Many localities have not complied with the regulations of the Provincial People's Committee in land auctions.

On the morning of October 29, the Provincial People's Council's Legal Committee had a meeting with the Nghe An Land Fund Development Center under the program to monitor the auction of land use rights in the province. Photo: Mai Hoa

Many localities have not complied with regulations in auctions.
Specifically, in 2018, only a few localities implemented it and in 2019, although the deadline for submitting the list to the Department of Natural Resources and Environment is before September 30 every year, up to this point, only 7 units have submitted it.

Explaining the lack of strict compliance with this regulation by localities, the representative of the Provincial Land Fund Development Center said that the mentality and ideology of localities do not want to establish and proactively propose a list of projects, create land funds for the center to conduct land auctions and leases for organizations serving investment and business, because the districts want to reserve land funds for auctioning residential land use rights to increase budget revenue for the district and commune levels.

According to Decision No. 77/2016/QD-UBND on decentralization of revenue sources, expenditure tasks and percentage of revenue division among budget levels, the land auction source to implement investment projects for organizations is implemented by the center with the division ratio of 70% provincial budget, 20% district and 10% commune (specific investment projects have not been determined); while the money for auctioning residential land use rights is implemented by localities, 35% provincial budget, 25% district and 40% commune (some localities enjoy special mechanisms).

According to the Provincial Land Fund Development Center, the above problem makes it difficult to create land funds to attract investment in the district level. In addition to the above problems, the province has not yet allocated funds to carry out site clearance and infrastructure investment before auctioning, affecting the auction.

From 2018 to October 2019, the Center successfully auctioned 5 plots of land, with a total area of ​​15,000m², total winning price is nearly 35 billion VND (including land delivery, one-time land lease payment and annual land lease payment).

Mr. Ho Phan Long - Director of Nghe An Land Fund Development Center explains why localities are not interested in compiling a list of projects for auctioning land use rights. Photo: Mai Hoa

Proposal to establish a Land Fund Development Fund

At the meeting, some members of the Provincial People's Council's Legal Committee were concerned that when all 5 land plots were auctioned to implement investment projects, the difference in auction price compared to the starting price was only 5%. Was there any negativity and "brokers" participating in the auction of land use rights to implement the project?

On the other hand, every year, the province decides to reclaim rice fields and forest lands to carry out large investment projects, while the number of land plots auctioned to collect land fees in nearly 2 years is only 5 plots for 5 projects.

The concern of the Legal Committee of the Provincial People's Council was raised by the representative of the Department of Natural Resources and Environment that many land plots that the province has decided to allow to change the land use purpose to carry out investment projects are mainly eligible for land allocation without auction.

Regarding the difference between the auction price and the starting price in accordance with the regulation of minimum price step of 5%, according to the center's representative, the determination of the starting price is approved by the Department of Finance and there are areas that are also built quite high, including areas with high prices approximately equal to the price of residential land auctioned in the same area.

Nghe An Land Fund Development Center recommends that the province should establish a Land Fund Development Fund to have resources for site clearance, infrastructure investment, and creating land to attract investment projects. Photo: Mai Hoa

Based on some shortcomings and limitations, the Provincial People's Council's Legal Committee requested the Center to strengthen coordination and urge localities to compile a list of land use rights auction projects in accordance with regulations; at the same time, organize auctions and increase the number of auctioned areas based on the lists proposed by the districts; pay attention to monitoring auction organizers to ensure transparency and compliance with legal regulations.

The Center also needs to proactively propose to all levels and sectors to amend shortcomings and problems in land auctions for organizations implementing investment projects.

The Provincial People's Council's Legal Committee also acknowledged some recommendations from the center, such as the province needs to balance revenue from land use fees to allocate capital for land fund development from 30 - 50%; the province needs to issue regulations on mechanisms and policies to create clean land funds to attract investment through auctions...