Latest proposal on land price list
According to the latest draft, the Ministry of Agriculture and Environment proposes to amend and supplement Article 159 in the direction of assigning the Government to specify in detail the cases of applying the land price list; regulate the land price list built according to land type, area, location; stipulate that the Provincial People's Council decides on the land price list every 05 years and announces and applies it from January 1 of the first year of the term; if necessary, the Provincial People's Committee decides to supplement the land price list in the year.
"During the process of organizing the application of the land price list, the Government can flexibly and proactively supplement cases that need to apply the land price list; localities proactively supplement the land price list during the year to meet the actual situation" - this Ministry expressed its opinion.
Amend and supplement Article 160 in the direction of not regulating specific land prices; stipulate that the price adjustment coefficient is the rate of increase or decrease in land prices of land types corresponding to the areas and locations specified in the land price list. The land price adjustment coefficient is issued by the provincial People's Committee from January 1 every year; if necessary, amend or supplement the land price adjustment coefficient for the year or for each area to apply.
Reason: To serve as a basis for adjusting land prices in the land price list each year; at the same time, creating conditions for localities to proactively decide to serve the requirements of state management of land prices in the locality.
Amend and supplement Article 161 in the direction of removing regulations related to determining specific land prices, supplementing the Council for appraisal of Land Price Adjustment Coefficients, and assigning the Government to specify in detail this Article.
The reason given is to comply with the lack of specific regulations on land prices as a basis for calculating land use fees and land rents, flexible for the Government in regulating contents related to the Appraisal Council in developing land price lists and land price adjustment coefficients.
Reasons for needing to amend the law
According to the Ministry of Agriculture and Environment, after 1 year of implementing the Land Law, it shows that, in addition to the achieved results, there are still some shortcomings and problems that require continued research, amendment and supplementation of the Land Law.
According to this Ministry, the State, as the representative of land owners, needs to exercise control and decide on land prices. In particular, for the primary market, land prices are decided by the State, not dependent on the results of land price consultation.
For the secondary market for land prices that entities self-agree and decide according to civil law, the State exercises control mainly through planning tools, finance, spatial development orientation and infrastructure.
However, according to current regulations, the State's land valuation in the primary market depends on land prices in the secondary market and the results of land price consulting units, while determining specific land prices is still difficult due to dependence on many factors, the valuation results are not uniform, leading to not properly reflecting the nature of land prices in the primary and secondary markets, not fully promoting the State's decisive and regulating role for land prices in general and land price fluctuations in the market.
This also indirectly affects the progress of land access and investment project implementation, in many cases increasing investment costs, affecting the rights of investors. The most specific determination of land prices is when applying the surplus method for valuation in cases where land plots and land areas for implementing investment projects of organizations still have problems and inadequacies. With this method, the results of valuation depend on the ability to collect information, land use rights transfer price, market rental price, type, and form of business of the organization.
In addition, there are opinions that the Land Law stipulates the application of specific land prices when the State grants land use rights to organizations to implement investment projects, which are still based on land, leading to prolonged time, high investment costs, reducing competitiveness, affecting the investment attraction environment of localities. In addition, risks in determining specific land prices lead to the fear of responsibility of some officials and agencies assigned to perform the task of determining land prices, leading to a prolonged time for determining land prices, affecting the implementation of investment projects.
Therefore, according to the Ministry of Agriculture and Environment, amending and supplementing a number of articles of the Land Law to continue institutionalizing viewpoints and orientations for the Party, while at the same time removing difficulties and obstacles in the process of organizing the implementation of the Land Law is necessary, meeting the requirements of socio-economic development of the country in the current period.
