Lawyer Nguyen Van Hau, a member of the Advisory Council on Democracy and Law of the HCMC Fatherland Front Committee, opined that the content of the Draft Amendment to Decision 02 presents land values that are not truly reflective of the current market situation, creating a significant financial burden, especially in the outlying districts. This is due to the high demand for converting agricultural land to residential land.
Social criticism conference on the Draft Amendment to HCMC People’s Committee’s Decision 02, held on August 12th (photo: CTV Hoang Oanh)
Lawyer Hau provided an example of the land price on Ben Van Don Street, District 4, from Cau Dua to Nguyen Tat Thanh, which is currently priced at 24 million VND per square meter and is expected to increase tenfold. This will significantly increase financial obligations related to land, exceeding the affordability of many residents. In the districts of Nha Be, Binh Chanh, Can Gio, and Cu Chi, land prices are also expected to surge, with some areas experiencing a 20-30 fold increase compared to the 2020-2024 applied rates.
On the positive side, higher land prices can lead to fair compensation, support, and resettlement for affected landowners, as well as increased state budget revenues from land. However, this also results in increased compensation costs and site clearance expenses, impacting both public and private investment projects.
Lawyer Nguyen Van Hau, a member of the Advisory Council on Democracy and Law of the HCMC Fatherland Front Committee, expressed his views (photo: CTV Hoang Oanh)
Therefore, Lawyer Nguyen Van Hau suggested continuing to apply the current land price framework as stipulated in Decision 02/2020 of the HCMC People’s Committee until December 31, 2025, in accordance with the 2024 Land Law. This extension would allow time for necessary revisions to the Draft Amendment, ensuring alignment with the actual situation: “It is essential to comprehensively assess the impact of the new land price framework on residents, as it affects multiple stakeholder groups. We need to gather additional feedback from the public and relevant political, social, and professional organizations. This collective input will enable us to determine optimal land prices, ensuring adherence to the principle stipulated in the Land Law and Resolution 18 of the Central Executive Committee, which emphasizes balancing the interests of the State, land users, and investors.”
Concurring with the direction to increase land prices in line with Resolution 18 of the Central Executive Committee in 2022 regarding financial policies in the land sector, Lawyer Truong Thi Hoa emphasized the importance of considering incentives for efficient, effective, and sustainable land use.
Lawyer Truong Thi Hoa suggested a step-by-step approach to adjusting land prices (photo: CTV Hoang Oanh)
She cautioned that if land prices rise too high or deviate from market characteristics, it could negatively impact real estate transactions and create psychological pressure for residents.
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