Conditions for applying land valuation methods under the Land Law 2024 in Vietnam

Conditions for applying land valuation methods under the Land Law 2024 in Vietnam
Le Truong Quoc Dat

Below are the conditions for applying the land valuation methods according to the latest regulations in Vietnam.

1. Land valuation methods in Vietnam

The land valuation methods according to Clause 5, Article 158 of the Land Law 2024 include following regulations:

- The comparative method is executed by adjusting the price level of parcels with the same land use purpose and certain similarities in factors affecting the land price that have been transferred on the market or have won an auction of land use rights, and the auction winner has completed financial obligations as per the decision of winning the auction by analyzing and comparing factors affecting the land price after excluding the value of assets attached to the land (if any) to determine the price of the parcel that needs to be valuated.

- The income method is executed by taking the average annual net income per land area divided by the average interest rate of savings deposits in Vietnamese Dong with a 12-month term at commercial banks where the State holds over 50% of charter capital or total voting shares in the provincial area for the three consecutive years up to the end of the nearest quarter with data prior to the land valuation time.

- The surplus method is executed by taking the total estimated development revenue minus the total estimated development costs of the land parcel or land zone based on the highest efficient land use (land use coefficient, construction density, maximum number of floors of a building) according to the approved land use planning, detailed construction planning by competent authorities.

- The land price adjustment coefficient method is executed by taking the land price in the land price list multiplied by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price list with the market land price.

- The Government of Vietnam stipulates other land valuation methods not yet specified at points a, b, c, and d, Clause 5, Article 158 of the Land Law 2024 upon the consent of the Standing Committee of the National Assembly.

2. What are conditions for applying land valuation methods under the Land Law 2024 in Vietnam?

According to Clause 6, Article 158 of the Land Law 2024, the cases and conditions for applying land valuation methods are specified as follows:

- The comparative method is applied to value in cases where there are at least three parcels with the same land use purpose and certain similarities in factors affecting the land price that have been transferred on the market or have won an auction of land use rights, and the auction winner has completed financial obligations as per the auction winning decision.

- The income method is applied to value in cases of agricultural land parcels or land zones, non-agricultural land not being homestead land, where the land parcel or land zone needing valuation does not meet the conditions to apply the comparative method but income and expenses from land use according to the land use purpose proposed for valuation can be determined.

- The surplus method is applied to value in cases of land parcels or land zones for implementing an investment project that does not meet the conditions to apply the comparative or income method but the total development revenue and total development costs of the project can be estimated.

- The land price adjustment coefficient method is applied to specifically value compensation when the State recovers land in cases where multiple adjacent parcels are recovered with the same land use purpose and have been prescribed land prices in the land price list, which do not meet the conditions to apply the comparative method.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem



  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;