He emphasized that the State must play a central role in determining land prices, guided by practical local conditions and the requirements of land management. This principle will be institutionalized in the upcoming revised Land Law to ensure consistency and accountability.

While land valuation will rely on scientific methods and solid foundations, Mr. Ngan stressed that these prices won’t be identical to market rates. Instead, they must be shaped through a combination of independent appraisal results and considerations for local planning, administration, and economic management.

“The land price list cannot be a carbon copy of market fluctuations,” Ngan stated. “It must reflect the State’s governance needs, contributing to planning, land allocation, leasing, and compensation processes in a stable and predictable way.”

He noted that the Ministry has issued numerous directives urging local authorities to ensure their pricing frameworks reflect on-the-ground realities. Nevertheless, some provinces have introduced abrupt increases in official land prices, leading to negative consequences and complicating management efforts.

The MNRE is now urging provincial and municipal governments to actively contribute feedback on the draft amended Land Law, which is scheduled to be submitted to the government by the end of August and to the National Assembly for approval in October.

Local leaders empowered in land pricing decisions

Nguyen Thi Minh Phuong, Deputy Head of the Land Fund Development and Economic Division (Department of Land Management, MNRE), outlined new provisions in the 2024 Land Law regarding pricing authority and procedures.

Under the updated law, provincial People’s Committees will be responsible for creating, announcing, and applying land price lists, starting January 1, 2026. These lists will be reviewed and adjusted annually to match current local realities.

Additionally, both provincial and communal-level chairpersons of the People’s Committees are authorized to set specific land prices for individual cases, based on their assigned roles and responsibilities.

The process for creating and updating land price lists is tightly regulated. Initial formulation and annual updates follow a 16-step process, while mid-year adjustments under Article 257 entail 7 steps. Setting specific prices for individual plots, projects, or land-use purposes involves 12 steps.

Key steps include: preparing documentation, selecting valuation consultants, forming appraisal councils and advisory teams, developing and reviewing pricing plans, publishing drafts for feedback, refining proposals for approval, integrating data into the national land database, and reporting to MNRE within 15 days of issuance.

According to Phuong, this rigorous framework ensures transparency, precision, and consistency in land valuation, aligning state management objectives with real-world conditions.

Vu Diep