The Ministry of Natural Resources and Environment is coordinating with the Ministry of Construction to study the establishment of a land use rights exchange platform to report to the Prime Minister.
The establishment of a land use rights exchange aims to institutionalize the Resolution of the 5th Plenum of the 13th Central Committee of the Communist Party of Vietnam on continuing to innovate and improve institutions and policies, enhance the effectiveness and efficiency of land management and use, and create momentum to make Vietnam a high-income developed country. This also aims to help the land use rights market operate openly, transparently, healthily, and sustainably.
Previously, real estate transactions in the market were mainly conducted through brokerage firms. In Vietnam, private exchanges primarily traded properties that were still under construction and did not yet have ownership rights (apartments, project houses), while land-based houses and land use rights were not yet traded through exchanges.
According to experts, establishing a land use rights exchange will prevent the buying and selling of houses on paper, the use of false information, and the sale of houses at "two prices." (Illustrative image)
According to the Vietnam Association of Real Estate Brokers (VARS), the research into establishing a land use rights exchange is a completely correct policy and will have a positive impact on the market.
A land use rights exchange will contribute to a more comprehensive and complete management and supervision of the real estate market, instead of just focusing on future housing projects and land plots as is currently the case.
Establishing a real estate exchange will prevent the buying and selling of properties off-plan, fraudulent activities, misinformation, "two-price" transactions, and price manipulation.
Furthermore, when implementing a land use rights exchange, if combined with a real estate exchange, it will serve as a source for providing and updating transaction data, and as a basis for building data and creating land price maps nationwide.
Mr. Nguyen Chi Thanh, Vice Chairman of the Vietnam Real Estate Brokers Association, said: " In the long term, the land use rights exchange will establish a land price level closer to market prices, limiting speculation, price manipulation, and the creation of bubbles in the land market ."
Conducting transactions through a land use rights exchange also contributes positively to combating tax evasion for the State. This is because land use rights are currently traded freely and without control. The State only collects taxes on the declared value, without knowing the actual transaction value. Everyone implicitly understands that there is a significant difference between these two values. Establishing a land use rights exchange will create opportunities to increase the State's tax revenue, contributing significantly to land capitalization.
Despite positive assessments, experts advise that the establishment of a land use rights exchange requires attention to several issues.
Mr. Pham Duc Toan, General Director of EZ Property Investment and Development Joint Stock Company, expressed his opinion: When researching the establishment and operation of a land use rights exchange, it is necessary to consider the organizational structure, whether citizens and businesses are required to buy and sell land use rights through the exchange, who will manage it, and how it will be managed?...
Mr. Toan argued that attention should be paid to the operational and legal mechanisms to ensure effective and convenient participation for all stakeholders; otherwise, it will create unnecessary permits. While the policy aims to benefit the market, unclear regulations will fail to attract participants and may create additional barriers and complications, especially in areas already covered by existing laws. Implementing a land use rights exchange requires the best possible mechanism for participants, one that aligns with practical operations and market conditions.
Dr. Dinh Trong Thinh also suggested that it is necessary to clarify the operating mechanism of the exchange, especially the management and supervision mechanism. Historically, the buying and selling of land use rights has taken place on the real estate market. Land use rights are regulated in the Land Law, and their buying and selling are also regulated in related laws. However, in practice, there are still difficulties, particularly in handling assets attached to land use rights.
According to the Vietnam Real Estate Brokers Association, land use rights are a valuable "commodity" with a wide scope of coverage. Therefore, establishing a land use rights exchange platform is certainly not simple and cannot be implemented overnight.
For a land use rights exchange to be truly effective, without overlapping or creating additional complex administrative procedures for citizens, a thorough and meticulous research and analysis process is necessary. This requires the participation and coordination of both state management agencies and leading experts. In particular, input from individuals and organizations with practical experience is crucial.
Ngoc Vy
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