The Government has submitted Document No. 958/TTr-CP to the National Assembly, on "Drafts of Resolutions of the National Assembly stipulating a number of mechanisms and policies to remove difficulties and obstacles in organizing the implementation of the Land Law", to ensure the harmony of interests of the State, as well as land users who are households, individuals, organizations and enterprises.
In particular, there are regulations on applying the Land Price Adjustment Coefficient (called the K coefficient) which is an issue of concern to many people and the business community.
Experts assess that the regulation of applying the land price list multiplied by coefficient K to calculate land use fees and land rents for all cases where the State allocates land, leases land, allows change of land use purpose, and compensation when the State reclaims land will be convenient for localities to immediately decide on land prices to collect financial obligations.
Enterprises can make an advance payment of land use fees and land rents and shorten the time for administrative procedures compared to before.
However, the draft resolution stipulates that "The provincial People's Committee issues a land price adjustment coefficient applicable from January 1st of each year, if necessary, the provincial People's Committee adjusts the land price coefficient for the year or for each location and area for application".
Speaking to Lao Dong Newspaper reporter, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said that this regulation has limitations.
For example, in the case of projects with land recovered by the State and compensation, support, and resettlement for people whose land is recovered, if only compensation according to the land price list will be low. For example, in the case of agricultural land for perennial crops at location 1 in Ward 8, Ward 10, Ward 12 (now Phu Dinh Ward) in Area II, Ho Chi Minh City (old) has a land price according to the land price list of only 0.78 million VND.
However, when implementing compensation for site clearance for the North Bank of the canal project, District 8 (old), the actual approved compensation price was up to 13.578 million VND, a difference of up to 17.4 times (coefficient K at this location of the project is up to 17.4) according to Decision No. 13/2023/QD-UBND dated March 8, 2023 of the Ho Chi Minh City People's Committee.
Or for agricultural land in the old Binh Chanh district with a coefficient of K up to 15-38 times and at the Ring Road 3 project through Thu Duc city (old) the highest coefficient of K is applied up to 37.05.
Therefore, Mr. Le Hoang Chau said that if the regulation on building a coefficient to adjust the coefficient K for each project area is not supplemented, but only for each area as in the draft Resolution, localities will only apply the price list multiplied by the coefficient K to compensate people whose land is recovered. People whose land is recovered will suffer losses, leading to complaints and delays in handing over the site.
Mr. Chau added that in cases where enterprises are allocated land by the State, leased land, or allowed to change land use purposes to implement real estate projects, commercial housing projects, and urban areas, it is also necessary to supplement the regulation on building a land price adjustment coefficient for each project (according to the detailed plan at a scale of 1/500 approved by a competent state agency).
Because the current land price list is built according to existing locations, routes, and land use purposes, it does not stipulate the application of land price adjustment coefficients for real estate projects that have been approved by competent state agencies for detailed planning at a scale of 1/500.
Meanwhile, financial obligations mostly arise when changing land use purposes, changing land use purposes according to planning, converting from agricultural land to non-agricultural land, or from agricultural land to residential land, urban land, from production and business land to residential land...
The Department of Natural Resources and Environment of Ho Chi Minh City has just issued a document requesting communes, wards, special zones, Ho Chi Minh City Tax, basic taxes, Ho Chi Minh City Land Registration Office and relevant agencies to urgently provide land price data for expected routes, routes and resettlement projects to have a basis to propose a land price list applicable on January 1, 2026.
After having the price data, the Department will send the draft of the first land price list to the Vietnam Fatherland Front Committee of Ho Chi Minh City and post it on the Ho Chi Minh City Information Portal for public opinions from agencies, organizations and people.
The Department of Natural Resources and Environment of Ho Chi Minh City will synthesize and send to the Land Valuation Council for comments; send to the Department of Justice for appraisal of legal documents. Then synthesize and report to the Ho Chi Minh City People's Committee with a draft land price list to submit to the Ho Chi Minh City People's Council for consideration and approval.
The Department of Natural Resources and Environment of Ho Chi Minh City proposed that the People's Committee of Ho Chi Minh City approve the development of a land price list according to the shortened order and procedures in Article 50 of the Law on Promulgation of Legal Documents.
