Vietnam grapples with equitable and transparent land reform efforts
Vietnam's 2024 Land Law, enacted a year ago, is under review to address practical challenges that have emerged since its implementation. The proposed amendments aim to adjust land valuation principles, improve land management efficiency, and ensure alignment with socio-economic development.
A Shift in Land Valuation Principles
The most significant amendment is the abolition of the market-based land valuation principle. Instead, land valuation will be determined by the State as the landowner, reinforcing the State's decisive role in land pricing. This change responds to difficulties in balancing market dynamics with government oversight under the initial reforms.
The amendments seek to remove institutional bottlenecks and promote socio-economic development by replacing five valuation principles, including the market basis, with four that guarantee:
- The State’s role as landowner and price decision-maker
- Transparency and objectivity
- Honesty and independence of authorities
- Balance of interests among stakeholders
Other Amendments and Measures
The amendments also address other challenges, such as refining procedures for land allocation, land-use conversion, and enhancing data coordination between central and local agencies to improve transparency and efficiency.
The Prime Minister has emphasized amendments to reinforce land's status as a key national resource and socio-economic driver. This includes protecting rice-growing land for food security, prioritizing land for infrastructure and urban development, and securing equal access for public and private sectors.
Addressing Price Increases and Supply Issues
One of the shortcomings of the law is the removal of the government's fixed land price framework, leading to sudden price increases in many areas. To address this, the Ministry of Construction is increasing the supply of homes in affordable and social housing segments and planning to launch a national property exchange under State management by 2026.
Taxes on unused or vacant property are also being considered, as are appropriate macroeconomic policies, including monetary and fiscal policies, to support land compensation and resettlement.
Focus on Affordable Housing and Social Housing
The Ministry of Construction suggests restructuring the real estate market, with a strong focus on affordable housing and social housing. The ministry is working on the development of an integrated land and real estate database to improve data management and decision-making.
Looking Ahead
The proposed amendments aim to overcome the clash between ambitious market-aligned reforms and on-the-ground administrative realities, strengthen State control and clarify land pricing methods, enhance institutional frameworks controlling land allocation, leasing, and use conversion, promote transparency through better land information systems, and safeguard national food security and equitable land access to support sustained socio-economic growth in Vietnam.
[1] Vietnam News
[2] Vietnam Investment Review
[3] VietnamNet Bridge
[4] The Diplomat
- The 2024 Land Law in Vietnam is under review, considering amendments that focus on adjusting land valuation principles to ensure alignment with socio-economic development.
- One of the proposed amendments eliminates the market-based land valuation principle, establishing the State as the landowner and price decision-maker instead.
- In addition to land valuation reforms, the amendments aim to address institutional bottlenecks and promote socio-economic development.
- Key objectives include improving land management efficiency, protecting rice-growing land for food security, and prioritizing land for infrastructure and urban development.
- To confront sudden price increases in the housing market, the Ministry of Construction plans to boost the supply of homes in affordable and social housing segments.
- The ministry is also considering taxes on unused or vacant property and examining appropriate macroeconomic policies for land compensation and resettlement.
- The proposed legislative changes also stress a strong focus on restructuring the real estate market, with an emphasis on affordable housing and social housing.
- In an effort to improve data management and decision-making, the Ministry of Construction is developing an integrated land and real estate database.
- The amendments' ultimate goal is to harmonize ambitious market-aligned reforms with administrative realities, strengthen State control, clarify land pricing methods, and safeguard national food security and equitable land access, thereby supporting sustained socio-economic growth in Vietnam.
