Vice Chairman of Ho Chi Minh City People's Committee Bui Minh Thanh has just directed the application of the post-merger land price list, the construction of the first land price list according to the 2024 Land Law and revenue from land use fees in the city.
Prepare new land price list
According to Decision No. 79/2024/QD-UBND in Ho Chi Minh City (old), the highest price is on Dong Khoi, Le Loi, Nguyen Hue streets with 687 million VND/m2; Ham Nghi street with 429 million VND/m2; National Highway 22 Parallel Road (section from Nguyen Anh Thu to Ly Thuong Kiet) with 32 million VND/m2.
According to Decision No. 26/2024/QD-UBND in Ba Ria - Vung Tau province (old), urban land prices range from VND 913,000/m2 to VND 78 million/m2 depending on location, route and urban area. Ba Cu, Le Hong Phong, Hoang Hoa Tham, Ly Thuong Kiet streets... in location 1 have the highest price of VND 78 million/m2. Rural land prices range from VND 513,000/m2 to VND 4.1 million/m2 depending on route, location and locality. According to Decision No. 63/2024/QD-UBND in Binh Duong province (old), the highest land price is over VND 52 million/m2, of which some roads have increased in price by up to 80%.
In the coming period, the Ho Chi Minh City People's Committee agreed to continue applying the regulations on land price lists in Decision No. 79/2024/QD-UBND in Ho Chi Minh City (old), Decision No. 63/2024/QD-UBND in Binh Duong province (old) and Decision No. 26/2024/QD-UBND in Ba Ria - Vung Tau province (old) until the above decisions are abolished, replaced according to regulations, or there are other instructions from competent authorities.
Vice Chairman of the Ho Chi Minh City People's Committee Bui Minh Thanh assigned the Department of Agriculture and Environment (DARD) of Ho Chi Minh City to complete the draft document directing the implementation; agree with the Department of Justice on the format and form of the document to ensure strictness and compliance with legal regulations, and submit it to the Ho Chi Minh City People's Committee.
Regarding the preparation for the first land price list according to the 2024 Land Law, Vice Chairman Bui Minh Thanh assigned the Department of Agriculture and Environment of Ho Chi Minh City to preside over and coordinate with the Department of Justice and the Department of Finance to research and develop plans to implement the first land price list applicable from January 1, 2026.
In particular, it is necessary to clearly analyze the legal basis, advantages and disadvantages of each plan; ensure compliance with regulations related to authority, procedures, construction content, appraisal methods, information collection methods and related issues according to regulations. The Department of Agriculture and Environment must submit the plan to the City People's Committee before August 5.
At the same time, the Department of Agriculture and Environment of Ho Chi Minh City directed and thoroughly informed the Land Registration Offices in the city to identify the work of building land price tables as a key task from now until the end of 2025. Units must develop specific plans, mobilize sufficient human resources, and assign tasks clearly and consistently to professional staff to ensure progress and quality of work. In addition, the Department of Agriculture and Environment of Ho Chi Minh City advised the People's Committee of Ho Chi Minh City to issue documents directing the contents related to the functions and tasks of 168 People's Committees of wards, communes, and special zones in the area, as well as coordinate with relevant agencies and units to ensure unified and synchronous direction and operation in the process of building land price tables.
Binh Duong Ward, Ho Chi Minh City seen from above. Photo: THAO NGUYEN
Harmony of interests
Mr. Le Minh Vuong, who works in the real estate sector, believes that the core problem is that the price of agricultural land in the state price list is currently too low compared to the actual market price. This creates a huge gap when people change the purpose of use to residential land, leading to too high taxes, causing difficulties for low-income people and giving rise to illegal transfer activities. From there, Mr. Le Minh Vuong proposed increasing the price of agricultural land to narrow this gap and reduce the tax burden.
However, Mr. Hoang Mong Chinh, Chairman of the Board of Directors of Hoang Khoi Real Estate Company, warned that the construction of a new land price list needs to be cautious and have a reasonable price increase roadmap. If the price increases suddenly, it will cause "shock" to people and businesses. In fact, in Ho Chi Minh City, the adjustment of land prices has caused land rental costs to skyrocket, pushing up logistics costs, increasing the price of goods and reducing the competitiveness of the economy.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the problem lies not only in land prices but also in the legal system. The report of the Ministry of Justice pointed out hundreds of contradictory, overlapping, unclear and unfeasible regulations that are hindering socio-economic development. These problems create a burden of compliance costs for businesses and limit innovation.
Experiences from land price adjustment and current legal problems are considered important lessons for authorities to develop a land price list, expected to be applied from January 1, 2026.
Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Bui Minh Thanh, Vice Chairman of the Ho Chi Minh City People's Committee, said that the application of the three land price lists of the three localities before the merger was carried out in accordance with the 2024 Land Law. This helps ensure stability and harmonize the interests of the parties involved.
Proposing 2 options for land price list
The Ministry of Agriculture and Environment is drafting a Law to amend and supplement a number of articles of the 2024 Land Law. One of the notable points is the amendment and supplement to Article 159 on land price list.
Accordingly, the drafting agency proposed two options.
Option 1: The land price list will be applied to many cases such as calculating land use fees, land rent when the state allocates land, leases land without auction, extends land use, and calculates the starting price for auction. This land price list is built according to area, location, and even each land plot if there is enough data. The provincial People's Committee will decide and announce the land price list every 5 years, applicable from January 1 of the first year of the period.
Option 2: The land price list is only used to calculate land use fees, land rent in some specific cases, taxes, fees and compensation when reclaiming land. The main difference is that the land price list will be adjusted annually through a land price adjustment coefficient. The provincial People's Committee will decide on this coefficient and issue it on January 1 of each year, and at the same time establish an appraisal council to review both the land price list and the adjustment coefficient.
L. Thuy
Source: https://nld.com.vn/gap-rut-xay-dung-bang-gia-dat-theo-luat-moi-196250729211746163.htm
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