Vietnam: Guidance on specific land pricing following the coefficient-based method

According to Decree No. 44/2014/NĐ-CP of Vietnam’s Government, the People’s Committee of the province regulates the land price coefficient to determine the specific land price depending on the common market price of land, the local social and economic conditions and the land price list.

The specific land price determined by the coefficient method prescribed in Clause 5 Article 4 in this Decree is applied to:

- The cases mentioned in Points a, b, c, and d Clause 4 Article 114, Clause 2 Article 172, and Clause 3 Article 189 of the Land Law in which the plot of land is worth below VND 30 billion (applied to land in centrally-run cities), below VND 10 billion (applied to land in highlands), or below VND 20 billion (applied to other provinces); the cases in which annual rent for leased land is adjusted; reserve price at land auction when the government leases out land and collect land rent annually.

- Cases prescribed in point dd Clause 4 Article 114 of the Land Law with regard to the adjacent plots of land having the same purpose and profitability from the such purpose.

Every year, the People’ Committee of the province shall regulate the land price coefficient to be applied to cases prescribed in point a Clause 2 this Article. With regard to cases prescribed in point b Clause 2 this Article, the People’s Committee of the province shall regulates the land price coefficient to be applied to each plan at the time the land is revoked by the Government

Besides, Decree No. 44/2014/NĐ-CP also clearly states the responsibility for establishment of land price coefficient as follows:

- The Department of Finance of the province shall cooperate with the Department of Natural Resources and Environment of the province and other relevant Departments and Boards to formulate the land price coefficient and submit it to the People’s Committee of the province regulating the land price coefficient as prescribed in Point a Clause 2 this Article.

- Department of Natural Resources and Environment of the province shall cooperate with the Department of Finance of the province and other relevant Departments and Boards to formulate the land price coefficient and submit it to the People’s Committee of the province for approval as prescribed in point b Clause 2 this Article.

View more details at Decree No. 44/2014/NĐ-CP of Vietnam’s Government, effective from July 01, 2014.

Le Hai

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