Optimizing Land Use Rights Auctions: A Directive from the Prime Minister

A dispatch was sent to the Ministers of Natural Resources and Environment, Construction, Finance, Justice, and Public Security; as well as the Chairpeople of the People’s Committees of provinces and centrally-run cities, stating the following:

Recently, the Government and the Prime Minister have directed and issued documents detailing the implementation of the 2024 Land Law, which took effect on August 1, 2024. These documents include regulations on land use rights auctions. While some localities have successfully organized land use rights auctions, contributing to local budget revenues, there have been cases where the winning bid was several times higher than the starting price, including abnormally high bids that have attracted significant public attention and could impact socio-economic development, the business and investment environment, and the housing and real estate market.

To enhance the effectiveness of land management and promote a healthy real estate market, thereby fostering socio-economic development, the Prime Minister requests the following:

1. Chairpeople of the People’s Committees of provinces and centrally-run cities shall direct relevant agencies and units to review and ensure that land use rights auctions within their respective localities are conducted in accordance with the law, with transparency and publicity. Any violations of the law in land use rights auctions shall be promptly detected and strictly handled, preventing any attempts to take advantage of land auctions for personal gain and causing market disturbances.

2. The Minister of Natural Resources and Environment shall coordinate with the Ministers of Justice, Finance, and Construction, as well as the Chairpeople of the People’s Committees of provinces and centrally-run cities, to urgently inspect and review land use rights auctions with abnormal signs. Violations of the law shall be handled according to their authority, and any legal shortcomings shall be identified and proposed to the competent authorities for amendment, adjustment, or supplementation. A report on the handling of violations and proposals to prevent exploitation and stabilize the market shall be submitted to the Prime Minister before August 30, 2024.

3. The Minister of Construction shall coordinate with the Ministry of Natural Resources and Environment and the People’s Committees of provinces and centrally-run cities to assess the specific impacts of recent land auction results, especially those with abnormally high bids, on land and housing prices, the housing and real estate market (supply and demand), and propose corresponding solutions or limitations to negative impacts (if any), reporting to the Prime Minister.

4. Relevant agencies and units shall enhance their grasp of the situation, promptly detect, prevent, and strictly handle any violations of the law in land use rights auctions, especially collusion and market manipulation to create an unhealthy and unrealistic market for personal gain.

5. The Ministers of Natural Resources and Environment, Construction, and Finance shall promptly guide and organize training for localities on the new policies of the Land Law, Housing Law, and Real Estate Business Law, as well as the tasks directed by the Prime Minister in Official Dispatch No. 79/CD-TTg dated August 13, 2024.

6. Deputy Prime Minister Tran Hong Ha shall directly oversee the implementation of this dispatch.

7. The Government Office shall regularly monitor the situation and promptly report to the Prime Minister and the Deputy Prime Minister on any sudden or urgent issues./.