The Prime Minister of Vietnam requests prompt rectification of the land use rights auction

The Prime Minister of Vietnam requests prompt rectification of the land use rights auction​ (Image from internet)

On December 14, 2024, the Prime Minister of Vietnam issued Official Telegram 134/CD-TTg regarding the prompt rectification of land use rights auction activities.

The Prime Minister of Vietnam requests prompt rectification of the land use rights auction​

To enhance the effectiveness and efficiency of land use rights auction activities, contributing to the healthy development of the real estate market, improving the investment and business environment, and promoting socio-economic development, the Prime Minister of Vietnam requires:

- Chairpersons of the People's Committees of provinces and centrally-run cities to direct relevant agencies and units to review the organization of land use rights auctions in their localities to ensure compliance with the law, transparency, and openness; promptly detect and strictly handle violations of the law in land use rights auctions, preventing abuses of the auction process for profiteering and disturbing the market. Focus should be on implementing the following solutions:

+ Publicly organize planning and land use plans, construction planning, and urban planning in land use rights auction areas and nearby areas; implement measures to ensure the supply of residential real estate and homestead land is aligned with the accessibility and payment capacity of most people in need, resolving the supply-demand imbalance in the real estate market;

+ Before determining the starting price according to the land price list for auctioning land use rights, review, adjust, and supplement corresponding land prices in the land price list in auction locations as required by land law, ensuring that the starting price offered at auction is appropriate with the invested infrastructure conditions and actual land prices at the auction site;

+ Direct the development of a land use rights auction plan to be strict, scientific, and monitored by functional agencies, avoiding the exploitation of auctions for profiteering and market disruption, paying attention to regulations on shortening the initial deposit payment period, determining an appropriate initial payment amount to limit the forfeiture of deposits; direct the entity in charge of organizing the land use rights auction and the organization engaging in asset auction practices to choose suitable auction forms and methods to prevent collusion, price suppression, or price inflation;

+ Review local homestead land needs, plan and invest in infrastructure for parcels slated for land use rights auctions; simultaneously, consider allocating suitable land funds for resettlement allocations and land allocation without land use rights auction for individuals specified in points a, b, c, and d Clause 3 Article 124 of the Land Law 2024;

+ Strengthen the application of information technology and digital transformation in organizing land use rights auctions to ensure transparency and openness; based on current legal regulations, take appropriate measures to tightly manage information about auction participation history and payment account cash flows of auction winners, especially in cases exhibiting unusual auction behaviors such as an individual or group registering for multiple parcels in the same auction land, participants offering unusually high prices or winning high prices but forfeiting deposits, etc., to limit potential negative occurrences;

+ Be accountable to the law and the Prime Minister of the Government of Vietnam for organizing and implementing land use rights auctions to ensure transparency, objectivity, and protection of state interests, and the rights and interests of related parties.

- The Minister of Justice, in coordination with the ministers of Natural Resources and Environment, Finance, Construction and the People's Committees of provinces and centrally-run cities, promptly review and complete regulations on land use rights auctions, implement digital transformation in asset auction activities (including land use rights auctions) to ensure comprehensive and transparent information, rigorous and scientific processes, and avoid exploitation during auction participation and implementation. Additional measures for handling violations in the auction field, especially collusion, price suppression, price inflation, price manipulation, and profiteering through auctions, should be included; introduce conditional restrictions on auction participation for individuals with previous violations or intentional abandonment of auctions for profiteering.

- The Minister of Natural Resources and Environment, in cooperation with the ministers of Justice, Finance, Construction, and the chairpersons of the People's Committees of provinces and centrally-run cities, enhance inspections and audits of land use rights auctions in cases exhibiting unusual behaviors, promptly identifying legal inadequacies to advise and propose amendments or supplements as appropriate; simultaneously, handle or propose competent authorities to strictly handle organizations and individuals violating land use rights auction regulations, especially abuses for profiteering and market disruption; report to the Prime Minister of the Government of Vietnam on issues beyond authority.

- The Minister of Construction, in coordination with the Minister of Natural Resources and Environment and chairpersons of the People's Committees of provinces and centrally-run cities, study and specifically evaluate the impacts of recent land use rights auction results (especially high auction outcomes, many times higher than starting prices) on the base prices of homestead land, housing, and the real estate market; proactively resolve within authority or propose competent measures to limit negative impacts (if any), contributing to regulating, stabilizing, and healthily developing the real estate market, reporting results to the Prime Minister of the Government of Vietnam.

- The Minister of Public Security directs functional units and local police to proactively monitor the situation, detect, investigate, and strictly enforce legal provisions against organizations and individuals whose violations in land use rights auctions warrant criminal prosecution.

- Functional agencies direct units and localities to intensify situation monitoring, promptly detect, prevent, and strictly deal with legal violations in land use rights auctions, especially collusion, price suppression, price inflation, and price manipulation for profiteering, disrupting the market, affecting the healthy development of the real estate market.

Official Telegram 134/CD-TTg was issued on December 14, 2024.

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