'Tricky' regulations on State land acquisition for commercial housing projects

On the morning of June 9, reporting on the review of the revised Land Law after collecting public opinions, Chairman of the Economic Committee Vu Hong Thanh said that compared to the previous draft law, Article 79 regulating land recovery for socio-economic development for national and public interests in this draft has had major changes.

Chairman of the Economic Committee Vu Hong Thanh reported on the review of the draft Land Law on the morning of June 9.

Specifically, the draft law has expanded and listed 31 cases of land recovery in 3 groups: land recovery for construction of public works; land recovery for construction of state agency headquarters and public works; land recovery for socio-economic development for national and other public interests.

However, Mr. Thanh said that the provisions at points e and g, clause 3, article 79 refer to cases of land fund auctions and bidding, which are unclear in content and inconsistent in approach compared to other cases.

Auction of land use rights or bidding to select investors to implement projects using land is only a method of land allocation or land lease, not a criterion to determine cases of land recovery.

Furthermore, point e, clause 3, article 79 Refer to Clause 1, Article 112, which lists land use projects for which the State recovers land to auction land use rights, including "commercial housing projects".

According to the Economic Committee, the design of this regulation is general and not clear enough about the cases of implementing "commercial housing projects" in which the State reclaims land, making it difficult to determine whether it falls within the scope of socio-economic development for national and public interests or not.

Mr. Thanh said that this has not yet clearly institutionalized the content of Resolution No. 18 of the Central Committee, which requires: "More specific regulations on the authority, purpose, scope of land recovery, conditions, and specific criteria for the State to recover land for socio-economic development for national and public interests. Continue to implement the mechanism of self-negotiation between people and enterprises in transferring land use rights to implement urban and commercial housing projects".

General Secretary Nguyen Phu Trong attended the National Assembly session this morning, when the National Assembly heard the presentation and second review report on the revised Land Law project.

"The Economic Committee recognizes that this is an important provision of the Land Law, defining cases of land recovery from organizations and individuals who have land use rights, having a major impact on the rights and interests of land users, and can only be implemented when stipulated in the Constitution and laws and meeting the criteria for socio-economic development for the national and public interest. Therefore, it is necessary to be extremely cautious, carefully consider, ensure full institutionalization of Resolution No. 18 of the Central Committee and comply with the provisions of the 2013 Constitution to clearly stipulate, avoid different interpretations, causing difficulties in practice," Mr. Thanh stated the viewpoint of the examining agency.

From there, the Economic Committee proposed to review points e and g, Clause 3, Article 79 so that they are not regulated by reference to regulations in other articles and clauses, but have specific and clear regulations right in the draft law.

Mr. Thanh affirmed that in cases of land recovery for socio-economic development, for national and public interests, the Economic Committee agrees with cases where the State recovers land to regulate the difference in added value from land due to planning changes, infrastructure investment, harmonizing interests between the State - people - investors and cases of land recovery to ensure conditions for implementing land-use investment projects.

In addition, the Economic Committee also proposed to continue reviewing the provisions in other points and clauses of Article 79, ensuring completeness and clarity. Land recovery in these cases is only carried out when associated with specific projects.

Article 79, Clause 3 on land recovery for socio-economic development in the national and public interest

e) Reclaim land to hand over to land fund development organizations established by the State to implement land fund creation projects for auctioning land use rights as prescribed in Clause 1, Article 112 of this Law to ensure public and transparent access to land, increase budget revenue to meet socio-economic development requirements, support resettlement and social security;

g) In the case specified in Point b, Clause 1, Article 126 of this Law, which has been included by the Provincial People's Committee in the list of works and projects to be implemented by bidding for projects using land as prescribed in Point a, Clause 6, Article 126 of this Law;

Article 112 stipulates projects using land funds created by the State.

1. The State shall reclaim land according to the annual district-level land use planning and plans to create land funds for auctioning land use rights to implement the following projects:

a) Commercial housing projects;

b) Investment project to build commercial and service business facilities;

c) Mixed-use project including housing, service and commercial business;

d) Infrastructure projects in the vicinity of traffic connection points and traffic routes with development potential according to approved planning, land use plans, and construction plans;

e) Sea reclamation project.

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