Principles, basis, and methods for land valuation according to the 2024 Land Law.

Reply:

Article 158 of the 2024 Land Law stipulates the principles, basis, and methods for land valuation as follows:

1. Land valuation must ensure the following principles:

a) Land valuation method based on market principles;

b) Strictly adhere to the methods, procedures, and processes for land valuation;

c) Ensuring honesty, objectivity, openness, and transparency;

d) Ensuring independence between the land valuation consulting organization, the land price table appraisal council, the specific land price appraisal council, and the agency or person authorized to decide on land prices;

d) Ensuring a balance of interests between the State, land users, and investors.

2. The basis for land valuation includes:

a) The intended use of the land is used for valuation;

b) Land use duration. For agricultural land already allocated by the State to households and individuals within the agricultural land allocation limit, and agricultural land within the transfer limit, the land use duration is not a factor;

c) Input information for land valuation using various land valuation methods;

d) Other factors affecting land prices;

d) Relevant legal regulations at the time of land valuation.

3. Input information for land valuation using the land valuation methods specified in point c, clause 2 of this Article includes:

a) Land prices are recorded in the national land database and the national price database;

b) The land price is recorded in the land use rights transfer contract; the winning bid price for land use rights after fulfilling financial obligations;

c) Land prices collected through investigation and survey in cases where land price information as stipulated in points a and b of this clause is unavailable;

d) Information on revenue, expenses, and income from land use.

4. The input land price information stipulated in points a, b, and c of Clause 3 of this Article is information formed within a period of 24 months prior to the land valuation date stipulated in Clause 2 of Article 91 and Clause 3 of Article 155 of this Law.

The use of information collected as stipulated in this clause prioritizes the use of information closest to the time of land valuation.

5. Methods for land valuation include:

a) The comparative method is implemented by adjusting the prices of land parcels with the same land use purpose, certain similarities in factors affecting land prices that have been transferred on the market, and which have been won in land use right auctions where the winning bidder has fulfilled their financial obligations according to the auction decision. This is done through analyzing and comparing factors affecting land prices after excluding the value of assets attached to the land (if any) to determine the price of the land parcel to be appraised;

b) The income method is implemented by dividing the average annual net income per land area by the average interest rate on 12-month Vietnamese Dong savings deposits at commercial banks in which the State holds more than 50% of the charter capital or total voting shares in the province for the three consecutive years up to the end of the most recent quarter with data available before the land valuation date;

c) The surplus method is implemented by subtracting the total estimated development costs of the land plot or area from the total estimated development revenue, based on the most efficient land use (land use coefficient, building density, maximum number of floors of the building) according to the land use plan and detailed construction plan approved by the competent authority;

d) The land price adjustment coefficient method is implemented by multiplying the land price in the land price table by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price table with the market land price;

d) The Government may prescribe other land valuation methods not specified in points a, b, c, and d of this clause after obtaining the approval of the Standing Committee of the National Assembly.

6. The cases and conditions for applying the land valuation method are stipulated as follows:

a) The comparative method is applied to valuation in cases where there are at least 3 land parcels with the same land use purpose, certain similarities in factors affecting land prices that have been transferred on the market, and the winning bidder has fulfilled their financial obligations according to the winning bid decision;

b) The income method is applied to valuation in cases where agricultural land, non-agricultural land (excluding residential land) is not eligible for the comparative method, but the income and expenses from land use according to the land use purpose being valued can be determined;

c) The surplus method is applied to valuation in cases where the land plot or area for the investment project does not qualify for the comparative method or the income method, but the total development revenue and total development costs of the project can be estimated;

d) The land price adjustment coefficient method is applied to determine the specific compensation amount when the State reclaims land in cases where multiple adjacent land parcels with the same intended use are reclaimed and their land prices are already stipulated in the land price table, but the comparative method is not applicable.

7. The land valuation methods stipulated in Clause 5 of this Article shall be used to determine specific land prices and to construct land price tables.

8. In cases where applying the land valuation methods specified in points a, b, and d of Clause 5 of this Article to determine the specific land price results in a price lower than the land price in the land price table, the land price in the land price table shall be used.

9. The choice of land valuation method is proposed by the land valuation organization and decided by the specific Land Valuation Council.

10. The Government shall provide detailed regulations for this Article.