Complete land law to prevent loss of resources

VCN  - The role of state management on land economy and land economic policies in our country is still limited, which is the fundamental cause of the loss of revenue from land and creating inadequacies in the land management work.
complete land law to prevent loss of resources Must pay rental land fee if using public land for business
complete land law to prevent loss of resources Land for irrigation and transportation: Free of charge
complete land law to prevent loss of resources
There has been a state of budget loss from putting public land into the market, wasteful use of public land, inefficient capitalization of land. Source: Internet.

Budget losses from land prices

According to Prof. Dang Hung Vo, former Deputy Minister of the Ministry of Natural Resources and Environment, in fact, the land is being used wastefully, inefficiently, the financial resources from the land are not fully exploited, the revenues from land are too low compared to the current potential and the state still lost revenue. “The land price frame and land price table are always lower than the market price, the specific valuation process still does not fully guarantee independence and objectivity. There has been a state of budget loss from the introduction of public land into the market, wasteful use of public land, inefficient capitalization of land,” said Professor Dang Hung Vo. Also according to Prof. Dang Hung Vo, the land tax system is too low, not a tool to regulate the market, the transparency of the information on land economic management is weak, the participation of the non-state actor is still limited due to the lack of specific methods to implement and no accountability has been implemented.

According to Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, land is a valuable resource of the country. The Land Law has been increasingly improved, positively affecting the socio-economic development of the country, but the current land resources have not promoted the highest efficiency stem from the legal system, is not really complete and the weakest stage is still the implementation of land law; among the 10 major limitations of the land legal system, which reduces the efficiency of land economy - land finance, stated by Mr. Le Hoang Chau. Mr. Chau emphasized that the land use fee is a state budget revenue that is stipulated in the Land Law, which should have been stipulated in the Tax Law on the principle that all state budget revenues are taxes and fees stipulated in the Tax Law. "Land use fees that are currently "unknown" do not guarantee transparency and predictability before making investment decisions; The land use fee is a burden for both investors and consumers and is creating a mechanism of "asking - giving", leading to the loss of state budget due to the "double sawing, triple sawing" agreement,” Mr. Le Hoang Chau said.

About state budget revenue from land, Assoc. Prof. Dr. Nguyen Dinh Tho, Department of Economic and Land Fund Development (General Department of Land Administration) said that the land rent accounted for only 9.66% - 19.06% of the total revenue from land and tends to increase over the years (2016 reached 23,672 billion VND, accounting for 19.06%). And the non-agricultural land use tax revenue only accounts for 1.14% - 2.46% of the total revenue from the land and tends to decrease over the years (in 2016 reached 1,417 billion VND, accounting for 1.14%). In addition, personal income tax from land use right transfer only accounts for 0.42% -1.93% of the total revenue from land and tends to decrease over the years (in 2016 reached 627 billion VND, accounting for 0.51%).

Mr. Nguyen Dinh Tho also pointed out the limitations in current land price determination in Vietnam. Accordingly, the method of calculating land use levy and land rent in some cases is not appropriate. The determination of specific land prices for calculation of land use levies and land rents takes time and effort. Besides, investors cannot determine the input cost when implementing a project, and especially the land price in the land price table is much lower than the market land price.

Issue "Property – Real estate Tax Law" at the appropriate time

One of the solutions given by Mr. Nguyrn Dinh Tho to strengthen state management for land, is the construction of a land price grid. Accordingly, it is necessary to promote the implementation of bilateral and multilateral projects to apply advanced land valuation technologies of countries such as Japan and Korea in determining land prices for each parcel of land. At the same time, step by step building the land price grid on the basis of developing a value zone map for areas with similar characteristics on the basis of data on land price frame, land price list, and specific land price, that are determined through auction activities, compensation, agreements, and actual transactions.

Proposing the Government to change the current method of calculating land use fees, Mr. Le Hoang Chau proposed to add a new clause to Article 107 of the Land Law, specifically stipulating: "Collection of land use levies for cases of transferring items using land from agricultural land to residential land, with a fee equal to 15% (or ...%) of the land price table issued by the provincial People's Committee". In the long term, Mr. Chau proposes to determine the use of land fee as a tax, as proposed by the HCMC People's Committee to the Government as follows: "In the long term, it is recommended to abandon the concept of "land use levy" instead of replacing the land use tax with the tax rate. Certainly, about 10% or 15% of the land price list is proposed, thus ensuring transparency and easy to calculate and eliminate the application of “ask – give” mechanism, to limit the collection of land use fees for the first time and to maintain a sustainable and long-term revenue source for the State," said Mr. Le Hoang Chau. Implementing this calculation, according to Mr. Chau, in the short term, it is possible to reduce the source of state budget revenue, in this case, the State may consider issuing "Property - Property Tax Law" at the appropriate time (after 2020) to offset the budget revenue and will become a stable and sustainable source of revenue. The real estate market will therefore be more transparent; consumers will have the opportunity to benefit because housing costs would be less, and more favorable than before, because currently land use fees are accounting for about 10% of the price of apartments, above 30% of townhouse prices and about 50% of villa prices in the project.

complete land law to prevent loss of resources Removing PPP bottlenecks to attract FDI into infrastructure

VCN - On May 10, 2018, the Government issued the Resolution No. 54/NQ-CP approving the policies of the ...

Emphasis on limiting land prices far lower than the market at all times, specifically, Hang Dao, Hang Ngang and Le Thai To streets with the highest listed land prices at a specific level of 162 million VND/m2, but in fact, the price of land traded in the market is always much higher, popular with 500-800 million VND/m2, some places up to 1 billion VND/m2, Associate Prof. Dr. Ngo Tri Long also said that the revenue from land is loss, including land valuation. Regarding solutions to overcome limitations in land valuation, expert Ngo Tri Long said that when valuating land (for land to be recovered), there must be an agreement of the party whose land is acquired. This means that the person whose land is acquired. Recovery must be a part of the land valuation process. If no agreement is reached, the person whose land is recovered has the right to request an independent valuation agency to re-appraise it. "Land prices determined must be based on agreements with land users. In case no agreement is reached, the person whose land is revoked has the right to request the valuation agency to determine the price, the real estate price determined by the price of the valuation agency,” said Associate Professor Ngo Tri Long suggested.

By Hoai Anh/ Huu Tuc

Related News

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024

VCN - For the first time in its history, Ho Chi Minh City’s budget revenue surpassed VND500 trillion in just 11 months of 2024.
Multiple drivers propel positive growth in budget revenue

Multiple drivers propel positive growth in budget revenue

VCN - Dr. Bui Dang Dung, former Deputy Chair of the National Assembly’s Finance and Budget Committee, believes that the 2024 state budget revenue results are highly encouraging, reflecting the concerted efforts of the Government, relevant agencies, and the business community amid challenging economic conditions.
Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

VCN - The promulgation of the Law on Corporate Income Tax (amended) is necessary, in line with international practice, associated with restructuring revenue sources, expanding the tax base in line with the context of socio-economic development.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

Latest News

US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...

More News

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Will textile and garment exports be affected by Trump 2.0 policy?

Will textile and garment exports be affected by Trump 2.0 policy?

VCN - That was one of the topics of interest at the press conference of the Vietnam Textile and Apparel Association (VITAS) held on November 19.
Vietnam, US strengthen supply chain cooperation in global marketplace

Vietnam, US strengthen supply chain cooperation in global marketplace

The 2024 Vietnam-US Cooperation Forum, held in Ho Chi Minh City, focused on new US policy directions and opportunities to enhance bilateral economic and trade relations.
Over 218,500 enterprises established, resume operations in 11 months

Over 218,500 enterprises established, resume operations in 11 months

More than 218,500 enterprises were established and resumed operations in Vietnam in the past 11 months of 2024, a year-on-year increase of 7.4%, according to the General Statistics Office (GSO).
Textile and garment exports optimistic thanks to market opportunities

Textile and garment exports optimistic thanks to market opportunities

VCN - The diversification strategy and the shift in orders from brands have brought positive results to the Vietnamese textile and garment industry in 2024 and created a solid foundation for the 2025 target.
Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Total registered foreign direct investment (FDI) into Vietnam, including new and additional investments, and capital contributions via share purchases, reached 31.4 billion USD in the first 11 months of 2024.
Rice exports to set record of 9 million tonnes this year

Rice exports to set record of 9 million tonnes this year

Rice exports are likely to hit a record high of 9 million tonnes in 2024, given a total volume of nearly 8.5 million tonnes shipped abroad in the first 11 months, according to insiders.
Three goals, seven tasks for the logistics industry to accelerate

Three goals, seven tasks for the logistics industry to accelerate

VCN - Speaking at the Vietnam Logistics Forum 2024, Prime Minister Pham Minh Chinh pointed out 3 goals and 7 groups of tasks for the logistics industry to accelerate development in the new situation.
Read More

Your care

Latest Most read
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year.
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN - Mr. Le Xuan Thinh - Director of Vietnam Cleaner Production Center (VNCPC) said that textiles, garments and footwear have now deeply participated in the global value chain, textile products have been exported to more than 100 markets.
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Mobile Version