The Ministry of Agriculture and Environment is submitting a dossier for appraisal of the draft Resolution of the National Assembly regulating a number of mechanisms and policies to remove difficulties and obstacles in organizing the implementation of the Land Law.
Article 8 of the draft on land price list is proposed as follows:
The land price list is applied to calculate land use fees, land rents when the State allocates land, leases land, permits change of land use purpose, recognizes land use rights, calculates taxes, fees, charges related to land use, exercises the rights and obligations of land users towards the State, compensation when the State reclaims land.
The land price list is built according to land type, area, location. For areas with digital cadastral maps and land price databases, a land price list will be built for each plot of land.
The People's Council at the provincial level decides on the land price list every 5 years, announcing and applying it from January 1, 2026; amending and supplementing the land price list when necessary.
For cases of applying specific land prices according to the provisions of the 2024 Land Law but by the effective date of this Resolution, the competent authority has not issued a decision on specific land prices, it shall comply with the provisions of this Resolution.
In case the effective date of this Resolution does not have sufficient grounds to calculate land use fees, land rents, and land compensation as prescribed in Clauses 1, 2, and 3, Article 6 of this Resolution, specific land valuation shall be carried out according to the provisions of the 2024 Land Law.
For cases specified in Point b, Clause 3, Article 33 of the 2024 Land Law that require calculation of land use fees and land rents that have been exempted or reduced, the land price will be calculated according to the land price in the land price list at the time of issuance of the decision on land allocation, land lease, and permission to change land use purposes.
Article 7 of the Draft also stipulates the principles of land valuation, time of information collection, and land valuation methods as follows:
Land valuation must ensure the following principles:
Land valuation method according to market principles.
Comply with land valuation methods, procedures, and order.
Ensure honesty, objectivity, publicity, and transparency.
Ensure independence between the consulting organization for determining land prices, the Land Price List Appraisal Council, the appraisal of land price adjustment coefficients and the competent authority or person deciding on land prices.
Ensure the harmony of interests between the State, land users and investors.
Input land price information specified in Points a, b and c, Clause 3, Article 158 of the Land Law is information formed within 24 months from the time of building the land price list, the land price adjustment coefficient is and shall be used earlier.
Land valuation methods according to Government regulations.
Explaining the amendment of some regulations on land prices in the Land Law, the Ministry of Agriculture and Environment said that the State, as the representative owner of land, needs to exercise control and decide on land prices.
However, according to current regulations, the State's land valuation when allocating land, leasing land, allowing the change of land use purpose depends on land prices according to the 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 inconsistent, leading to a failure to accurately reflect the nature of land prices on the market, not fully promoting the State's decisive and regulating role for land prices in general and fluctuations in land prices on 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. In fact, the land use rights market often has increased fluctuations, even sudden increases and lack of stability. In addition, determining price fluctuations is entirely based on past data, not accurately reflecting the actual added value of land in the future.
Some opinions say that the 2024 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, and 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, it is necessary to have research and adjustments to ensure feasibility.
