Compensation price for land acquisition is always lower than market price.

Compensation price is lower than market price

Discussing at the National Assembly on public investment and budget for the 2021-2025 period on the morning of November 2, delegate Le Huu Tri (Khanh Hoa National Assembly delegation) said that the order and procedures for public investment as well as regulations on land, environment, bidding, budget expenditure, and minerals still have many problems, in many cases being bottlenecks that slow down site clearance.

Mr. Tri said that according to current regulations, compensation prices when the State reclaims land are calculated based on specific land prices in each locality. Specific land prices are decided by the provincial People's Committee.

Determining specific land prices is based on investigation, collecting information about land plots, market land prices, information about land prices in land databases and applying appropriate land valuation methods. Previously, the Government allowed the provincial level to authorize the district level to decide on specific land prices.

However, over the years, the compensation price for land when the State reclaims land has always been reflected lower than the market price, causing difficulties for large projects in site clearance.

Reasons for delay in progress of public investment projects

Delegate Nguyen Thi Le (HCM City National Assembly Delegation) also said that site clearance compensation is one of the reasons for slowing down the progress of public investment projects, affecting the disbursement rate.

In Resolution 29 of 2021, the National Assembly assigned the Government to develop a pilot project to separate site clearance and resettlement from the general project. Ms. Le requested the Government to report on the progress of the project implementation and evaluate its effectiveness from now until 2025.

From the reality in Ho Chi Minh City, Ms. Le suggested that localities and investors review and carefully evaluate projects with the ability to disburse funds to focus on capital allocation, avoiding spreading out, leading to many unfinished projects, having to go through extension procedures, causing waste.

Giá đất bồi thường khi thu hồi đất luôn thấp hơn giá thị trường - 1 — Delegate Nguyen Thi Le - Ho Chi Minh City National Assembly Delegation (Photo: Quochoi.vn).

The project implementation process needs to pay attention to technical infrastructure relocation, early selection of consultants and implementation in parallel with site clearance compensation to ensure construction progress.

Regarding compensation and site clearance, Ms. Le proposed that the National Assembly request the Government to perfect the mechanism so that compensation prices soon approach actual market prices, have additional support mechanisms for people affected by the project, and pay attention to investing in improving infrastructure quality, aiming to bring a new and better life to the people.

"Resettlement arrangement is to arrange a new life for people, so it is necessary to pay attention to investing in improving the quality of infrastructure, apartment quality and ensuring adequate technical and social infrastructure. People want the State to implement the project in the place where they currently live to have a better new life," said Ms. Le.

Also concerned about this issue, delegate Thai Thi An Chung (Nghe An National Assembly delegation) also said that site clearance is one of the stages with many shortcomings in public investment projects.

This delegate proposed that the National Assembly pilot the separation of compensation, resettlement, and site clearance into independent projects to be implemented in a number of localities.

Source