The Government agreed to present many land valuation methods.

The Government has just reported to the National Assembly Standing Committee a number of contents regarding the draft Land Law (amended).

One of the important contents that many people are interested in is the content, methods of land valuation and conditions of application of each method (Article 158).

Considered and approved at the extraordinary meeting

Accordingly, the Government agreed to review and clarify the concepts of land valuation methods: Comparison, surplus, income, land price adjustment coefficient in Clause 5, Article 158; specify the conditions for application of land valuation methods in Clause 6, Article 158. Specifically, the draft law stipulates many land valuation methods.

Firstly, the comparison method is implemented by adjusting the price of land plots with the same land use purpose that have been transferred on the market, winning the auction of land use rights where the auction winner has fulfilled the financial obligations according to the auction winning decision through analyzing and comparing factors affecting land price after excluding the value of assets attached to the land (if any) to determine the price of the land plot to be appraised.

In addition to the surplus method, the Government has agreed on many other methods for land valuation.

The second is the income method, which is implemented by taking the average annual net income per land area divided by the average savings interest rate of 12-month Vietnamese Dong deposits at commercial banks with State-controlled shares in the province for the three consecutive years up to the end of the most recent quarter with data before the valuation time.

The third is the surplus method, which is implemented by taking the total estimated development revenue minus the total estimated development cost of the land plot or land area on the basis of the most efficient land use (land use coefficient, construction density, maximum number of floors of the building) according to the land use planning and detailed construction planning approved by the competent state agency.

Fourth, the land price adjustment coefficient method is a land valuation method performed by multiplying the land price in the land price table by the land price adjustment coefficient. The land price adjustment coefficient is determined by comparing the land price in the land price table with the market land price.

In addition to the above four cases, the Government shall prescribe new land valuation methods after receiving the approval of the National Assembly Standing Committee.

Along with that are the conditions for applying the land valuation method. Specifically, the comparison method is applied to value the case of at least 3 plots of land with the same land use purpose, certain similarities in factors affecting the land price transferred on the market, winning the auction of land use rights where the auction winner has fulfilled the financial obligations according to the auction decision.

The income method is applied to valuation in cases where a land plot or non -agricultural land is not residential land or agricultural land that does not meet the conditions for applying the comparison method but the income and expenses from land use can be determined according to the land use purpose being valued;

The surplus method is applied to value the case where the land plot or land area for investment project implementation does not meet the conditions for applying the comparison method or the income method but the total development revenue and total development costs of the project can be estimated;

The land price adjustment coefficient method is applied to specifically determine compensation when the State reclaims land in cases of reclaiming many adjacent land plots with the same purpose of use and whose land prices have been regulated in the land price list but do not meet the conditions for applying the comparison method or for comparing with the results of land price determination by the above methods.

At the same time, the Government proposed that the provisions on the order and procedures for land valuation according to each method and the selection of valuation methods will be specified in detail in the Decree guiding implementation.

The Government requested the National Assembly Standing Committee to study the Government's comments and proposals to coordinate in completing the draft Land Law (amended) to submit to the National Assembly for consideration and approval at the 5th extraordinary session (January 2024), in accordance with the policy of Resolution No. 18, ensuring the consistency of the legal system, promptly removing obstacles, and unlocking land resources for socio-economic development.

Don't chase quantity, no matter how urgent.

Speaking to the press, National Assembly Chairman Vuong Dinh Hue said that one of the notable events at the recent 6th session was that the National Assembly had not yet passed the revised Land Law project despite giving opinions through 2 sessions.

“This decision has been approved by the Party and State leaders, the people and businesses. We do not chase quantity. Although it is urgent, we must meet the most important requirement of quality, not hastily or hastily,” the National Assembly Chairman emphasized.

According to the National Assembly Chairman, the Land Law is perhaps second in importance only to the Constitution, having a profound impact on all aspects of economic and social life and the people. It is not for nothing that there have been 12 million comments on this bill.

National Assembly Chairman Vuong Dinh Hue. Photo: Pham Thang

The National Assembly Chairman said that up to now, there have been 27 major issues. Of which, before the 6th session, 6 major issues were agreed upon by the National Assembly Standing Committee; 7 major issues that the Party Delegation reported to the Politburo were commented on by the Politburo. Thus, 13 issues have been clarified.

In addition, at the 6th meeting of the National Assembly Standing Committee between the two sessions, 9 more major issues were thoroughly discussed and decided. These are issues that had 2-3 options when presented, but the National Assembly Standing Committee analyzed and decided on 9 contents according to 1 option, after which the Government also agreed with these 9 contents.

Thus, 22/27 contents have been agreed upon; 5 contents have also been discussed and basically agreed upon, just waiting for the official response from the Government.

After agreeing on these 27 contents, the National Assembly Standing Committee will submit them to the National Assembly for consideration and approval. The decision to approve them or not is up to the National Assembly.

The National Assembly Standing Committee will hold a final review in January before submitting it to the National Assembly. “This bill has many big issues that need to be carefully considered,” said the National Assembly Chairman.

The Prime Minister requested the Ministry of Natural Resources and Environment to focus all resources on completing the Land Law project.

Prime Minister Pham Minh Chinh requested the Ministry of Natural Resources and Environment to focus all resources on completing the draft Land Law (amended) to ensure quality and submit it to the National Assembly for approval at the nearest session.

Source