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The Power of Words: Crafting a Compelling Title for “Pilot Project on Commercial Housing from Land Use Rights”

8 November, 2024

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Presenting the Report at the meeting, Minister of Natural Resources and Environment (MONRE) Do Duc Duy stated that the resolution is designed to permit the pilot implementation of commercial housing projects through agreements on receiving land-use rights or currently holding such rights.

Minister of Natural Resources and Environment, Do Duc Duy, presents the Report

The resolution will facilitate land users and investors in taking the initiative in implementing commercial housing and urban development projects. It will also reduce administrative intervention, limit the occurrence of administrative procedures, cut compliance costs, and minimize instances of land reclamation by the state, which often leads to complaints from citizens. These collective efforts will contribute to the country’s urbanization process and address the housing needs of the people.

According to the MONRE Minister, the Government proposes a nationwide pilot for the following cases: Organizations trading in real estate receiving land-use rights; Organizations trading in real estate currently holding land-use rights; Organizations trading in real estate currently holding land-use rights and receiving land-use rights; and Organizations trading in real estate established by land-using organizations to implement commercial housing projects on the area of the facility that needs to be relocated due to environmental pollution or in accordance with construction planning and urban planning.

Chairman of the Economic Committee, Vu Hong Thanh, presents the Verification Report

Presenting the Verification Report, Chairman of the Economic Committee, Vu Hong Thanh, expressed the Committee’s agreement with the necessity of constructing the resolution as stated in the Government’s Report.

At the same time, the Government was requested to provide a detailed and comprehensive assessment of the practical situation regarding the development of commercial housing, the effectiveness of utilizing the land fund for commercial housing development in the provinces and centrally-run cities, and an evaluation of the current state of land speculation. Additionally, they were asked to propose solutions to limit the negative impacts of the pilot implementation.

Regarding the conditions for implementing commercial housing projects through agreements on receiving land-use rights or currently holding such rights, the Economic Committee asserted that the Land Law has already stipulated the conditions for exercising the rights of land users. These conditions are particularly stringent when it comes to receiving and transferring land-use rights for different types of land. The draft resolution’s provisions may create a legal corridor parallel to the Land Law’s regulations regarding land for commercial housing investment during the pilot period, potentially leading to contradictions and overlaps with provisions related to forestry, national defense, security, and religious beliefs.

The Economic Committee suggested scrutinizing, studying, and specifically identifying the types of land for implementing commercial housing projects. They also recommended clarifying the application of the pilot mechanism to the conditions for receiving land transfers for various types of land stipulated in the Land Law and exploring the possibility of basing the pilot conditions on the timing of receiving land-use rights (or currently holding such rights) before and after the resolution takes effect.

Furthermore, the Committee proposed studying the addition of principles to ensure the maintenance of 3.5 million hectares of rice land and a stable forest coverage rate of 42%.

Some opinions suggested the need for stringent regulations regarding adjustments to the district-level land-use planning related to the pilot implementation area. Other opinions recommended that the Government, People’s Committees at all levels, and relevant authorities be assigned to tightly control land-use planning adjustments for residential land and be held accountable for any land accumulation and planning adjustments that may occur.

Several members of the National Assembly Standing Committee emphasized the necessity for the Government to provide additional information and conduct a more thorough assessment of the status quo and the implementation of commercial housing projects. They also suggested analyzing the main shortcomings and challenges faced by localities to devise appropriate pilot solutions that effectively address existing problems and prevent land speculation or “project favoritism.”

Regarding the scope of the pilot, the drafting agency was requested to report and clarify the appropriateness of the pilot scope in urban areas and planned urban development areas nationwide.

Vice-Chairman of the National Assembly, Nguyen Duc Hai, concludes

Concluding the discussion, Vice-Chairman of the National Assembly, Nguyen Duc Hai, stated that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration and decision on the pilot implementation of commercial housing projects through agreements on receiving land-use rights or currently holding such rights to institutionalize the Party’s policies.

The National Assembly Standing Committee requested that the Government take on board the opinions and complete the dossier for the draft Resolution. The Economic Committee will then conduct an official verification and submit it to the National Assembly for consideration and decision.

Tung Phong