After land acquisition, compensation and land clearance, the investors shall sign a land lease contract with local government with preferential land rent. Details are as follows:

Define land rental rates

1. For cases of land lease with annual rent payment, the annual land rental per meter square is 1.5% of the land value which is issued by provincial People's Committee in accordance with the purpose of land use (“Land Value”).

2. For cases of land lease with lump sum payment for lease term, the payable land rental is equal to the payable land use fee for land with the same location, use purpose and use term. In detail: land rental is equal to Land Value which remains in effect at the date of decision on land lease or the date of actual land handover for the case that the date of land handover does not, in fact, consist with one specified in the decision on land lease. In case the Land Value does not match with the actual market value of land use right transfer under normal conditions, it shall be adjusted based on such actual market value.

o For the project with registered land lease term of 70 years, land rental is result of Land Value multiplied by area of leased land.
Land rental for 70 years = Land Value * Area of leased land

o For the project with registered land lease term of les than 70 years, investor shall be entitiled a deduction of 1.2% of the land rental for 70 years multiplied by number of years without land lease.
Land rental for x years = Land rental for 70 years -[ Land rental for 70 years * (70 – x) *1,2%]