According to Mr. Huy, while this shift presents opportunities, it also poses major challenges - most notably how to ensure the new prices are market-based without triggering a financial shock to households, businesses, or the broader property sector.

He noted that updating the land pricing system is a crucial step toward resolving the longstanding disparity between state-assessed land prices and market values. As land prices become more accurate, transparency, fairness, and efficiency in land management will be elevated to a new level.

This reform will enable the government to better manage land - a finite but extremely valuable resource. Accurate land pricing helps ensure proper tax collection, reduce losses to the state budget, and clarify land-use costs, thereby curbing speculative gains from price discrepancies.

Higher budget revenues from land could also create financial space for investment in infrastructure, urban development, rural revitalization, and social welfare programs. More importantly, if well-directed and efficiently used, land resources could serve as a driver of sustainable development - not merely a short-term revenue stream.

Introducing market-based pricing mechanisms will also improve discipline in the real estate sector, guiding investment, transactions, and urban planning toward greater professionalism, transparency, and long-term stability.

Despite these advantages, Mr. Huy emphasized that the rise in land prices poses certain risks that need to be proactively addressed. If the increases are too abrupt, households and businesses could face financial strain, affecting their ability to pay or invest.

Some projects might need to restructure their financial plans or even delay implementation. A “wait-and-see” attitude could also emerge in the market, reducing short-term liquidity.

Socially, residents in suburban areas or those involved in land-use conversion may be directly affected as their financial obligations rise. Without appropriate support mechanisms, anxiety and resistance may surface.

“Land pricing policy must strike a balance between logic and empathy - respecting market principles while preserving social stability,” Mr. Huy stressed.

Sharing the same perspective, Nguyen Van Dinh, Vice President of the Vietnam Association of Realtors, warned that higher land prices will impact individuals, businesses, the property market, and local authorities.

Residents involved in land-related procedures - such as land-use conversion, obtaining land use rights certificates, or receiving compensation for land clearance - will be most affected, as their financial obligations are directly tied to the new prices.

Moreover, the costs for land-use conversion, land certificates, and home purchases could increase substantially, putting pressure on low- and middle-income households.

“There is a real risk of complaints and disputes in areas undergoing land clearance and compensation, especially if the new prices far exceed previously approved compensation rates,” Mr. Dinh said.

For businesses, he noted that rising land prices will lead to higher compensation and land-use costs, thereby inflating total project investment. Developers may be forced to raise selling prices or focus on high-end segments to maintain profit margins amid shrinking land availability.

At the same time, while local government revenue may grow through taxes, fees, and land-use payments, the appeal of local investment could decline due to higher entry costs.

Proposing a balanced, sustainable land pricing system

Mr. Dinh argued that no single land price table can satisfy all stakeholders, as each group has different usage needs, benefits, and expectations. Therefore, land prices should be applied specifically - for example, for compensation and clearance purposes only.

“If used for all purposes such as land-use payments, auctions, and taxation, the pricing framework loses practicality and must be adjusted flexibly to balance the interests of the state, citizens, and businesses,” he said.

To ensure meaningful outcomes, Mr. Huy emphasized that localities should adhere to three major principles.

First, land price adjustments must be gradual and clearly scheduled, with early announcements to help people and businesses prepare. Periodic adjustments within a specified margin can prevent sudden shocks.

Second, pricing data and methodologies must be scientific, transparent, and consistent. This is a crucial factor.

According to Mr. Huy, land price tables should be based on real transaction data, digital valuation maps, and objective evaluation methods. The formulation process should include input from consulting firms, professional associations, and local communities to ensure objectivity and public consensus.

Third, there must be mechanisms for exemptions, reductions, or deferred financial obligations for low-income households, policy beneficiaries, and small-scale rural conversions.

For businesses, especially small and medium-sized enterprises, clear guidance is needed to help them calculate appropriate investment costs.

More importantly, Mr. Huy emphasized the need to view land not merely as a revenue source, but as a foundational asset - a form of “natural capital” essential to national development. Thus, land pricing policy should aim to unlock this resource for long-term growth, rather than focusing solely on short-term fiscal gains.

Nguyen Le