Unlocking private enterprises’ growth – Article 4: Supporting businesses in land access

Land is one of the essential inputs for investment, production, and business activities. In Hai Duong, an increasingly industrialized province, the business community is placing high hopes on a series of policy changes, including the Politburo’s Resolution 68-NQ/TW and concrete measures from the provincial People's Committee, to address land-related challenges in a more fundamental and practical way.

Despite strong capacity and determination, many private enterprises in Hai Duong province are still struggling to access land for production.

One example is Phu Son JSC. in Phu Thu industrial cluster, Kinh Mon town. After spending hundreds of billions of VND in building an artificial stone factory for export, the company sought to develop a new project to produce artificial sand and quartz powder in 2019. However, the project has yet to launch due to unresolved site clearance issues. The inability to utilize 3 ha of land cost the business a valuable opportunity to expand at a favorable time.

The story of Xuyen Viet Production and Trading JSC. further illustrates the problem. Although their investment plan was finalized at the end of last year, the project has not yet broken ground due to prolonged land-related procedures.

A representative of the company said that small businesses are supposed to handle all site clearance stages on their own, facing high costs and legal risks. “We’re not asking for financial incentives, but clean land and streamlined procedures,” he said.

For micro enterprises, the challenges are even greater. Nguyen Khac Vinh, Vice President of the provincial Association of Veteran Entrepreneurs and Director of Khanh Hoa VN Co., Ltd., noted that most member businesses can only spend a few hundred million to several billion VND. Meanwhile, industrial parks require large lease areas (at least 1 – 2 ha), with investment rates in the millions of USD per hectare. “Establishing industrial clusters in communes where businesses can lease a few thousand square meters would be much more practical,” Vinh suggested.

These obstacles not only waste land resources but also leave businesses with “suspended” projects, negatively affecting the province’s overall investment climate.

Recognizing these challenges, Hai Duong province has taken structured steps to ease the difficulties for businesses.

At the end of 2024, the provincial People’s Committee directed the Department of Planning and Investment (now the Department of Finance) to coordinate with the provincial Industrial Parks Authority in surveying nearly 400 businesses to identify bottlenecks and propose timely solutions. Many of the responses focused on land and investment procedures, prompting relevant departments to suggest appropriate interventions.

Hai Duong is among the pioneers in implementing the 2024 Land Law. Early issuance of guiding documents has helped standardize procedures and reduce risks for investors.

Notably, the province has accelerated the digitization of land data and planning information, enabling businesses to search and submit applications online. This represents a major step forward in making land access more transparent.

Hai Duong is also working hard to resolve site clearance obstacles. The province was among the first to apply the additional support clause under Article 108 of the 2024 Land Law to safeguard the rights of land-reclaimed residents, thus reducing conflict and shortening land handover timelines. Thanks to this, several long-delayed projects have made significant progress.

Hai Duong has publicly announced its socio-economic development plans, land use planning, and enterprise support policies through mass media and online platforms, helping businesses easily access relevant information and align their investment strategies accordingly.

Initial results show positive developments. Hai Duong’s 2024 Provincial Competitiveness Index rose three places, reaching 14th nationwide, the highest ranking ever. This is a promising sign that the province’s investment environment is improving, offering new hope for the business community.

NGAN HANH – THANH LONG