Challenges in Land Clearance: Agricultural Land Prices Expected to Peak at 290,000 VND/m²

According to the draft land price list, set to be announced and applied from January 1, 2026, Hanoi’s Department of Natural Resources and Environment (DONRE) has proposed dividing land prices into 17 zones following administrative unit rearrangements, rather than calculating by district or ward as previously done.

For agricultural land, DONRE suggests maintaining the current rate of 290,000 VND/m² in central and adjacent areas within the Ring Road 3 (zones 1 to 6). The remaining communes will have rates ranging from 192,000 to 270,000 VND/m², while forest land will range from 43,000 to 86,000 VND/m².

Many argue that the proposed agricultural land prices are unreasonable and detrimental to those whose land is being reclaimed.

Mr. Nguyen Van Tinh, a resident of Thien Loc Commune, Hanoi, believes the proposed agricultural land price is too low. For farmers, land is a vital means of production. Losing it not only impacts their current livelihood but also affects future generations. His family, for instance, once owned five sao (approximately 1,800 m²) of agricultural land, but lost over two sao to reclamation years ago. Currently, they cultivate vegetables on the remaining land, earning about 70 million VND/sao/year, which is just enough for their daily expenses.

However, the local authorities plan to reclaim the remaining land next year for a new project, leaving his family uncertain about their future.

On an adjacent plot, Mr. Nguyen Van Thanh tends to his mustard greens. After recent floods, his family quickly prepared the soil and sowed seeds, and the crop is now nearing harvest.

Despite this, Mr. Thanh is anxious as his family’s remaining two sao of land will soon be reclaimed. While he supports land reclamation for public projects, he hopes agricultural land prices will increase. “Residential land in my area ranges from 50 to 200 million VND/m², depending on location. If agricultural land is only compensated at 290,000 VND/m², it’s disheartening for farmers,” he said.

Will Low Agricultural Land Prices Hinder Land Clearance?

Many believe that low agricultural land prices will complicate land clearance efforts.

Mr. Ta Vinh Khoi, Director of the Project Management Unit in Ha Dong Ward, believes the proposed 290,000 VND/m² for agricultural land in central wards is too low, hindering land clearance for projects. He suggests the city reconsider and increase agricultural land prices, especially in central wards.

Mr. Nguyen Dinh Thuat, Director of the Cultural and Information Center in Dai Thanh Commune, Hanoi, recommends differentiating prices between rice-growing land and land used for high-value crops. Without this distinction, land clearance for projects will face challenges.

Dai Thanh Commune, for example, has nearly 2,000 hectares of agricultural land, mostly used for high-value vegetable cultivation, which is far more profitable than rice farming. This is the primary livelihood for most locals.

However, a new urban development project is expected to reclaim nearly all the commune’s agricultural land. Mr. Thuat believes that increasing agricultural land prices would provide residents with additional funds to transition to new occupations or invest in businesses.

VIC Valuation and Trade Joint Stock Company, responsible for assessing land prices for Hanoi’s 2026 land price list, notes that Hanoi’s ongoing infrastructure and transportation projects require significant agricultural land reclamation. Excessively raising agricultural land prices could strain the budget and drive up real estate prices, complicating market management.