A seaside resort in Da Nang. Photo by VnExpress/Nguyen Dong
Rents for coastal land in the central city of Da Nang have risen, leaving many companies that lease them in dire financial straits.
Nearly 300 of them, mainly from seaside resorts, saw their bank accounts frozen by the authorities after failing to pay their rents, which they said had become unaffordable.
Le Minh Kha, deputy general manager of Thien Thai Hotel and Tourism Joint Stock Company, which owns the Ariyana Convention Center on Vo Nguyen Giap Road, said the rent for its 22 hectares was only VND2.4 billion ( 100,000 dollars) in 2007, but increased to 121 billion VND last year.
At the current rate, the company would have to pay nearly VND5 trillion for the land during the 37 years of lease, he said. “Land rents are unreasonable and companies cannot continue to do business.”
Nguyen Manh Trung, general manager of Sao Viet Non Nuoc Company, which owns Melia Da Nang Resort, said the rents are too high because they are based on rates from 2019, when the real estate market was at its peak.
Land prices increased by 300-400% during the boom period.
Many businesses have asked municipal authorities to use old ground rents and unfreeze their bank accounts.
The latter promised to discuss it with the petitioners.