Land prices will no longer be a 'bottleneck' if there is a strict monitoring mechanism

Commenting on the Draft Law amending and supplementing a number of articles of the Land Law recently submitted to the Government by the Ministry of Agriculture and Environment , lawyer Nguyen Hong Chung - Vice President and General Secretary of the Vietnam Financial Consulting Association (VFPA) said that the mechanism for determining specific land prices under the 2024 Land Law (based on consultation and comparison with the secondary market) has revealed many limitations.

"In reality, this mechanism leads to inconsistent valuation results, depending on the capacity of the consulting unit. The State is forced to 'follow' market fluctuations; and causes a fear of responsibility among implementing officials, prolonging the land allocation progress," the expert commented.

To overcome these shortcomings, this draft has affirmed a core principle: The State decides on land prices in the primary market (land allocation, land lease, land use purpose change...) based on the land price list and land price adjustment coefficient issued annually by the provincial People's Committee. This is considered an important step to stabilize policies, shorten the time to determine land prices and increase predictability for investors.

The Ministry of Agriculture and Environment is seeking comments on a draft law amending and supplementing a number of articles of the Land Law.

According to the draft, the land price list will be applied every 5 years, creating a stable price framework, reducing the situation of "each project has a different price". Meanwhile, the land price adjustment coefficient issued annually will help flexibly adapt to market fluctuations.

However, for this mechanism to be effective, lawyer Nguyen Hong Chung said that strict monitoring measures are needed. In particular, it is necessary to publicize input data when building price lists and adjustment coefficients. Strengthen the role of the Land Valuation Council with the participation of independent experts, associations and businesses. Apply big data technology to ensure accuracy.

Lawyers believe that determining land prices in a clear and transparent manner is expected to bring many positive impacts. It not only helps reduce compliance costs for investors, especially for infrastructure, industrial and service projects, but also supports industries that require large capital such as healthcare, education and renewable energy. More importantly, a reasonable land price mechanism will limit compensation complaints, contribute to social stability and retain investors.

However, Mr. Chung also noted the balance problem: land prices that are too high will eliminate competitiveness, while prices that are too low will cause budget losses and create opportunities for speculation. Therefore, the balance between budget revenue - attracting investment - ensuring people's rights must be a consistent principle.

To ensure consistency, the draft also added an important principle: when there is a difference, the Land Law will take precedence over other laws. This is a necessary provision to limit legal gaps or overlaps.

"This land price reform is not just a calculation technique, but an institutional breakthrough to turn land into a transparent and effective development resource. If implemented synchronously, land prices will no longer be a "bottleneck" but will become a fulcrum for investment, growth and social stability - a meaningful message on the occasion of the 80th National Day, when the country enters a new stage of development", lawyer Nguyen Hong Chung concluded.

Source: https://doanhnghiepvn.vn/kinh-te/gia-dat-se-khong-con-la-diem-nghen-neu-co-co-che-giam-sat-chat-che/20250820021319932