Regulations on land price tables and specific land price under Land Law 2013 in Vietnam

Authority to develop and approve of land price frames in Vietnam

Pursuant to Clause 1, Article 114 of the Land Law 2013, based on the principles, methods of land valuation and land price frames, provincial-level People’s Committees shall develop and submit the land price tables to the People’s Councils of the same level for review before promulgation. Land price tables shall be developed once every 5 years and publicized on January 1 of the beginning year of the period.

During the implementation of land price tables, when the Government adjusts land price frames or there are changes in popular land price in the market, provincial-level People’s Committees shall adjust land price tables accordingly.

At least 60 days before submitting the land price tables to the People’s Council of the same level for review, the provincial-level People’s Committee shall send the draft land price tables to agencies in charge of developing land price frames for consideration. In case of big difference in land prices at bordering locations among provinces and centrally run cities, this difference must be reported to the Prime Minister for decision.

Regulations on land price tables and specific land price under Land Law 2013 in Vietnam (Internet image)

What are the cases where land price tables will be used as a basis in Vietnam?

Pursuant to Clause 2, Article 114 of the Land Law 2013, land price tables shall be used as a basis for the following cases:

- Calculation of land use levy when the State recognizes land use rights of households and individuals for land areas within land use quotas, or permits change of land use purpose from agricultural land or non-agricultural land which is non-residential land to residential land for land areas within land allocation quotas applied to households and individuals;

- Calculation of land use tax;

- Calculation of charges and fees in land management and use;

- Calculation of fines for administrative violations in the field of land;

- Calculation of indemnification paid to the State for damage caused in land management and use;

- Valuation of land use rights paid to the people who voluntarily return land to the State in case the returned land is allocated with land use levy, recognized of land use rights with land use levy, or leased land with full one-off rental payment for the entire lease period by the State.

Which agency in Vietnam has the authority to decide on specific land prices? 

Pursuant to Clause 3, Article 114 of the Land Law 2013, Provincial-level People’s Committees shall decide on specific land prices. The provincial- level land administration agency shall assist the provincial-level People’s Committee in the determination of specific land prices. During the implementation, the provincial-level land administration agency may hire organizations having consultancy functions for advising on the determination of specific land prices.

The determination of specific land prices must be based on the investigation, collection of information about land parcels, market land price and information on land price in the land database, and based on suitable valuation methods. Based on the consultation on land price, the provincial-level land administration agency shall submit the specific land price to the council for land price appraisal for consideration before submitting it to the People’s Council of the same level for decision.

The council for land price appraisal comprises the chairperson of the provincial-level People’s Committee as the chairperson, and representatives of related agencies and organizations and the organization with the function of consultancy on land price determination.

What are the case where specific land price will be used as a basis in Vietnam?

Pursuant to Clause 4, Article 114 of the Land Law 2013, specific land price shall be used as a basis for the following cases:

- Calculation of land use levy when the State recognizes land use rights of households and individuals for land areas in excess of land use quotas, or permits change of land use purpose from agricultural land or non-agricultural land which is non-residential land to residential land for land areas in excess of land allocation quotas applied to households and individuals;

And determination of land rental for agricultural land areas in excess of land allocation quotas or quotas for receipt of transferred agricultural land use rights of households and individuals;

- Calculation of land use levy when the State allocates land with land use levy not through auction of land use rights, recognizes land use rights, or permits change of land use purpose for organizations that shall pay land use levy;

- Calculation of land rental when the State leases land not through auction of land use rights;

- Valuation of land use rights upon equitization of state enterprises that are allocated land with land use levy, leased land with one-off rental payment; and calculation of land rental in case equitized state enterprises are leased land by the State with annual rental payment;

- Calculation of compensation amount upon land expropriation by the State.

Mai Thanh Loi

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