Broadening the Target Group and Increasing the Value of Agricultural Land
At the seminar “New Opportunities in the Real Estate Market” hosted by Dân Việt newspaper today (August 1), Mr. Lê Văn Bình, Deputy Director of the Land Affairs Department, Ministry of Natural Resources and Environment, shared that previously, when discussing real estate, the focus was primarily on residential, industrial, and commercial service real estate.
However, with the 2024 Land Law, the use of agricultural land will receive more attention. Notably, individuals who are not directly engaged in agricultural production will be allowed to acquire rice land through transfer or inheritance.
According to Mr. Bình, in the past, only those directly involved in agricultural production could acquire the right to use rice land. Now, with the new regulation, individuals not directly engaged in agricultural production but with the conditions and ability to cultivate rice will be permitted to acquire the right to land through transfer for investment in production.
The condition for acquiring the land allocation limit is set by the locality. If the limit is exceeded, an enterprise must be established, and a land use plan approved by a state agency.
“As a result, agricultural land will become more valuable. When the 2024 Land Law takes effect, this segment will develop dynamically. The land use rights of farmers will have value, and they will pay attention to investing in land improvement to increase profits. Those acquiring agricultural land will also recognize the value and respect land use rights, seeking ways to invest capital, technology, and techniques to enhance the land’s value,” Mr. Bình assessed.
The 2024 Land Law will attract more investors to agricultural land. Photo: Hồng Khanh
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In a discussion with VietNamNet, Lawyer Trương Anh Tú, Chairman of TAT Law Firm, opined that this new point brings many benefits to the people and Vietnamese agriculture.
“Now, investors who have never farmed can buy land to invest in high-tech agriculture, using modern machinery, equipment, and hired labor for cultivation and crop production. This means that anyone with financial capacity can participate in this field.”
According to Mr. Tú, this will open up new business opportunities, attract investment in agriculture, boost rural economic development, create more jobs, and improve workers’ lives. It will also help optimize the use of agricultural land, preventing land from being left fallow or used inefficiently.
A Vibrant but Unlikely to “Overheat” Market
In fact, during 2020-2022, transactions in agricultural real estate were quite vibrant. Many enterprises and individuals bought agricultural land, including rice land, with the purpose of converting it into residential land, creating a “fever” at that time.
Recently, investors have emerged to buy agricultural land, expecting to anticipate a possible surge in demand, especially with the new laws taking effect from August 1.
A leader of a real estate enterprise shared that in the Northern Delta region, there are not many investors yet. However, in areas with large-scale garden and hilly lands, such as the Central Highlands and some provinces adjacent to Ho Chi Minh City, investors have actively acquired agricultural land.
According to this leader, the agricultural land market will become more vibrant in the future, but it is “very unlikely to have a fever in agricultural land.” The new regulations only create favorable conditions for farmers and are suitable for enterprises investing in agriculture. For those who buy agricultural land and wait for a change of purpose to divide and sell land, it is very difficult to implement.
“With strict conditions for changing the purpose, along with regulations on revocation, once investors buy agricultural land, they must calculate to put it into use. Leaving it fallow for a long time will face many risks.”
In reality, after the previous fever, agricultural land prices in many areas have increased significantly, so it is difficult to meet expectations in the short term. Investors need to have a long-term vision of 3-5 years,” he advised.
Regarding the conversion of agricultural land use purposes, Deputy Director of the Land Affairs Department, Lê Văn Bình, emphasized that it must comply with the planning and adhere to the criterion of maintaining more than 3 million hectares of rice land to ensure national food security.
“The national planning allocated to the localities must respect and maintain this criterion. The rest can be flexibly converted to annual crops, aquaculture, or changed in crop and livestock structure according to the law,” said Mr. Bình.
Hồng Khanh
