The Ministry of Agriculture and Environment is seeking opinions on the draft Law amending and supplementing a number of articles of the 2024 Land Law. The draft consists of 68 clauses.
In the draft submission, the Ministry of Agriculture and Environment proposed to amend Article 158. Specifically, Clause 40 of the draft states that land valuation must ensure 4 principles: Ensuring the role of owner representative and the State's right to decide on land prices; the results of determining land prices according to land valuation methods are documents for the State to refer to when deciding on land prices; comply with the correct order and procedures for land valuation; ensure compliance with state management requirements and the actual situation of the locality.
Thus, the new point in the draft is that land valuation no longer has "market principles". Instead, valuation must ensure the role of owner representative and the State's right to decide on land prices. The results of determining land prices according to land valuation methods are documents for the State to refer to when deciding on land prices.
Dr. Tran Xuan Luong - Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation - said that many people are currently rushing to consider the price formed from a few auctions as "market price". According to him, market prices must truly be formed over time, as a crystallization of labor, real value, use value, cash flow and income generated by land. That price needs to reflect the ability to pay of the majority of people, not just a small group of investors. Currently, land is being miscalculated in nature and role when it is no longer considered a means of production but is likened to diamonds and rare goods, leading to market distortation.
Mr. Luong emphasized that a price that most people cannot access or exploit the value of using cannot be called a true market price.
Speaking with Lao Dong, lawyer Pham Thanh Tuan (Hanoi Bar Association) - said that according to the provisions of Point a, Clause 1, Article 158 of the 2024 Land Law, the principle of determining land prices is "according to market principles". On that basis, the Law has introduced valuation methods to approach actual market value.
However, determining land prices according to market principles is still a big challenge in practice because land prices always tend to fluctuate and be unstable, especially in areas with fluctuations in planning or infrastructure; Input data for valuation often relies on past transaction information (for example: land prices of neighboring projects, previously implemented), leading to the use of old data to estimate future value. This approach is passive and easy to follow the market, but does not fully reflect the economic nature of land prices at the time of valuation.
In the Draft Land Law (amended in 2025), there has been a step to adjust the approach to determining land prices by distinguishing between two types of prices.
Accordingly, land price in the primary market - the price when the State allocates land, leases land, permits change of land use purpose or recognizes land use rights. This type of price is decided by the State, not dependent on the relationship of supply and demand in the market. Its main role is to be a tool for macro-regulating, orienting, stabilizing and controlling the land market.
Land price in the secondary market is the price agreed upon by the parties (individuals, organizations) in land use rights transfer transactions. This price operates according to market mechanisms, and is subject to indirect regulation through fiscal instruments such as taxes, fees, charges, etc.
Lawyer Pham Thanh Tuan commented that this is a new approach to economic theory, creating room for the State to determine primary land prices at a more reasonable level, thereby reducing input costs for investors, contributing to stabilizing and lowering real estate prices at the initial development stage. However, whether or not land prices in the secondary market (where people trade with each other) decrease depends on many other factors such as interest rates, supply, market sentiment and the macroeconomic situation.
