Issuance of the Circular on selecting investors to implement the project of constructing rest stops for business purposes in Vietnam

Issuance of the Circular on selecting investors to implement the project of constructing rest stops for business purposes in Vietnam

On May 30, 2024, the Minister of Transport issued Circular 16/2024/TT-BGTVT, which stipulates certain provisions on selecting investors to implement the investment project for commercial rest stops.

According to Circular 16/2024/TT-BGTVT, it regulates the evaluation of investment efficiency in the development of sectors and fields in the selection of investors to implement the investment project for commercial rest stops. These rest stops are specialized service infrastructure projects in the road transport sector, including mixed-use functional areas serving both public and commercial purposes, managed by the Ministry of Transport.

Issuance of the Circular on selecting investors to implement the project of constructing rest stops for business purposes in Vietnam - image from internet

What are the bases for determining the value of state budget contributions for a project with a 49-year land lease term in Vietnam?

In Section 1 of Appendix 1 attached to Circular 16/2024/TT-BGTVT, the following provisions are specified for the basis and content of determining the value of state budget contributions (V):

Section 1. Basis and content for determining the value of state budget contributions (V)

1. Basis for determining value V:

a) Land area subject to land use fees and land lease fees for the project;

b) Expected land use fees and land lease fees determined by the inviting party based on the selection of land valuation methods as regulated in Decree 44/2014/ND-CP dated May 15, 2014, by the Government on land prices.

Land use fees and land lease fees to be paid by the winning investor must be determined at the time when the State decides to allocate land or lease land according to land laws;

c) Information on successfully auctioned land areas, land funds, and land plots at the local level, including: intended use; area; location; starting price; auction-winning price; approval date of auction results;

d) Local land price list.

2. Content for determining value V:

a) Determining and classifying the land area subject to land use fees and land lease fees for the project;

b) Identifying reference land areas, land funds, and land plots;

c) Calculating the value of V.

3. The inviting party is responsible for organizing the development of a plan to determine value V based on information provided by the following agencies:

- Financial management agencies or the Land Valuation Appraisal Council (if assigned the task of managing this information): information on local land price lists (if available); additional information (if any) to determine the expected land use fees, land lease fees, and value V;

- Land management and planning agencies: information on local land price lists (if assigned the task of managing this information), complete information on land areas, land funds, and land plots successfully auctioned within the managed area; approved land use structure according to the plan;

- Professional agencies or People's Committees at the district and commune level responsible for conducting auctions: information on land areas, land funds, and land plots that have been successfully auctioned and the winning organizations or individuals have fulfilled their financial obligations to the State;

- Agencies or departments responsible for housing, urban development, and construction: information on approved land use structure according to the plan (if assigned the task of managing this information).

In Clause 3 Article 3 of Circular 16/2024/TT-BGTVT, the following provisions are stated:

Evaluation of investment efficiency in the development of sectors and fields for the investment project of commercial rest stops

3. The method for determining the minimum value of state budget contributions is calculated using the following formula:

GTTN = n x (V : 49)

Where:

GTTN: Minimum value of state budget contributions

n: Operation, management, and business time of the project and infrastructure system determined based on the published information on the project's duration and progress.

V: Value of state budget contributions for a project with a 49-year land lease term, calculated according to the formula specified in the guidelines in Appendix II attached to this Circular.

As regulated above, the determination of the value of state budget contributions for a project with a 49-year land lease term is based on the following:

- The land area subject to land use fees and land lease fees for the project;

- The expected land use fees and land lease fees determined by the inviting party based on the selection of land valuation methods as regulated in Decree 44/2014/ND-CP.

- The land use fees and land lease fees to be paid by the winning investor must be determined at the time when the State decides to allocate land or lease land according to land laws;

- Information on successfully auctioned land areas, land funds, and land plots at the local level, including: intended use; area; location; starting price; auction-winning price; approval date of auction results;

- Local land price list.

When will the Circular 16/2024/TT-BGTVT come into effect in Vietnam?

According to Article 4 of Circular 16/2024/TT-BGTVT, the provisions regarding the effectiveness of enforcement are as follows:

Effectiveness of enforcement:

1. This Circular shall take effect from June 1, 2024.

2. Circular 01/2023/TT-BGTVT dated March 7, 2023, issued by the Minister of Transport guiding the preparation, approval, and publication of project lists; methods and criteria for evaluating bidding documents and proposals in the selection of investors for specialized transportation infrastructure projects, shall cease to be effective from the date this Circular takes effect.

3. In case the referenced legal documents mentioned in this Circular are amended, supplemented, or replaced, the provisions of the amended, supplemented, or replaced legal documents shall apply.

As regulated above, the Circular 16/2024/TT-BGTVT regarding the selection of investors for the implementation of investment projects for commercial rest stops will come into effect from June 1, 2024.