On November 19th, the National Assembly held group discussions on a draft resolution outlining mechanisms and policies to address challenges in implementing the Land Law. Many delegates expressed concerns about land pricing, land use conversion fees, and additional cases for state land reclamation.
Tax Calculation Upon Purchase
During the Ho Chi Minh City group discussion, Delegate Nguyen Van Loi, Head of the Ho Chi Minh City National Assembly Delegation, highlighted a significant issue regarding land use conversion fees. He argued that most land owned by citizens is inherited from ancestors and has been passed down through generations. However, when converting land use, they face exorbitant fees, akin to “repurchasing their own land.” He proposed that residential land should be subject to state-framed conversion fees rather than market rates. “Taxes should only apply when land is bought or sold. Where will citizens find the funds to pay such high fees?” questioned Delegate Loi.
Delegate Nguyen Van Loi emphasized that the resolution should aim to facilitate citizens, particularly those with residential land as per state regulations. He even suggested waiving these fees. “The amount isn’t significant. Taxes should only be levied when the land enters the market,” he stated.
Delegate Nguyen Van Loi, Head of the Ho Chi Minh City National Assembly Delegation, speaking at the group meeting on November 19th. Photo: VAN DUAN
Echoing this sentiment, Delegate Nguyen Thanh Sang criticized the “market-based” land pricing principle as unsuitable. He cited examples where agricultural land, previously non-transacted, incurred fees of up to 10 million VND/m² when converted to residential use. “Rural citizens cannot afford hundreds of millions for 100 m² of ancestral land. A reasonable calculation is necessary,” he stressed.
Delegate Le Thanh Phong, Chief Judge of the Ho Chi Minh City People’s Court, also pointed out the flaws in market-based pricing for land use conversion. He noted that during market surges, the state imposes high fees, burdening citizens with costs far exceeding actual value. “Does the state reduce fees when the market declines?” he questioned. He advocated for project- and locality-specific adjustments to protect citizens.
Low Implementation Feasibility
The draft resolution adds three cases for state land reclamation to promote socio-economic development for national and public interests, supplementing the 31 cases in the current Land Law. These include: reclaiming land for free trade zones and international financial centers; reclaiming land for projects with over 75% agreement on land use rights or expired negotiation periods; and reclaiming land for build-transfer (BT) projects or lease extensions.
Notably, Article 3(3)(a) allows state reclamation if over 75% of land users agree before compensation plans are approved. Chief Justice Nguyen Van Quang (Da Nang delegation) expressed concern about low feasibility. “Citizens are unlikely to agree without knowing compensation details. They need clarity on their rights before consenting,” he noted.
Delegate Nguyen Thi Yen (Ho Chi Minh City) questioned the “75% area and 75% people” criterion. She illustrated: a 100-hectare project with 75 households agreeing but 25 holding over 50% of the land. She proposed accepting either 75% area or 75% people, with clear resettlement and compensation for the remaining 25% at or above investor rates.
Regarding residential land conversion fees, Delegate Hoang Van Cuong (Hanoi) noted that many long-term landowners lack certificates due to various reasons. When first certified, they face 100% fees, far exceeding affordability. In contrast, agricultural-to-residential conversions pay 30% within limits, 50% for excess, and 100% beyond double limits. He proposed similar rates (30%-50%-100%) for first-time certifications to ensure fairness.
No Tax on Gold Accumulation
That afternoon, the National Assembly discussed the amended Personal Income Tax Law. Delegate Pham Van Hoa (Dong Thap) opposed the 0.1% tax on gold transfers, arguing that many buy gold for family savings, not speculation. “This group should be exempt,” he said. For speculators, he deemed 0.1% too low, suggesting higher rates for market regulation.
Delegate Tran Kim Yen (Ho Chi Minh City) also criticized the 0.1% tax, noting that gold is often saved from daily earnings for emergencies. Taxing all transactions would unfairly impact legitimate savers.
For speculators, she argued that 0.1% is insignificant compared to their profits. Effective market management is key to transparency and stability, she concluded.
Delegate: ‘Land Revoked at $45/m², Citizens Forced to Buy Back at $4,500/m² – A Reality Disconnect’
Representatives argue that the discrepancy between land reclamation and the actual land prices paid by citizens creates a mismatch with reality, leading to inconsistencies.
Supreme Court Chief Justice: Land Prices Must Align with Market Trends, Only Rising, Not Falling
Chief Justice of the Supreme People’s Court, Nguyen Van Quang, expressed concern that aligning land prices with market rates would inevitably lead to price increases, stating, “There’s no way to maintain or reduce them.”
Land Law Implementation Hurdles Addressed: Proposal to Reclaim Land with 75% Consensus
On the afternoon of November 18th, the National Assembly listened to presentations and review reports regarding the draft Resolution. This Resolution aims to establish specific mechanisms and policies to address challenges and obstacles in the implementation of the Land Law.
Crafting Hyper-Localized Land Valuation Tables: A Thua-Level Approach
The draft resolution by the National Assembly outlines that land price tables will be structured based on land type, area, and location. For regions with digital cadastral maps and land price databases, pricing will be detailed down to individual land plots. Provincial People’s Councils will determine, publish, and implement these land price tables starting January 1, 2026, with provisions for amendments and updates as necessary.
Proposed Addition of Three Scenarios for State Land Reclamation
At the 10th session, the Government proposed to the National Assembly the addition of three scenarios where the State may reclaim land for socio-economic development in the interest of national and public welfare.
