On September 10, Deputy Minister of Natural Resources and Environment Le Minh Ngan chaired a meeting with ministries, branches, the People’s Committee of Ho Chi Minh City, and related agencies to discuss coordination in addressing the city’s challenges in applying the land price table according to the 2024 Land Law.
Vice Chairman of the Ho Chi Minh City People’s Committee, Mr. Duong Ngoc Hai, stated that the city considers the adjustment of the land price table a significant issue as it affects a large number of people and the city’s socio-economic development. The city also recognizes the need to adjust land prices to match the local reality.
Ho Chi Minh City needs to develop an adjusted land price table, valid until the end of 2025, as the previous land price regulations have become outdated compared to the actual land prices. (Photo: Luong Y)
The city has been very cautious and thorough in its assessment of the impact, ensuring compliance with regulations. They are seeking feedback from ministries, branches, and experts to ensure that the adjustments do not significantly affect the people and businesses.
According to the Ho Chi Minh City People’s Committee’s report, Clause 1, Article 257 of the 2024 Land Law stipulates that the land price table issued by the provincial People’s Committee according to the 2013 Land Law will be applied until December 31, 2025. If necessary, the provincial People’s Committee can decide to adjust the land price table according to this law to match the local land price reality.
In Ho Chi Minh City, before August 1, 2024, the land price table was applied according to Decision 02/2020 of the City’s People’s Committee. However, the construction of this table was limited by the regulations on the land price frame, which is no longer suitable and does not reflect the local reality.
Annually, the Ho Chi Minh City People’s Committee applies adjustment coefficients to land prices for different groups of subjects, areas, and land use purposes to align with the financial obligations related to land in the area.
However, as the 2024 Land Law does not provide for the application of land price adjustment coefficients, the application of the land price table after August 1 would be disadvantageous to the people. The city recognizes the necessity of constructing a land price table to gradually move towards market prices.
Therefore, the Ho Chi Minh City People’s Committee has directed the relevant departments, sectors, and units to urgently coordinate and adjust the land price table according to the 2024 Land Law. The draft is currently being discussed by the City People’s Committee and the Municipal Council to collect feedback from delegates and through dialogues and consultations with agencies, organizations, and people.
According to the draft of the adjusted land price table being developed by Ho Chi Minh City, many streets and areas will see price increases of up to several dozen times compared to the prices applied before August 1, 2024. (Photo: Luong Y)
However, Ho Chi Minh City is facing challenges in resolving financial obligations during the transition period from August 1 to the time the adjusted land price table is issued… The tax agency reported over 8,800 pending land tax dossiers since August 1.
Deputy Minister Le Minh Ngan requested the ministries and branches to provide opinions on the necessity of adjusting land prices, how to adjust them, the timing of the adjustment, and the contents proposed by the Ho Chi Minh City People’s Committee. This information will be synthesized and reported to the Prime Minister.
Deputy Minister Le Minh Ngan also agreed that Ho Chi Minh City needs to urgently develop and issue an adjusted land price table. During this process, the city should consider and evaluate the land prices in the table compared to the local price level. Simultaneously, they should assess the impact on the affected subjects and ensure a balance of interests without adversely affecting the people and businesses.
The Ho Chi Minh City People’s Committee needs to closely follow the conclusions of the Municipal Party Committee Standing Committee on this issue and comply with the procedures stipulated in the Government’s Decree 71/2024 on land prices and practical conditions in the locality.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), who attended the meeting, said that the delegates agreed with Ho Chi Minh City’s application of the adjusted land price table from now until December 31, 2025.
However, the construction of the adjusted land price table must comply with the procedures and processes stipulated in the Land Law to set appropriate prices for different areas and locations, matching the local reality.
Regarding the 8,808 pending tax dossiers related to real estate accumulated since August 1, 2024, in Ho Chi Minh City, Mr. Chau said that the representatives of the relevant ministries and branches requested the tax agency to apply the “principle of applying the law.” In other words, the dossiers received at any given time should be processed according to the legal provisions in force at that time.
