Unblocking Land-Related Bottlenecks: A Comprehensive Solution

Today (December 1st), according to the agenda of the 10th session, the National Assembly will discuss in the plenary hall the draft Resolution of the National Assembly stipulating certain mechanisms and policies to address difficulties and obstacles in the implementation of the Land Law (draft).

Considering New Regulations on Land Reclamation

The draft resolution, prepared by the Government, focuses on key areas such as: Planning; land reclamation, compensation, support, and resettlement; land allocation, lease, change of land use purpose, and land valuation.

A notable point is the draft resolution’s proposal to add three cases where the State can reclaim land for socio-economic development. One of these cases includes situations where the investor has negotiated over 75% of the area and more than 75% of the landowners agree, allowing the Provincial People’s Council to reclaim the remaining 25%. This proposal aims to resolve difficulties related to the land reclamation mechanism, which primarily relies on agreements between investors and residents, especially for commercial housing and urban area projects.

In practice, some projects have achieved very high consensus but still face obstacles with a few households refusing compensation or unresolved issues. However, this proposal has raised concerns among many delegates about its feasibility and potential issues during implementation.

Delegate Nguyễn Hữu Toàn (Lai Châu Province) noted that the biggest obstacle lies in the “remaining 25%,” mainly due to demands for higher prices or unresolved legal issues, such as long-standing residential land without land titles. He suggested separating two groups: cases involving pricing can be handled through the resolution, applying compensation based on state prices. Cases with unclear legal status must be resolved definitively according to regulations. According to Delegate Toàn, if 75% of households agree to prices higher than state prices, the remaining 25% forced to accept state prices could lead to disparities and complaints. Applying the mechanism to reclaim the remaining land, similar to urgent or national defense projects, without approving compensation plans, may cause double losses for residents.

Delegate Trần Thị Hoa Ry (Cà Mau Province) pointed out that over 60% of complaints and accusations arise from land reclamation and compensation. If the new mechanism is not tightly designed, the risk of creating new bottlenecks is very high. She also opposed reclaiming land before approving compensation plans, as even with approved plans, many localities still face repeated complaints, and reclaiming land beforehand increases risks.

Meanwhile, Delegate Huỳnh Thanh Phương (Tây Ninh Province) proposed two solutions to increase consensus and reduce risks. Specifically, raising the consensus threshold to 80%-85% in terms of area or number of land users (meeting one of the two conditions) to ensure social consensus; or maintaining 75% as per the draft but applying it only to important projects serving public and social interests, with strict supervision of voluntary and lawful agreements.

Reducing Financial Burdens on Residents

In the draft resolution, the Government also proposes amending regulations on land use fees when converting garden, pond, and agricultural land to residential land, to reduce financial burdens on residents. Specifically, under the 2024 Land Law and current regulations, when converting garden, pond, or agricultural land to residential land, residents must pay 100% of the difference between residential land prices and agricultural land prices. With many localities adjusting land prices close to market rates, the difference is substantial. In some cases, households must pay billions of dong just to change land use purposes.

According to the Government’s proposal, when converting agricultural land to residential land, for areas within the local land allocation limit, the minimum fee is 30% of the difference between residential and agricultural land prices based on local land price tables. For areas exceeding the local land allocation limit, the minimum fee is 50% of the difference but not exceeding the local residential land limit. For areas exceeding the residential land limit, the fee remains at 100% of the difference.

Land valuation issues are also identified as a major bottleneck needing urgent resolution. Delegate Trần Văn Khải (Ninh Bình Province) noted that state-set land prices are often lower than market prices, leading to low compensation for residents, prolonged complaints, and budget shortfalls. Businesses also face difficulties, having to supplement costs beyond compensation plans to gain resident acceptance, resulting in increased investment costs. Conversely, applying state prices disadvantages residents, leading to complaints and project delays.

“In the draft, the Government proposes land price tables by land type, area, and location. For areas with digital cadastral maps and land price data, land price tables can be developed down to individual plots. This is an important step toward more realistic land prices, increasing budget revenue, ensuring fair compensation for residents, reducing grievances, and helping businesses estimate costs more proactively, avoiding risks,” Delegate Khải observed.

Delegate Khải also praised the proposal to allow Provincial People’s Councils to decide on land price tables, to be announced and applied from January 1, 2026, with the ability to amend as needed instead of following long cycles. He believes this decentralization helps localities update land prices more closely aligned with actual conditions.