New changes in Resolution 73 related to land auctions have been positively received by localities, making auctions more convenient and creating a source of revenue...
Recently, the Government issued Resolution No. 73 on the authorization of land price determination. This is an important document, affecting the implementation of real estate projects and socio-economic development in localities.
The content of the Resolution allows the People's Committees of provinces and centrally run cities to authorize the People's Committees at the district level to decide on specific land prices to calculate compensation when the State reclaims land and to determine the starting price for auctioning land use rights for households and individuals. Many opinions say that "decentralizing" the decision on land prices to the People's Committees at the district level will overcome the shortcomings in land valuation in practice while waiting for the Land Law (amended) to replace the 2013 Land Law to take effect.
Resolution No. 73 is considered a new step forward in determining land prices.
In fact, in Hanoi, since June last year, the City has authorized the district to adjust the land price adjustment coefficient, as a basis for determining the starting price for auctions at land prices below 30 billion VND. Resolution 73 this time continues to be a new step forward in land auctions.
For example, an auctioned land plot in Me Linh district, Hanoi worth more than 30 billion VND, according to the old regulations, the district People's Committee submitted the land price determination dossier to the city 2 months ago and is still waiting for a decision. However, after the recent Government Resolution 73, if the City authorizes the District People's Committee to determine the starting price for the auction... then the valuation can be shortened to less than 1 month.
"Previously, when the city determined the starting price that we sent, it took 3-4 months to complete a land price, but now if we let the district take the initiative, it will only take half a month for the district to come up with a specific land price for the area that the district is determining the price for," said Mr. Hoang Quoc Thinh, Head of the Finance - Planning Department - People's Committee of Me Linh District, Hanoi.
New changes in Resolution 73 related to land auctions have been positively received by localities, making auctions more convenient and creating timely revenue for the budget.
Decentralization of land price determination to remove obstacles for projects
Currently, because the compensation price for site clearance is based on the land price list which is periodically built every 5 years, issued by the provincial level, land prices often do not keep up with market prices, often much lower, leading to difficulties in site clearance work, not receiving consensus from the people.
Authorizing the district-level People's Committee to decide on land prices is considered one of the solutions to remove obstacles in land valuation today. Because the district level is the unit that makes the decision to appraise, set land prices, and presides over compensation for site clearance, it will be closer to the people, closer to the people, and listen to the people's voices more.
Ensuring objectivity in land valuation
Many opinions say that decentralization and assigning responsibility to local authorities for land prices will help move closer to the goal of bringing State land prices closer to market prices. This will help clear the way for real estate projects that are facing difficulties in site clearance and compensation for people. However, decentralization to the district level, including in deciding on compensation land prices or starting auction prices, must ensure objectivity and transparency.
Mr. Dung, a representative of a business in Lang Son province, said that decentralizing the power to decide land prices to the district level in some cases is a very new approach. However, according to him, not all localities can implement it immediately, but need a roadmap for application.
"Lang Son is a mountainous province with many limitations in this field. Therefore, there should be a pilot project before applying it in practice. In addition, determining land prices without supervision and inspection from superiors can lead to group interests and negativity. Therefore, it is recommended that there should be specific supervision," said Mr. Ho Phi Dung, Chairman of the Lang Son Provincial Business Association.
Some opinions suggest that a pilot program should be implemented to authorize district-level People's Committees to decide on land prices.
Lang Son province leaders said that Resolution 73 will help the province and districts be proactive in deciding land prices in some specific cases. But it is certain that there will be confusion in the initial stages of implementation.
"Currently, in the province, most of the consulting units that are responsible for advising on specific land prices have to be invited from other places. This is a new task, so during the implementation process, the district level will certainly encounter certain difficulties. We will ask the Department of Natural Resources and Environment for support," said Mr. Luong Trong Quynh, Vice Chairman of the People's Committee of Lang Son province.
Experts also said that to ensure transparency and objectivity in land valuation, it is necessary to quickly complete a number of specific regulations and guidelines so that local authorities have a basis for immediate implementation. Avoid legal risks for enforcement officers or shirking and avoiding responsibility due to fear of hindering work progress.
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