Many large real estate projects with violations of public land use are inspected

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Many land projects of State-owned enterprises show signs of violation.

Many mistakes

Earlier, upon implementation of the direction of the Prime Minister, the General Department of Taxation has reviewed the land use of the equitized companies from 1st July 2014 to 30th November 2016 and 60 State-owned enterprises and joint-stock companies which are permitted by competent state agencies to change the land use purpose.

Therefore, the Ministry of Finance found that in the process of equitization of State-owned enterprises, especially enterprises which are being leased land by the State with commercial value in the city center, the valuation of enterprises shall be carried out during the regulated period, the value of land use rights is not included in the value of enterprises for equitization.

Along with that, there have been many cases where the land is approved by the People's Committee for changing the purpose of use to build commercial centers, offices for rent and houses for sale do not conduct auctions under provisions of the Land Law 2013.

The determination of land prices for the collection of land use fees and land rents is mainly based on the results of consultancy firms but is inadequate and not close to market prices. At the same time, the determination of land prices as a basis for collection of land use fees and land rent in some localities has not yet fully implemented in line with the State order and procedures. People's Committees of provinces and cities have approved land prices as a basis for collection of land use fees, but they have not consulted the Standing People's Councils of provinces and cities and have not reported to People's Councils of provinces and cities.

The Land Law 2013 is amended

Through the review to correct and promptly address the shortcomings in land management and use, the Ministry of Finance has proposed the Prime Minister to instruct the Government Inspectorate to implement in the 2017 Inspection Plan for projects with signs of not meeting their investment objectives, signs of violation of the Land Law and land use and land rents which are not close to market prices, thereby causing losses to the State budget.

The Ministry of Finance has also proposed the Prime Minister to request the Chairman of the People's Committee of provinces and cities to temporarily suspend the construction of high-rise building projects being implemented in major city centers without the rights to use land to report to the Prime Minister in accordance with its authority (Article 118 - the Land Law 2013).

In the case where the Prime Minister approves the sale of designation, the People's Committees of provinces and cities must conduct market price valuation. The determination of land prices as a basis for collection of land use fees and land rents that the People's Committee of provinces or cities has not consulted with the Standing Committee of the provincial or municipal People's Council and has not reported to the People's Council of the provinces or cities in the nearest session must be made to report to the People's Council of provinces and cities before implementation.

In accordance with the proposal of the Ministry of Finance, the Deputy Prime Minister, Mr. Vuong Dinh Hue has requested the Ministry of Finance to transfer the entire list of projects with signs of violation to the Government Inspectorate for the inspection of management in line with the Government Inspectorate's 2017 Plan approved by the Prime Minister.

The Deputy Prime Minister has also requested the Ministry of Natural Resources and Environment to chair and coordinate with relevant ministries and agencies to study and propose amendments to the Land Law 2013 on auction of land use rights in accordance with regulations on land acquisition.

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