On the afternoon of August 7, Deputy Prime Minister Tran Hong Ha chaired a combined in-person and online meeting on the draft Decree amending and supplementing a number of articles of Decree 44/2014/ND-CP of the Government regulating land prices.
Attending the meeting were leaders and representatives of the Ministries of Natural Resources and Environment, Finance, Planning and Investment, Public Security, Construction, Government Inspectorate, State Audit, Economic Committee of the National Assembly, State Capital Management Committee at Enterprises, representatives of 22 provinces and cities, experts, real estate associations, valuation...
Deputy Prime Minister Tran Hong Ha chaired the meeting.
Innovating the specific land price determination procedure to ensure the unblocking of land resources
According to the report of the Ministry of Natural Resources and Environment, there are 5 methods of land valuation in Decree 44, including the following methods: Direct comparison; deduction; income; surplus; land price adjustment coefficient. Through specific land valuation, land prices are basically consistent with market prices, limiting the loss of State budget revenue, ensuring the rights of people whose land is recovered.
However, after more than 9 years of implementation, some regulations on land valuation methods have revealed limitations and shortcomings. Some localities are still confused in applying and implementing, affecting the progress of land valuation. Some land valuation methods are not suitable for the actual conditions of market information, land use rights are still lacking in transparency, and are not suitable for State management of land prices in the context of incomplete land price database. Regulations on the content and conditions for applying land valuation methods are not suitable and not specific, leading to cases where different methods are applied to a land plot with different results...
Therefore, it is necessary to issue a decree amending and supplementing a number of articles of Decree 44 to promptly complete regulations on land valuation methods, innovate specific land price determination procedures to ensure the unification of land resources, and at the same time guide localities to unify the implementation of the Provincial People's Committee's authorization to the District People's Committee to decide on specific land prices according to the provisions of the Law on Organization of Local Government, Resolution No. 73/NQ-CP dated May 6, 2023 of the Government.
The Deputy Prime Minister said that violations in land valuation are mainly due to incorrect application of methods or use of input data that is not objective, transparent, and accurate.
Proposed solutions are proposed to overcome the shortcomings, difficulties and obstacles in land valuation in the past. Specifically, reviewing and perfecting land valuation methods, including integrating the deduction method into the comparison method; amending and supplementing some contents of the surplus method to reduce the assumption factor, the subjective will of the valuer, and making it more convenient to organize implementation.
Specify the conditions for applying each land valuation method to unify the selection and application of land valuation methods; sources of information collected to apply land valuation methods; expand the cases of applying the land price adjustment coefficient method...
The draft Decree also adds provisions that when applying the comparison, income, and surplus methods, it must be compared with the results of determining specific land prices according to the land price adjustment coefficient method; procedures for determining specific land prices in cases where the provincial People's Committee authorizes the district People's Committee to decide on specific land prices; in cases where it is not possible to select an organization with the function of consulting on land valuation; transitional handling for some cases...
The meeting is connected online.
Applying land valuation methods combined with appropriate verification, ensuring honesty and objectivity
Speaking at the meeting, Deputy Prime Minister Tran Hong Ha said that in the coming time, the revised Land Law will be passed as an important legal basis for establishing a land price database and building a land value map as a basis for applying all valuation methods.
In the immediate future, management agencies and valuation consulting units need to agree on how to select and apply land valuation methods combined with appropriate verification, ensuring honesty, objectivity, "close, correct, and consistent with market value", less dependent on subjective will, "trusted by management agencies, consulting units, land valuation, and law enforcement agencies".
Deputy Prime Minister Tran Hong Ha stated: Land valuation is the key issue in resolving current difficulties, obstacles and violations related to land. The amendment of Decree 44 needs to have a correct methodology, scientific and practical basis.
Land valuation methods (comparative, income, surplus) have been used by many countries in the world, in which information and input data on the land market are important bases for applying accurate valuation methods. Each valuation method is applied in accordance with the information and input data conditions of each land plot.
Experts attending the meeting.
The Deputy Prime Minister assigned the Ministry of Natural Resources and Environment to closely coordinate with the Ministry of Finance, the Ministry of Construction, ministries, branches and associations to clarify the criteria and conditions for collecting information and input data for each land plot and specific project as a basis for applying the most appropriate valuation method, avoiding arbitrariness and subjectivity.
"Input information criteria must be unified, transparent, public, simple and feasible, serving as the basis for applying appropriate valuation methods," said the Deputy Prime Minister, requesting the drafting agency to clarify the authority and responsibility of management agencies, valuation consultancy organizations, valuation councils, etc. in the procedures for conducting land valuation.
The Deputy Prime Minister also noted that even if the draft revised Land Law is approved to allow the application of the land valuation method based on value zones, other valuation methods still need to be applied to areas where land data by value zones have not been fully collected. For localities that closely monitor the fluctuating prices of the land market in the area, it is possible to apply the method of determining valuation by value zones.
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