Land finance is closely linked to the "bread and butter" of people and businesses.

Land prices should be applied close to the market.

Sharing at the workshop on providing comments on the Draft Law on Land (amended) organized by VCCI on the morning of March 8, Dr. Can Van Luc - Chief Economist of BIDV , Member of the National Financial and Monetary Policy Advisory Council emphasized that land prices and land finance issues in the Draft Law on Land (amended) are the most complicated and difficult issues.

He said that there are many different opinions on determining land prices close to market prices. In particular, understanding what is market land price is not a simple issue, as are many other contents on land finance.

"Land finance is an issue closely related to the livelihood of people and businesses. Therefore, it needs to be resolved in a more comprehensive, fundamental, thorough and consistent manner, in accordance with market rules and principles, ensuring scientificity, and being consistent with reality, ensuring the legitimate rights and interests of the state, organizations, businesses and people," Mr. Luc stated his opinion.

Real estate - Land finance is closely linked to the 'bread and butter' of people and businesses. — Mr. Can Van Luc proposed 10 "hot spots" in the Land Law (amended).

Accordingly, regarding land finance, Mr. Can Van Luc proposed 10 issues that need to be studied more carefully in the Draft Law on Land (amended).

Firstly, regarding land prices, Mr. Luc said that it is necessary to supplement concepts related to land prices that may arise in reality, standardize terms such as common land prices on the market/standard land prices, land price lists, standard land plots, specific land prices to ensure consistent understanding and application in the future.

Second, regarding the regulation of land revenue, the purpose of regulating land revenue should be added, and the collected money can be used to serve the work of land recovery and resettlement later.

Third, regarding land valuation methods, land valuation processes and land price list announcement, according to Mr. Luc, there should only be regulations on selection and limitation of about 3 land valuation methods.

At the same time, it is necessary to consider a roadmap to apply land prices close to market prices by piloting in some large localities, then expanding and officially applying from 2026. In addition, in order to build standard land prices close to the market, it is necessary to standardize the land valuation process.

Fourth, to ensure independence, objectivity, and ensure land prices are close to market prices and not subject to pressure or influence from local management agencies and interest groups, the expert recommends that the land valuation consultancy organization should be an independent, objective, professional agency with a practice certificate.

Fifth, regarding land use fees and land rent, the draft Law has stipulated additional land rent for some types of projects/types of land arising such as land for underground construction and land for aerial construction.

However, to ensure more completeness, avoid loss and ensure conformity with reality and development trends of new types of land, the expert said that annual land rent should be added for small, narrow, interspersed plots of land; land formed after sea encroachment.

In addition, more detailed regulations are provided for land fee collection for underground construction land and aerial construction land for business purposes.

Real estate - Land finance is closely linked to the 'bread and butter' of people and businesses (Figure 2). — The revised Land Law still has many concerns about land valuation (Photo: Pham Tung).

Sixth, regarding the payment of land use fees and land rent when changing the purpose/extending land use, the Draft Land Law (amended) needs to clearly state which price is closest to the market price.

Seventh, regarding exemption from land use fees and land rent, Mr. Luc said that there should be additional subjects exempted from land use fees and land rent. At the same time, there should be a clear separation of two cases: exemption and reduction of land use fees. If there is an exemption, it can be for the entire rental period. If there is a reduction in land rent, there should be a clear separation of three cases for the entire rental period and within a certain period.

Eighth, on the management of financial revenues from land. The Draft Law on Land (amended) stipulates that "revenues from land are a source of revenue for the central and local budgets according to the provisions of the Law on State Budget".

Mr. Luc suggested adding the content: "The Ministry of Finance and localities are responsible for managing and effectively using this revenue source, contributing to ensuring the balance of the central budget and local budgets" because revenue from land contributes significantly to the budget revenue of many localities.

Ninth, on the issue of increased/progressive taxes for people with large land areas, many houses, abandoned land, and slow use. It is necessary to soon study feasible and suitable solutions to limit the increase in real estate prices, increase the ability to buy houses for low/middle income people, and limit speculation.

Research on applying taxes and fees such as progressive taxes for buyers of second homes or more and progressive taxes based on the time of real estate sale, additional fees (the more central the area or city, the higher the additional fees) to limit land speculation, land retention, and limit the situation of unused houses/land.

Tenth, regarding the application of technology and digitalization in land price management and land finance, it is necessary to have standard, clean information and big data on land and land prices. Accordingly, it is necessary to supplement regulations clarifying the responsibilities of local authorities at all levels and related land transaction intermediaries in providing, updating, looking up and exploiting land information and data.

Ensure that people whose land is recovered have housing and social security.

Referring to the regulations on land recovery and compensation and resettlement support policies, Mr. Nguyen Hong Dai - representative of VSIP Hai Phong Company Limited commented that the regulations in the draft are being gradually improved in the direction of creating increasingly better conditions for people whose land is recovered, stabilizing their lives and production.

Real estate - Land finance is closely linked to the 'bread and butter' of people and businesses (Figure 3). — Workshop on commenting on the Draft Law on Land (amended) organized by VCCI on the morning of March 8.

However, according to Mr. Dai, the concept of “equal or better” is a general, emotional concept, without a specific measurement or criteria to determine and convince people whose land is recovered, which can easily cause frustration and misunderstanding when applied. This leads to a delay in site clearance progress, increased compensation costs, and slow project progress.

Therefore, the leader proposed amendments in the direction that compensation must ensure that the person whose land is recovered has a place to live and ensure social security. Regulations on land use rights agreements basically inherit the provisions of the 2013 Land Law, while expanding the scope of application and detailing the conditions, procedures and incentive policies of the State for this form. .

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