On February 19th, at the Presidential Palace, the Office of the President held a press conference to announce the Decree of the President promulgating laws passed by the 15th National Assembly at its extraordinary session, including the Land Law (amended) and the Credit Institutions Law (amended).
Accordingly, based on Articles 88 and 91 of the Constitution of the Socialist Republic of Vietnam, based on Article 80 of the Law on the Promulgation of Legal Normative Documents, the President promulgates the Land Law and the Credit Institutions Law which were passed by the 15th National Assembly of the Socialist Republic of Vietnam at its extraordinary session on January 18, 2023.
The Land Law (amended) consists of 16 chapters, 260 articles, and takes effect from January 1, 2025, except for certain specific provisions.
Notably, the Law removes provisions on land prices set by the Government; specific provisions on principles, basis, and methods of land valuation; provisions on the annual land price list. The first land price list will be announced and applied from January 1, 2026, and will be adjusted, amended, or supplemented from January 1 of the following year. The construction of the land price list is based on the value of land zones and standardized land plots for areas with digital cadastral maps and land price databases.
Deputy Minister of Natural Resources and Environment Le Minh Ngan introduces the Land Law. Photo: TTXVN
The Law specifies the specific timing for determining land prices, payment timing for land use, land lease fees for each case of land allocation, land lease, land use conversion, land use extension, adjustment of land allocation or land lease decision that changes the area, land use purpose, land use term. The competent People’s Committee at the same level must issue a specific land price decision within a period not exceeding 180 days from the timing of determining land prices.
For cases where land prices in the land price list are used to calculate land use fees, land lease fees, the competent People’s Committee must record the land prices in the land allocation, land lease, land use conversion, land use extension decisions, adjustment of land use term, land use conversion decisions.
Supplement provisions on annual land lease fees that are stably applied for a 5-year period from the timing the State decides to lease land or allow land use conversion. The land lease fees for the subsequent period are calculated based on the land price list of the year determining the land lease fees. If the land lease fees increase compared to the previous period, they will be adjusted but not exceed the rate prescribed by the Government for each stage.
Decentralizing authority to decide on specific land prices to the Chairman of the People’s Committee at the district level. Specifying the 4 specific land valuation methods in the Law, specifying the conditions for applying each land valuation method; assigning the Government to promulgate other land valuation methods with the consent of the Standing Committee of the National Assembly; in cases where land valuation methods are used to determine specific land prices that are lower than the land prices in the land price list, the land prices in the land price list are used. Expanding the composition of the specific Land Appraisal Council to ensure independence and objectivity in the land valuation process…
The Credit Institutions Law (amended) consists of 15 chapters, 210 articles, and takes effect from July 1, 2024.
The Law regulates the establishment, organization, operation, early intervention, special control, restructuring, dissolution, bankruptcy of credit institutions; the establishment, organization, operation, early intervention, dissolution, termination of operation of branches of foreign banks; the establishment, operation of representative offices in Vietnam of foreign credit institutions, other foreign organizations that carry out banking activities; handling bad debts and collateral for bad debts of credit institutions, branches of foreign banks, organizations with 100% state-owned charter capital that have the function of buying, selling, handling debts.
The construction of the Law aims to improve legal provisions on the organization and operation of credit institutions, resolve existing difficulties and shortcomings of the current Credit Institutions Law, promote the application of science and technology in the banking sector and develop modern banking products and services; enhance internal self-inspection, self-control, and self-responsibility of credit institutions, improve transparency and openness in banking operations; improve the legal framework for handling credit institutions at liquidity risk; legalize some provisions on handling bad debts of credit institutions.
