The National Assembly passed the amended Land Law and announced the new land price list effective from January 1, 2026.

On the morning of January 18th, at the closing session of the 5th extraordinary meeting, the delegates proceeded to vote to approve...Amended Land Law.

Four key methods for land valuation.

Accordingly,National AssemblyThe four methods for land valuation are: the comparative method; the income method; the surplus method; and the land price adjustment coefficient method.

The government is tasked with prescribing alternative valuation methods not yet stipulated by law, after obtaining the approval of the Standing Committee of the National Assembly.

Along with land valuation methods are the cases and conditions under which these methods can be applied.

Specifically, the comparative method is applied to valuation in cases where there are at least three plots of land with the same land use purpose and certain similarities in factors affecting land prices that have been transferred on the market and won at auction.land use rightswhere the winning bidder has fulfilled their financial obligations as per the winning bid decision;

The income method is applied to valuation 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.

The residual method is applied to valuation in cases where the land plot or area for investment projects 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;

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.

This was also an issue that many delegates had previously discussed, including suggestions to exclude the surplus method from land valuation.

Explaining this issue, the Chairman of the Economic Committee, Vu Hong Thanh, said that the National Assembly Standing Committee stated that land valuation is a difficult issue. The provisions in the draft law have been carefully considered by the National Assembly and the Government, incorporating the opinions of delegates and seriously researching to design valuation methods that are both consistent with existing practices and practical realities, innovative yet comprehensive enough to be applicable to specific and long-term cases.

The agencies carefully considered and reached a high degree of consensus on continuing to include provisions on the surplus method in the draft law.

According to Mr. Thanh, in the current context of a developing economy, using the surplus method based on estimating future value is necessary because there is no readily available information on similar projects that have already been formed and transacted to apply other valuation methods.

Both scientifically and practically, the surplus method is still being used worldwide, including in Vietnam.

Local authorities decide to adjust, amend, and supplement the land price list annually.

The amended Land Law clearly stipulates that land valuation must ensure market principles; adhere to the correct methods, procedures, and processes; be honest, objective, open, and transparent; and harmonize the interests of the State, land users, and investors…

Land price tables are developed based on area and location. In areas with digital cadastral maps and land price databases, land price tables are created for each individual plot based on value zones and standard plots.

The law also stipulates that the Provincial People's Committee shall develop and submit to the Provincial People's Council for approval the initial land price list to be published and applied from January 1, 2026. Annually, the Provincial People's Committee is responsible for submitting to the Provincial People's Council for approval adjustments, amendments, and additions to the land price list to be published and applied from January 1 of the following year.

In cases where the land price list needs adjustment, amendment, or supplementation during the year, the Provincial People's Committee is responsible for submitting it to the Provincial People's Council for decision.

Land price tables are applied in cases such as calculating land use fees when the State recognizes the land use rights of households and individuals; changing the land use purpose of households and individuals; calculating land rent when the State leases land and collects annual rent; calculating land use tax, etc.

Chairman of the Economic Committee Vu Hong Thanh said that some delegates suggested regulating land price tables once every 5 years as in the current law, and adjusting the K coefficient annually if there are fluctuations.

The Standing Committee of the National Assembly believes that, in reality, very few land price tables are adjusted during implementation. This leads to land price tables not accurately reflecting actual market prices.

Therefore, in order to institutionalize Resolution No. 18 of the Central Party Committee and on the basis of consensus among agencies, the new law stipulates the issuance of annual land price tables to ensure they closely reflect actual market developments and expand the scope of application of land price tables.

However, to ensure the quality of land price tables, state management agencies at all levels need to further improve their capacity in the process of organizing and implementing the law, completing the construction of a digital database and a national information system on land to directly serve the management and use of land. The Standing Committee of the National Assembly and the Government will provide guidance during the implementation of the law.

With regulations taking effect soon, the National Assembly requests the Government to carefully study and finalize the corresponding detailed regulations and implementation guidelines to ensure feasibility, clarity, strictness, and compliance with the law, avoiding difficulties in the implementation process.