The draft law, which was submitted to the National Assembly (NA) for the first time at the sixth meeting session last October, is being voted on at the plenary.

Viet Nam has for a long period experienced an inefficient use of energy and the new law is expected to help stabilise energy supply and help promote efficient and effective use of energy.

"Energy efficient labelling is one of the most effective and practical measures to spread the Government's energy saving message," said deputies Nguyen Danh, from the Central Highland province of Gia Lai, and Tran Van, from southern Ca Mau Province.

They both said that if applied, the labelling would stamp out the sale and use of energy inefficient products and technology as well as reduce energy usage.

Dinh Xuan Thao from southern Kien Giang Province said labelling would encourage and motivate producers to produce better quality products; and compel businesses and importers to promote and distribute more energy efficient models, said Thao.

One of the main reasons for energy inefficiency in Viet Nam is that consumers are receiving poor information about how to choose products and equipment.

"Statistics on the label would guide consumers as to the quality of the products and their energy efficiency," said Thao. "With millions of products and equipment in use, a huge amount of energy would be saved, along with the associated cost savings."

Labelling was one of the most successful and effective measures to increase energy efficiency in countries worldwide, said Thao.

Giving it some teeth

Arguing on how to enforce the law effectively, many deputies said that there should be strict punishments for those wilfully ignoring potential energy savings.

A deputy from southern Bac Lieu Province, Tran Thi Hoa Ry, asked the Ministry of Industry and Trade to co-ordinate with the ministries of Planning and Investment, and Finance to outline a plan and budget to improve technical capacity and facilities for testing labelled products.

Ry suggested the National Assembly Standing Committee add draft regulations encouraging the labelling, and make public the energy efficiency of products and equipment.

"It is necessary to have strict and clear penalties and awards to encourage businesses, organisations and individuals to use energy effectively," said Nguyen Dinh Xuan from the southern province of Tay Ninh. "The Government should invest in and encourage the development of consulting services, promoting and supporting organisations, households and individuals who prove to be energy efficient.

Nguyen Tan Tuan form southern Khanh Hoa said without strict penalties on the management and usage of energy, the country's natural resources would be further wasted and more rapidly exhausted.

Discussing the preserving of natural resources, deputy Nguyen Lan Dung from central Dac Lac Province said the country was currently wasting its natural resources.

Dung said that within an estimated 30 years, the country's oil and gas reserves would be exhausted at the current speed of exploitation. Three hundred million tonnes of the country's 4.3 trillion tonnes of oil and gas reserves had already been used.

Coal reserves are also facing exhaustion, according to Dung who said that the country was expected to export 19 million tonnes of coal this year and import 8 million tonnes in 2012.

Dung and Xuan both suggested that renewable energies should be more widely used to help save oil, gas and coal usage, as well as protect the environment.

Property taxes

In the afternoon, the deputies contributed their ideas for the House and Land Tax draft.

Ha Van Hien, chairman of the NA's Economics Committee said that many people were against the tax on houses and in the current economic conditions, it would be a burden so it should be shelved for the time being.

The draft was to apply to accommodation and non-agricultural land to improve the management of land and houses in Viet Nam.

Most of the deputies agreed that the tax for non-agricultural land would improve the management and use of the land in an effective and fair way.

There were two opposing arguments to the implementation of the tax on houses. Some disagreed, saying it was not a good time to impose a new tax due to difficult economic conditions.

Some deputies also said that the cost of collecting the tax would be greater than that of the tax itself.

Others said that the tax was necessary as it would not only strengthen the management of the real estate market but also prevent people from speculating.

Deputy Tran Du Lich from HCM City said that the law should be designed to stop speculators who use real estate to control society and it would not be a burden on ordinary individuals who only own one property each.

If the law stated that those who owned just one house or piece of agricultural land would not have to pay the tax, the voters would support it.

Agreeing with him, deputies Le Quoc Dung from Thai Binh and Vu Hong Anh from Ha Noi said the real estate market had grown quickly while speculation had pushed prices too high, meaning many people couldn't afford to buy a house.

Explaining the draft, Finance Minister Vu Van Ninh said one of the goals of the housing tax was to limit property speculation and also to control land speculation.

According to the minister, the property's value was always attached to the land it was located on. Many speculators only paid attention to the location of the property, rather than the property itself. To limit speculation, the law should concentrate on controlling land use. A tax on houses would make the situation more complicated, Ninh added.

Some of the deputies asked to add some additional points. For instance, the tax of 0.15 per cent of the value of encroached land was not suitable.

The regulation could create misunderstanding that if the occupiers of encroached land paid a higher tax, they would become the legal owners.

Deputy Trieu Sy Lau from Cao Bang Province said that they should ease the regulation or raise the tax to 0.2-0.3 per cent for encroached land, depending on the location.

Deputy Ngo Van Minh, from Quang Nam Province suggested applying a higher tax on encroached land in urban areas, adding that more details were needed to clarify that the encroached land did not belong to the encroachers despite the higher tax.
Deputies also asked for more exemptions for people such as those who owned historical buildings like nha vuon (house and garden), which were preserved in Hue City. The exemptions would also apply to the poor and heroes of the people's armed forces. However, they would not apply to properties belonging to religious centres which were not used for worship.

Deputy Lich said the compiling board could not calculate the area of unused land and accommodation as well as the number of people in need of accommodation.

He asked the NA to conduct a survey on house ownership as well as supervising the converting of agricultural land to other uses, especially cases of encroachment, and to create a market suitable for the current economic and living standards of the people. — VNS