Factors affecting the land prices in Vietnam as of January 1, 2025

Factors affecting the land prices in Vietnam as of January 1, 2025 (Internet image)

On June 27, 2024, the Government issued Decree 71/2024/ND-CP on land prices in Vietnam.

Factors affecting the land prices in Vietnam as of January 1, 2025

According to Article 8 of Decree 71/2024/ND-CP, factors affecting land prices in Vietnam include:

Factors affecting land prices for non-agricultural land include:

• Location and site of the land plot or area;
• Traffic conditions: road width, road surface structure, adjacency to one or multiple roads;
• Water supply and drainage, electricity supply conditions;
• Area, dimensions, shape of the land plot or area;
• Planning-related factors including: land usage coefficient, building density, building boundary lines, height limits for buildings, number of permissible basement floors as per detailed construction plans approved by competent state authorities (if any);
• Environmental, security status;
• Duration of land use;
• Other factors affecting land prices that are suitable to the actual conditions, cultural traditions, and customs of the locality.

Factors affecting land prices for agricultural land include:

• Crop and livestock productivity;
• Location and characteristics of the land plot or area: the nearest distance to production and product consumption sites;
• Traffic conditions serving production and product consumption: road width, road classification, road surface structure; topographical conditions;
• Duration of land use, excluding agricultural land assigned by the state to households and individuals within the agricultural land quota, agricultural land within the transfer limit, which will not be based on land use duration;
• Other factors affecting land prices that are suitable to actual conditions, cultural traditions, and customs of the locality.

The Department of Natural Resources and Environment, in coordination with relevant departments and sectors, will advise and submit to the provincial People's Committee specific regulations on factors affecting land prices, the maximum differential levels of each factor affecting land prices to determine a certain degree of similarity, and the adjustment methods for each differential level of each factor affecting land prices.

In the event that the provincial People's Committee has not yet regulated or has inadequately regulated the factors affecting land prices, the maximum differential levels of each factor affecting land prices, and adjustment methods for each differential level of each factor affecting land prices, the land pricing agency shall propose specific measures in the explanatory report on the land pricing plan for the Land Pricing Appraisal Council to review and decide.

Grounds for developing, adjusting, amending the land price list in Vietnam

According to Article 11 of Decree 71/2024/ND-CP, the development, adjustment, amendment, and supplementation of the land price table must be in accordance with the provisions of Article 158 of the Land Law 2024 and Articles 4, 5, 6, 7 of Decree 71/2024/ND-CP; the results of synthesis and analysis of market land price information; the results of implementing the current land price table; the natural, socio-economic, and land management and usage factors, and factors affecting land prices.

More details can be found in Decree 71/2024/ND-CP, effective from the date the Land Law 2024 comes into effect, except for the provisions in clause 2, Article 39 of Decree 71/2024/ND-CP.

To Quoc Trinh

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