When the land price framework of the State is removed, only the land price tables set up by the localities are maintained. (Photo kinhtedothi.vn)The minister affirmed that removing the land price frame isthe right policy in amending the Land Law because the existing land price tablehas revealed many problems.
When the land price framework of the State is removed, only theland price tables set up by the localities are maintained, and the pricesin the tables will be closer to market prices.
With the land price closer to the actual prices on the market, thefinancial responsibility of enterprises and land users may increase, and theState budget would also surge. This helps the State invest more insocio-economic development, with people benefiting.
Meanwhile, land users will be compensated for the correct landvalues when the State recovers, which is a direct benefit to land users.
Businesses and the Government also gain a lot of benefits. The newland price table will make the companies shorten the time for site clearance,saving resources and shortening the time to implement investment projects.
However, in the draft law, there are regulatory mechanisms forland prices to not be pushed up too high, avoiding increasing input costsof production and product prices which reduce competitiveness.
"The land price is determined by supply and demand on themarket, so the removal of the land price frame will not affect the real estatemarket," Ha said. "The land allocation or land lease is mainly donein the form of public auction and bidding for projects."
"The State does not interfere in the land prices on themarket. However, the State will manage and regulate the real estate market viasolutions such as an increase in the land supply for the market, strictmanagement of land planning and the use of tax tools. "
According to the minister, regulating the market is also a way tocombat land speculation due to forecasts of land price increases. If the marketsupply is really scarce, causing property prices to rise, the State needs aland fund to regulate this market.
The land price frame only stipulates the minimum and maximumlevels according to regions and geographical areas in the region, being thebasis for localities in setting up local land price tables with an adjustmentcoefficient of at most 30% of that basic price table issued by the Ministry ofNatural Resources and Environment.
Meanwhile, the domestic real estate market constantly changes,making this land price table quickly outdated compared to market prices,especially in cities.
For example, at the land price table, the highest land price inspecial urban areas is 129.6 million VND per sq.m, according to Ha.
This price is allowed to fluctuate at most by 30% to reach morethan 164 million VND per sq.m, which is low compared to the market pricesin Hang Ngang and Hang Dao streets of Hanoi or the central areas in district1 of Ho Chi Minh City.
Therefore, the localities have difficulty promulgating landprice tables in line with the actual land prices on the market.
The removal of the Government-issued land price frame is expectedto help the local authorities set up their land price tables approaching themarket prices. That will eliminate the two-price mechanism and increase revenuefor the State budget.
Ha said the draft amendment to the Land Law contains specificprovisions on the annual land price table.
This land price table calculates land use fees, fees for changingland use purposes, and all kinds of taxes related to the land.
It also calculates land rents for agricultural land andcompensation when the State recovers ground.
In the future, the Government will apply financial and tax toolsto limit land speculators, Ha said. State management agencies will considerimposing a tax on land lots that are used slowly after auctions because theinvestors wait for prices to increase.
The State will impose a higher tax on speculators who sellproperty products immediately after buying.
The land is now abandoned in many places due to suspended projectsto wait for an increase in land prices and unused agricultural land, accordingto Ha.
"The ministry is focusing on building a land price tableaccording to the land value for each region by mapping land prices. Regionhaving many land transactions will soon build a database for landvaluation," said Ha, adding that in 2025, Vietnam will have a landdatabase, including a map of land prices.
The country will also have a new land pricing system in the nextfive years, according to Ha.
He said the task of amending the Land Law this time is to build amulti-purpose land information system. This is a solution to reformadministrative procedures, ensure transparency, and monitor land resources. Italso is a channel providing information about land policies and guidelines forthe people.
The minister affirmed that land is an important resource ofthe country. The Land Law is revised this time to solve difficulties and createnew motivation for socio-economic development.
This means, besides strict management, the State must develop asystem of simple and transparent management tools, especially indetermining land price tables in localities.
The Government expects to submit the draft of the revised Land Lawto the National Assembly in October. By 2023, the amendment of the Land Law2013 must be completed./.
VNA
