Auctioning of restricted land use rights: Many obstacles remain!

July 15, 2013 18:35

(Baonghean)The provincial People's Committee's policy of limited land auctions aims to provide disadvantaged rural households with the opportunity to access and own residential land. However, many localities have yet to implement this policy, even though it was issued nearly two years ago.

Mr. Nguyen Dinh Tram's family, residing in Hamlet 12, Nam Linh Commune (Nam Dan District), currently has three generations living under one roof: grandparents, two sons, daughter-in-law, and grandchildren. Mr. Tram himself is a war invalid, and his economic situation is not affluent. Therefore, purchasing additional land through a public auction to build a separate house for one of his sons is proving difficult. "Although I am a war invalid, my son is not entitled to land allocation based on market value. Therefore, I hope the State will implement a policy of auctioning land at a price lower than the market value to create conditions for families like ours to separate and build houses for our children, reducing the cramped and difficult living conditions," Mr. Nguyen Dinh Tram requested. Mr. Tram's opinion is also shared by many rural residents who have raised similar concerns at numerous voter outreach forums of the National Assembly and Provincial People's Council over the years.

Based on suggestions and recommendations from voters, the Provincial People's Committee proposed that the Provincial People's Council consider and approve them. Subsequently, the Provincial People's Committee issued Decision No. 37/2011/QD-UBND, dated August 1, 2011, on the promulgation of regulations on auctioning assets in Nghe An province, which includes regulations on the scope, subjects, conditions, and pricing methods for limited land use right auctions in rural areas. However, to date, after nearly two years of implementation, the province's policy of limited land auctions has not yet been put into practice in many localities. "To date, limited land auctions have only been implemented in 4 districts with 14 communes in Yen Thanh, Dien Chau, Hung Nguyen, and Thanh Chuong. The total number of land plots offered for limited land auctions is 187, of which 92 plots have been successfully auctioned," said Mr. Phung Khac Tan, Head of the Legal Aid Department, Department of Justice.



Land administration officials in Nghi Duc commune (Vinh City) are reviewing land use planning and plans in the area.

Upon investigation, we learned that the obstacle preventing many localities from implementing limited land auctions is that the province has not yet approved the land use planning and plans for the period 2010-2015, with consideration up to 2020, for the districts. Consequently, the districts have also not approved land use planning and plans for the communes, thus lacking a basis for conducting limited auctions. A few localities have been able to organize limited auctions because they still have old land plots that were previously approved by the competent authorities.

In Nam Dan district (where the most requests for limited land auctions have yet to be implemented), for example, Nam Linh commune in 2012 developed a land use plan for the year to provide a basis for limited land auctions, but it was not approved by the district. To date, the commune has surveyed and selected locations in 5 areas for limited auctions, and 1 area is being valued according to a policy, awaiting district approval before being put up for auction.

Furthermore, another obstacle is that, according to regulations, the starting price for limited land use rights auctions in rural areas cannot be lower than the land price framework issued by the Provincial People's Committee that is still in effect at the time of the auction. This creates difficulties for those who need land for housing and reduces the purchasing power of the people. Because the eligible participants in the limited land auction are households living in rural communes with low incomes, poor and near-poor households, policy beneficiary families, single-parent families, and those in extremely difficult circumstances, spending 50-60 million VND to buy land is beyond their means.

In reality, in the two communes of Hung Tan and Hung Linh (Hung Nguyen district), the starting prices were so high that no one bought land through the limited auction. That's why, while there's a high demand for land to build houses and separate households for children, the actual number of buyers is very small. For example, out of 115 plots auctioned by Phu Quy Auction Joint Stock Company in 10 communes across three districts (Dien Chau, Yen Thanh, and Hung Nguyen), only 54 plots were successfully auctioned; the price increased by only 1% compared to the initial starting price and decreased by only 5 to 20% compared to the free auction.

Based on practical experience, in order for the province's policy of auctioning limited land use rights to be implemented effectively and contribute to the sustainable implementation of social welfare policies, it is necessary to adjust land prices reasonably; provide loan support or allow installment payments for land to enhance the financial capacity of households purchasing land. The commune and district authorities need to improve their responsibility in surveying, selecting locations, and approving land for limited auction. At the same time, they should organize the review of applications for those eligible to purchase limited land to ensure fairness, accuracy, and eligibility; and invest in initial infrastructure to meet the conditions for auctioning.


Mai Hoa

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Auctioning of restricted land use rights: Many obstacles remain!
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