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

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.

The official dispatch stated:

On August 21, 2024, the Prime Minister issued Official Dispatch No. 82/CĐ-TTg directing localities to promptly rectify the land use rights auction process. This has yielded certain results, gradually bringing the land use rights auction process into order and contributing to local budget revenue. However, the organization of land use rights auctions in some localities still faces certain shortcomings and limitations, such as unusually high bids by participants, signs of price manipulation, or collusion to manipulate prices for personal gain, disrupting the market and affecting the healthy development of the real estate market. This situation is attracting public attention and could negatively impact socio-economic development, the investment and business environment, and the real estate market.

To enhance the effectiveness and efficiency of land use rights auctions, contribute to a healthier real estate market, improve the investment and business environment, 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. In particular, focus on implementing the following solutions:

a) Publicly disclose land use plans, construction plans, and urban plans for the area where land use rights are auctioned and adjacent areas; take measures to ensure the supply of housing and land is suitable to the accessibility and affordability of the majority of people in need, overcoming the imbalance between supply and demand in the real estate market;

b) Before determining the starting price based on the land price list for land use right auctions, it is necessary to review, adjust, and supplement the corresponding land prices in the land price list in the area and location where the auction is held, in accordance with the law on land, ensuring that the starting price offered for auction is consistent with the invested infrastructure and the actual land price level in the area where the auction is held;

c) Directing the development of land use right auction plans to ensure they are rigorous, scientific, and subject to control by competent authorities, avoiding the exploitation of auctions for personal gain or market disruption. Particular attention should be paid to regulations shortening the deadline for paying the winning bid, determining an appropriate initial payment amount to limit the abandonment of deposits; directing the unit assigned to organize land use right auctions and the auctioning organization to select appropriate auction forms and methods to limit collusion, price manipulation, or price inflation;

d) Review local land needs, develop plans and invest in infrastructure construction for land areas slated for auction of land use rights; simultaneously, consider allocating suitable land for resettlement and land allocation without auctioning land use rights for the subjects specified in points a, b, c, and d of Clause 3, Article 124 of the 2024 Land Law;

d) Promote the application of information technology and digital transformation in the organization of land use rights auctions to ensure openness and transparency; based on current legal regulations, take appropriate measures to closely manage information on the auction participation history and the flow of money in the payment accounts of winning bidders, especially in cases with unusual occurrences in auctions such as: one person or group of people registering to bid on multiple land plots in the same auction area, bidders submitting unusually high bids or winning high bids but forfeiting their deposits, etc., in order to limit potential negative phenomena;

e) To be legally responsible to the Prime Minister for organizing and conducting land use right auctions, ensuring transparency, objectivity, and protecting the interests of the State and the rights and interests of all relevant parties.

2. The Minister of Justice shall preside over and coordinate with the Ministers of the Ministries of Natural Resources and Environment, Finance, Construction, and the People's Committees of provinces and centrally-administered cities to urgently review and improve legal regulations on land use rights auctions, implement digital transformation in asset auctions (including land use rights auctions) to ensure full, transparent, rigorous, and scientific information, and prevent exploitation during the process of participating in and conducting asset auctions, including land use rights auctions; supplement sanctions for violations in the auction field, especially acts of collusion, price suppression, price inflation, price manipulation, exploiting auctions for profit, and disrupting the market; and supplement regulations on conditions restricting participation for those who have previously committed violations or intentionally forfeited deposits for profit.

3. 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 strengthen inspection and supervision of land use right auction activities in cases showing irregularities, promptly detect inadequacies in legal regulations to advise and propose to competent authorities for appropriate amendments and additions; at the same time, handle within their authority or propose to competent authorities to strictly handle organizations and individuals violating the law on land use right auctions, especially acts of exploiting land use right auctions for profit and disrupting the market; and report to the Prime Minister on issues beyond their authority.

4. The Minister of Construction shall preside over and coordinate with the Minister of Natural Resources and Environment and the Chairpersons of 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 the land and housing prices and the real estate market; proactively resolve issues within their authority or propose measures to competent authorities to mitigate negative impacts (if any), contributing to the regulation, stabilization, and healthy development of the real estate market, and report the results to the Prime Minister.

5. The Minister of Public Security directs professional units and local police forces to proactively monitor the situation, detect, investigate, and strictly handle, in accordance with the law, organizations and individuals who violate regulations to the extent that criminal liability must be pursued in the auction of land use rights.

6. 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 suppress or inflate prices, manipulate prices for profit, disrupt the market, and affect the healthy development of the real estate market.

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

8. 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.