The Ho Chi Minh City Real Estate Association (HoREA) has just issued a document commenting on the draft Law amending and supplementing a number of articles of the 2024 Land Law, agreeing with many new points and proposing a series of recommendations to "untie" the real estate market.
Amending the 2024 Land Law: Untangling the "leopard skin" project bottleneck
One of the contents highly appreciated by HoREA is the addition of Clause 34 to Article 79, allowing the State to reclaim the remaining land of the project if the investor has reached an agreement on over 75% of the area or land users.
According to Mr. Le Hoang Chau, Chairman of HoREA, this regulation will help resolve the situation of unfinished compensation projects that have existed for many years due to the lack of legal mechanisms. "This is a breakthrough, ensuring the rights of people whose land has been recovered, and at the same time removing obstacles for a series of projects that are 'stuck' in legal issues," Mr. Chau commented.
Cut down on procedures, eliminate the "ask-give" mechanism
HoREA agrees with the amendment of provisions such as Articles 127, 159 and 160, notably improving the process of calculating land use fees and land rent. “This helps investors predict costs, shorten the time for procedures and limit risks for enforcement officers,” the HoREA document stated.
In particular, HoREA proposed to remove the additional 5.4% fee mentioned in the amendment to Article 257, because it believes that this is not the fault of the enterprise.
HoREA proposed that the State reclaim the remaining land of the project if the investor has reached an agreement on over 75% of the area or land users.
Proposal to expand land use objects
HoREA also proposed many new contents to synchronize with international practices and norms. Among them, it is proposed to include foreign individuals in the land user group, increasing market integration.
In addition, HoREA recommends restructuring the group of laws from 182 to 222 on land classification, increasing the authority of the commune level in land planning and management, helping to be closer to the situation of each locality.
No land recovery if slow to implement
Another highlight is the proposal to amend Clause 8, Article 81, not to reclaim land without compensation if investors are slow to implement after the extension period. "Compensation must be made in accordance with regulations to ensure property rights and in accordance with the 2013 Constitution" - HoREA stated.
HoREA also proposed a mechanism for refunding compensation and resettlement costs when enterprises pay in advance, by adding specific regulations in Decree 103/2024/ND-CP.
Suggestion to replace land use fee with tax
Regarding land finance policy, HoREA proposed to remove the “land use fee” mechanism and replace it with land use conversion tax and real estate tax. “This approach helps create a sustainable source of revenue for the budget, while reducing real estate prices and avoiding double taxation, ” Chau analyzed.
In case the "land use fee" is still maintained, HoREA suggests that it should be calculated as a percentage based on the land price list instead of applying a fixed rate as it is currently.
Proposal to mortgage land at foreign banks
Another notable proposal is to allow mortgage of land use rights at foreign credit institutions, through banks designated by the State Bank. HoREA believes that this regulation will be suitable for the practical needs of Vietnamese people residing abroad and foreign individuals investing in Vietnam.
Source: https://nld.com.vn/sua-luat-dat-dai-2024-horea-de-xuat-bo-tien-su-dung-dat-giam-ganh-nang-cho-doanh-nghiep-196250801104915055.htm
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