Prime Minister Requests Timely Rectification of Land Use Rights Auction
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The dispatch was sent to the Ministers of Natural Resources and Environment, Construction, Finance, Justice, and Public Security; and the Chairpersons of the People’s Committees of provinces and centrally-run cities.
The dispatch states the following:
On August 21, 2024, the Prime Minister issued Dispatch No. 82/CĐ-TTg, directing localities to timely rectify the auction of land use rights. This has achieved certain results, gradually bringing discipline to the auction of land use rights and contributing to the local budget revenue. However, there are still certain shortcomings and limitations in the organization of land use rights auctions in some localities, such as abnormally high bidding prices, signs of price manipulation, or collusion to manipulate prices for personal gain, causing market disturbances and affecting the healthy development of the real estate market.
To improve the effectiveness of land use rights auctions, contribute to the healthy development of the real estate market, improve the investment and business environment, and promote socio-economic development, the Prime Minister requests the following:
1. The Chairpersons of the People’s Committees of provinces and centrally-run cities shall direct the functional agencies to inspect and rectify the organization of land use rights auctions in their localities, ensuring compliance with the law, transparency, and publicity. Detect and strictly handle violations of the law in land use rights auctions, preventing the exploitation of land use rights auctions for personal gain and causing market disturbances. The following solutions shall be focused on:
a) Publicize land use planning, land use plans, construction planning, and urban planning in the area where the land use rights auction is organized and in neighboring areas. Implement measures to ensure a stable supply of residential real estate, suitable to the accessibility and payment capacity of the majority of people with housing needs, overcoming the imbalance between supply and demand in the real estate market;
b) Before determining the starting price according to the land price frame for the land use rights auction, review, adjust, and supplement the corresponding land price in the land price table at the auction area and location in accordance with the law on land, ensuring that the starting price for the auction is appropriate to the invested infrastructure and the actual land price in the auction area;
c) Direct the construction of a scientific and rigorous land use rights auction plan, with the control of competent agencies, to prevent the exploitation of auctions for personal gain and market disturbances. Pay attention to regulations on shortening the time limit for payment of winning bids, determining a suitable initial payment amount to limit bid abandonment. Instruct the unit assigned to organize the land use rights auction and the asset auction practice organization to select appropriate forms and methods to limit collusion, price suppression, or price manipulation;
d) Review the local land needs, make plans, and invest in infrastructure construction for land areas expected to be organized for land use rights auctions. At the same time, consider arranging suitable land funds for land allocation for resettlement, and for land allocation without going through a land use rights auction for subjects specified in points a, b, c, and d of Clause 3, Article 124 of the 2024 Land Law;
d) Promote the application of information technology and digital transformation in the organization of land use rights auctions to ensure transparency and publicity. Based on the current legal regulations, implement appropriate measures to tightly manage information on the history of auction participation and the flow of money in the payment accounts of winning bidders, especially in cases with abnormal auction behaviors such as one person or a group of people registering for many land lots in the same auction area, abnormally high bidding prices, or winning high bids but abandoning deposits, etc., to limit possible negative phenomena;
e) Take responsibility before the law and the Prime Minister for organizing and implementing land use rights auctions to ensure transparency, objectivity, and the protection of the interests of the State, and the rights and interests of related parties.
2. The Minister of Justice shall coordinate with the Ministers of Natural Resources and Environment, Finance, and Construction, and the Chairpersons of the People’s Committees of provinces and centrally-run cities to urgently review and complete the legal provisions on land use rights auctions. Implement digital transformation in asset auction activities (including land use rights auctions) to ensure comprehensive publicity, transparency, rigor, and science, preventing exploitation during participation and implementation of asset auctions, including land use rights auctions. Supplement sanctions for violations in this field, especially for collusion, price suppression, price manipulation, exploitation, and market disturbances. Also, supplement regulations on restrictive conditions for participation in land use rights auctions for bidders who previously committed violations or intentionally abandoned deposits for personal gain.
3. The Minister of Natural Resources and Environment shall coordinate with the Minister of Justice, the Minister of Finance, the Minister of Construction, and the Chairpersons of the People’s Committees of provinces and centrally-run cities to strengthen inspection and supervision of land use rights auctions in cases with abnormal signs. Timely detect legal inadequacies and advise competent authorities to amend and supplement them accordingly; at the same time, handle violations of the law on land use rights auctions within their competence or propose competent authorities to strictly handle organizations and individuals violating the law on land use rights auctions, especially those who exploit land use rights auctions for personal gain and cause market disturbances. Report to the Prime Minister issues beyond authority.
4. The Minister of Construction shall coordinate with the Minister of Natural Resources and Environment and the Chairpersons of the People’s Committees of provinces and centrally-run cities to study and specifically assess the impacts of the recent land use rights auction results (especially cases with abnormally high auction results, many times higher than the starting price) on residential land prices, housing prices, and the real estate market. Take the initiative in handling within their competence or proposing competent authorities measures to limit negative impacts (if any), contributing to regulating, stabilizing, and promoting the healthy development of the real estate market, and reporting the results to the Prime Minister.
5. The Minister of Public Security shall direct the functional units and local public security forces to proactively grasp the situation, detect, investigate, and strictly handle in accordance with the law, organizations and individuals who violate the criminal law in the field of land use rights auctions.
6. The functional agencies shall direct the units and localities to strengthen the grasp of the situation, timely detect, prevent, and strictly handle violations of the law in land use rights auctions, especially collusion and connivance to suppress or manipulate prices for personal gain, causing market disturbances and affecting the healthy development of the real estate market.
7. Deputy Prime Minister Tran Hong Ha shall directly supervise and direct the implementation of this Dispatch.
8. The Government Office shall regularly monitor and promptly report to the Prime Minister and the Deputy Prime Minister on sudden and unexpected issues.
Prime Minister Orders Ministry of Natural Resources and Environment, Ministry of Construction, Ministry of Public Security to Rectify Land Auction Affairs.
“Vietnam’s Prime Minister Pham Minh Chinh has issued an urgent directive, Dispatch No. 134/CD-TTg, dated December 14, 2024, calling for immediate improvements in the auction of land-use rights by relevant ministries and local governments.”
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