At this time, the market for specific land price consultancy in Binh Thuan is severely lacking in supply, although everyone knows that in the province there is a list of 45 projects waiting for specific land price calculation, meaning that demand is abundant.
Land valuation consulting company gives up
It is now the end of May 2024. If the deadline set for the end of the first quarter of 2024 was to calculate the specific land prices of the three major projects with a clear determination at the meeting to deploy the 2024 socio-economic development plan of the Provincial People's Committee held in early January 2024, it would not have been possible. At that time, setting such a timeline for NovaWorld Phan Thiet and the two industrial parks Tan Duc and Son My 1 was reasonable, because the calculation of specific land prices of the three projects that had been built with the journey to remove obstacles, especially with NovaWorld Phan Thiet, had support from the Central Government. And in the short time ahead, we will focus on reviewing the valuation results of the consulting unit in some items that did not ensure the information collected and calculation methods. After that, the functional sector requested the consulting unit to supplement, complete and send the project valuation consulting results to the provincial valuation council to carry out the next steps.
However, on February 5, 2024, Decree 12/2024 amending and supplementing a number of articles of Decree 44/2014 of the Government regulating land prices and Decree 10/2023 of the Government amending and supplementing a number of articles of decrees guiding the implementation of the Land Law were issued. In which there are provisions regulating the calculation of output and input indicators of the methods, which, according to the perception of consulting companies, are not as clear as Decree 44 and Circular 36. In addition, there are also provisions on the responsibility of the consulting unit in determining land prices that are very clear. So after that, the companies asked to withdraw from the valuation and did not request a refund of the costs incurred.
According to those interested in the specific land valuation work, this binding responsibility has made consulting companies, which are already confused and do not know how to calculate land prices according to Decree 12/2024, especially according to the surplus method, decide to cancel the consulting contract and request to liquidate the contract at zero. Of course, this situation is more obvious when there is an additional event that the specific land valuation person is also arrested in a case in the province. Therefore, up to this point, the specific land valuation consulting market in Binh Thuan is seriously lacking in supply, although everyone knows that in the province there is a list of 45 projects waiting for specific land valuation, meaning that the demand is abundant.
The Department of Natural Resources and Environment of Binh Thuan province believes that in the current period, the number of consulting units participating in land valuation is very scarce. Due to many obstacles, the department is also proposing to amend Decree 12/2024. National Assembly delegate Dang Hong Sy, from Binh Thuan province, also acknowledged the above situation. The delegate said that the biggest problem is the current way of calculating land prices. Although the decree has been amended and supplemented, most localities are unable to calculate land prices to allocate to projects and to carry out the next steps. This delay leads to waste of land resources and loss of budget revenue.
Find easy ways to calculate land prices
According to the leaders of the Department of Natural Resources and Environment, the lack of consulting units participating in specific land valuation to calculate land use fees and land rents is one of the reasons for the slow determination of land prices. In reality, the capacity of land valuers is still weak, not meeting the requirements in organizing land prices; not resolutely proposing solutions, supplementing related procedures to carry out land price determination work; coordination with Council members and departments, branches and sectors is not really good, not timely in resolving problems in land price determination work.
The fact that consulting units participating in specific land valuation are currently afraid of responsibility has led to the situation of canceling consulting contracts. In the end, it is because the current method of determining land prices is not clear, especially the surplus method which has many potential risks, the input data is not complete and timely, the data for calculating revenue and development costs are all assumed. Therefore, the situation occurs that each consulting unit or uses different methods, giving very different land prices, not reliable enough. Meanwhile, in the province, there are still projects that do not have enough information and conditions to determine specific land prices, such as no zoning plan, no detailed plan, which also contributes to slowing down the progress of land valuation.
According to Mr. Tran Nguyen Loc, Director of the Department of Natural Resources and Environment, in the coming time, the department will continue to notify and invite land valuation consultants, contact units of the Ministry of Natural Resources and Environment, the Ministry of Finance and neighboring provinces and cities to find consultants. In case a consultant is still not found, the department will urgently deploy the content of advising the Provincial People's Committee to establish an interdisciplinary working group to determine land prices. At the same time, the department also advises the Provincial People's Committee to regulate a number of factors forming development revenue and development costs of land plots and land areas in the surplus method when determining specific land prices in Binh Thuan province according to the provisions of Clause 8, Article 1 of Decree No. 12/2024/ND-CP dated February 5, 2024 of the Government.
Mr. Loc added that currently, the 2024 Land Law and the draft Decree on land prices being consulted by the Ministry of Natural Resources and Environment for promulgation by the Government have many new amendments. The Department of Natural Resources and Environment continues to synthesize reports to the Ministry of Natural Resources and Environment to complete and include them in the draft decree. Proactively study and closely follow new regulations to advise on land price determination.
National Assembly delegate from Binh Thuan Dang Hong Sy said: “If the 2024 Land Law and its guiding documents are issued promptly and meet the conditions, they should be applied early from July 1, 2024 or August 1, 2024. It is necessary to pay attention to guiding the easy-to-implement land price calculation, so that cadres, civil servants, and public employees in agencies and units advising on this work are convenient in their work.”
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