Brian Jeffrey
Ho Chi Minh City is initiating reforms in resettlement land pricing to catch up with current market values and enhance its urban development strategy. To achieve this, four different proposals have been introduced.
The city authorities in Ho Chi Minh City are tackling the issue of outdated resettlement land prices by considering four potential strategies to update the land price list. This move is aimed at bringing land valuations more in line with the current realities of the real estate market.
An opportunity for public participation has been scheduled for August 23, where the City’s Propaganda Department will conduct an online survey to gather feedback on the proposed adjustments.
During a recent consultation conference, Nguyen Toan Thang, Director of the Department of Natural Resources and Environment, laid out the changes expected under the new 2024 Land Law.
The current price list will remain valid until the end of 2025, allowing time for preparations before the implementation of annual adjustments starting from January 1, 2026.
The need for these revisions primarily arises from the current list’s inadequacy in reflecting prices for resettlement lands, which are essential when the state reclaims land.
Mr. Thang emphasized that without updated prices, there cannot be a consistent basis for calculating land use fees, a gap that the 2024 Land Law intends to address by stipulating specific prices for resettlement calculations.
The Department explored various solutions, including adjusting resettlement land prices to mirror market values and applying an adjustment coefficient, K, to the existing prices, effective from January 1, 2024.
However, this approach revealed disparities with actual compensation costs. For instance, even after applying the coefficient, land prices on Nguyen Duy Trinh Street in Thu Duc City would be 9 million VND/m2, significantly below the approved compensation price of 73 million VND/m2.
These discrepancies underscore the challenge of maintaining fairness among land users in the same area, as seen in the notable variation in prices between designated resettlement zones like Phuoc Thien and adjacent areas using the current pricing method.
After careful deliberation, the Department of Natural Resources and Environment has put forward proposed adjustments for public review, aiming to promote equity and transparency in land valuation as Ho Chi Minh City progresses in its development.
