Request regarding adjustment of land price table in under Land Law in Vietnam

Request regarding adjustment of land price table in under Land Law in Vietnam

As per Official Dispatch 5774/BTNMT-QHPTTND, the Land Law 2024 details specific cases of applying the land price table (Clause 1 Article 159), expanding the cases compared to the Land Law 2013 while synchronizing provisions such as:

(1) Methods of land valuation based on market principles to build the land price table (Article 158);

(2) The land price table issued by the provincial People's Committee according to the provisions of the Land Law 2013 will continue to be applied until December 31, 2025; in necessary cases, the provincial People's Committee decides to adjust the land price table according to the provisions of the Land Law 2024 to suit the actual local land price situation (Clause 1 Article 257);

(3) The provincial People's Committee shall establish and submit to the People's Council of the same level for the first decision on the land price table to be announced and applied from January 1, 2026. Annually, the provincial People's Committee is responsible for submitting to the provincial People's Council for decision on adjustment, amendment, and supplementation of the land price table to be announced and applied from January 1 of the following year; in necessary cases requiring adjustment, amendment, and supplementation of the land price table within the year, the provincial People's Committee is responsible for submitting to the provincial People's Council for decision (Clause 3 Article 159).

Through situation monitoring, it has been observed that certain localities currently use land prices in the existing land price table (built and issued according to the provisions of the Land Law 2013 and implementation guidance documents) as the starting price for auctioning land use rights when the State allocates or leases land for parcels or land zones with infrastructure investment according to detailed construction planning, as prescribed in point i Clause 1 Article 159 of the Land Law 2024. There is a significant disparity between the starting price and the winning auction price, posing a risk of misuse in land use rights auctions for profit, causing market disturbances, and affecting economic-social development, and the investment, business environment, and real estate market.

The above situation partly stems from the existing land price table, built and issued according to the Land Law 2013 and implementation guidance documents, being constrained by the Government of Vietnam's land price framework (eliminated in the Land Law 2024). Additionally, during the implementation of the land price table, some localities have not promptly monitored common market land price fluctuations to adjust the land price table accordingly. As a result, the land prices in the land price table in some localities remain significantly lower than market prices (this limitation has been summarized and evaluated in the Summary Report on the Implementation of Resolution 19-NQ/TW and the Summary Report on the Implementation of the Land Law 2013).

To enhance the effectiveness and efficiency of land management, clean up the real estate market, and promote economic-social development, the Ministry of Natural Resources and Environment requests that provincial People’s Committees, when applying land prices in the land price table to serve land management tasks, must review and, if in an area or position where the land price is not suitable to reality, decide to adjust the land price table issued by the provincial People’s Committee according to the provisions of the Land Law 2013 in that area or position to apply until December 31, 2025, based on legal provisions and actual local conditions. The procedure for adjusting the land price table shall be implemented according to the provisions of Article 17 of Decree 71/2024/ND-CP.

For further information, refer to Official Dispatch 5774/BTNMT-QHPTTND issued on August 23, 2024.

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