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Deputy Minister of Natural Resources and Environment Le Minh Ngan
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Narrowing the gap between the land prices in the current Land Price Table and the actual land price levels in localities
Deputy Minister Le Minh Ngan shared that with the determination to soon bring the 2024 Land Law into life from August 1, 2024, the Prime Minister has been resolute and timely in directing the Ministry of Natural Resources and Environment, relevant ministries, and localities to promptly issue guiding documents and prepare the necessary conditions for the implementation of the 2024 Land Law.
However, some localities have been slow in building and issuing documents within their authority and preparing the conditions for its implementation, including difficulties related to adjusting the Land Price Table as stipulated in Clause 1, Article 257 of the 2024 Land Law.
According to the regulation, Clause 1, Article 257 of the 2024 Land Law on the transition of using the Land Price Table stipulates: “The Land Price Table issued by the provincial People’s Committees according to the provisions of the Land Law No. 45/2013/QH13 continues to be applied until December 31, 2025; in case of necessity, the provincial People’s Committees decide to adjust the land price table according to the provisions of this Law to suit the practical situation of land prices in that locality.”
This regulation aims to ensure the inheritance of the 2013 Land Law provisions, suit the market principles, avoid budget losses, ensure fairness in the implementation of the rights and obligations of land users, and, at the same time, have a transition period for localities to have a roadmap to issue the Land Price Table as stipulated in Article 159 of the 2024 Land Law.
Therefore, reviewing and adjusting the Land Price Table is necessary and an opportunity and condition for localities to narrow the gap between the land prices in the current Land Price Table and the actual land price levels in the locality.
At the same time, it is a step-by-step process to build a Land Price Table according to the 2024 Land Law to be applied from January 1, 2026, to avoid a sudden price surge in the Land Price Table that affects the rights and obligations of land users, leading to reactions from the people and businesses.
Difficulties in implementation
According to Deputy Minister Le Minh Ngan, adjusting the Land Price Table is a regular task of the provincial People’s Committees, which has been stipulated continuously from the 2013 Land Law up to now, and many localities have performed this regulation very well.
Therefore, for localities that have adjusted the Land Price Table correctly according to the 2013 Land Law, ensuring that the land prices in the Land Price Table are close to the actual levels in the locality, there is no obstacle in applying Clause 1, Article 257 of the 2024 Land Law, and it does not affect the financial obligations of land users.
In fact, for localities that have not made timely adjustments, the land prices in the Land Price Table differ greatly from the actual levels in the locality, leading to some difficulties when implementing the 2024 Land Law as follows:
In case the adjusted Land Price Table changes significantly, increases sharply, and differs greatly from the land prices in the current Land Price Table, it will lead to reactions from affected subjects such as people and land-using enterprises, especially when performing financial obligations in cases applying the Land Price Table stipulated in Clause 1, Article 159 of the 2024 Land Law, such as when the state recognizes land use rights, calculates non-agricultural land use tax, and calculates annual land rent… The amount of money that people and businesses have to pay for financial obligations will increase sharply compared to when applying the current Land Price Table of that locality.
In case the locality does not adjust the Land Price Table but uses the land prices in the current Land Price Table (built and issued according to the provisions of the 2013 Land Law and guiding documents) as the starting price for auctioning land use rights when the State allocates or leases land for cases of land plots that have been invested in technical infrastructure according to the detailed construction planning stipulated at Point i, Clause 1, Article 159 of the 2024 Land Law, there is a significant difference between the starting price and the actual land price in the locality, which can easily lead to a significant difference between the auction result and the starting price, creating a sudden and abnormal situation.
On the other hand, because the Land Price Table is not adjusted too low compared to the actual land prices in the locality, it may cause budget losses.
“Thus, for both cases of not timely adjusting the Land Price Table or adjusting the Land Price Table with a sudden increase, there will be contrary reactions and a lack of consensus in public opinion, potentially leading to taking advantage and profiting, causing market turmoil, affecting economic development, social security, and the investment and business environment…”, said Deputy Minister Le Minh Ngan.
Having a suitable roadmap and an appropriate increase rate for each area, location, and land type
To solve the above difficulties, according to Deputy Minister Le Minh Ngan, localities need to focus on directing the completion of documents within their authority.
At the same time, promote training, propaganda, and dissemination widely, continuously, and regularly to all levels, sectors, people, and businesses to create consensus and unity in perception and organization of implementation according to the direction of the Prime Minister.
Regarding the organization of implementation, adjusting the Land Price Table to suit the actual situation of land prices in the locality as stipulated in Clause 1, Article 257 of the 2024 Land Law is necessary.
In the implementation process, it is necessary to analyze and evaluate the results of the current Land Price Table, consider the land prices in the Land Price Table compared to the actual land price levels in the locality, and assess the impact of the draft Land Price Table on the subjects of application, with a suitable roadmap and an appropriate increase rate for each area, location, and land type.
Besides, organize the collection of opinions from relevant agencies, organizations, and individuals for synthesis, reception, and explanation to limit the significant difference in financial obligations that land users have to perform, ensuring the consensus of the appraisal agency and the affected subjects, limiting dissatisfaction and lack of consensus in society.
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