Currently, our company is allowed subleased suppliers with an area of 2500m2, confirmed in the Investment Certificate and was applied to Sungho VN Co., Ltd. for renting a part when investing in Vietnam. Our company has received notice from the Management Board of Industrial Zones for some reason cannot register the lease extended further with the current situation, and for reasons outlined below, suppliers who cooperated with our company received the notice that they could not proceed with procedures for establishing the company.
Not completed procedures on red books
Not completed ownership of the works
According to the Management Board of Industrial Zones, after our company has completed procedures for red book, ownership of works and related land lease, suppliers who support our company can conduct procedures for company establishment. However, after completing procedures for red book, it takes at least 2 months to complete procedure of ownership and leasing, making it difficult for businesses to cooperate (supplier) invest urgently in Vietnam. At the same time, some cooperative businesses are expected to start construction in the 4th quarter of this year and are expected to complete the second molding plant in the 4th quarter of 2018. In this case, according to conditions of the Management Board of the Industrial Zones, after completing the formalities for ownership of the second molding plant, reality will interfere and partially disrupt our production plan schedule, as well as influencing plans and automotive partners around the globe and would cause tremendous damage to business activities of Vietnam in the future.
We also asked for installation of water system and an independent utility on the leased area but the actual situation has not improved.
The Management Board of Industrial Zones responded:
Regarding to the question of Castec Vina Co., Ltd, the Management Board responds as follows:
- For 2.500 m2 warehouse area for rent that Company registered:
On February 15th 2016, Castec Vina Co., Ltd has subleased factory to Sung Ho Vietnam Co., Ltd with an area of 1.680m2 to carry out core modling, metal shell projects. Therefore, Castec Vina Co., Ltd is only allowed for partner businesses to lease the factory with the remaining area of 820 m2.
- For the area of factory for rent expected to register additional increase:
Pursuant to Article 9 of the Law on Real Estate Business No.66/2014/QH13, by the National Assembly of the Socialist Republic of Vietnam, session XIII, at its 8th session on November 25th 2014 states:
Houses and construction works to be put into operation must meet the following conditions:
- Registered the ownership of houses or construction works attached to land in the certificate of land use rights. For houses and construction works available in real estate investment projects, only a certificate of land use right shall be required in accordance with the law on land;
- No disputes over the ownership of land use rights, houses or construction works attac
- No distraint to secure the judgment execution.
Therefore, Castec Vina Co., Ltd. must complete legal procedures to be granted the certificate of ownership of factory works before registering additional increase factory area rental and lease to other partners to implement new projects in accordance with current regulations.
- In case the Company plans to build and complete the 2nd molding plant in quarter 4 of 2018, at the same time, business partners will be re-rented at the same time when the certificate of ownership is not granted:
To timely disassembly, support to solve difficulties for businesses, The Management Board of Binh Duong Industrial Zone will consider approving each specific case according to project implementation schedule registered by the appropriate business partner with the actual situation in accordance with current law.