Opinion on Land Law: Land should be valued according to the income method

This is the opinion of experts given at the conference to collect opinions on the revised Land Law held in Hanoi on the morning of October 9.

With the draft Land Law presented at the conference, many experts said that we need to review a number of issues to suit the current development practices of the country.

The draft states that there have been changes to the regulations on land valuation principles. Accordingly, "Land prices decided by the State ensure the principle of conformity with market prices" instead of the principle of "close to the actual land use rights transfer price on the market under normal conditions" to facilitate the implementation of land valuation.

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The Government will regulate the price framework for land types. When there are large fluctuations in land prices on the market, it will be adjusted accordingly. Based on the principles and methods of land valuation, the price framework for land types and the standard land price of the value zone in the border areas between provinces and centrally run cities, the provincial People's Committee will develop a local land price list.

When there is a significant change in the land price on the market, the Provincial People's Committee shall adjust the land price list accordingly. In case of not being able to adjust in time, the Provincial People's Committee shall decide on the specific land price to apply.Regarding land prices in border areas between provinces and centrally run cities, the direction is to assign the responsible agency to develop a land price framework to overcome the current shortcomings in land price differences in border areas.

Based on the draft, Mr. Nguyen Ngoc Tuan - Chairman of Vietnam Valuation CouncilMalestated: Land price is a sensitive and complicated issue, related to millions of people. According to the draft, land pricing in accordance with the market is not realistic and lacks clarity. Market price is a variable that is always changing, moreover, there are places where land is not yet priced at market price, for example, agricultural land.

According to Mr. Tuan, to determine specific land prices, we need to base it on the income method. "With that piece of land, during the ownership period, how much income do they have, then on that basis, we can determine the land price," Mr. Tuan said.

Regarding this issue, Professor Dang Hung Vo also analyzed: Whether or not there is a government land price framework is not important. Where the government land price is applied is what is important.

Professor Vo said: “In principle, the State price list is always lower than the market price, even in developed countries. For example, Taiwan (China) is also very concerned about land valuation but only reaches 70-80%. The State's land price cannot cause damage to the rights of land users. This is a principle that needs to be clearly defined. If we apply a price lower than the market price, it will cause corruption and land disputes.”

Regarding the mechanism of self-negotiation on land prices, Professor Vo gave a context, around 1998 - 2003, when investors were eager to receive direct transfer of land ownership from individuals and individual owners also had this desire. Unfortunately, when we opened the negotiation mechanism from the 2003 Land Law, this mechanism again became stuck. Land users were too greedy to demand very high land prices. "According to Korea's experience, community consensus is based on the decision of 2/3 of the opinions. Thus, the self-negotiation mechanism will be very smooth."

Regarding the land reclamation situation, Mr. Vu Xuan Tien - Chairman of the Board of Members of VFAM Vietnam Consulting Company said that we should requisition land use rights to eliminate the mentality of being deprived.

Deputy Minister of Natural Resources and Environment Nguyen Manh Hien: The 2003 Land Law has made positive contributions to the country's socio-economic development. However, over time, the 2003 Land Law has revealed a number of limitations such as: Land law is not clear and not suitable for the development process. Land management still shows many weaknesses, land speculation is still common, land planning does not take into account development factors, land use is wasteful, and land use efficiency is not high... In the era of industrialization and modernization, we need to make changes to the land law to make good use of land resources for socio-economic development.

According to VOV-M