Proposed procedures and content for determining land prices using four methods.

The Ministry of Natural Resources and Environment is seeking feedback on the draft Decree on land prices, which specifies the procedures and content for determining land prices using four methods: comparative, income, surplus, and land price adjustment coefficient, in relation to the implementation of the amended Land Law of 2024, effective from January 1, 2025.

Accordingly, based on the land use purpose being valued, the characteristics of the land parcel or area to be valued, the information collected, and the conditions for applying the land valuation methods stipulated in Clause 6, Article 158 of the Land Law, the land valuation consulting organization hired to conduct the land valuation is responsible for analyzing and selecting a suitable land valuation method and proposing it in the Explanatory Report on the construction of the land price plan as a basis for the natural resources and environment agency to submit to the Land Valuation Council at the same level for decision.

Information on land prices, land lease prices, and premises lease prices used to apply the comparative method, the surplus method, and to construct land price adjustment coefficients is information collected from the national land database and the national price database within a period not exceeding 24 months prior to the land valuation date.

Information can also be collected from the following sources: Auction price for land use rights in cases where the winning bidder has fulfilled their financial obligations according to the decision approving the auction results at the unit organizing the land use rights auction; Land price recorded in the land use rights transfer contract that has been notarized and certified at the Land Registration Office; Land price used to collect financial obligations in land use rights transfer cases collected from tax authorities; Land lease price, premises lease price recorded in land lease contracts, premises lease prices or collected from tax authorities; Successful land transfer, land lease, and premises lease prices on the market collected from real estate exchanges with confirmation and seal of the real estate exchange; Market land transfer price collected through direct interviews with the transferor or transferee.

Information on costs and income from non- agricultural land use for the purpose of applying the income method was collected from the following sources:

The cost of generating income from land use as stipulated in point b of this clause shall be determined based on norms and unit prices issued by competent state agencies; in cases where there are no norms or unit prices issued by competent state agencies, it shall be based on information and data on the average actual costs commonly found in the market of at least 3 land parcels closest to the land parcel or area to be valued, provided they are not limited by the administrative boundaries of commune, district, or provincial-level administrative units.

Income from production and business activities recorded in financial statements or land lease prices, premises lease prices collected according to "Land lease prices, premises lease prices recorded in land lease contracts or collected from tax authorities; Land transfer prices, land lease prices, premises lease prices successfully obtained on the market collected at real estate exchanges with confirmation and seal of the real estate exchange" for a period of 3 consecutive years immediately preceding the end of the most recent quarter with data before the valuation date.

If the income from the land parcel to be valued is incomplete for each year and does not accurately reflect the actual income from land use, information on land lease prices and premises rental prices for at least three land parcels should be collected for comparison.

Information on costs and income from the use of agricultural land for the purpose of applying the income method is collected from statistical agencies, tax agencies, and agricultural and rural development agencies; in cases where statistical data is unavailable or data from tax agencies or agricultural and rural development agencies is not available, information on the actual market costs of at least 3 land parcels closest to the land parcel or area to be valued, as stipulated in "Closest to the land parcel or area to be valued and not limited by the administrative boundaries of commune, district, or provincial-level administrative units," is collected, specifically as follows:

For a period of three consecutive years up to the end of the most recent quarter with data available prior to the valuation date, land used for annual crops, aquaculture, salt production, and other agricultural land must have been surveyed; for a minimum of three consecutive harvests prior to the valuation date, land used for perennial crops must have been surveyed; and for a single exploitation cycle prior to the valuation date, land used for production forests and industrial crops as stipulated by specialized laws.

When applying comparative methods, the surplus method should prioritize selecting comparable land parcels in the following order: Similarity in location, infrastructure conditions, area, size, shape, land use coefficient, building density, building height, and other factors affecting land prices compared to the land parcel to be valued; The time of transfer or auction of land use rights closest to the time of valuation; The closest distance to the land parcel or area to be valued and not limited by the administrative boundaries of commune, district, or provincial-level administrative units.

Land valuation consulting organizations, when collecting information to apply land valuation methods, must be honest, objective, and legally responsible for the accuracy of the survey information.

The unit organizing the land use rights auction, the land registration office, the tax authority, the statistics agency, and the agriculture and rural development agency are responsible for providing information to serve the land valuation process in writing or electronically within no more than 5 working days from the date of the written request from the land valuation consulting organization. The land valuation consulting organization is responsible for storing, managing, and using the collected information and data in accordance with the law.

The recently published draft proposal states that the Department of Natural Resources and Environment is responsible for posting the draft land price list on the website of the Provincial People's Committee and the Department of Natural Resources and Environment for 30 days to solicit opinions from relevant agencies, organizations, and individuals. The Provincial People's Committee will then submit the land price list to the Provincial People's Council for approval.

The provincial People's Council directs the provincial People's Committee to finalize the land price list for issuance; publicly announce the land price list on January 1st of each year and update it in the National Land Database.

Based on the local government's requirements for land price management, the Provincial People's Committee shall submit to the Provincial People's Council for approval before deciding to adjust, amend, or supplement the land price list for the year in the following cases: when new roads and streets are formed that are not included in the current land price list; when land-use projects have been completed and put into use but do not have land prices in the land price list; and in cases where the land price list stipulated in Clause 3, Article 111 and Clause 1, Article 160 of the Land Law is applied but does not have land prices in the land price list.

This includes the adjustment, modification, and supplementation of the prices of one type of land, several types of land, or all types of land in the land price table. The Ministry of Natural Resources and Environment proposes that the land price table can be adjusted or supplemented at one land location, several land locations, or all land locations; at one value zone, several value zones, or all value zones.

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