The Ho Chi Minh City Real Estate Association (HoREA) has recently submitted a document to the National Assembly’s Standing Committee, providing feedback on the “Draft Resolution of the National Assembly on Mechanisms and Policies to Address Difficulties and Obstacles in the Implementation of the Land Law.”
In their submission, HoREA proposes amendments to Clause 9(b) of Article 4 and Clause 5 of Article 5 in the draft, which pertain to land allocation, land leasing, and land-use purpose conversion. They also suggest adding provisions regarding the “timing of land price determination for land areas used to settle Build-Transfer (BT) contracts.”
HoREA emphasizes that the timing of land price determination for BT settlements should be set at the time of signing the BT contract or when the investor completes the handover of the entire project. This principle ensures fairness, equality, and transparency between the State and investors.
HoREA proposes adding a mechanism for determining land prices in BT projects. Illustrative image.
Mr. Le Hoang Chau, Chairman of HoREA, stated that Decree 78/2007/NĐ-CP on BOT, BTO, and BT contracts has enabled the State to mobilize significant socialized capital. However, the 2020 Public-Private Partnership (PPP) Law, enacted in 2020, halted new BT projects as of January 1, 2021.
For transitional projects, the 2020 PPP Law and Decree 69/2019/NĐ-CP allowed continued implementation and introduced mechanisms for determining land values in BT settlements. Nonetheless, local authorities have struggled to implement these mechanisms, leading to numerous BT projects being flagged for violations following inspections and audits. Several officials and investors have faced legal consequences due to budget losses and public asset misappropriation.
“The primary bottleneck for BT projects currently lies in determining the value of BT works and the corresponding land settlement value. Accurately identifying the timing of land price calculation is critical,” Mr. Chau noted.
According to Mr. Chau, current legislation stipulates that land prices are determined at the time the State issues land allocation or leasing decisions. However, these decisions are often significantly delayed, causing the land price calculation for BT settlements to deviate substantially from the contract signing or project handover dates.
This discrepancy results in unfair treatment of BT investors, as land prices at the time of project handover can differ drastically from the determined land prices, violating the principle of “equal value at the same time.”
Mr. Chau cited the example of the Thu Thiem New Urban Area, where the Government issued Decree 91/2025/NĐ-CP, setting the land price determination at the time of the preliminary BT contract signing. This mechanism effectively resolved long-standing issues in Thu Thiem.
Therefore, HoREA recommends treating the provisions in Decree 91/2025/NĐ-CP as a legal precedent for nationwide application to all BT projects. This approach ensures consistency and feasibility in implementing the 2024 Land Law and the 2020 PPP Law.
HoREA believes that incorporating clear and unified provisions on land price determination timing for BT settlements in the new National Assembly Resolution will help resolve long-standing bottlenecks while ensuring a balance of interests between the State and businesses.
Previously, HoREA reported that 162 BT projects nationwide are stalled due to unresolved land price determinations, despite project completions and handovers years ago. The primary cause is the lack of legal consensus on land price calculation timing, coupled with delayed land allocation decisions by state agencies, leaving businesses vulnerable to risks and losses from price fluctuations.
Novaland and Hung Thinh Land’s Projects Awaiting Land Use Fee Payments
According to the Chairman of HoREA, Ho Chi Minh City currently has approximately 100 commercial real estate and housing projects awaiting land use fee announcements and additional payments. Notable developers include Novaland, with 13 projects, and Hung Thinh Land, with 8 projects.
Critical Announcement Regarding Land Use Rights Certificates for All Citizens
The Land Management Department (Ministry of Agriculture and Environment) has issued guidelines to provincial and municipal Departments of Agriculture and Environment for the collection of Certificates via the VneID application.
100 Real Estate Projects in Ho Chi Minh City Awaiting Land Use Fee Payments
Ho Chi Minh City currently has approximately 100 commercial real estate and housing projects awaiting land use fee announcements and additional payment notifications. Prominent developers like Novaland, with 13 projects, and Hung Thinh Land, with 8 projects, are among those affected. Consequently, the regulation mandating additional payments for delayed land use fee calculations will impose a significant financial burden on these businesses.
No Additional Land Fees Proposed for Businesses Without Fault
HoREA emphasizes that the addition of this regulation aims to safeguard the legitimate rights and interests of investors in the event of policy changes.
Unlocking Land Ownership Hurdles for Equitized Enterprises: HoREA’s Advocacy
HoREA asserts that this initiative will unlock land resources, fostering socio-economic development. Critically, it will definitively resolve lingering issues and obstacles related to land use and land-purpose conversions for equitized enterprises transitioning from state-owned status during the historical period of 2007–2021.
