Unlocking the potential of land resources

Resolution No. 21-NQ/TW, which outlines the guiding principles and directions for revising the Land Law and related legislation, has introduced a fundamental change to the mechanism for determining land prices. Under the resolution, land prices will be decided by the State based on development objectives for each period.

The State will issue land price tables, land price adjustment coefficients (K coefficients), rates for land-use fees and land rentals, as well as compensation rates that reflect actual conditions for different categories of land. The mechanism is designed to ensure fairness, transparency and openness, while balancing the interests of the State, land users and investors. It also aims to curb price manipulation and eliminate the existence of multiple pricing mechanisms for the same land.

In line with Resolution No. 21, the draft revised Land Law, which is currently being circulated for public consultation by the Ministry of Agriculture and Environment, proposes a number of significant reforms to land finance policies and land valuation mechanisms.

The policy of having the State determine land prices does not mean replacing the market. Rather, it seeks to build a land market that is more transparent, stable and equitable. When land pricing becomes a tool for fairly regulating interests, preventing speculation, improving predictability and channeling land revenues back into development, land can truly become a strategic resource, helping expand the country's development space.

Bao Ngan