Vice Chairman of the Ho Chi Minh City People’s Committee, Mr. Bui Xuan Cuong, has reported to the municipal People’s Council on the progress and contents related to the amendment and supplementation of Decision No. 02/2020/QD-UBND (dated January 16, 2020) on the land price table.
According to the report, the Ho Chi Minh City People’s Committee affirmed the necessity of issuing an adjusted land price table to be applied during the transitional period until December 31, 2025, as stipulated in Article 257, Clause 1 of the 2024 Land Law. This move has received the consensus of the Municipal Party Committee on August 31.
Additionally, at a meeting chaired by the Ministry of Natural Resources and Environment on September 10, with the participation of the National Assembly’s Economic Committee and relevant ministries, such as the Ministry of Finance, Ministry of Justice, Ministry of Construction, and Ministry of Planning and Investment, the Ho Chi Minh City People’s Committee also reiterated the urgency of issuing the adjusted land price table.
Ho Chi Minh City People’s Committee will issue the adjusted land price table before October 15. (Illustrative image)
According to the Ho Chi Minh City People’s Committee, the process of formulating the new land price table complies with the proper sequence and procedures for issuing legal documents. The steps for making proposals, drafting, consulting, and appraising the draft decision to replace Decision 02 have been thoroughly carried out. The Department of Natural Resources and Environment has incorporated the contributions from relevant parties into the final draft.
It is expected that by September 30, the Department of Natural Resources and Environment will complete the dossier to submit to the Ho Chi Minh City Land Price Appraisal Council.
Before October 10, the Appraisal Council will hold a meeting to officially appraise the draft decision.
If all goes according to plan, before October 15, the City People’s Committee will issue a decision to amend and supplement Decision No. 02/2020/QD-UBND on the adjusted land price table.
According to the Ho Chi Minh City People’s Committee, the land price table under the 2013 Land Law in the city was issued under Decision 02/2020/QD-UBND dated January 16, 2020, by the City People’s Committee, with a maximum price of VND 162 million/sq.m, as stipulated by the Government in Decree No. 96/2019/ND-CP.
Therefore, the price table under Decision 02/2020/QD-UBND had to inherit the land price of 2014, which was issued under Decision No. 51/2014/QD-UBND dated December 31, 2014, by the City People’s Committee. As a result, the land price table in the city has remained unchanged for ten years and has not been adjusted to match the actual land prices in the area.
Moreover, there are numerous public investment projects in the city that involve compensation, support, and resettlement components. In the last five years, the People’s Committees at all levels have approved numerous land price frameworks to calculate compensation payments for state land recovery and land use fees at resettlement areas for those eligible for land compensation and those allocated residential land in resettlement areas.
However, the land price table issued under Decision No. 02/2020/QD-UBND by the Ho Chi Minh City People’s Committee has not been updated with the approved resettlement land prices and specific land prices up to now.
Therefore, if the current land price table is used until December 31, 2025, there will be a lack of land prices in the table to serve as a basis for calculating land use fees for those allocated resettlement land in the city.
In addition, the 2024 Land Law does not stipulate the application of the method of using land price adjustment coefficients to determine specific land prices for land plots with values in the land price table below VND 30 billion, unlike the 2013 Land Law and Clause 18 of the Government’s Decree No. 44/2014/ND-CP.
According to Point d, Clause 6, Article 158 of the 2024 Land Law, the method of using land price adjustment coefficients is only “applied to determine the specific price for calculating compensation when the State recovers land in cases where multiple adjacent land plots are recovered, with the same land use purpose and land prices stipulated in the land price table but do not meet the conditions for applying the comparison method.”
Hence, the Ho Chi Minh City People’s Committee asserts the necessity of adjusting the land price table stipulated in Decision No. 02/2020/QD-UBND dated January 16, 2020.
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