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The Ministry of Natural Resources and Environment stated that Government Decree No. 44/2014/ND-CP dated May 15, 2014, on land prices stipulates five land valuation methods: direct comparison, deduction, income, surplus, and land price adjustment coefficient, along with the conditions for applying these five methods. Circular No. 36/2014/TT-BTNMT dated June 30, 2014, of the Ministry of Natural Resources and Environment provides detailed regulations on land valuation methods, procedures for constructing land price tables, specific land valuation, and consulting on land price determination.
The aforementioned legal documents have created a comprehensive legal framework for land valuation at the local level. The process of determining specific land prices has also been given attention and implemented by provinces and cities, basically meeting the requirements; it has been carried out according to a strict procedure (investigation, survey to determine land prices, approval by the Land Valuation Council, decision on land prices), the results are consistent with reality, contributing to ensuring the rights of those whose land is expropriated, and increasing revenue for the state budget.
However, in the context of strong economic growth and attracting numerous investment projects, the specific land valuation process in some areas has been untimely, lacking mechanisms and resources to collect comprehensive data and information on prevailing market land prices, thus failing to ensure valuations are consistent with market value. The application of land valuation methods in some localities has revealed limitations that need to be addressed.
According to the Ministry of Natural Resources and Environment, the issuance of a Circular amending and supplementing several articles of Circular No. 36/2014/TT-BTNMT is necessary to promptly address difficulties and obstacles in the process of land valuation.
Amendments to regulations on land valuation methods: In the draft, the Ministry of Natural Resources and Environment has proposed amending and supplementing Article 3 of Circular No. 36/2014/TT-BTNMT in the following direction: Specifying the sources for collecting information on land prices of comparable land parcels for land prices obtained through auction, land prices recorded in land use right transfer contracts, and market land prices based on land data.
In addition, regulations regarding successful market transactions and information gathering through direct interviews should be removed; specific regulations should be established regarding the scope of information gathering in cases where the valuation area cannot obtain sufficient information; and provincial People's Committees should, based on the actual situation in their localities, specify the adjustment rate table for the differing factors of comparable land parcels compared to the land parcel being valued.
The Ministry also proposed amending and supplementing Article 5 of Circular No. 36/2014/TT-BTNMT in the following direction: Specifying the time period for calculating the average annual income of the land parcel to be valued for agricultural and non-agricultural land; specifying the procedures for cases where the information used to determine the average annual income of the land parcel to be valued is incomplete, not reflecting the actual income from land use for agricultural and non-agricultural land.
At the same time, the regulations on the average interest rate (r) of VND savings deposits with a 12-month term at commercial banks where the State owns more than 50% of the charter capital in the province for the year (calculated from January 1st to December 31st) before the valuation date and n is the remaining land use term of the land parcel to be valued in the case of land lease with a one-time payment for the entire lease period (calculated annually); is 70 years in the case of land lease with annual payments.
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