspect and handle violations of land and construction laws... After the land users comply, for organizations using the land stably without disputes, having completed compensation and site clearance work, in accordance with the land use planning until 2030, ensuring environmental safety distance, then prepare a dossier to request approval of the investment policy according to Article 29, Article 31, Decree No. 31/2021/ND-CP dated March 26, 2021. For individual households (20 cases), the District People's Committee shall organize implementation according to the authority prescribed in Clause 2, Article 59, Land Law 2013.

Cụm công nghiệp Thung Khuộc nằm ngay tại cửa ngõ thị trấn Quỳ Hợp. Ảnh: Thành Cường
Thung Khuoc Industrial Park is located right at the gateway to Quy Hop town. Photo: Thanh Cuong

Regarding the above issue, Nghe An Newspaper reported in the articles "Paradox behind industrial clusters in Quy Hop" (March 21, 2024); "Reforming tax management, not missing out on non-agricultural land use tax payers" (April 18, 2024).

In response to information from Nghe An Newspaper, on April 9, 2024, the Provincial Tax Department issued Official Dispatch No. 1921/CT-HKDTK urging tax departments and branches under its management to review, report, and manage taxes for cases of land use without decisions or land lease contracts. In particular, it reminded the Phu Quy I Tax Department: "Strictly implement tax management for cases of land use without decisions, land lease contracts, and land use right certificates in industrial clusters in the area", and emphasized: "Any Tax Department or department that misses the review and management of land rent and non-agricultural land tax for cases of land use without decisions or land lease contracts, or when the land lease term has expired but the land is still being used without procedures to extend the land lease term must take full responsibility".

Các bài viết về những vấn đề trong thuê đất của các xưởng chế biến khoáng sản ở Quỳ Hợp.
Articles on land leasing issues of mineral processing factories in Quy Hop.

We recognize that the fact that many organizations and individual households in Quy Hop district use land for production and business activities but have not leased land for many years is a major problem. This problem reveals shortcomings in the state management of some levels, sectors and functional units; affects the stability of production and business activities of organizations and individual households processing minerals that have not leased land and affects the increase in budget revenue for the State. Therefore, we request that competent authorities pay attention to consider and have a solution to completely handle this problem.