Amended Land Law to provide land value index close to market value

March 09, 2023 | 14:00
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Both society and the economy may benefit from a land price index that closely reflects market prices.
Amended Land Law to provide land value index close to market value
Deputy Prime Minister Tran Hong Ha addressing the conference. Photo: VNA

Speaking at the conference on amended draft land law on March 8, Deputy Prime Minister Tran Hong Ha urged academics and corporate executives to consider how land prices can be maintained at a level that is comparable to market pricing, how the emphasis can be shifted by administrative tools to ensure the appropriate use of economic instruments, and how a fair and equitable land environment can be created so that the extra land value can be accounted for during planning.

He said the lack of a proper land valuation system would result in serious repercussions, and this was the central problem of land financing. This upgrade would implement a land valuation approach based only on statistics. The land value list will be as similar to the actual price as possible and will be updated as the market swings.

There are now five ways to determine the value of land, although it is hard to pinpoint the precise value.

The DPM believes that the land pricing list will serve as the basis for carrying out fair and transparent land acquisition, and compensation, while harmonising the added value of land and guaranteeing justice between individuals, the state, and enterprises, as well as across regions and between projects.

While commenting on the amended draft Land Law, experts and the corporate sector raised a number of additional difficulties, including land acquisition, policies, price contradictions.

Vietnam is modifying the Land Law to address practical issues, develop land resources further, settle disputes, and eliminate overlaps between the Land Law and other laws.

In October, the National Assembly is expected to review and adopt the updated Land Law draft. The deadline for public comments is March 15.

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Opinions for the draft Land Law (revised) will be collected from people from all walks of life from January 3 to March 15.

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By Angela Nguyen

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