NEW REGULATIONS ON LAND PRICES IN THE 2024 LAW ON LAND: IMPACT AND ORIENTATION FOR ADJUSTING THE REAL ESTATE MARKET IN VIETNAM
NEW REGULATIONS ON LAND PRICES IN THE 2024 LAW ON LAND: IMPACT AND ORIENTATION FOR ADJUSTING THE REAL ESTATE MARKET IN VIETNAM
Nguyen Le Dieu Linh
Faculty of Land Management, Hanoi University of Natural Resources and Environment
Nguyen Thi Hai Yen
Faculty of Real Estate and Resource Economics, National Economics University
Pham Anh Tuan
Faculty of Land Management, Hanoi University of Natural Resources and Environment
Abstract: The study aims to highlight the new points in the regulations on land prices in the 2024 Law on Land, thereby analyzing the impact and orientation for adjusting the real estate market.
The 2024 Law on Land includes significant adjustments to address previous limitations, including the abolition of the land price framework, changes in costs related to land acquisition, regulations on the authority to issue the land price table, and determining land prices based on market principles.
The impacts of these changes on the real estate market include changes in real estate prices and supply-demand in certain market segments. These adjustments are expected to reduce speculation, ensure fair benefits among the state, the people, and businesses, and promote the sustainable development of the real estate market.
The study also proposes specific recommendations to improve legal regulations on land prices, aiming towards a transparent, fair, and healthier real estate market in Vietnam.
Keywords: Land prices, the Law on Land, market, real estate, land valuation.
Introduction
The real estate market is one of the key economic pillars of Vietnam, significantly contributing to GDP growth, attracting investment, and creating jobs. However, this market is heavily influenced by legal regulations, particularly those related to land prices.
Land prices are not only a core factor determining real estate values, but also affect the allocation of land resources, people’s access to housing, and the investment efficiency of businesses.
Moreover, land prices always play a central role in adjusting and directing the development of the real estate market. Through land price regulations, the state can adjust market development, ensuring a balance between land use demands and the financial capabilities of relevant parties.
When land prices are reasonably determined, this helps the market operate more transparently and efficiently, encouraging investment and economic development. However, if land price regulations are unreasonable or lack transparency, they can create bottlenecks in the market, increase investment costs, make it difficult for home buyers, and even push the market into instability.
Land prices are one of the important factors determining the development of the real estate market and the economy as a whole. In the context of Vietnam’s deepening integration into the global economy, effective land price management has become an urgent requirement to ensure the sustainable development of the real estate market.
The 2013 Law on Land made significant contributions to the management and regulation of land prices in Vietnam. However, after more than a decade of implementation, many shortcomings and limitations have arisen, requiring more robust adjustments and reforms.
The introduction of the 2024 Law on Land with significant changes in land price regulations is expected to address the current limitations and create new opportunities for the development of the real estate market.
Previous regulations on land prices revealed limitations in the determination and management of land prices, leading to many practical issues. To address these shortcomings and facilitate the development of the real estate market, the 2024 Law on Land introduces significant changes in the determination and management of land prices.
The new regulations on land prices in the 2024 Law on Land need to be clarified compared to previous regulations to determine whether these changes better meet practical requirements for land price determination, creating conditions for the real estate market to operate more transparently and equitably.
Moreover, in the context of the continuously fluctuating and complex real estate market, it is necessary to clearly understand the changes in the legal framework to develop effective and sustainable development strategies.
This study not only provides a comprehensive view of the innovations of the 2024 Law on Land but also offers proposals and policy adjustment orientations to ensure transparency, fairness, and promote stable development of the real estate market in the future.
I. Theoretical Basis
- Concept of Land Price
The term “land price” has developed through various stages, reflecting changes in economics, politics, and urban planning.
Initially, the concept of land price originated from the need to value land assets during transactions, influenced by agricultural production and geographical location. In ancient agricultural times, such as the Joseon period in Korea, land prices were determined based on agricultural productivity, particularly rice yield (Lee et al., 2021).
In modern industrial and urban economies, land prices began to be influenced by more complex factors, including urban development, infrastructure, and macroeconomic factors such as inflation, economic growth rates, and regional planning.
This has led to the emergence of various valuation methods, from market comparison approaches to cash flow analysis (Munneke et al., 2023). Modern studies on land prices focus on using both macro and micro factors to predict land price fluctuations, such as big data analysis in recent studies (Lee et al., 2021).
These studies show that land prices depend not only on the intrinsic value of the land but also on external factors such as transportation infrastructure, development areas, and urban planning.
In land economics, land prices are often understood as the value at which a parcel of land can be bought or sold on the market. Land prices reflect the combination of the land’s use value and external factors such as location, infrastructure, planning, and economic conditions like inflation and urban development.
According to the study by Colwell & Sirmans (1980), land prices depend on factors such as urban planning, plot size, and economic development status. Land prices not only reflect the intrinsic value of the land but are also strongly influenced by factors such as the development of transportation infrastructure and the surrounding area (Lee et al., 2021).
Moreover, according to Kim & Huh (2021), land price forecasts can be based on both macro and micro factors, including economic factors (economic growth, unemployment rate) and local conditions such as regional planning and infrastructure development. Thus, in land economics, land prices are an important indicator not only reflecting use value but also predicting real estate market development trends.
In Vietnam, the concept of land prices was previously regulated in the 2003 Law on Land, Article 4, Clause 23: “Land use right price (land price) is the amount calculated per unit of land area as prescribed by the State or formed through land use right transactions.”
Meanwhile, the 2013 and 2024 Laws on Land regulate: “Land price is the value of the land use right calculated per unit of land area.” This change reflects progress in approaching land prices in a more market-appropriate manner, reducing direct state intervention, and increasing transparency in the land valuation process, particularly as the real estate market continues to grow.
Thus, land prices are not a fixed value but change over time, influenced by numerous economic and social factors. This makes the valuation and forecasting of land prices a complex but extremely important field in real estate planning and investment.
- Legal Basis for Land Prices in Vietnam
In the development process of land legislation, regulations on land prices have gone through various stages, including the following documents:
– The 2003 Law on Land: Provisions on land prices, methods for determining land prices, and land price frameworks.
– The 2013 Law on Land: Replaced the 2003 Law on Land, continued to regulate land prices, land price frameworks, and methods for determining land prices based on market principles.
– The 2024 Law on Land: Replaces the 2013 Law on Land, amending with many new provisions related to land price management, adjusting land price frameworks according to the market.
– Decree 188/2004/ND-CP: Regulations on methods for determining land prices and land price frameworks.
– Decree 123/2007/ND-CP: Amendments and supplements to several articles of Decree 188/2004/ND-CP on land prices.
– Decree 44/2014/ND-CP: Regulations on land valuation methods such as direct comparison, deduction, income, and land price adjustment coefficient.
– Decree 96/2019/ND-CP: Regulations on land price frameworks and the mechanism for issuing the land price table by the State.
– Decree 148/2020/ND-CP: Detailed regulations on several articles of the 2013 Law on Land, including land valuation methods.
– Circular 114/2004/TT-BTC: Guidelines for implementing Decree 188/2004/ND-CP on land prices.
– Circular 36/2014/TT-BTNMT: Detailed guidelines on methods for determining land prices and building the land price table.
– Circular 02/2015/TT-BTNMT: Guidelines on specific land valuation and detailed regulations on determining land prices.
– Resolution 18-NQ/TW (2022): Continued reform and reorganization of the political system for streamlined, efficient, and effective operation.
- Some Studies on Land Prices
Previous studies on land prices in Vietnam have often focused on addressing issues such as the factors affecting residential land prices (Pham Thanh Thao & Phan Trung Hien, 2021; Tran Trong Phuong et al., 2022). These factors include administrative, social, demographic, regional, and individual plot factors.
However, these groups of factors have varying degrees of impact on land prices across different regions in the country. For example, the study by Pham Thanh Thao & Phan Trung Hien (2021) indicated that natural factors such as size, shape, distance, and length have the most significant impact on land prices in Can Tho City.
On the other hand, the study by Tran Trong Phuong et al. (2022) showed that location factors have the most significant impact on land prices in Tu Son, Bac Ninh. The authors also noted that while these factors affect land value, they are not the primary drivers of land price fluctuations in the market. Therefore, the biggest challenge in determining land prices is understanding their fluctuations within the market economy.
Additionally, other studies have addressed the impact of policies on land price adjustments (Nguyen Thanh Lan, 2018), where the main reasons include public investment in infrastructure, changes in land use regulations, population growth, and economic development.
The impact of increasing land prices on the real estate market is also reflected in the study by Duong Quoc Non et al. (2021). This study showed that land prices in Da Nang City continuously increased during the periods 2017-2018 and 2018-2019, and there was a lull period in 2019-2020. Factors influencing this increase include investment attraction policies, infrastructure investment, tourism development growth, and local regulations controlling land prices.
Studies on land valuation methods in land law policy have significantly contributed to the formation of the land price market. According to OECD (2022), Japan’s land valuation experience focuses on a stable land valuation system with mass valuation models for standard and specific land plots.
The land valuation process is carried out in 11 stages, starting from zoning based on land use purposes, selecting standard land plots for comparison, to calculating the prices of specific land plots based on factors such as use purpose, location, and surrounding environment.
A notable feature of Japan’s system is the use of land valuation methods such as direct comparison, income, surplus, and deduction methods. The valuation process is conducted simultaneously nationwide, and the results are published annually, ensuring transparency in determining land prices for purposes such as taxation, compensation, and public land transactions.
According to OECD (2022), Australia’s land valuation experience is implemented through a three-tier management system: federal, state, and local, with land management and valuation primarily handled by state governments. Each state establishes its own land valuation laws based on federal regulations.
The annual land valuation process is overseen by the State Valuer-General, who is the head of the land valuation agency, appointed to ensure transparency and accuracy in valuation. Australia employs two main valuation regimes: mass valuation for real estate taxation and fees, and specific valuation for compensating landowners when land is acquired or calculating income from real estate.
The primary valuation methods include direct comparison, capitalization, and deduction, ensuring land prices align with the market. Australia’s land price database is continuously updated and publicly accessible, including both market and state-regulated land prices, managed through each state’s Land Information System (LIS).
A review of previous studies shows that the factors affecting land prices are diverse and vary by region. Land valuation policies in countries like Japan and Australia emphasize the importance of a transparent, accurate, and regularly updated valuation system.
These studies provide a foundation for Vietnam to apply in improving the 2024 Law on Land, enhancing it compared to the 2013 Law on Land. The following analyses of legal amendments will focus on a market-appropriate, more transparent valuation process, and its potential impacts on the real estate market in the future.
- Research Methods
This study applies document analysis and comparative methods. The goal is to analyze the new points in the regulations on land prices in the 2024 Law on Land and clarify the impacts of these changes on Vietnam’s real estate market. The study will be carried out through the following steps:
– Document and Data Collection:
The study collects official legal documents related to the 2024 Law on Land, including laws, decrees, circulars, and other relevant documents. Research reports, scientific articles, and specialized materials on the real estate market will also be gathered to provide context and theoretical foundation.
– Content Analysis:
Using content analysis, the study focuses on the land price regulations stipulated in the 2013 Law on Land (Articles 112 to 114) and the 2024 Law on Land (Articles 158 to 162). The new points in land price determination methods, application scope, and the role of state management agencies will be clarified. This analysis will offer a detailed view of the development of land price policies over time.
– Comparison and Contrast:
After analyzing the new points in the land price regulations, the study will compare the land price regulations between the 2013 Law on Land and the 2024 Law on Land. This comparison will not only focus on the content of the legal provisions but also delve into the objectives, principles, and land valuation methods applied by these two legal documents. The comparison will help identify the progress as well as the remaining shortcomings in the new regulations.
II. New points on land price regulations in the 2024 Law on Land compared to the 2013 Law on Land
- Eliminate land price framework, only land price table remains
One of the major changes in the 2024 Law on Land is the abolition of the land price framework, retaining only the land price table. In the 2013 Law on Land, the land price framework issued by the Government (Article 113) served as the basis for local authorities to establish land price tables, adjusted approximately every five years. The land price framework created a limited price range within which local land prices could not be lower than the minimum and not exceed the maximum set by the central government.
The 2024 Law on Land abolishes the land price framework, retaining only the land price table issued by the Provincial People’s Committee. According to Article 114 of the 2024 Law on Land, the land price table is constructed based on market value principles, must be publicly announced, and adjusted annually to ensure flexibility and conformity with land price fluctuations. This regulation aims to be more flexible in market-based land valuation.
Article 24 of Decree 71/2024/ND-CP stipulates the conditions for establishing the land price table for each plot based on value zones and standard plots. This regulation is similar to Japan, where the land valuation process involves selecting “standard plots”.
Standard plots represent areas with similar land use purposes and comparable geographical and economic conditions. In Japan, based on these standard plots, the land valuation process is conducted by comparing the characteristics of the standard plot with other plots, and the results are publicly announced annually on January 1.
This system ensures that land prices are close to market values through the application of valuation methods such as direct comparison, surplus, and deduction.
In developed countries like the United States or the United Kingdom, land valuation systems do not have fixed land price frameworks similar to Vietnam. Instead, land prices are determined based on market values, and local authorities conduct regular assessments to ensure land prices accurately reflect factors such as location, demand, and economic conditions.
The UK government does not establish minimum or maximum land prices, and these valuation results are typically used for real estate taxation and supporting land transactions. According to the Valuation Office Agency (2019), the primary method used for land valuation is the surplus method. However, the methodology for this approach is very clear, such as for locations without social housing and those with planning.
- Changes in Costs Related to Land Acquisition
Another important point in the 2024 Law on Land is the change in the calculation of costs related to land acquisition, including the land price table and specific land prices. In the 2013 Law on Land, the land price table and specific land prices were used as the basis for calculating compensation and support when land was acquired.
However, the land price table often did not accurately reflect market prices, leading to individuals and organizations receiving compensation lower than the actual value of the land use rights.
The 2024 Law on Land improves this by requiring specific land prices to be determined based on market principles and to reflect the actual local conditions. According to Clause 4, Article 160 of the 2024 Law on Land, specific land prices are mainly applied to organizations and for calculating compensation.
This not only increases the compensation level when land is acquired but also helps minimize disputes related to the land users’ rights when their land is acquired.
Additionally, the new regulations on the authority to determine specific land prices emphasize the role and responsibility of local agencies in managing, supervising, and ensuring the land valuation process is carried out according to the legal regulations (Clause 2, Clause 3 of Article 160 of the 2024 Law on Land).
This specific allocation of responsibilities helps increase accountability and efficiency in land management. In the 2013 Law on Land, the authority to determine land prices primarily belonged to the Government and central agencies.
The land price table and land price framework were issued by the Government and served as the basis for provinces and cities to establish their local land price tables. This led to the situation where specific land prices determined by local authorities were not close to market values due to the limitations imposed by the central framework.
- Authority to Issue the Land Price Table
The 2024 Law on Land has introduced significant changes in the authority to issue the land price table. According to Article 114, the Provincial People’s Committee is not only given direct authority to issue the land price table but also required to publish it annually, instead of every five years as previously.
This ensures that the land price table is always updated, reflecting market fluctuations more accurately, thereby enhancing transparency and fairness in land management.
Additionally, the Provincial People’s Committee now has the authority to determine specific land prices for individual cases, rather than relying solely on a fixed general land price table as before.
This change allows local authorities more flexibility in addressing situations related to land acquisition and compensation, especially when actual market land prices exhibit complex fluctuations. This not only ensures more accurate compensation but also safeguards the rights of citizens in land-related transactions.
Despite the new regulation in the 2024 Law on Land granting the Provincial People’s Committee the authority to issue and annually adjust the land price table to better reflect market fluctuations, there are still some limitations. This authority could lead to inconsistencies between localities, creating significant land price disparities.
The annual update requirement also places a significant burden on personnel and resources for provinces, especially those with limited management capacity. Moreover, without a robust oversight mechanism, self-determination of land prices could result in corruption and lack of transparency, affecting citizens’ rights and public interests.
- Determining land prices according to market principles and their impact on real estate prices
One of the important changes in the 2024 Law on Land is that land prices must be determined according to market principles, instead of just administrative regulations. This is stipulated in Article 115 of the 2024 Law on Land, aiming to make land prices fairer and more transparent, reflecting the actual market value.
The 2024 Law on Land has made significant improvements by stipulating that land prices must follow market principles, similar to land valuation systems in Japan, Australia, and the United States.
This regulation helps land prices reflect actual market values, creating greater transparency and fairness compared to the previous administrative method. However, the limitation of applying market principles is the high volatility in land prices, especially during economic instability or land price booms, making land acquisition and compensation challenging.
Moreover, the lack of uniformity between localities can lead to significant disparities in land prices, causing unfairness and potentially leading to land speculation if there is no strict control mechanism. Although it brings many transparency benefits, this regulation requires careful supervision and regulation to avoid negative market consequences.
Applying market principles in determining land prices will have a significant impact on the real estate market. Firstly, this may cause land prices to increase in some high-demand areas since current land prices will no longer be limited by the central government’s land price framework.
Additionally, this regulation will create more favorable conditions for investors and real estate businesses in calculating costs and profits because land prices reflect market values, minimizing risks from inconsistent management decisions.
III. Impact and Orientation for Adjusting Vietnam’s Real Estate Market by the 2024 Law on Land
The 2024 Law on Land was enacted to improve the legal framework for land management and use in Vietnam, addressing the needs of socio-economic development in the new context. This law not only inherits the provisions of the 2013 Law on Land but also adjusts and supplements new regulations, especially those related to land valuation and real estate market management, as stipulated from Articles 158 to 162.
- Impact of the 2024 Law on Land on the Real Estate Market
The introduction of the 2024 Law on Land has brought significant changes in the management and development of the real estate market in Vietnam. The new regulations on land prices, as outlined in Articles 158 to 162, have had a strong impact on determining real estate values, especially in urban areas and high-potential development zones.
The positive changes in the new land price table of the 2024 Law on Land will have notable effects on the real estate market.
Firstly, the new law addresses legal issues related to land valuation, compensation costs for land acquisition, and legal procedures in the land and real estate sectors, which have existed for a long time, particularly in project implementation.
Secondly, the new regulations on land prices create a legal framework for regulating and managing land prices in a transparent and professional manner, helping to minimize risks and ensure sustainability in real estate transactions.
Thirdly, these regulations strongly impact each market segment, addressing the supply-demand imbalance, especially for affordable and low-cost housing—a segment that has been severely lacking in major cities in recent years. The application of new land price regulations is expected to boost the overall market development, helping to adjust prices more reasonably amid economic difficulties.
Additionally, the 2024 Law on Land has strengthened the role of state management agencies in supervising and inspecting the land valuation process. This aims to ensure fairness and prevent negative behaviors, such as land price manipulation or collusion, that can disrupt the market. However, this also means that the valuation and project approval processes might become more complex, prolonging the implementation time for real estate projects (Thuy Linh, 2024).
However, adjusting the land price table may also result in some unintended effects, such as increasing the financial obligations for households and individuals when changing land use purposes, with common prices rising 3-7 times compared to before, although still lower than market prices (KPMG, 2024).
- Orientation for Adjusting the Real Estate Market According to the 2024 Law on Land
In addition to the positive impacts of the new land price regulations on the real estate market, certain market adjustments need to be oriented.
– Firstly, in the case of the projected land price table according to Decision 02/2020/QD-UBND of Ho Chi Minh City, the adjustment of the land price table, especially for agricultural land, with an increase of 11-14 times, plays a crucial role in reducing the price gap when converting land use from agricultural to residential.
The higher increase in agricultural land prices compared to residential land (only 4-5 times) helps narrow the gap between these two types of land, thereby reducing the costs that people have to pay when converting land use purposes. This will encourage the conversion of agricultural land in suburban and peripheral areas to residential or commercial land, supporting urbanization and improving the land fund in these areas.
Additionally, this adjustment of the land price table helps approach market prices, making land transactions more transparent and creating more favorable conditions for people when converting land use purposes.
However, the orientation to adjust agricultural land prices according to the new land price table brings both advantages and challenges. On the positive side, this adjustment helps reduce the significant gap between agricultural and residential land prices, making it easier for people to change land use purposes. This contributes to accelerating urbanization in suburban and peripheral areas, while increasing access to residential land for development projects.
However, a strong increase in land prices can reduce the feasibility of using agricultural land for agricultural purposes, making it difficult for farmers and agricultural businesses to maintain production. Furthermore, as land prices approach market levels, the risk of land speculation also increases, especially in peripheral areas where land price disparities are still significant.
– Secondly, while determining land prices based on market principles may not affect the selling prices of commercial real estate, it will still cause significant fluctuations in land prices between regions, making it difficult for investors to compensate and acquire land, thereby increasing input costs. This concern is similar to issues faced in other countries like China (Jin & Zhou, 2022).
Additionally, the risk of land speculation increases when some individuals or organizations exploit price increases for profit, disrupting supply-demand balance and driving up real estate prices. Speculation not only raises land prices but also creates artificial scarcity when investors hold land waiting for price increases instead of using it for development projects.
As a result, the land supply decreases, putting pressure on selling prices and negatively impacting people’s access to housing. Furthermore, the lack of uniformity in applying regulations between localities can lead to significant disparities in land prices, affecting fairness in transactions.
Overall, while this orientation brings many benefits in terms of urban development and land price rationalization, additional supportive policies are needed to protect agricultural activities and limit speculation. Moreover, support policies for investors and real estate businesses are necessary, especially as land prices tend to increase.
These measures may include tax reductions, facilitating administrative procedures, and financial support for social housing projects and housing for low-income people. Additionally, strengthening planning and infrastructure development is crucial for stabilizing the real estate market. Planning should be carried out scientifically, consistently, and with a long-term vision to ensure sustainable development of urban areas and key economic regions.
IV. Evaluation
The 2024 Law on Land has brought numerous positive impacts on Vietnam’s real estate market, most notably the transparency and accuracy in land price determination.
The new regulations in Articles 158 to 162 of the 2024 Law on Land have significantly improved land valuation, making land prices more reflective of actual market values. This not only minimizes disputes related to land prices but also facilitates investment in the real estate sector, particularly from foreign investors.
Additionally, the 2024 Law on Land has strengthened the role of state management agencies in overseeing the land valuation process, thereby reducing land price manipulation and under-the-table agreements that could disrupt the market. This also reinforces the trust of investors and citizens in Vietnam’s land law system, promoting sustainable development in the real estate market.
Another positive point is that the 2024 Law on Land has expanded the application of land valuation methods, allowing for greater flexibility and accuracy in reflecting land values in different areas. This is particularly important in the context of the increasingly complex and diverse real estate market.
However, alongside these positive impacts, the 2024 Law on Land also presents some negative effects on the real estate market. One of the major issues is the increase in investment costs as land prices are determined closer to market values, especially in urban and key economic areas. This could lead to higher real estate prices, reducing housing accessibility for the public, particularly low-income individuals.
The enhanced oversight role of state agencies in the land valuation process, while necessary, could also complicate and lengthen project approval processes. This could increase opportunity costs for investors and hinder the rapid implementation of real estate projects, particularly in a market with high development demands.
Furthermore, the adjustment and application of new land valuation methods could lead to inconsistencies in implementation across localities. This could result in land price disparities between different areas, creating inequality in land access and use, and complicating real estate market management and regulation.
V. Conclusions and Recommendations
- Conclusions
The study has clarified the progress and changes in land price management between these two laws. The 2024 Law on Land not only inherits provisions from the 2013 Law on Land but also introduces significant reforms to meet the development needs of the real estate market in the new phase.
The 2024 Law on Land has expanded the application of land valuation methods, providing a more accurate reflection of the actual value of land, while enhancing the supervisory role of state agencies in the valuation process. These changes have contributed to increased transparency and fairness in the real estate market, facilitating investment attraction.
However, the study also points out that adjusting land prices closer to market values may lead to increased investment costs and reduce housing accessibility for low-income people. Additionally, the project approval process may become more complex, extending the implementation time of projects and posing challenges for investors.
From the study results, it is evident that the regulations in the 2024 Law on Land have created a stronger legal framework for land management and real estate market development.
Nevertheless, to achieve stability and sustainable development, it is necessary to continuously adjust legal regulations, improve implementation processes, and strengthen support policies for investors and the public. Adjustment orientations should focus on balancing the accuracy in land valuation and facilitating real estate development while protecting the rights of all stakeholders.
- Recommendations
Based on the research results on the new land price regulations in the 2024 Law on Land, along with its impacts on Vietnam’s real estate market, several recommendations can be proposed to optimize the effectiveness of the new regulations and ensure the sustainable development of the real estate market.
Firstly, it is necessary to continue improving the legal framework for land valuation by clarifying the criteria and valuation methods to ensure accuracy and fairness. This includes updating land valuation methods based on practical realities and market development trends.
Secondly, enhancing training and capacity building for management staff is crucial to ensure that land price regulations are uniformly and accurately applied nationwide. Focus should be placed on training and improving the skills of personnel involved in land valuation to minimize errors and disputes.
Simultaneously, improving the approval and supervision processes for real estate projects should be undertaken to minimize time and costs for investors. The process should be reviewed and improved to ensure efficiency while strengthening supervision to prevent negative behaviors and ensure transparency in project implementation.
The application of information technology is also an important solution to improve the management and supervision of the real estate market. Developing and applying land data management systems, valuation software, and market analysis tools will better support market management and regulation.
To ensure that the benefits of real estate market development are equitably distributed, specific support policies for low-income people and small and medium-sized enterprises should be established. These policies may include financial support, tax incentives, and social housing support programs to ensure that all groups have access to the benefits of real estate development.
Finally, planning and infrastructure development should be carried out in a coordinated and long-term manner. Identifying potential development areas and ensuring that infrastructure projects such as transportation, water supply and drainage, and public utilities are developed alongside real estate projects will help stabilize the market and improve the quality of life for the people.
References
- – Government (2014), Decree No. 44/2014/ND-CP detailing a number of articles of the Land Law. Hanoi: Government Office.
- – Colwell, P. F., & Sirmans, C. F. (1980), ‘Nonlinear urban land prices’, Urban Geography.
- – Đoan Ngoc Phuong (2022), ‘Land valuation experience of some countries in the world and the applicability in Vietnam’, Electronic Journal of the Ministry of Natural Resources and Environment, 06/08/2022.
- – Jin, W.; Zhou, C. (2022), ‘Effect of Land Marketization Level and Land Prices on Foreign Direct Investment in China’, Land 2022, 11, 1433.
- – KPMG (2024), ‘Technical Update – The New Land Law’, Retrieved from https://kpmg.com/vn/en/home/insights/2024/02/new-land-law.html, 5 February 2024.
- – Lee, S.-H.; Kim, J.-H.; Huh, J.-H (2021), ‘Land Price Forecasting Research by Macro and Micro Factors and Real Estate Market Utilization Plan Research by Landscape Factors: Big Data Analysis Approach’, Symmetry 2021, 13, 616.
- – Munneke, H.J., Sirmans, C.F. & Slade, B. (2023), ‘Land Prices and the Development Process’, J Real Estate Finan Econ (2023).
- – Nguyen Thanh Lan (2018), ‘Discussion on policies for regulating land value increment in Vietnam’, Financial Magazine Online, 03/12/2018.
- – Pham Thanh Thao & Phan Trung Hien (2021), ‘Identifying factors affecting land prices in Can Tho city’, Can Tho University Journal of Science – Part A: Natural Sciences, Technology and Environment, Vol. 57, No. 1A (2021): 8-15.
- – National Assembly (2013), 2013 Law on Hanoi: National Political Publishing House.
- – National Assembly (2024), 2024 Law on Hanoi: National Political Publishing House.
- – Decision on promulgating regulations on the land price table in Ho Chi Minh City for the period 2020 – 2024, No.: 02/2020/QD-UBND.
- – Thuy Linh (2024), ‘Real estate market awaits the impact of the new Law’, Electronic Newspaper of the Ministry of Natural Resources and Environment, 04/09/2024.
- – Tran Trong Phuong, Nguyen Hien, Phan Van Khue, Nguyen Đuc Loc, Nguyen Đinh Trung, NgoAnh Son (2022), ‘Study on factors affecting residential land prices in Tu Son city, Bac Ninh province’, Vietnam Journal of Agricultural Science and Technology – No. 06(139)/2022.
- – UK Ministry of Housing, Communities & Local Government (2019), ‘Land value estimates for policy appraisal 2019: guidelines for use’, Retrieved from gov.uk, published 18 August 2020.
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