The 2024 Land Law, effective from August 1, 2024, has revealed a number of shortcomings related to land use planning, land recovery, land allocation, and completion of land database, especially the issue of land valuation and state management of land prices.
Therefore, the amendment of the law is being proposed and is expected to be submitted to the National Assembly for consideration and approval to suit the practical situation.
Regarding land prices and land valuation, according to economist Vu Dinh Anh, if we continue to maintain the viewpoint of "land valuation close to market price", we will not be able to fundamentally solve the problem.
Instead, it is necessary to affirm the principle: Land valuation must follow market mechanisms, while building an objective, transparent, and professional land valuation market.
Also related to this content, the Vietnam Valuation Association has just issued an Official Letter of recommendation on land price policy when amending and supplementing a number of articles of the Land Law.
Accordingly, the Association recommends the need to consistently follow the principle of the State valuing land according to market mechanisms.
When determining land use rights as goods purchased and sold under this mechanism, of course, it must operate according to the market economy mechanism.
At this time, prices are considered the central range of the market, must be formed and mobilized according to objective signals of economic laws of prices. Therefore, prices, regardless of the authority to decide on prices, including the State, need to comply with this principle. That is an objective requirement of the market price mechanism.
According to the Vietnam Valuation Association, land prices have the function of synthesizing the major economic and social relations of the economy, considered a "screening mirror" of the land market, prices honestly reflecting the market.
Therefore, land valuation cannot be based on market signals that are interrupted or affected by individual factors, unreasonable sudden factors for valuation such as speculation, price inflation, natural disasters, conflicts, economic - financial crises and unreasonable barriers of the market... but must be a market that regulates and excludes the above factors through the tasks of regulatory tools and measures: Funds - Supply, finance - currency.
While the market still has the potential for the above factors, to evaluate according to market principles, the Vietnam Valuation Association recommends that the State should allow reviewing and supplementing current regulations so that valuation institutions have specific criteria to select input for popular valuation methods that are not individual and cannot eliminate the above market instability factors.
The Valuation Association believes that when implemented according to the market price principle, it is necessary to be consistent so that prices reflect market prices under the influence of supply and demand.
Land prices according to the market will certainly have a strong impact on the ability to access land of many subjects in all walks of life. These are real impacts if there is no policy to limit these impacts.
Therefore, the Vietnam Valuation Association recommends: The Law and legal guidelines need to allow the addition of more reasonable financial policies and incentives than before to avoid causing "shocks" that have adverse impacts on people's lives.
