Choosing among four proposed approaches

Under the 2024 Land Law, Ho Chi Minh City has the option to either continue using the current land price table until the end of 2025 or to adjust it in line with the new law, reflecting current market conditions.

The DoNRE proposed four possible approaches:

Approach 1: Retain the current land price table without adjustments. This would result in significant discrepancies between official land prices and actual compensation values, leading to inequities among land users.

Approach 2: Adjust the current land price table by applying a new adjustment coefficient (K coefficient). However, this would still result in land prices significantly lower than market values.

Approach 3: For planned resettlement areas, adjust land prices to reflect actual market conditions. For other areas, apply the current price table with the new K coefficient. However, this could lead to significant disparities in land prices along the same roads or between adjacent residential areas, despite similar infrastructure conditions, resulting in unfairness among land users.

Approach 4: Adjust the land price table in accordance with the 2024 Land Law to better align with market conditions. This approach was selected as the basis for drafting a new decision on land price adjustments.

The data for this adjustment will be sourced from compensation land prices, specific land prices approved by local authorities, and actual transaction prices from land registration offices and tax departments.

Impact on land users

The adjusted land price table will impact 12 specific land use cases, with two groups most affected:

Group 1: Individuals receiving resettlement plots will have their land prices determined directly from the adjusted land price table, ensuring transparency and fairness in compensation and resettlement.

Group 2: Citizens applying for land use rights recognition or those seeking to convert land use purposes will also be affected.

For land use rights recognition, the impact will vary based on the timing of land use. For land use conversion, the impact is split into two groups:

- Group 1: Comprising 13 districts (Districts 1, 3, 4, 5, 6, 7, 8, 10, 11, Phu Nhuan, Binh Thanh, Go Vap, and Tan Binh) where agricultural land is either non-existent or limited to project areas. These districts will not be significantly affected.

- Group 2: Comprising nine remaining districts, including Thu Duc City, with a total of 111,090.9 hectares of agricultural land. Here, the adjusted land price table will influence land use conversion fees for in-quota residential land.

Curbing speculation and ensuring fairness

The adjusted land price table will also impact tax revenues, fees, and fines:

- Higher income taxes will be levied on land transactions, aligning with actual market values and reducing the practice of underreporting transaction values to evade taxes.

- Administrative fines for land violations and compensation for damage to state-managed land will increase, discouraging land speculation and underutilization.

Ho Chi Minh City currently has 1,728,639 land plots, with 99.55% certified as of June 2024. The remaining 7,779 uncertified plots, mostly in suburban areas, will fall into categories that either exempt them from land use fees or require payment based on the adjusted price table.

The DoNRE concluded that adjusting the land price table will ensure fair resettlement pricing, prevent delays in public investment disbursements for key projects, and create equity among land users. Moreover, it aligns with the actual land values in Ho Chi Minh City and complies with the 2024 Land Law.

"This adjustment balances the interests of the state, land users, and investors," the DoNRE stated.

Anh Phuong