Authorities of the tourist city of Vung Tau, located in Vietnam’s southern Ba Ria - Vung Tau Province, will withdraw 28 hectares of land alongside the Thuy Van Beach, commonly known as Bai Sau, as nine renters have defaulted on a total land rental of over US$14 million and erected illegal construction works.
Vu Hong Thuan, deputy chairman of the People’s Committee of Vung Tau City, announced the withdrawal decision last Saturday, saying local authorities had worked with all relevant businesses and requested them to return the premises before March 15, according to VnExpress.
After that date, the touristic city will hand over the land to the provincial Land Fund Development Center for orgainzing property auctions, Thuan said.
In 1996, the said land lots were assigned by the provincial administration to a state-owned enterprise, Ba Ria - Vung Tau Province Construction and Installation Company (now VRC Real Estate & Investment JSC without State ownership), to renovate and develop Bai Sau at a cost of VND122 billion (US$5.39 million).
Upon completion of the renovation, this company leased the properties and related infrastructural facilities to eight businesses, which in turn sublet them to many tourism companies without signing contracts.
As of December 2017, the total rental unpaid by the said company and its eight sub-lessees had surpassed VND320 billion ($14.13 million).
In September 2018, the provincial inspectors discovered that most of the businesses exploiting Bai Sau had developed illegal and inappropriate construction projects, so they proposed the provincial authorities order the demolition of such works.
|This image shows part of the infrastructural facility at Bai Sau in Vung Tau City, Ba Ria-Vung Tau Province, Vietnam. Photo: Dong Ha / Tuoi Tre|
After many meetings held by agencies concerned of both the province and city to settle the problem, the provincial administration in August last year tasked the People's Committee of Vung Tau City with recalling all the properties for renovation.
The land withdrawal was set to be complete by late 2021, but it has yet to be done so far.
At a recent dialogue with the municipal authorities, some businesses agreed to return their leased land, while others asked for continuous land use for corporate purposes but their request was rejected, according to VnExpress.
The Vung Tau People’s Committee said it would suggest the provincial authorities suspend business activities on the said land lots from February 28 pending the withdrawal.
“Businesses must hand over their leased land to Vung Tau authorities before March 15. Any complaints and questions will be addressed in accordance with the law,” a Vung Tau City leader said.
The collection of the unpaid rental from the nine enterprises is almost impossible because their bank accounts are empty, Tien Phong (Pioneer) newspaper cited its source as saying.
Bai Sau, to southeast of Vung Tau, is the longest beach of the city, with a length of around eight kilometers.
The beach, one of the most beautiful beaches there, houses dozens of luxury resorts and hotels, as well as many modern entertainment facilities.