Land valuation is the key issue in resolving land-related problems and violations.

On the afternoon of August 7th, Deputy Prime Minister Tran Hong Ha chaired a joint in-person and online meeting on the draft Decree amending and supplementing several articles of Government Decree 44/2014/ND-CP regulating land prices.

Attending the meeting were leaders and representatives from the Ministries of Natural Resources and Environment, Finance, Planning and Investment, Public Security, Construction, the Government Inspectorate , the State Audit Office, the National Assembly's Economic Committee, the State Capital Management Committee at Enterprises, representatives from 22 provinces and cities, experts, real estate associations, valuation firms, etc.

Land valuation is a crucial issue in resolving land-related disputes and violations (Figure 1). — Deputy Prime Minister Tran Hong Ha chaired the meeting.

Reforming the process of determining specific land prices to ensure the effective utilization of land resources.

According to a report by the Ministry of Natural Resources and Environment , Decree 44 outlines five land valuation methods, including: direct comparison; deduction; income; surplus; and land price adjustment coefficient. Through specific land valuation methods, land prices have been largely aligned with market prices, limiting revenue losses for the State budget and ensuring the rights of those whose land is expropriated.

However, after more than 9 years of implementation, some regulations on land valuation methods have revealed limitations and shortcomings. Some localities are still confused in applying them, affecting the progress of land valuation. Some land valuation methods are not suitable for the actual conditions regarding market information, land use rights lack transparency, and are not suitable for state management of land prices in the context of an incomplete land price database. Regulations on the content and conditions for applying land valuation methods have some inconsistencies and lack specificity, leading to cases where different methods applied to the same plot of land yield different results…

Therefore, it is necessary to issue a decree amending and supplementing several articles of Decree 44 to promptly improve regulations on land valuation methods, innovate the procedures for determining specific land prices to ensure the effective utilization of land resources, and guide localities to uniformly implement the delegation of authority from the Provincial People's Committee to the District People's Committee to decide on specific land prices as stipulated in the Law on Organization of Local Government and Government Resolution No. 73/NQ-CP dated May 6, 2023.

Land valuation is a crucial issue in resolving land-related disputes and violations (Figure 2). — The Deputy Prime Minister stated that the irregularities in land valuation mainly stem from the application of incorrect methods or the use of input data that is not objective, transparent, or accurate.

The proposed solutions aim to overcome existing shortcomings, difficulties, and obstacles in land valuation work over the past period. Specifically, they involve reviewing and improving land valuation methods, integrating the deduction method into the comparative method; and amending and supplementing some contents of the surplus method to reduce the element of assumptions and subjective will of the valuer, making implementation easier.

The regulations specify the conditions for applying each land valuation method to ensure consistency in the selection and application of land valuation methods; the sources of information to be collected for applying land valuation methods; and expand the cases in which the land price adjustment coefficient method can be applied…

The draft Decree also adds regulations stating that when applying the comparative method, income, and surplus, the results of determining specific land prices using the land price adjustment coefficient method must be simultaneously compared; the procedures for determining specific land prices in cases where the Provincial People's Committee authorizes the District People's Committee to decide on specific land prices; cases where no organization with the function of consulting on land valuation can be selected; and transitional provisions for certain cases…

Land valuation is a crucial issue in resolving land-related disputes and violations (Figure 3). — The meeting was conducted online.

Applying land valuation methods combined with appropriate verification ensures honesty and objectivity.

Speaking at the meeting, Deputy Prime Minister Tran Hong Ha said that in the coming time, the amended Land Law, once passed, will be an important legal basis for establishing a land price database and building land value maps as a basis for applying all valuation methods.

Initially, management agencies and land valuation consulting units need to agree on the method of selecting and applying land valuation methods combined with appropriate verification, ensuring honesty, objectivity, accuracy, and alignment with market value, minimizing reliance on subjective opinions, and ensuring trustworthiness among management agencies, land valuation consulting units, and law enforcement agencies.

Deputy Prime Minister Tran Hong Ha stated clearly: Land valuation is a key issue in resolving current difficulties, obstacles, and violations related to land. The amendment of Decree 44 requires a sound methodology, a scientific basis, and practical experience.

Land valuation methods (comparative, income, surplus) have been used in many countries around the world. In these methods, input information and data on the land market are crucial for applying an accurate valuation method. Each valuation method is applied according to the specific input information and data available for each land parcel.

Land valuation is a crucial issue in resolving land-related disputes and violations (Figure 4). — Experts attended the meeting.

The Deputy Prime Minister instructed the Ministry of Natural Resources and Environment to closely coordinate with the Ministry of Finance, the Ministry of Construction, other ministries, sectors, and associations to further clarify the criteria and conditions for collecting input information and data for each specific land parcel and project, as a basis for applying the most appropriate valuation method, avoiding arbitrariness and subjectivity.

"The input information criteria must be consistent, transparent, public, simple, and feasible, serving as the basis for applying appropriate valuation methods," the Deputy Prime Minister said, and requested the drafting agency to clarify the authority and responsibilities of management agencies, valuation consulting organizations, valuation appraisal councils, etc., in the procedures for conducting land valuation.

The Deputy Prime Minister also noted that even if the revised draft Land Law is passed, allowing the application of land valuation methods based on value zones, other valuation methods should still be applied to areas where sufficient land data based on value zones has not been collected. For localities that closely monitor land market price fluctuations, they can proceed to apply the valuation method based on value zones.

Reforming the process of determining specific land prices to ensure the effective utilization of land resources.

Applying land valuation methods combined with appropriate verification ensures honesty and objectivity.

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