Hanoi’s National Assembly deputy Nguyen Anh Tri said  land issues are what people most complain about. In Vietnam, land is ‘more precious than gold’. The value increases when roads are built, infrastructure is developed, and urbanization occurs.

Regarding regulations on taking land back for socio-economic development, deputy Tri suggested that law-makers need to make reasonable amendments, especially when project developers directly negotiate with people. This is the biggest obstacle in implementing projects at this time. 

Deputy Tran Dinh Van from Lam Dong province, said that land valuation is not clear enough so it is necessary to have a transparent method of land valuation, with supervision and inspection of the local people’s councils. 

The new law needs to clearly stipulate a land valuation method according to market supply and demand, and set sanctions to bind involved parties.

“No matter which land valuation method is applied, the results must be suitable to market conditions,” he said.

Deputy Tran Thi Hong Thanh from Ninh Binh province said that some regulations on land prices are not detailed enough. When a land framework is removed, land prices increase and land users have to pay higher taxes, fees and land use rents, which leads to higher real estate prices.

Minister of Natural Resources and the Environment Tran Hong Ha said to solve the problems, the ministry plans to build a database on land prices. 

“The land prices will be known by everybody and no one can interfere in the pricing, because this is the market price,” he said. Once prices are defined correctly, it will be possible to calculate the added value difference in land rent, which will harmonize benefits of all parties.

Regarding land compensation, there are two models – auctioning and bidding, and taking back land with negotiations. 

The most important aspect of auctioning and bidding is ensuring harmonized benefits for people, the state and enterprises. If land is reclaimed through negotiations, the state has to ensure people’s benefits.

Quang Phong