Photo illustration: Tuan Anh/TTXVN
The law, when effective, is expected to boost the recovery and provide a legal framework for the Vietnamese real estate market to grow in a healthy, sustainable manner.
To discuss this issue, TTXVN reporters interviewed Mr. Dau Anh Tuan, Deputy General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI) and Lawyer Bui Van Thanh, Head of Mat Troi Moi Law Firm, Vice President of the Industrial Park Finance Subcommittee.
Mr. Dau Anh Tuan, Deputy General Secretary of Vietnam Chamber of Commerce and Industry (VCCI):
The Land Law 2024, adopted by the National Assembly during the Extraordinary Session in January 2024, is an important act, setting the basis for changes in the land regime, especially land regimes related to enterprises and investment.
First, the Land Law 2024 makes it easier for land use procedures to be processed. Experience in implementing the Land Law and related laws in the past has shown overlap and conflict between various acts. With the adoption of this amended Land Law, along with the amended Law on Housing and the amended Law on Real Estate Business, procedures for implementing investment projects, especially in the fields of real estate and housing, will be improved and made smoother. From a business perspective, this is an important new point. Because time is money, a project that is quickly trusted will positively impact production and business activities.
Second, the Land Law 2024 demonstrates a strong spirit of administrative reform and decentralization. Currently, the authority to issue land price frameworks is given by the Government to local authorities, and the provincial authorities to the departmental authorities, etc. This is also a new point that helps to gradually improve administrative procedures.
Third, many new regulations are intended to open up the market. For example, the amended Land Law more clearly defines that Vietnamese people living abroad have the right to buy houses. In the field of agricultural land, previously, only people using agricultural land were allowed to transfer the right to use rice land. However, according to the new Land Law, non-agricultural producers or economic organizations may receive the transfer of the right to use rice land if approved by the People’s Committee at the district level, contributing to promoting agriculture in a modern direction.
Furthermore, the Land Law 2024 also protects and balances the interests of entities in land relations. For example, the procedures for site clearance are stipulated clearly and strictly, ensuring the rights of residents and land users. The new points of the Land Law will create many positive effects, resolving the pressing issues of social order.
In addition, in terms of land lease term, in the past, businesses could choose to pay for the land once or pay annually. However, in the new Law, except for types of land such as industrial park land, agricultural land, social housing land, etc., businesses must pay for land annually. This is a major policy for business owners. It also raises concerns for businesses about the reliability and predictability of land costs.
Overall, however, the Land Law 2024 focuses on resolving issues that have been hindering the recent period, and it is expected to be implemented more smoothly and meet practical requirements.
With the new points expected to impact the market in this way, implementation is the most important factor. According to the plan, the Government will issue 9 guiding decrees. The responsibility of the drafting agency is to ensure that these decrees are issued on time and in accordance with the spirit of the Law. Moreover, it is also necessary to ensure consistency when completing the legal system in the future, because the Land Law is related to almost all sectors and fields.
In addition, the dissemination, introduction, and popularization of the amended Land Law to the public and businesses is a difficult and important task. The new Land Law also needs to address major issues related to land valuation and land finance. In the spirit of the new Law, it is necessary to develop a repository of information and data on land prices, a land management system, and the application of information technology in this field.
Mr. Bui Van Thanh, Head of Mat Troi Moi Law Firm, Vice President of the Industrial Park Finance Subcommittee:
The Land Law 2024 has expanded the land use limits for individuals. Therefore, the concentration of land resources will create more favorable conditions for businesses. The new Law will create a formal dispute resolution mechanism in addition to the previous method of resolving disputes in court. Many regulations in the Land Law, the Law on Real Estate Business, and the amended Law on Housing are more transparent, aiming to protect the rights of parties that own and participate in real estate projects, including the rights of investors and consumers. Administrative procedures related to land must be transparent and convenient, ensuring a balance of interests. This is related to the effectiveness of the implementation of the state apparatus.
There are high expectations that the amended Land Law will create a new boost for the real estate market. But this depends on many factors, not just the Land Law. In the recent period, the Land Law, the Housing Law, and the Law on Real Estate Business have all been amended and adopted at the same time, and they will take effect at the same time, opening up a golden opportunity for the real estate market.
The real estate market will experience positive changes, especially in terms of the market, planning, and economic development. Importantly, the real estate market must develop in a sustainable way and without the risk of land speculation.
