The Prime Minister is taking measures to rectify the land use rights auction process.

The official dispatch sent to the Ministers of the Ministries of Natural Resources and Environment, Construction, Finance, Justice, and Public Security; and the Chairpersons of the People's Committees of provinces and centrally-administered cities clearly states:

Recently, the Government and the Prime Minister have directed and issued detailed regulations for the implementation of the 2024 Land Law, effective from August 1, 2024, including regulations on land use right auctions. Several localities have successfully organized land use right auctions, contributing to local budget revenue. However, in some cases, the winning bids were many times higher than the starting price (some cases were unusually high and reported by the media), attracting significant public attention and potentially impacting socio-economic development, the investment and business environment, and the housing and real estate market.

To improve the effectiveness and efficiency of land management, create a healthy real estate market, and promote socio-economic development, the Prime Minister requests:

1. The Chairpersons of the People's Committees of provinces and centrally-administered cities shall direct relevant agencies and units to review the organization of land use right auctions in their localities to ensure compliance with the law, transparency, and openness; promptly detect and strictly handle cases of violations of legal regulations in land use right auctions, and prevent acts of exploiting land use right auctions for personal gain and market disruption.

2. The Minister of Natural Resources and Environment shall preside over and coordinate with the Ministers of Justice, Finance, Construction, and the Chairpersons of the People's Committees of provinces and centrally-administered cities to urgently review and inspect the organization of land use right auctions in cases showing unusual activity, handle violations of legal regulations on land use right auctions within their authority, promptly identify inadequacies in legal regulations to advise and propose amendments, adjustments, and supplements to competent authorities to prevent profiteering, and at the same time, handle and propose strict measures to deal with acts of exploiting land use right auctions to disrupt the market, reporting to the Prime Minister before August 30, 2024.

3. The Minister of Construction shall preside over and coordinate with the Ministry of Natural Resources and Environment and the People's Committees of provinces and centrally-administered cities to study and specifically assess the impacts of the recent land use rights auction results, especially cases with unusually high auction results, many times higher than the starting price, on land and housing prices, on the housing and real estate market (supply and demand), proactively regulate and resolve issues within their authority, and propose effective solutions or solutions to mitigate negative impacts (if any), and report to the Prime Minister.

4. Authorities shall direct units and localities to strengthen monitoring, promptly detect, prevent, and strictly handle violations of legal regulations in land use right auctions, especially acts of collusion to manipulate the market and inflate prices to create an unhealthy and unrealistic market for personal gain.

5. The Ministers of the Ministries of Natural Resources and Environment, Construction, and Finance shall urgently guide and organize training for localities on the new policies of the Land Law, the Housing Law, the Real Estate Business Law, and the tasks directed by the Prime Minister in Official Dispatch No. 79/CĐ-TTg dated August 13, 2024.

6. Deputy Prime Minister Tran Hong Ha is assigned to directly monitor and direct the implementation of this directive.

7. The Government Office shall regularly monitor the situation and promptly report to the Prime Minister and the Deputy Prime Minister in charge of any unexpected or emerging issues.