JOURNALIST: - Before the 2024 Land Law takes effect, what difficulties exist in determining land prices, and how can these be resolved?
NGUYỄN TOÀN THẮNG: - Prior to the amendment of the Land Law, the Ho Chi Minh City Department of Natural Resources and Environment submitted a project to the City People's Committee to alleviate difficulties for businesses. However, despite our efforts, we could not fully clear the way. The 2024 Land Law, while offering solutions to many problems, leaves some regulations to the Government. As we proceed, we continue to recommend changes to the Government during the development of the decree that will guide the implementation of the law.
Specifically, we propose that in cases involving land allocation decisions, changes in land use purpose, or annual land rental payments under the 1993 and 2003 Land Laws, where land prices have not yet been approved, the current land price list multiplied by the land price adjustment coefficient, as specified in Decree No. 71/2024/ND-CP, should be applied. This approach aims to streamline the process and resolve outstanding issues effectively.
- What are the new points introduced in Decree No. 71/2024/ND-CP?
- Decree No. 71 focuses on four key points. First, Residual Method: This method considers the actual costs incurred by businesses during project implementation and the profits earned during business operations, such as loan interest, construction inflation costs, and investor profits. These are based on the project's value and the fully calculated land price, ensuring a balance of interests among the State, land users, and businesses, in line with the Land Law 2024.
Second, Land Price Adjustment Coefficient Method: For land lease applications with annual land rental payments under the 2013 Land Law, this method (price list x land use coefficient) is applied. This provides a straightforward and transparent way to determine land prices, which is crucial for both the authorities and the land users.
Third, Authority to Decide Prices, The Chairman of the Provincial People's Committee decides on specific land prices in cases of lease or changes in land use purpose under the Provincial People's Committee's authority. Similarly, the Chairman of the District People's Committee decides on specific land prices for leases or changes in land use purpose under the District People's Committee's authority. This decentralization of authority aims to expedite the decision-making process and improve efficiency.
Fourth, Adjusting the Land Price List, The land price list issued under the 2013 Land Law will apply until December 31, 2025. This adjustment does not require submission to the Standing Committee of the People's Council or the People's Council at the same level for approval. This provision is designed to ensure continuity and stability in land pricing during the transition to the new law.
In essence, the new regulations in Decree No. 71 are very positive, addressing the current practical situation and helping to resolve backlogs not only in Ho Chi Minh City but also in other provinces and cities facing similar issues. This will aid in increasing budget revenue, putting land resources into productive use, stabilizing lives, and driving economic development. The decree is expected to bring significant relief and clarity to the land valuation process, which has been a major bottleneck in various development projects.
- When Decree 71 takes effect, what outstanding problems in Ho Chi Minh City do you think will be resolved?
- To illustrate, consider a project that cannot be certified. Businesses face difficulties in investment cooperation and loan mortgages, especially commercial housing projects that have not been certified due to incomplete financial obligations by investors. For instance, an industrial park in Nha Be district, spanning hundreds of hectares, struggles to hire a consulting unit. Departments and branches face similar challenges, with input information not guaranteed, freezing valuation and causing numerous consequences. Similarly, Cho Ray Hospital facility 2 in Binh Chanh faces revenue determination issues as the hospital is not operational, leading to difficulties in land valuation and procedural bottlenecks. In these cases, applying the new decree means simply multiplying the land price list by the coefficient.
Currently, Ho Chi Minh City has nearly 200 documents stuck at the land valuation stage, which are expected to be resolved. The first step involves coordinating with departments and branches to complete plans for submission to the City Land Valuation Council and then to the People's Committee for approval. In 2024, around 36 applications are expected to be completed, potentially issuing 17,500 certificates.
Secondly, for documents related to land lease with annual land rental payment using the land price adjustment coefficient method, the Department has been compiling data to transfer to the City Tax Department when the 2024 Land Law and Decree 71 take effect on August 1. This will enable the calculation and collection of land rent, followed by further procedures to issue certificates.
The remaining projects with issues will be resolved, pending a general decree to be issued once the Land Law takes effect next August. The new decree's implementation is expected to unlock significant economic potential by resolving these long-standing issues, enabling smoother operations for businesses and ensuring that land resources are used effectively.
- Thank you very much for your insights and detailed explanations.
