Chairman of Nghe An Provincial People's Committee requested to quickly remove legal obstacles and resume land auctions after 5 months of interruption.
The above request was made by comrade Le Hong Vinh - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee at the regular meeting of February 2025 held on the morning of March 7.
At the above meeting, Director of the Department of Justice Hoang Thi Thu Trang reported on legal problems that led to the interruption of land auction activities in Nghe An after the 2024 Land Law took effect.
Accordingly, previously, land use rights auctions were conducted in accordance with the Law on Auctions, including the selection of auction organizations and the auction conduct.
However, Decree 102/2024/ND-CP dated July 30, 2024 of the Government detailing the implementation of a number of articles of the Land Law stipulates: "The selection of units and organizations to conduct land use rights auctions shall comply with the provisions of the law on bidding".
However, based on the Law on Bidding, there is no basis to determine whether the bidding package for selecting units and organizations to conduct land use rights auctions is a consulting or non-consulting service bidding package; at the same time, there is no document as a basis for making estimates for this bidding package.
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Recently, the People's Committee of Nghe An province assigned the Department of Justice to preside over and coordinate with relevant departments and branches to resolve the issue. Accordingly, the Department of Planning and Investment (now the Department of Finance) has provided guidance on determining consulting or non-consulting service packages.
However, the remaining problem is that the basis for making the bid package estimate for selecting the unit and organization to conduct the land use rights auction has not yet been determined.
At the conclusion of the regular meeting in March 2025, after listening to the opinions of relevant departments, branches and leaders of the Provincial People's Committee, Chairman of Nghe An People's Committee Le Hong Vinh requested the Provincial People's Committee Office to request that during the week from March 10 to 14, a meeting be arranged immediately to resolve legal issues in order to resume land auction activities after a 5-month interruption.
Revenue from land use fees is an important revenue in the budget revenue structure. In 2024, the total budget revenue of Nghe An province will reach VND 25,517 billion, of which land use fees alone will be VND 10,185 billion, of which the largest source of revenue comes from investors in the Eco Central Park and VSIP projects.
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According to the estimate assigned by the People's Council of Nghe An province, the total budget revenue of Nghe An in 2025 is more than 17,726 billion VND, of which revenue from land use fees is 4,500 billion VND.
Recently, the People's Committee of Nghe An province issued a plan to implement the 2025 growth scenario of 10.5% as the target assigned by the Government.
In particular, the Provincial People's Committee set a budget revenue target of 26,000 billion VND, of which land use fee revenue would reach 10,270 billion VND.
According to the Department of Finance, in the first two months of this year, Nghe An collected nearly 1,732 billion VND in land use fees, reaching 38.5% of the estimate assigned by the Provincial People's Council and 96.5% compared to the same period in 2024. However, compared to the target in the growth scenario, it is still far away, while it is expected that in the coming time, there will be many impacts on land auction activities when not organized at the district level.
Therefore, promptly removing legal obstacles to resume land use rights auctions plays a very important role in budget revenue and supplementing supply for the real estate market.