Proactively create land funds to have resources for investment and development

QTO - In recent years, land has been the most important resource helping localities nationwide have more capital for development investment. In Quang Tri, revenue from land use fees, especially revenue from land use rights auctions, has always played an important role in the local budget revenue structure. Not only generating revenue for the budget, land fund creation projects have contributed to changing the infrastructure landscape, creating a driving force for sustainable socio-economic development.

In the first 8 months of 2025, the whole province collected nearly 3,800 billion VND in land use fees, reaching 103% of the plan assigned by the Provincial People's Council for the whole year, an increase of 150% over the same period last year. This is a very remarkable figure, because unlike many other revenue sources that must be paid to the central budget, the revenue from land is enjoyed by the local budget at 100% and is only used for development investment. Thanks to that, people's lives have been significantly improved, with more synchronous infrastructure, contributing to the successful implementation of the goal of building advanced new rural areas according to the direction of the Government .

Some people say that land revenue lacks sustainability. This is true in the long term, but in the current context, when many communes, wards, and special economic zones have just merged, the socio -economic infrastructure, especially the administrative center, is scattered, there are no conditions for convergence, so there must be a new construction roadmap from the beginning, production and business establishments have not developed strongly, so land revenue is the key solution for the commune budget.

From there, there will be conditions to lead to create room for socio-economic development in the future. Practice has proven that if the local government has the right strategy, mobilizing resources from land well will be the shortest path to pave the way for more sustainable sources of revenue in the future.

Exploiting the potential of land funds to have more resources for investment and development - Photo: A. Tuan

According to the current regulations on land use revenue sharing, 13 disadvantaged communes in Quang Binh province (old) are allowed to retain up to 80%, most of the remaining communes are entitled to 40% after deducting costs for infrastructure investment and site clearance. This shows that the provincial budget has given great priority to the grassroots. Particularly, communes in Quang Tri province (old) are temporarily implementing the mechanism of leaving 100% of the revenue to the provincial budget for general coordination.

However, from 2026 onwards, the Provincial People's Council will issue a policy on the unified division of land use fee revenue to be applied throughout the province in the direction of encouraging communes to promote increased land revenue. That means that communes that proactively have projects to create land funds and successfully auction, creating many sources of revenue, will have abundant resources to invest in infrastructure and develop the socio-economy. On the contrary, communes that are passive and wait without solutions will have almost no revenue and will face difficulties in management and development.

Typically, in Hoan Lao commune (formerly Bo Trach district, old Quang Binh province), in the past 10 years, 9 projects have been implemented to create land funds with a total investment of 285.5 billion VND. The results are truly impressive when 6 projects have completed auctions, collecting more than 305 billion VND in land use fees; the remaining land funds in old and new projects are expected to be auctioned in the last months of 2025 and early 2026, which could collect an additional 500 billion VND for the budget.

After deducting infrastructure investment costs, the net revenue (profit) for the budget is nearly 520 billion VND, of which the commune receives 40%, or about 208 billion VND, a "dream" number for a commune's budget. With this resource, the locality has proactively invested in many important works and projects, thanks to which the infrastructure of Hoan Lao commune is now basically complete.

It can be seen that through the implementation of land fund creation projects, Hoan Lao commune has a new look with synchronous infrastructure, modern landscape, vibrant economy, and improved people's lives. Local people have better conditions for production and business, children can study in a modern environment, contributing to building a civilized and prosperous community.

Not only in Hoan Lao but many other communes in the province have also achieved similar results, proving that this model has high replicability value.

With a current charter capital of over VND 1,600 billion, the Provincial Land Development Fund has been a solid financial support for localities to effectively implement land fund development projects. The fund has the function of providing capital for localities to implement compensation, site clearance, infrastructure investment, create clean land funds for auction to collect land use fees and complete infrastructure.

Localities have ideas and determination, and the fund is ready to accompany them to turn ideas into reality. Over the past years, many communes and wards have coordinated very well with the fund to successfully implement projects, generating hundreds of billions of VND in revenue.

However, at present, the implementation of land fund creation projects still has some problems. Specifically, the commune-level government does not have a public service unit with sufficient legal status to represent the investor to organize and manage the project implementation. The construction investment project management boards and district-level land fund development centers are currently temporarily transferred to the central commune, so coordination is still inadequate. The planning and land use plans at the commune level are being reviewed, adjusted and integrated; the process of approving investment policies; establishing, appraising and approving investment projects for land fund creation projects has not been specifically regulated according to the 2-level local government model.

To promptly resolve the above-mentioned difficulties and obstacles, the Provincial People's Committee needs to promptly provide unified guidance for implementation; at the same time, promptly issue regulations on the establishment of project management boards and land fund development centers in accordance with the characteristics and situation of each locality. Along with that, it is necessary to strengthen inspection and supervision in investment activities of land fund creation projects to ensure transparency and combat corruption and waste.

It should be emphasized here that local land fund creation projects have the appearance of a real estate business project, with a high profit factor and market value. Therefore, when implementing projects, commune-level authorities need to fundamentally calculate the scale of the project, the location suitable to the needs of residential land, commercial and service land of people and businesses so that the project is effective, with high capital recovery ability. Avoid the phenomenon of spreading investment, large projects exceeding the demand and consumption capacity of the market, which will cause waste of state resources.

Pham Ngoc Tinh

Source: https://baoquangtri.vn/kinh-te/202509/chu-dong-tao-quy-dat-de-co-nguon-luc-cho-dau-tu-phat-trien-9bd01be/