HCM City Pauses, Others Continue
HCM City was expected to issue a new land price list on August 1, but having only completed 6 steps, it has not been implemented. However, the city has put a hold on administrative procedures for its residents, while other provinces continue to process land-related applications, including those for change of land use purpose.
Specifically, Binh Duong province is still applying the land price adjustment coefficient (K coefficient) that took effect on January 1, 2024, superseding the 2023 land price list. Land prices in 2024 have increased by 15-30% compared to 2023, depending on the area and location.
HCM City halts land-related applications while other provinces carry on as usual. |
Regarding the 2024 Land Law that took effect on August 1, the Binh Duong Department of Natural Resources and Environment is in the process of completing relevant legal procedures. Currently, the tax authority in Binh Duong continues to calculate land use fees based on land prices issued on January 1, 2024, unaffected by the 2024 Land Law. Therefore, all applications are being processed without backlog. The handling of administrative procedures related to land, including applications for change of land use purpose, has increased compared to the same period last year, but not significantly.
The leader of the Binh Duong Tax Department also affirmed that the locality is applying land use fee calculations based on Decision 36/2020 of the Provincial People’s Committee, using the current land prices without any changes.
Mr. Nguyen Ngoc Thuong, Deputy Director of the Dong Nai Department of Natural Resources and Environment, said that Dong Nai’s land price list is being formulated based on the old Land Law and is still in effect, with no adjustments so far.
According to regulations, the land price adjustment coefficient can be applied until December 31, 2025. Therefore, the Dong Nai Department of Natural Resources and Environment is advising the Provincial People’s Committee to direct the adjustment and supplementation of some newly opened or upgraded roads. Specifically, the prices of land in the high-tech industrial park in Cam My district need to be determined, as the infrastructure has been completed. Some road names that were previously surveyed incorrectly are also being corrected in accordance with regulations.
As stipulated in the 2024 Land Law, the land price list must include prices for resettlement areas. Therefore, Dong Nai province will issue land prices for some resettlement areas to promptly serve compensation, support, and resettlement work.
“Regarding land transactions before or after August 1, there has been very little movement. This year, Dong Nai has seen minimal changes in land-related applications, including those for change of land use purpose,” said Mr. Thuong.
In Binh Thuan, Mr. Phan The Hanh, Director of the Provincial Department of Finance, said that Binh Thuan is still calculating land use fees based on the land price list issued on January 1, 2024. Any changes will take effect from January 1, 2025.
Since the beginning of August, tax departments in HCM City’s districts, counties, and Thu Duc city have only been determining financial obligations for applications transferred before July 31. |
According to the Binh Thuan Tax Department, land use fee collection in the first six months of the year amounted to only VND 315 billion, equivalent to 26.2% of the estimate (VND 1,200 billion), mainly from household land use fees.
In Hanoi, the new K coefficient has been applied since July 29 in accordance with Decision No. 45/2024/QD-UBND. Meanwhile, leaders of the Departments of Natural Resources and Environment in the Mekong Delta region, including Dong Thap, An Giang, Vinh Long, Soc Trang, Hau Giang, and Tra Vinh, stated that they are still applying the old K coefficient without any changes.
Applicable Until the End of 2025
In an interview with our reporters, Mr. Dao Trung Chinh, Director of the Department of Land Planning and Development under the Ministry of Natural Resources and Environment, affirmed that the 2024 Land Law permits the continued application of the current land price list issued by provincial People’s Committees until December 31, 2025. If this option is chosen, localities can still use the K coefficient to address specific cases as needed.
According to Mr. Chinh, the 2024 Land Law does not prohibit provinces from using the old land price list to calculate land use fees, including those for change of land use purpose.
However, since the beginning of August, tax departments in HCM City’s districts, counties, and Thu Duc city have only been determining financial obligations for applications transferred before July 31. For applications transferred from August 1 (when the 2024 Land Law took effect), the tax departments are awaiting guidance from the HCM City Tax Department.
The reason given by the tax departments in the districts, counties, and Thu Duc city is that the 2024 Land Law has abolished the land price framework and the price adjustment coefficient (K coefficient), and now solely relies on the land price list to calculate land use fees. Without the K coefficient, they cannot base the calculation on the 2020 land price list. Meanwhile, Decree 103 on land use fees and land rent in accordance with the new Land Law took effect on August 1, but the adjusted price list has not been issued. Therefore, the district tax departments are awaiting specific guidance from the HCM City Tax Department before determining financial obligations for applications for change of land use purpose.
 The 2024 Land Law does not prohibit provinces from using the old land price list to calculate land use fees. |
According to lawyer Tran Duc Phuong from the HCM City Bar Association, the land price list with the K coefficient adjustment, issued under Decision 02/2020/QD-UBND dated January 16, 2020, by the HCM City People’s Committee, is effective until December 31, 2024. Naturally, this decision remains valid until a new land price list is issued, at which point the K coefficient will be eliminated.
“Article 257, Clause 1 of the 2024 Land Law allows localities to apply the old land prices until December 31, 2025, or adjust the land price list depending on the actual situation. Therefore, when the adjusted land price list of HCM City has not been issued, the old land price list remains valid until December 31, 2025,” said lawyer Phuong.
Many experts also argued that the K coefficient should only be eliminated when a new land price list or an adjusted land price list that reflects market prices is established. Currently, other provinces have not formulated new land price lists or adjusted land price lists, so they are still applying the old prices and the K coefficient in accordance with Article 257, Clause 1 of the 2024 Land Law, and are processing land-related applications as usual. Does this mean that these provinces are incurring tax losses, and that Article 257, Clause 1 of the 2024 Land Law, which allows the application of old prices until December 31, 2025, is incorrect?
| The Vietnam Fatherland Front Committee of HCM City will provide feedback At 2 pm on August 12, the Standing Committee of the Vietnam Fatherland Front Committee of HCM City will hold a conference to gather feedback on the proposed land price list submitted by the HCM City Department of Natural Resources and Environment, which will adjust Decision No. 02/2020/QD-UBND dated January 16, 2020, of the HCM City People’s Committee on land prices in the city. |
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