Most notably, the decision stipulates that when the state reclaims land from citizens for projects, a specific price will be determined, not using the K coefficient. This process will be carried out by a specialized consulting and appraisal unit to determine compensation prices that closely reflect market value at the time of land reclamation, benefiting the people.
Meanwhile, for cases where people change the land use purpose from agricultural land to residential land, the coefficient K is calculated as 1, which means that the land use fee for people will not increase compared to the current rate.
Speaking to Thanh Nien newspaper , Mr. Dao Quang Duong, Head of the Land Economics Department of the Ho Chi Minh City Department of Agriculture and Environment, said that Decision 45 reflects the long-term vision of policymakers, ensuring both social welfare for the people and economic growth for the city.
This is demonstrated by the conversion of land use for households and individuals from agricultural land to residential land with a K coefficient of 1.
In addition, the land use fee for resettlement also has a coefficient K equal to 1, and the land lease fee for businesses also has a coefficient K equal to 1.
The core objective is to create the most favorable conditions for those establishing new residences through land-use conversion and for businesses leasing land to invest, produce, and conduct business with peace of mind.
With the K coefficient set at 1, people will not face financial pressure when changing the land use purpose.
PHOTO: DINH SON
However, for land acquisition cases, compensation will be determined by specific land prices. This helps ensure the legitimate rights of people whose land is acquired. It will also contribute to accelerating the compensation and land clearance process for hundreds of ongoing projects in the area, and speed up the disbursement of public investment funds, which are of great interest to the central government and the city.
"One of the issues of public concern is fairness in compensation. Decision 45 determines the price for each specific project, ensuring a reasonable correlation with previously approved projects. Decision 45 particularly focuses on balancing the interests of all parties; people want reasonable compensation prices, while businesses need stable input costs (annual land rent) to maintain production," said Mr. Dao Quang Duong.
Mr. Dao Quang Duong also stated that for real estate projects with only one function according to the plan, such as purely apartments, purely hotels, or purely offices, the K coefficient will be applied. For multi-purpose projects, such as those with both residential and commercial functions, the land price will be determined specifically.
People whose land is expropriated also receive more adequate compensation.
PHOTO: DINH SON
In this formula, K2 is the adjustment coefficient based on the planning (applied to investment projects according to the construction plan) and K3 is the adjustment coefficient based on other factors affecting land prices.
For low-rise housing projects (townhouses, villas), industrial parks, and industrial clusters, the K2 coefficient is calculated based on the land use coefficient, ranging from 1 to 1.30. For high-rise projects, the K2 coefficient ranges from 1 to 1.70.
Meanwhile, the K3 coefficient for land types in the land price table issued under Resolution No. 87/2025 of the Ho Chi Minh City People's Council is 1.
"This week, the Department of Agriculture and Environment is expected to hold a meeting to implement and provide detailed guidance on the execution of Decision 45 so that relevant agencies and citizens can quickly grasp and apply it uniformly throughout the city. This is a strategic decision, not only removing bottlenecks in administrative procedures but also ensuring fairness and macroeconomic stability to aim for double-digit economic growth in Ho Chi Minh City," said Mr. Dao Quang Duong.
Source: https://thanhnien.vn/nguoi-dan-huong-loi-tu-he-so-k-185260702155733417.htm
