Why are there many land-related lawsuits recently?
Regarding this issue, Associate Professor Ngô Trí Long, Vice Chairman of the Scientific and Training Council, Thanh Dong University, said that one of the issues causing many land-related lawsuits is the compensation price for land that is not close to the market price, causing great damage.
“Recently, the state-determined price is about 30-70% of the actual price. Especially urban prices are only equal to 30% of the market price. It is the inadequate compensation that leads to distraction and causes dissatisfaction among the people. On average, out of 100 lawsuits, about 60-70 cases mainly concern land. We need to seriously consider how to compensate for the objects whose land is recovered so that it is close to the market price,” Associate Professor Ngô Trí Long shared.
The 2024 Land Law cancels the land price framework, meaning it removes a thorny issue, avoids lawsuits, ensures social security for the people…(Photo: Văn Ngân)
According to Mr. Nguyễn Văn Đỉnh, a real estate legal expert, there are many legal relationship groups regulated by the Land Law, in which the most important legal relationship group regulated by the Land Law is between land users and the state. Through two main acts, one is transferring land use rights from the state to the people, and the second is reclaiming land from the state.
“Both of these relationship groups are related to land prices. When transferring land to the people, it is also necessary to be closer to the market price, ensuring fairness and equality among land users, avoiding losses. When the state reclaims land from the people, it is also necessary to be close to the market price, ensuring the harmony of benefits between the people and other subjects. The spirit of the 2024 Land Law has moved toward removing the land price framework and pricing land according to the market price, which is considered one of the most important adjustments of this amended Land Law,” Mr. Nguyễn Văn Đỉnh pointed out.
According to Mr. Nguyễn Văn Đỉnh, the group of relationships that reclaim land from the people, the majority are decisions issued by the district-level People’s Committee for individual households. Small-value land plots are usually priced based on the land price adjustment coefficient. There are currently 5 methods of land valuation, and the main method applied in land reclamation is still the method of adjusting land prices by applying the land price adjustment coefficient.
“We have talked a lot about the limitations and drawbacks of this method because we have used local land price tables, which are issued every 5 years and multiplied by the annual land price adjustment coefficient. This method has many shortcomings because the land price table is calculated based on the state land price framework and is controlled by the ceiling and floor levels. The land price adjustment coefficient has not kept up with development. For example, in Ho Chi Minh City, there were years when the land price adjustment coefficient was issued multiple times. Maintaining these methods is considered somewhat outdated compared to the current situation,” Mr. Nguyễn Văn Đỉnh frankly stated his opinion.
The 2024 Land Law removing the land price framework carries great significance
According to Associate Professor Ngô Trí Long, Vice Chairman of the Scientific and Training Council, Thanh Dong University, the 2013 Land Law has a land price framework and a land price table and specific land prices. The essence of issuing the land price framework is to manage land prices in the market, so that localities do not exceed the framework. Within the land price framework, there are floor and ceiling prices. Based on that land price framework, localities issue their specific land prices. Based on that land price framework, they determine related financial obligations.
Mr. Nguyễn Văn Đỉnh – real estate legal expert
“Since the land price framework was issued in the 2013 Land Law until now, it has almost not been adjusted, which is very unusual. The drawbacks have led to many negative phenomena, resulting in corruption, losses… causing large lawsuits. In Resolution 18 of the Central Committee on land management mechanisms, one of the breakthroughs in land management mechanisms is removing the land price framework, which has the effect of removing a thorny issue… It is considered a breakthrough,” Associate Professor Ngô Trí Long shared.
Regarding this matter, Mr. Nguyễn Văn Đỉnh – a real estate legal expert said that for the first time, land price framework was regulated in 1993, and up to now, it has become outdated and does not keep up with the development and the times.
“Removing the land price framework is a very correct policy. It has a certain impact on land finance in the upcoming law. We hope that when land prices are close to the market price, then people have to pay into the budget in line with the market price, no longer suffer loss and waste. When the state reclaims land, it also compensates according to the market price, avoiding lawsuits, social instability, ensuring social security for the people…,” Mr. Nguyễn Văn Đỉnh emphasized.
