Brian Jeffrey
The Ministry of Agriculture and Environment in Vietnam (MARD) has alerted that considerable shifts in land prices are likely as various regions get ready to release updated land price tables.
In a report directed to the Ministry of Finance before the upcoming Q2/2025 Price Steering Committee meeting, MARD highlighted that the removal of the government-determined land price structure and the adoption of more market-driven valuation methods have contributed to enhanced transparency in land management and property development.
Nevertheless, the ministry noted that numerous regions have not promptly updated their land price tables to reflect current market conditions. In certain places, there have been significant gaps between initial prices and eventual auction results.
MARD cautioned that these discrepancies could be taken advantage of for profit manipulation during land auctions and may lead to market instability if not addressed.
The new regulations established under the 2024 Land Law, along with supporting documents, have fostered improvements in price-setting through decentralization and enhanced local governance. However, many provinces still lack the necessary resources, expertise, or clarity to timely issue detailed regulations, resulting in delays for both residents and businesses.
“Many areas are set to release new land price tables shortly, which will lead to notable fluctuations,” the ministry indicated. “The degree of these adjustments will differ from province to province, exerting a significant influence on the real estate market.”
MARD stressed that land price management in Q3 and afterwards should concentrate on timely observation of market changes and progressively develop a parcel-level land price database.
Where current land price tables are assessed as unrealistic, provincial People’s Committees are empowered to implement necessary modifications based on local conditions. These modifications are proposed to remain effective until December 31, 2025.
Such modifications must adhere to the guidelines detailed in Article 17 of Decree No. 71/2024/ND-CP. MARD also mentioned that these regulations could undergo further revisions to meet practical requirements.
The ministry suggested a thorough evaluation of pertinent laws – including the Land Law, Housing Law, and Real Estate Business Law – to gauge their cumulative effect on land and housing costs.
“Authorities should expand the scope and application of land price tables while limiting individualized land valuation cases,” the ministry advised. “Clarity in assigning financial responsibilities across relevant agencies is essential.”
MARD also called for a review of valuation tables set under the 2013 Land Law to ensure they align with present market conditions and prepare for the full implementation of the 2024 Land Law on January 1, 2026.
The adjustment process should involve detailed impact assessments, a defined timeline, and appropriate zoning based on land category and location. Feedback from stakeholders is crucial to lessen public discontent and ensure community agreement.
Moreover, MARD urged stringent enforcement against infractions during land auctions and recommended that localities reveal planning particulars, updated price tables, and participants in default to curb speculation and misuse.
Additional recommendations include penalizing intentional delays in housing developments, tax evasion, erroneous property declarations, and ineffective land use in stalled projects.
Nguyen Le
