SOME SOLUTIONS TO STRENGTHEN THE ROLE OF LAND PRICE CONSULTATION IN TRAINING AND ENHANCING KNOWLEDGE ABOUT LAND VALUATION TO MEET THE REQUIREMENTS OF THE 2024 LAW ON LAND

SOME SOLUTIONS TO STRENGTHEN THE ROLE OF LAND PRICE CONSULTATION IN TRAINING AND ENHANCING KNOWLEDGE ABOUT LAND VALUATION TO MEET THE REQUIREMENTS OF THE 2024 LAW ON LAND

SOME SOLUTIONS TO STRENGTHEN THE ROLE OF LAND PRICE CONSULTATION IN TRAINING AND ENHANCING KNOWLEDGE ABOUT LAND VALUATION TO MEET THE REQUIREMENTS OF THE 2024 LAW ON LAND

Ngô Thị Phương Thảo

Nguyễn Thanh Lân

Trần Thu Thủy

Department of Real Estate and Resource Economics, National Economics University

Abstract:

The article focuses on reviewing some regulations related to training and enhancing knowledge about land price consultation in Vietnam. Based on this, the article proposes some regulations related to training and enhancing knowledge about land valuation, and managing organizations and individuals providing land price consultation services to prepare for the implementation of the 2024 Law on Land. Specifically, the proposals include:

(i) Adjusting and updating the content framework for training and enhancing professional knowledge about land valuation.

(ii) Increasing the number of training institutions, along with raising the standards of training institutions for professional land valuation.

(iii) Strengthening state management over training institutions for professional land valuation.

(iv) Improving the effectiveness of state management over land price consultants and organizations providing land valuation services.

Keywords: Land valuation; Land price consultation; 2024 Law on Land.

I. INTRODUCTION

Land price consultation is a service activity in the field of land, including cases such as: building and adjusting the land price table and determining specific land prices as required by competent state agencies; resolving complaints about land prices at the request of competent state agencies or involved parties; and conducting civil transactions related to specific land prices upon the request of the parties. To provide land price consultation services, there must be a team of consultants—both individuals and organizations—who meet the requirements of the law and market demands. In Vietnam, the team of consultants and service providers related to land price determination is currently regulated by the Law on Land and the Law on Prices.

Recently, the implementation of the 2013 Law on Land concerning land price consultation has shown many shortcomings and issues. These include: numerous cases involving violations by appraisers in land price determination and land price consultation; prolonged land price consultation in localities, affecting state management of land; and training for land price consultants not meeting practical needs, with training not sufficiently providing knowledge and skills for individuals practicing land price consultation.

In the near future, the 2024 Law on Land and the 2023 Law on Prices will take effect and be implemented. Therefore, there need to be specific regulations related to the process of training, enhancing knowledge, issuing professional certificates, and managing the team providing land price consultation services.

This article aims to analyze, evaluate, and propose some solutions to strengthen the role of organizations and individuals participating in land price consultation services from the perspective of regulations and laws related to training and enhancing knowledge and skills for the team of land price consultants.

II. RESEARCH METHODS

The subject of the research targets policies and legal regulations related to land price consultation activities, focusing on regulations related to training and enhancing professional knowledge for individuals practicing land price consultation. The research method mainly used is desk research combined with expert methods. Data and information are collected through reports, legal documents, and secondary sources.

Descriptive statistical analysis techniques, synthesizing information, data, and indicators related to land price consultants are utilized, with the content analyzing and comparing policies, laws, and practical land price consultation activities. Specifically, the desk research method (secondary research) is used by the authors’ group in searching and collecting a system of legal documents related to the training and enhancing knowledge on land valuation and real estate.

Additionally, the authors’ group also synthesizes and analyzes reports, documents, and scientific articles related to the research topic. The expert method is used in the process of consulting opinions on proposed amendments and revisions of the training framework for enhancing knowledge on land valuation. The analysis and comparison method is applied at various stages of the research process.

III. RESEARCH RESULTS AND DISCUSSION

1. Overview of the training system and conditions related to land price consultation services in Vietnam

The Vietnamese legal system related to land price consultation and valuation (land and real estate) has had 03 training regimes corresponding to 03 certificates related to land price consultation and valuation training, which are:

(1) Price Appraiser Card (Ministry of Finance);

(2) Regulations related to Land Valuation Certificate (Ministry of Natural Resources and Environment);

(3) Regulations on Real Estate Valuation Certificate (Ministry of Construction).

1.1. Price Appraiser Card

The training and examination regime for the Price Appraiser Card, guided and implemented by the Ministry of Finance, was first organized in 2005. According to the regulations, the examination for the Price Appraiser Card is held at least once a year. The conditions for taking the Price Appraiser Card examination by the Ministry of Finance from 2005 to present are divided into 2 basic periods:

Period 1 (2005-2014): Appraisers must comply with the Price Ordinance No. 40/2002/PL-UBTVQH 10 dated April 26, 2002, and related guiding documents.

Period 2 (From 2014 to present): Appraisers must comply with the provisions of the Law on Prices No. 11/2012/QH13 dated June 20, 2012, Decree No. 89/2013/ND-CP, Circular No. 204/2014/TT-BTC, Circular No. 46/2014/TT-BTC, and Circular No. 11/2019/TT-BTC.

According to the Law on Prices, candidates for the Price Appraiser Card must take 06 exams (Law applicable in the field of prices and price appraisal; Principles of market price formation and basic principles of price appraisal; Real estate valuation; Machinery and equipment valuation; Enterprise valuation; Foreign Language: English – Level C). The content of the professional exams includes both theoretical and practical situational exercises; the form of examination is essay or/and multiple-choice for each exam. The Ministry of Finance is responsible for drafting, updating, and uniformly issuing the content, program, and study materials for the Price Appraiser Card exam preparation.

Regarding the development of units/enterprises providing businesses in Vietnam from 2013 to 2020, the number of valuation enterprises continues to increase rapidly each year. Specifically, in 2013 there were 109 enterprises, in 2014 there were 142 enterprises, in 2015 there were 183 enterprises, in 2016 there were 225 enterprises, in 2017 there were 270 enterprises, in 2018 there were 285 enterprises, in 2019 there were 311 enterprises, and in 2020 there were 409 enterprises that were granted certificates of eligibility to conduct business.

The number of appraisers granted practice certificates and registered to practice at enterprises from 2013 to 2020 has shown an increasing trend. Specifically, in 2013 there were 535 appraisers, in 2014 there were 712 appraisers, in 2015 there were 788 appraisers, in 2016 there were 1070 appraisers, in 2017 there were 1122 appraisers, in 2018 there were 1343 appraisers, in 2019 there were 1589 appraisers, and in 2020 there were 1723 appraisers (Trần Đình Thắng, 2021).

Thus, it can be affirmed that since the 2012 Law on Prices came into effect (on January 1, 2013), the system of guiding documents on valuation, including training activities, has been relatively completed. The contents related to training and professional enhancement for valuation have been clearly defined, facilitating the implementation by training institutions as well as the supervision and inspection of training and professional enhancement activities by state management agencies (Ministry of Finance, 2021).

1.2. Land Valuation Certificate

The Land Valuation Certificate issued by the Ministry of Natural Resources and Environment has been organized since 2015, with three rounds of certificates granted to date. The certificate is valid for 5 years. Specifically, the Land Valuation Certificate is currently regulated by legal documents such as:

– The 2013 Law on Land dated November 29, 2013

– Government Decree No. 44/2014/ND-CP dated May 15, 2014, regulating land prices

– Government Decree No. 01/2017/ND-CP, amending and supplementing several decrees detailing the implementation of the Law on Land

– Government Decree No. 136/2018/ND-CP, amending several provisions of the decrees related to investment and business conditions in the field of natural resources and environment

– Circular No. 61/2015/TT-BTNMT dated December 15, 2015, regulating the issuance and management of Land Valuation Certificates

– Decision No. 515/QD-TCQLDD dated December 17, 2014, approving the framework program for land valuation training.

According to the regulations, individuals eligible for the Land Valuation Certificate must meet the following conditions:

(i) Have professional qualifications as specified in Article 3 of Government Decree No. 01/2017/ND-CP dated January 6, 2017, supplementing several decrees detailing the implementation of the Law on Land. Specifically, individuals must have a university degree or higher in land management, land administration, real estate, pricing, valuation, economics, finance, accounting, auditing, banking, economic-technical, engineering, or law.

(ii) Have practical work experience as specified in Point d, Clause 2, Article 20 of Government Decree No. 44/2014/ND-CP (At least 36 months of practical experience in the trained field after obtaining the graduation certificate).

(iii) Have a certificate of completion of the land valuation training course according to the land valuation training program issued by the Ministry of Natural Resources and Environment.

1.3. Real Estate Valuation Certificate

The Real Estate Valuation Certificate issued by the Ministry of Construction is granted according to Decree 153/2007/ND-CP, issued by the government on October 15, 2007, detailing and guiding the implementation of the Law on Real Estate Business. The related legal documents regulating the Real Estate Valuation Certificate (now expired) include:

– The Law on Real Estate Business dated June 29, 2006

– Decree No. 153/2007/ND-CP dated October 15, 2007, detailing and guiding the implementation of the Law on Real Estate Business

According to the provisions of Decree No. 153/2007/ND-CP, individuals are granted the Real Estate Valuation Certificate when meeting the following conditions:

– Not being a state official or public employee

– Having full civil act capacity; not prohibited from practicing as decided by competent authorities; not under criminal investigation or serving a prison sentence

– Having a certificate of completion of the training course on real estate valuation

– Holding a college or university degree

– Having a dossier for applying for the Real Estate Valuation Certificate according to regulations

Thus, the regulations on training, professional enhancement, issuing practice certificates, and regulations on the provision of services related to land price consultation and/or valuation (land and property on land – real estate) in Vietnam are summarized in the following table:

Table 1. Summary of certificates related to training and professional enhancement in land valuation and real estate in Vietnam

Source: Compilation according to legal regulations.

Thus, it can be seen that, before the 2013 Law on Land, the training and certification for land valuation and land price consultation & real estate were regulated by two specialized laws: the Law on Prices and the Law on Real Estate Business. Accordingly, the regulations and requirements for training programs, conditions for certification, and certificate validity were different. This caused difficulties for individuals participating in land price consultation & real estate services.

Meanwhile, the Land Valuation Certificate, regulated by the 2013 Law on Land, targets individuals directly involved in land price consultation. Notably, after implementing the regulations on the Land Valuation Certificate, practical experience has shown inconsistencies and overlaps in the conditions for practicing, issuing valuation certificates, and service requirements related to land valuation between the 2012 Law on Prices and the 2013 Law on Land. Additionally, training institutions for land valuation knowledge also differ because there is no unified training standard, and there are no specific regulations related to the organization and provision of land valuation training services.

2. Current State Management on Training, Enhancing Land Valuation Knowledge, and Land Price Consultation Services according to the Law on Land

2.1. General Training Program Content

The framework for enhancing professional knowledge on land valuation currently consists of 120 periods, including both theoretical and practical sessions, with a training duration of 15 days.

The training course content includes 9 teaching modules and 1 practical module (Practice and Report Writing on Land Valuation), covering the following:

Module 1: State Management on Land and Legal Regulations on Land Prices and Land Valuation

Module 2: Land Market and Assets Attached to Land

Module 3: Land Economics and Economic Relationships in Land Use

Module 4: Overview of Land Valuation

Module 5: Methods of Land Valuation

Module 6: Survey Sampling Statistics in Developing and Adjusting the Land Price Table

Module 7: Developing and Adjusting the Land Price Table

Module 8: Specific Land Valuation

Module 9: Land Price Consultation

2.2. Current Situation

In recent years, land valuation training courses have mainly focused on officials working on land prices at local Departments of Natural Resources and Environment. To date, there has not been an official evaluation report on the implementation of the land valuation knowledge enhancement framework. However, practical activities have highlighted several key points:

(1) The current training program for land valuation knowledge enhancement does not align with management requirements and practical land valuation needs, especially according to the 2024 Law on Land. A significant change in the 2024 Law on Land regarding land prices is the government’s abolition of the land price framework; the annual determination of the land price table by provincial People’s Committees must follow market principles, based on the grounds and valuation methods prescribed by the government, requiring high practicality and continuous updates from land price consultants.

(2) The number of institutions organizing training courses is still very limited. Currently, the training program is mainly implemented by the Training and Fostering School for Natural Resources and Environment Officers, under the Ministry of Natural Resources and Environment. Therefore, the training results have not met practical needs in terms of both quantity and quality.

(3) The regulations have not yet addressed state management over training institutions for land valuation professional enhancement. This is an important issue to address in the future when implementing the 2024 Law on Land.

(4) State management over land price consultants and organizations providing land valuation services is not clearly regulated, and there is no supervision mechanism for these organizations.

According to current regulations, the content of managing and supervising land price consultants includes: land price consultants must register the list of appraisers and any changes or additions to the appraisers’ list with the competent state agency where the land price consultation organization is headquartered. Additionally, the organization providing land price consultation services is responsible for managing the consultants within the organization and must report to the Ministry of Natural Resources and Environment by December 15 every year.

Regarding the Land Valuation Certificate, Circular No. 61/2015/TT-BTNMT stipulates prohibited acts and cases where the Land Valuation Certificate can be revoked, including: “The decision to revoke the Land Valuation Certificate must be sent to the person whose certificate is revoked, their workplace, and posted on the Ministry of Natural Resources and Environment’s website…”. However, in practice, there have been no public notices of certificate revocations on the Ministry of Natural Resources and Environment’s website. Meanwhile, many cases have involved violations by appraisers in land valuation and land price consultation.

(5) Training and enhancing knowledge for management officials have not been separately developed to meet professional requirements, and there is no specific content for enhancing knowledge serving land price consultation and land price management.

The training programs for management knowledge on land prices are still general, formalistic, and not regularly updated.

Notably, there are many shortcomings in professional training for state management of land prices because the content of land prices is only emphasized in professional training on land valuation, and state management of land prices is only integrated into the general program on land management training.

3. Proposals for Regulations on Training and Enhancing Knowledge to Strengthen the Role of Land Price Consultation to Meet the Requirements of the 2024 Law on Land

The 2024 Law on Land is about to take effect, necessitating adjustments to the framework for training and enhancing knowledge on land valuation in accordance with the requirements and regulations of the 2024 Law on Land. Accordingly, the authors propose regulations on training and enhancing knowledge to strengthen the role of land price consultation as follows:

3.1. Adjusting and Updating the Training Program Content for Land Valuation Professional Enhancement

– Add the modules “Land Value Zones and Mass Appraisal Techniques (CAMA)” and “Information Systems and Building Databases on Land Prices” to the content and training program for land valuation professional enhancement.

– Increase the training duration for a knowledge enhancement course as follows: The minimum duration for a land valuation knowledge enhancement course should be 130 hours, not including review and assessment time; practical sessions and problem-solving for real-life situations should be increased.

– The training content for both general and specialized knowledge should ensure a reasonable balance between theory and practice; the content for training, enhancing, and updating knowledge must be regularly updated and improved to meet the needs of participants.

– Add regulations requiring that at the end of the land valuation professional enhancement course, the training institution must organize an assessment of learning outcomes. The assessment content must reflect the basic knowledge of the modules in the program and address practical situations.

3.2. Increasing the Number of Training Institutions and Raising Standards for Land Valuation Professional Enhancement

– Expand training institutions with clear regulations, ensuring they meet the following requirements:

1. i) Higher education institutions with formal training programs in land management and land valuation that comply with education and training laws.
2. ii) Units with the function of land valuation professional enhancement under the Ministry of Natural Resources and Environment.

– Establish standards for training, enhancing, and updating land valuation knowledge to meet the following requirements:

1. i) A team of lecturers participating in training, enhancing, and updating knowledge must meet all standards.
2. ii) A suitable training, enhancing, and updating knowledge plan, content, and program.

  iii) Training, enhancing, and updating knowledge should be organized in the form of direct or online classes, with direct learning time accounting for at least 80% of the total course duration.

1. iv) A land valuation professional enhancement course should be organized in one continuous session or multiple sessions but must not exceed 3 months per course and must ensure sufficient duration, content, and training program.
2. v) Training institutions must compile training materials according to the land valuation professional enhancement framework program issued by the Ministry of Natural Resources and Environment; they are also responsible for updating new state regulations related to land management and land valuation during the teaching process.
3. vi) The training institution must organize a knowledge update class in one continuous session and ensure sufficient time, content, and materials according to regulations.

In particular, the content of knowledge updates should focus on:

– Legal regulations on state management of land, land prices, land valuation, and related laws in Vietnam and internationally.

– Skills, land valuation experience, land valuation situations, and professional ethics in land price consultation.

– Other knowledge and information related to land valuation and land price consultation.

3.3. Strengthening State Management over Training Institutions for Land Valuation Professional Enhancement

The guiding documents for implementing the provisions of the 2024 Law on Land need to include regulations on:

– The rights and responsibilities of training institutions for enhancing and updating land valuation knowledge within the Decree on Land Prices;

– Regulations on the reporting regime for organizing training, enhancing, and updating land valuation knowledge by training institutions (mandatory periodic quarterly reports or ad-hoc reports upon request);

– Guidance on forms, requirements for storing training, enhancing, and updating land valuation knowledge records by training institutions.

3.4. Improving the Effectiveness of State Management over Land Price Consultants and Organizations Providing Land Valuation Services

The provisions in Article 162 of the 2024 Law on Land mention the rights and obligations of land price consultation organizations. To detail and establish a mechanism for supervising the implementation of these rights and obligations by organizations providing land valuation services, the authors propose including specific regulations in the Decree on Land Prices and the guiding Circular as follows:

1. i) For individuals practicing land price consultation, it is necessary to issue regulations specifying:

– Individuals practicing land price consultation are not allowed to simultaneously register to practice with more than one land price consultation organization at the same time.

– Individuals practicing land price consultation are responsible for the accuracy of the information declared in their registration documents.

– Individuals practicing land price consultation must adhere to professional ethics and valuation procedures during their practice.

1. ii) For organizations providing land price consultation services, it is necessary to issue regulations specifying:

– Land price consultation organizations must notify the provincial land management agency where their headquarters are registered about the provision of land price consultation services via: postal mail, direct submission, or online public services (if available).

– Organizations providing land price consultation services are responsible for managing and supervising the activities of individuals practicing land price consultation/appraisers within their organization according to the 2024 Law on Land and related laws.

– Annually, land price consultation organizations must register the list of individuals practicing land price consultation within their organization with the provincial land management agency where their headquarters are registered, as stipulated by the Ministry of Natural Resources and Environment.

iii) Issue a regulation on the inspection activities of land price consultation organizations to ensure that inspection activities detect violations, provide timely solutions, and promote accuracy and transparency in the provision of land price consultation services.

IV. CONCLUSION

Land price consultation plays a crucial role in land management and utilization. The 2024 Law on Land (expected to take effect on July 1, 2024) includes regulations related to organizations and individuals involved in providing land price consultation and valuation services.

In the near future, to effectively implement land price consultation services, specific regulations are needed to enhance and standardize the training, enhancement, and management of the team providing land price consultation services.

Specifically, the training program framework needs to increase the volume of knowledge and practical skills, adding some modules on modern valuation methods (CAMA); strengthening state management in organizing training, such as:

– Specific regulations on the conditions for organizations providing training and knowledge enhancement services;

– Increasing the number of training and enhancement institutions;

– Improving the effectiveness of state management over land price consultants and organizations providing land valuation services.

References

1. The 2013 Law on Land No. 45/2013/QH13.
2. The 2024 Law on Land No. 31/2024/QH15.
3. Ministry of Finance (2021), Report No. 100/BC-BTC on the Summary of the Implementation of the Law on Prices dated August 27, 2021, Hanoi.
4. Trần Đình Thắng (2021), State Management of Valuation Services in Vietnam, Doctoral Dissertation, University of Commerce, Hanoi.
5. Châu Hoàng Thân (2022), State Management of Land Prices in Vietnam, National Political Publishing House Truth, Hanoi.
6. National Economics University (2024), Q2-2024 Policy Advisory Report “Recommendations for Amending Regulations on Land Price Consultants as Required by the 2024 Law on Land”, Hanoi.

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“The article’s content refers to the regulations that were applicable at the time of its creation and is intended solely for reference purposes. To obtain accurate information, it is advisable to seek the guidance of a consulting lawyer.”

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