Hope the revised Land Law will be passed soon in early 2024

According to VARS, the revised Land Law is attracting the attention of many people, especially those working in the real estate sector. Because currently, up to 70% of the difficulties and problems of the real estate market originate from legal issues.

Although the Housing Law and the Real Estate Business Law have been passed, many key points are said to have to wait for the revised Land Law. If there is just one inconsistency between the laws, the real estate market may continue to face many difficulties.

VARS believes that there are still many issues that need to be discussed and agreed upon in the revised Land Law. In addition to the contents that have been voted on and agreed upon, there are still about 20 points and issues that have not been truly agreed upon. These are all important issues that greatly affect the development of the real estate market, as well as related groups of subjects.

Hope the revised land law will be passed in early 2024 picture 1 — The Vietnam Association of Realtors (VARS) hopes that the National Assembly will soon pass the revised Land Law in early 2024. (Photo: PO)

Specifically, the group of issues related to people's interests; the group of issues related to businesses, investors and the group of issues related to State management.

Regarding the group of issues related to people's interests, the issue of granting land use right certificates needs to be regulated specifically, to the right person, for the right job. Avoid affecting the legitimate rights and interests of the people.

There needs to be appropriate compensation and site clearance policies and resettlement plans to ensure the rights of people whose land is subject to recovery.

Regarding issues related to businesses and investors, access to land needs to be implemented in a more open and transparent manner. Regulations on auctions and bidding need to be specific, procedures need to be simple, and avoid red tape. The implementation process must ensure fairness.

The plan to calculate land use compensation according to market price must ensure fairness and encourage investors to develop projects. There must be regulations, calculations, and careful consideration to harmonize the interests of the people, businesses, and the State.

Regarding the option of paying land use fees, instead of requiring investors to pay land use fees once, the revised Land Law may consider the option of paying land use fees annually. This will help investors reduce the financial burden during the initial stages of project implementation.

As a result, real estate prices also have the opportunity to be adjusted to a more reasonable level. Investors without too much financial pressure can invest in completing projects with better quality. Problems that cause the risk of "polishing the project" to serve bank loans and mobilizing capital in violation of regulations will also be somewhat reduced.

VARS said that as of December 30, 2023, about 40/63 provinces and cities nationwide had their master plans approved. This is the basis and driving force for the development of the real estate market in localities in the coming time.

However, there is still a need for specific and unified regulations to help localities concretize the implementation of land use planning and plans. From there, convert functions and approve investment projects according to the plan, ensuring consistency, avoiding overlap or conflict.

The active review to pass the revised Land Law is a very determined move of the Government to soon complete the institutions, to stimulate and create momentum for economic and social development. However, due to the very deep and wide impact of this law, in the final review process before passing, it is necessary to be very careful and focused by the participants.

“VARS hopes that the National Assembly will pass this important law at the 5th Extraordinary Session of the 15th National Assembly with the highest quality. If so, the recovery process of the real estate market will have the opportunity to be shortened. The market will soon enter a new normal phase,” VARS hopes.

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