Guidance on regulations on land price under the authority of the Provincial People's Committee in Vietnam

15:34, 24/08/2024

The following article will provide guidance on regulations on land price under the authority of the Provincial People's Committee in Vietnam

Guidelines on land price regulations under the authority of the Provincial People's Committee

Guidance on regulations on land price under the authority of the Provincial People's Committee in Vietnam (Image from the internet)

On August 08, 2024, the Ministry of Natural Resources and Environment of Vietnam issued Official Dispatch 5317/BTNMT-QHPTTND regarding the regulations on land prices under the authority of the People's Committees of provinces and centrally-run cities.

Guidance on regulations on land price under the authority of the Provincial People's Committee in Vietnam

A summary table of the Land Law 2024 and Decree 71/2024/ND-CP, assigning the Provincial People's Committee of Vietnam the authority to regulate land prices as follows:

No.	NAME OF LAW, DECREE	NAME OF ASSIGNING CLAUSE	CONTENT OF ASSIGNMENT
I	LAND LAW 2024
		Article 257	Resolution on land financial matters, land prices when this Law comes into effect
		Clause 1 Article 257	1. The land price list issued by the Provincial People's Committee in accordance with the Land Law No. 45/2013/QH13 will continue to be applied until December 31, 2025; where necessary, the Provincial People's Committee decides to adjust the land price list in accordance with this Law to fit the actual situation of land prices in the locality.
II	DECREE NO. 71/2024/ND-CP
1		Article 6	Order and content of determining land prices by the surplus method
		Point dd Clause 2 Article 6	dd) Based on the actual situation in the locality, the Department of Natural Resources and Environment, in coordination with relevant departments and agencies, advises and submits to the Provincial People's Committee to specifically stipulate the sales rate, fill rate for application no later than January 01, 2025. If necessary, the Provincial People's Committee adjusts to suit the actual situation of the locality. In the time when the Provincial People's Committee has not yet regulated the sales rate, fill rate, the organization implementing land price valuation shall base on the actual data of 3 investment projects with the closest distance to the land parcel or land zone needing valuation to propose in the price plan report for the Land Price Appraisal Council to consider and decide. Regarding the sales time, start of sales, and commercial operations, it is based on the progress determined in the investment policy or bidding documents for investment projects or the decision to approve and accept the investment project to estimate the development revenue of the project. If the documents on investment policy or bidding documents for investment projects or the decision to approve and accept the investment project do not determine the sales time, start of sales, the Provincial People's Committee shall regulate appropriately to the actual situation of the locality for project groups with the same primary land use purpose or specific projects for application or implementation of land price valuation based on the actual data of 3 investment projects with the closest distance to the land parcel or land zone needing valuation to propose to the Land Price Appraisal Council for consideration and decision.
2		Point dd Clause 3 Article 6	dd) Based on information on similar projects in the valuation area or the closest neighboring area, the Department of Natural Resources and Environment, in coordination with provincial departments and authorities, advises and proposes to the Provincial People's Committee to specifically regulate the % rate to determine business costs; loan interest costs, investor profits considering owner's equity, business risks for project groups with the same primary land use purpose or specific projects for application no later than January 01, 2025. If necessary, the Provincial People's Committee adjusts to suit the actual situation of the locality. In the time when the Provincial People's Committee has not yet regulated business costs, business costs will be determined by the average of 3 investment projects with the closest distance to the land parcel or land zone needing valuation. In the time when the Provincial People's Committee has not yet regulated the % rate to calculate loan interest costs, the investor profits considering owner's equity, business risks, the organization implementing land price valuation shall propose in the price plan report for specific projects for the Land Price Appraisal Council to consider and decide. Regarding construction time, construction progress, based on the progress determined in the investment policy or bidding documents for investment projects or the decision to approve and accept the investment project to estimate the development costs of the project. If the documents on investment policy or bidding documents for investment projects or the decision to approve and accept the investment project do not determine the construction time, progress, the Provincial People's Committee shall regulate appropriately to the actual situation of the locality for project groups with the same primary land use purpose or specific projects for application or implementation of land price valuation based on the actual data of 3 investment projects with the closest distance to the land parcel or land zone needing valuation to propose to the Land Price Appraisal Council for consideration and decision.
3		Article 8	Factors influencing land prices
		Clause 3 Article 8	3. The Department of Natural Resources and Environment, in coordination with relevant departments and agencies, advises and submits to the Provincial People's Committee to specifically regulate the factors influencing land prices, the maximum discrepancy level of each factor influencing land prices to determine a certain degree of similarity, the adjustment methods for each discrepancy level of each influencing factor. If the Provincial People's Committee has not yet regulated or the regulations are incomplete regarding the factors influencing land prices, the maximum discrepancy level of each influencing factor, the adjustment methods for each discrepancy level of each influencing factor, the organization implementing land price valuation shall propose specifically in the Price Plan Report to the Land Price Appraisal Council for consideration and decision.
4		Article 17	Order of adjusting the land price list for cases stipulated in Clause 1 Article 257 of the Land Law
		Clause 6 Article 17	6. The Department of Natural Resources and Environment receives feedback, explains, revises, and completes the draft land price list, submits to the Provincial People's Committee to adjust the land price list according to the dossier contents stipulated in Clause 3 Article 15 of this Decree.

More details can be found in Official Dispatch 5317/BTNMT-QHPTTND issued on August 08, 2024.

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