The Curious Case of Land Auctions on the Outskirts of Hanoi: A Preliminary Report by the Ministry of Natural Resources and Environment.

"Deputy Minister of Natural Resources and Environment, Le Minh Ngan, addressed the media on the 'hot' issue of land auction sessions in Hanoi's outlying districts in August.

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Hanoi land auction

An area of land up for auction in Thanh Cao commune, Thanh Oai district, Hanoi. (Photo: Hung Vo/Vietnam+)

On the afternoon of September 5, in response to Vietnam+ reporters’ questions regarding the unusual high-bidding land auction cases in Thanh Oai and Hoai Duc districts (Hanoi) in August, Deputy Minister of Natural Resources and Environment Le Minh Ngan shared that, after inspecting the situation, the ministry found an overwhelming amount of documents and files related to the land auctions.

The land auctions in Hanoi’s suburbs need to be further scrutinized and carefully evaluated to identify any potential loopholes in the land law.

Timely review and rectification are necessary.

Providing preliminary information about the inspection results of the land auctions in Thanh Oai and Hoai Duc districts (Hanoi) in August, Mr. Chu An Truong – Deputy Director of the Department of Planning and Land Resource Development (Ministry of Natural Resources and Environment) stated that recently, public opinion has been particularly concerned about land auctions with winning bids many times higher than the starting price in Hanoi’s suburbs. Therefore, the ministry considers this issue as necessary for timely review and rectification.

According to Mr. Truong, at the land auctions in Thanh Oai and Hoai Duc districts, the winning bids were significantly higher than the starting prices, which could negatively impact the real estate market in general.

Consequently, the Ministry of Natural Resources and Environment has requested the Hanoi People’s Committee to dispatch an inspection team to examine the auction before the Prime Minister’s directive on August 21. On this basis, on August 23, the ministry’s inspection team, in coordination with the Hanoi Department of Natural Resources and Environment, conducted a surprise inspection to grasp the situation and report on the land-use right auction in Thanh Oai and Hoai Duc districts.

Through the inspection, the team initially found an extensive amount of documents and files related to the auctions, making it impossible to review and scrutinize quickly. In Thanh Oai district alone, there were 4,500 submitted documents for the land auction. The inspection team has requested the local authorities to report and review the documents regarding the auction results.

Mr. Truong believes that issues related to the land auctions in Thanh Oai and Hoai Duc need to be discussed with relevant ministries and sectors. “When the Ministry of Natural Resources and Environment reaches an agreement with the ministries and sectors and reports to the Prime Minister, we will provide comprehensive and detailed information to the press,” Mr. Truong emphasized.

Regarding the organization, Mr. Truong said that Thanh Oai and Hoai Duc districts had been meticulous and mobilized the participation of many agencies and sectors. The forces in Thanh Oai and Hoai Duc had taken action to prevent any adverse events. Therefore, it can be seen that the auction process was well executed.

Deputy Minister Le Minh Ngan

Deputy Minister of Natural Resources and Environment Le Minh Ngan. (Photo: PV/Vietnam+)

 

Mr. Truong, Deputy Director of the Department of Planning and Land Resource Development, added, “The organization was serious and thorough at the local level, and there were opinions that the input price was low, but the price determination needed to be comprehensive at the time of price setting, with a transition between the two laws (Land Law 2013 and Land Law 2024) with many transitional provisions.”

No loopholes in the law have been identified.

Regarding the opinion that the land auctions in Thanh Oai and Hoai Duc districts revealed loopholes in the land law, Deputy Minister Le Minh Ngan affirmed that, up to this point, the Ministry of Natural Resources and Environment has not found any loopholes in the policies related to the aforementioned land auctions.

“To assert the existence of loopholes, we must rely on inspection results, actual implementation, and documents,” Mr. Ngan emphasized. He also stated that, in principle, if any inconsistencies that affect the practical enforcement of the law are found during the inspection and the implementation of the documents, a roadmap for policy adjustment will be considered.

“Currently, regarding the two land auctions in Thanh Oai and Hoai Duc districts, the inspection team of the Ministry of Natural Resources and Environment has only made a preliminary assessment of the initial information and has not worked with the ministries and sectors as requested by the Prime Minister. Solutions regarding policies, implementation, and supervision and inspection will not be provided at this time. We will continue to provide more information when we have all the necessary details,” said Mr. Ngan.

Additionally, Mr. Chu An Truong, Deputy Director of the Department of Planning and Land Resource Development, stated that the organization of land auctions and the determination of starting prices were in the transition between the Land Law 2013 and the Land Law 2024.

“As for whether there are loopholes in the land auctions, there is insufficient basis to make a conclusion. According to legal regulations, the documents have fully stated the method of determining the price,” said Mr. Truong.

However, during the inspection, some localities in Hanoi expressed concerns about whether to halt land auctions. “We do not recommend organizing or not organizing auctions because this is the locality’s authority. We only advise localities to review their auction plans in accordance with regulations,” said Mr. Truong. Localities also need to thoroughly review and comply with the Land Law’s provisions, especially regarding determining the starting price, the method of price determination, and the sanctions for canceling deposits and the inspection process.

Hung Vo

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