Rectification of land use rights auctions activities in Vietnam

Rectification of land use rights auctions activities in Vietnam (Internet image)

Rectification of land use rights auctions activities in Vietnam

Recently, the Government of Vietnam, the Prime Minister of the Government of Vietnam has directed and issued detailed documents for the implementation of the Land Law 2024, which comes into effect from August 1, 2024, including regulations on auctioning land use rights. Some localities have conducted auctions of land use rights successfully, contributing additional revenue to the local budget.

However, in some cases, the winning bid prices have been many times higher than the starting prices (in some cases, unusually high as reported by the mass media), attracting significant public attention, potentially affecting socio-economic development, the investment environment, business, and the housing and real estate market.

To enhance the effectiveness and efficiency of land management, to stabilize the real estate market, and to promote socio-economic development, the Prime Minister of the Government of Vietnam requires:

- The Chairpersons of the People’s Committees of provinces and centrally governed cities to direct relevant agencies and units to review the organization of the auction of land use rights in their areas to ensure legality, transparency, and openness; promptly identify and strictly handle any violations of laws in auctioning land use rights, and prevent exploitation of land use rights auctions for profiteering which disrupt the market.

- The Minister of Natural Resources and Environment shall lead, and cooperate with the Ministers of Justice, Finance, Construction, and the Chairpersons of the People’s Committees of provinces and centrally governed cities to urgently review and inspect the organization of the auction of land use rights for any abnormal signs, addressing according to their authority any violations of laws on auctioning land use rights, promptly identifying legal inadequacies to advise and propose competent authorities to amend, adjust, and supplement regulations to prevent profiteering; concurrently, propose strict handling measures for manipulative activities in auctions causing market disturbances, reporting to the Prime Minister of the Government of Vietnam before August 30, 2024.

- The Minister of Construction shall lead, and cooperate with the Ministry of Natural Resources and Environment and the People’s Committees of provinces and centrally governed cities to study and evaluate the specific impacts of recent auction results of land use rights, especially those cases with unusually high winning bids many times over starting prices on the land and housing price levels, the housing market (supply and demand), actively regulate and resolve within their authority, and propose effective measures to mitigate any negative impacts (if any), reporting to the Prime Minister of the Government of Vietnam.

- Relevant agencies shall direct their units and localities to strengthen on-the-ground situation awareness, promptly detecting, preventing, and strictly handling any legal violations in the auctioning of land use rights, particularly activities of market manipulation and price inflation creating an unhealthy and unrealistic market for profiteering.

- The Ministers of Natural Resources and Environment, Construction, and Finance shall urgently guide and organize training for localities on the new policies of the Land Law, Housing Law, Real Estate Business Law and the tasks directed by the Prime Minister of the Government of Vietnam in Official Telegram 79/CD-TTg dated August 13, 2024.

- Assign Deputy Prime Minister of the Government of Vietnam Tran Hong Ha to directly monitor and direct the implementation of this Official Telegram.

- The Office of the Government of Vietnam shall regularly monitor the situation, promptly reporting to the Prime Minister of the Government of Vietnam, and the Deputy Prime Minister of the Government of Vietnam in charge of any unexpected issues and arising matters.

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