Focusing on solving problems in the implementation of projects along National Highway 5B

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Minister of Finance Ho Duc Phoc delivered a speech at the session.

Many difficulties lead to slow implementation of projects along National Highway 5B

This working session is to realize the direction of the Prime Minister in Document 10/TB-VPCP dated January 11, 2022 to discuss a number of contents related to projects of industrial parks and urban areas along National Highway 5B (Hanoi - Hai Phong National Highway) invested by VIDIFI.

The session was attended by representatives of the Ministry of Planning and Investment, the Ministry of Transport, the Ministry of Natural Resources and Environment, the Ministry of Construction, the Ministry of Industry and Trade, the Ministry of Justice and leaders of the People's Committees of Hanoi, Hung Yen, Hai Duong, Hai Phong as well as representatives of departments under the Ministry of Finance and representatives of VIDIFI.

Speaking at the session, Minister Ho Duc Phoc said under the direction of the Prime Minister on solving issues of VIDIFI, the Ministry of Finance had worked with the Development Bank and VIDIFI on content related to land use fees for the construction of industrial parks and urban areas, and worked with ministries, Government agencies and local agencies to report to the Prime Minister in order to solve outstanding problems.

The minister said that in the past, when building the Hanoi - Hai Phong highway, there were a number of financial mechanisms attached. This is the fund for VIDIFI to build the highway. However, that mechanism has not been executed due to many reasons, so VIDIFI has faced many difficulties.

The mechanism was not executed because the State Budget Law stipulated that 100% of the land use levy will contribute to the local budget, but the financial mechanism for the project provided that the land use levy will be paid to VIDIFI. This makes it difficult to resolve conflicts of law.

The Minister said to ensure the development of localities, attract investment, and develop industrial and urban areas, we must comply with the provisions of the law, and completely solve difficulties and obstacles.

This session aims to create unity and consensus among units and localities. After the meeting, the Ministry of Finance will report to the Prime Minister.

At the meeting, the representative of VIDIFI presented the investment process in the Hanoi - Hai Phong highway project, the financial plan, and the implementation of the State's commitments to the project according to Decision 746/QD-TTg 2015.

Regarding the implementation of projects of industrial zones and urban areas along the Hanoi - Hai Phong highway according to Decision 1621/QD-TTg dated November 29, 2007, VIDIFI said that in Hanoi, the Gia Lam urban area has been basically completed, enterprises have paid land use fees (VND5,384.99 billion) of the project to the Hanoi budget.

In Hung Yen province, the industrial zones of which 1/2000 planning has been approved have completed other procedures and only lack documents proving the equity to submit to the competent authorities for a decision on investment policy.

In Hai Duong province, for Hoang Dieu Industrial Park and Hung Dao Industrial Park, VIDIFI is hiring consultants to define boundaries to make 1/2000 planning. Gia Loc Urban Area is located far from the center and the traffic infrastructure connection is not convenient, so VIDIFI is suspending the implementation.

In Hai Phong City, Cau Cuu Industrial Park has been submitted to the Ministry of Planning and Investment for investment policy appraisal. Hung Dao Urban Area and Trang Cat Urban Area (Nam Hai) have been approved for the detailed planning task of a 1/500 scale. Quang Trung Urban Area is not in accordance with the planning orientation of Hai Phong, so the preparation for investment is not carried out.

At the meeting, VIDIFI's representative also mentioned financial difficulties, financial mechanisms, geographical location and experience in investment, business, and infrastructure distribution in industrial zones.

Therefore, VIDIFI is unable to deploy the assigned projects of industrial zones and urban areas assigned.

Coordination to quickly solve problems and difficulties

VIDIFI’s representative also proposed ministries, Government agencies and local agencies offer solutions related to mechanisms and policies to overcome difficulties and obstacles.

For example, proposing ministries and agencies to continue reporting to competent authorities to pay the due principals of foreign loans; approve the roadmap and plan to increase road tolls on the two highways Hanoi - Hai Phong and National Highway 5, to help VIDIFI improve the financial situation, recover capital and pay debts to the Development Bank.

At the same time, VIDIFI proposes the Ministry of Finance to report to the Prime Minister to allow the Development Bank to apply solutions to reduce interest rates and extend debt payment for projects and borrowers at the Development Bank as a mechanism that has been applied by commercial banks so that the Development Bank has conditions to consider and reduce lending interest rates for VIDIFI.

If the Prime Minister and the competent authorities assign the People's Committees of the provinces and cities to select other investors to deploy the industrial zones and urban areas, VIDIFI proposes that the ministries and agencies should report to the Prime Minister to direct the People's Committees of the provinces and cities of Hung Yen, Hai Duong and Hai Phong to have a plan to reimburse the costs of investment preparation in the urban areas and industrial zones for VIDIFI and project companies.

At the meeting, representatives of ministries and agencies, provinces and cities gave their opinions on the issues mentioned by VIDIFI.

Closing the session, Minister Ho Duc Phoc said that the Hanoi - Hai Phong highway has made a strong contribution to the country's economic development, especially at the eastern growth pole and the five provinces and cities in this area have benefited a lot from this highway.

Recognizing the pioneering spirit of VIDIFI in the development of the country, the Minister said that ministries, Government agencies and local agencies must share difficulties in the spirit of common interests and law to offer solutions to help the company.

The Minister said that he would report to the Prime Minister to propose solutions to remove difficulties, in which, he would consider proposing the Prime Minister withdraw the decision on assigning VIDIFI as the investor of the above nine industrial zones and urban areas and assign industrial zones and urban areas to provinces and cities to attract investors for local socio-economic development.

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The Minister suggested that the provinces and cities request new investors, after winning the project auction, to refund to VIDIFI the costs for project development.

"It is necessary to make efforts to coordinate and support each other to quickly solve problems and difficulties of the enterprise," said the Minister.