Dear Deputy Minister, after the 2024 Land Law comes into effect, some localities still have difficulties in applying the land price list. What is the opinion of the Ministry of Natural Resources and Environment on this issue?
- There are still some localities that are slow in developing and issuing documents under their authority and preparing conditions for implementation, including problems related to adjusting the Land Price List according to regulations in Clause 1, Article 257 of the 2024 Land Law ...
Reviewing and adjusting the Land Price List is necessary, an opportunity and a condition for localities to narrow the gap between land prices in the current Land Price List and the actual land price level in the locality. At the same time, step by step to build the Land Price List according to the 2024 Land Law to apply from January 1, 2026, avoiding the shock of sudden price increases in the Land Price List affecting the rights and obligations of land users, leading to reactions from people and businesses.
For provinces and centrally-run cities that have not made timely adjustments, the land prices in the Land Price List have a large difference compared to the actual land price in that locality. Are there any problems in the implementation process, Deputy Minister?
- In case the adjusted Land Price List has a big change, a sudden increase, a huge difference compared to the current Land Price List, it will lead to a reaction from affected subjects such as people, businesses using land... because the amount of money that people and businesses have to fulfill financial obligations will increase dramatically compared to when applying the current land price list of that locality.
In case the locality does not adjust the Land Price List but uses the land price in the current Land Price List as the starting price for auctioning land use rights, there will be a huge difference between the starting price and the actual land price in the locality, leading to the land price in the auction result being very different from the starting price, creating sudden and unusual changes.
On the other hand, because the land price list is not adjusted too low compared to the actual land price in the locality, it may cause loss of revenue to the state budget.
In both cases of not promptly adjusting the Land Price List or adjusting the Land Price List to a suddenly high level, it leads to mixed reactions, lack of consensus in public opinion, potential risks of exploitation for profit, market disruption, impact on economic development, social security, and impact on the investment and business environment...
What is the cause of the above situation and what is the solution to this situation, Deputy Minister?
Firstly, the current Land Price List is built and issued according to the provisions of the 2013 Land Law and its implementing documents, which are controlled by the Government's land price framework (which has been removed in the 2024 Land Law). Especially during the implementation of the land price list, some localities have not promptly monitored the common land price fluctuations in the market to adjust the land price list to suit the actual situation in the locality, so the land price in the land price list in some localities is much lower than the actual land price in the locality.
The second reason is that when developing the Land Price List, if the advisory agency has not conducted a comprehensive and complete survey and assessed the impacts, and has not had a roadmap suitable to the actual conditions in the locality when drafting the adjusted Land Price List, there will be a huge difference compared to the current Land Price List.
Therefore, during the implementation process, it is necessary to analyze and evaluate the results of the implementation of the current land price list, consider the land price in the land price list compared to the local land price level; assess the impact of the draft land price list on the applicable subjects, have a suitable roadmap, an increase appropriate to each area, location, land type, organize to collect opinions from relevant agencies, organizations and individuals to synthesize, absorb, fully explain, limit the large difference in financial obligations that land users must fulfill, ensure the consensus of the appraisal agency and the affected subjects, limit negative reactions and lack of consensus in society.
Thank you very much, Deputy Minister!