The 2024 Land Law will be amended to introduce a land price table, which will be issued every five years and include land categories, areas, locations, and annual land price adjustment coefficients.
This information was shared by Mr. Vo Anh Tuan, Deputy Director of the Land Management Department (Ministry of Agriculture and Environment), at a workshop on “Perfecting Land Laws to Create Dynamism for Development in the Digital Age” held by VietTimes in collaboration with the Institute of Strategy, Agriculture and Environment Policy (Ministry of Agriculture and Environment) on August 20.
Mr. Vo Anh Tuan speaking at the workshop
According to the previous regulations in the 2013 Land Law (which expired on July 31, 2024), the land price table was issued every five years. However, Article 159, Clause 3 of the 2024 Land Law stipulates that the provincial People’s Committees shall construct and submit to the provincial People’s Councils for approval of the land price table for the first time, which will be announced and take effect from January 1, 2026. Annually, the provincial People’s Committees shall have the responsibility to submit to the provincial People’s Councils for approval of adjustments, amendments, and supplements to the land price table, which will be announced and take effect from the following year.
However, many opinions state that constructing and issuing the land price table annually, to take effect from January 1 of that year, would require significant resources and time. Mr. Vo Anh Tuan acknowledged this challenge and suggested that localities might struggle to issue the land price table every year.
Therefore, in the draft amendment and supplement to the 2024 Land Law, according to Mr. Tuan, the provincial People’s Council will decide on the land price table periodically every five years, announcing and applying it from the first year of the period. In necessary cases, the provincial People’s Committee will decide to supplement the land price table within the year.
During the process of organizing and applying the land price table, the Government can be flexible and proactive in supplementing cases where the land price table needs to be applied. Localities can also proactively supplement the land price table within the year to meet practical needs.
Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Construction Contractors Association (VACC), also emphasized that if the land price table is issued annually, localities will be preoccupied with determining land prices to meet the deadline, which is impractical. He suggested the option of issuing a five-year land price table with adjustment coefficients. However, he noted that these coefficients should be calculated using scientific methods to ensure appropriateness.
Associate Professor Dr. Nguyen Dinh Tho
Regarding land prices and compensation for site clearance, Associate Professor Dr. Nguyen Dinh Tho, Vice Director of the Institute of Strategy, Agriculture and Environment Policy (MARD), stated that the land prices according to the price table often differ significantly from market prices, leading to inconsistencies in compensation calculations and investment attraction. This is one of the reasons for prolonged disputes and complaints. The new Land Law needs to introduce a mechanism to determine land prices that are more transparent and closer to market prices while minimizing delays in compensation and site clearance.
According to Mr. Tho, the Ministry of Finance needs to determine appropriate coefficients to calculate the financial obligations of the people. This issue is of particular importance as there is a significant gap between the land prices in the government’s frame and the actual market prices.
Associate Professor Dr. Nguyen Dinh Tho cited the example of 2011 when the highest land price in Hanoi and Ho Chi Minh City was set at VND 160 million/square meter. However, by 2019, the market price in the old Hoan Kiem district of Hanoi had reached approximately VND 1.12 billion/square meter, while in some central areas of Ho Chi Minh City, the price was around VND 1.18 billion/square meter.
At the same time, surveys in other areas showed actual land prices ranging from VND 780 million to VND 820 million/square meter. However, when issuing the 2019 land price frame, the government considered factors such as inflation, wage increases, average income per person, and GDP, deciding to adjust the price by no more than 20% compared to 2011. As a result, the maximum land price in Hanoi and Ho Chi Minh City was raised to about VND 192 million/square meter, which is still five to six times lower than the actual market price.
“The significant gap between the land price frame and the market price has directly affected people and businesses. In reality, in Hanoi and Ho Chi Minh City, many households have faced difficulties in changing land use purposes due to high financial obligations calculated based on the land price table. This also puts pressure on production and business costs, affecting livelihoods and the investment environment,” Mr. Tho said.
Therefore, Mr. Tho emphasized the need to pay special attention to land finance policies, ensuring that people’s financial obligations are reasonable and providing support mechanisms for businesses. One of the expected new points is adjusting tax debts to ensure they do not exceed payment capabilities and match production and business conditions.
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