Proposal to enforce land acquisition if more than 70% of people agree
According to statistics, there have been more than 12 million comments from agencies, organizations and individuals on the draft Land Law (amended). The public consultation on the draft Land Law (amended) is a very extensive political and social activity, attracting the attention of many classes of people, intellectuals, Vietnamese people residing abroad, organizations and businesses operating in Vietnam.
One of the issues that has received special attention from the public recently is the policy on land acquisition, compensation, support and resettlement. In particular, regarding land acquisition, in reality, there has not been a single major project where businesses have been able to negotiate with the people. That is also the reason why the efficiency of land use has been affected. The State still has to acquire and convert land use purposes, and calculating the difference in land rent is very difficult.
Land acquisition, compensation, support and resettlement policies are of particular interest to public opinion.
In reality, enterprises implementing urban development projects in agreement with the people often encounter certain difficulties and problems. Accordingly, at the workshop on providing comments on the draft Land Law (amended) on March 8, organized by the Vietnam Chamber of Commerce and Industry (VCCI) in coordination with the Ministry of Natural Resources and Environment, Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, said that there are projects of enterprises that have not been implemented for 8 years due to problems with land recovery, compensation, and crop support.
According to Mr. Nguyen Quoc Hiep, when residential land and commercial service land are recovered, they need to be compensated appropriately according to the compensation plan decided by the government to ensure that people's lives are not disadvantaged. However, Mr. Hiep emphasized: "But one issue needs to be clarified: The compensation price must be implemented according to the approved compensation price plan, it cannot be implemented by the method of self-negotiation between each household and the investor".
Ms. Nguyen Thi Nga, Chairwoman of BRG Group, proposed: “When an agreement has been reached with the majority of the people, the investor is required to request state agencies to recover the land and enforce it if the remaining households do not agree to avoid land waste and ineffective land use. If only 1% disagrees, it will be difficult to implement the project. The law may allow the project to be implemented in parts, but the project is the whole.”
Expressing his opinion on this issue, Economic Expert Vu Vinh Phu said that in order for land recovery to be convenient, the state needs to have very specific mechanisms and policies to create a legal corridor, from which relevant agencies, people and businesses can implement.
This economic expert also supports the view that if there is a legal corridor, when the enterprise implementing the project has reached an agreement with over 70% of the people, then the state agencies will carry out land recovery and enforcement if the remaining households refuse to hand over the land to avoid the case of the project being prolonged, causing damage to the enterprise, while not immediately promoting the effectiveness of the land.
Economist Vu Vinh Phu.
Differential rent, how to calculate?
It can be said that in the past, the State's land acquisition and conversion of land use purposes, calculating land rent differences was very difficult because of the determination of land prices. While many opinions said that the State acquired land from people at "cheap" prices, then handed it over to businesses to invest in selling products at high prices to make a profit. Is that really the case?
According to a representative of a real estate company, the compensation for land clearance is essentially from the State, but in reality, the company pays in advance and deducts it later from the land use fee and land tax. Even if the land is acquired for 1 million VND/m2, it cannot be sold immediately at many times the price.
Meanwhile, in addition to land use fees and land taxes paid to the State, businesses must also pay additional costs for infrastructure construction, sales through the floor, dealer discounts, interest payments, etc.
Talking to us, Lawyer Nguyen Hoai Nam - Director of Bamboo Star Law Firm LLC analyzed the State's land acquisition for socio-economic development purposes, including the construction of new urban areas.
Lawyer Nguyen Hoai Nam said that new urban areas approved by the Prime Minister and decided on for investment that require land acquisition or new urban area construction projects approved by provincial People's Councils that require land acquisition are cases where the State acquires land for socio-economic development for national and public interests as stipulated in Article 62 of the 2013 Land Law.
“When the State reclaims land for socio-economic development for national and public interests, there will be a difference between the amount of money the State compensates for people whose land is reclaimed and the amount the State collects through land allocation to enterprises that are project investors,” emphasized Lawyer Nam.
According to Lawyer Nguyen Hoai Nam, people whose land is recovered and meet the conditions specified in Article 75 will be compensated for land when the State recovers land for national defense and security purposes; socio-economic development for national and public interests.
Nam Thang Long Urban Area (Ciputra Urban Area). Photo: internet
Citing the Nam Thang Long Urban Area Project (Ciputra Urban Area) in Tay Ho District, Hanoi, Lawyer Nguyen Hoai Nam said that compensation, support and resettlement when the State reclaims land is implemented according to Decision No. 10/2017/QD-UBND of the Hanoi People's Committee, accordingly, Article 5 stipulates the principles of land compensation when the State reclaims land: When the State reclaims land, if land users meet the conditions for compensation according to the provisions of Article 75 of the Land Law, they will be compensated in cash according to the specific land price of the type of reclaimed land decided by the City People's Committee. In case of land fund conditions, compensation will be considered by allocating land with the same purpose of use as the type of reclaimed land. According to Table No. 1 issued with Decision No. 30/2019 of Hanoi People's Committee, the price of agricultural land for rice cultivation and annual crop cultivation in wards of Tay Ho district is 252,000 VND/m2.
For investors, after completing land acquisition, compensation, and site clearance, the State decides to allocate and lease land to project investors. At that time, the State calculates land use fees for land lease and allocation according to the correct purpose of using each new type of land in the planning and investment policy of the project approved according to the provisions of Decree 45/2014/ND-CP on land use fee collection and implementing guidelines.
“The difference occurs here when the amount of compensation and support the State provides to people whose land is recovered is much lower than the amount of land use fees the State collects from enterprises through land allocation and land lease. This is also obvious because the purposes of land use when the State recovers from people and when the State allocates to investors are different and the location and infrastructure are based on the general planning of the urban area,” Lawyer Nguyen Hoai Nam stated, adding that the difference in calculation will be included in the State budget.
Gia Phat
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