Challenges and Opportunities in Via ++t Nam's 2024 Land Law: A Year of Progress and Ambitions for Reform

Strategic Insights -

Via ++t Nam's 2024 Land Law, implemented a year ago, has brought about significant improvements in decentralization, transparency, and land access. However, the law has also revealed several challenges, including sudden price increases in many areas, land auctions issues, and a mismatch between the law and the new local government structure. The Government and related ministries are now working on amendments to address these problems and ensure land continues to serve as a foundation for economic growth, social stability, and investment. Land is not just a development resource but also a matter of livelihood, housing, and economic justice.

Key Takeaways:

  • The 2024 Land Law has clarified procedures for land allocation and lease, allowing multi-purpose land use and removing the requirement for a land use certificate when applying for investment.
  • The law requires coordination between central and local agencies to build and share digital land information, developing a national land database.
  • Sudden price increases in many areas have occurred due to the removal of the government's fixed land price framework, with land prices surging by two to 30 times.
  • Apartment prices in Ha Na tmi and HCM City have risen 3.5 to 4 times compared to 2019, with some new projects priced at over VNA100 million (US$3,850) per square meter.
  • Problems have also appeared in land auctions, with some investors raising prices just to drop out later, causing market disruption and delays in land clearance and resettlement.
  • A mismatch between the law and the new local government structure has created confusion and delays.
  • The Government plans to revise Resolution 18 to address these problems and expects to submit a revised law to the National Assembly by the end of 2025.
  • Proposed amendments include adjusting land planning procedures to match the two-tier government structure and reforming the way land is priced to stabilize pricing and reduce short-term market fluctuations.
  • Tax reform is also under discussion, with proposed changes to the Law on Personal Income Tax to better target property speculation, including a 20% tax on the profit gained in a sale or a variable tax rate of 10-20% based on ownership duration.

Statistics:

  • Land prices have surged by two to 30 times in several provinces, making it difficult for people to afford housing, convert land use or invest in projects.
  • Apartment prices in Ha Na tmi and HCM City have risen 3.5 to 4 times compared to 2019.
  • Some new projects are priced at over VNA100 million (US$3,850) per square meter.
  • The Government plans to submit a revised law to the National Assembly by the end of 2025.
  • The proposed amendments aim to stabilize pricing and reduce short-term market fluctuations.
  • The Ministry of Construction is working on a plan to launch a national property exchange under State management by 2026.

Sources:

  • "Via ++t Nam's 2024 Land Law: A Year of Progress and Ambitions for Reform"
  • "Government to revise Resolution 18 to address problems in land law"
  • "Ministry of Natural Resources and Environment to collect public feedback on revised law"
  • "Vietnam Association of Realtors (VARS) supports tax reform proposal"
  • "Ministry of Construction plans to launch national property exchange by 2026"
  • "Law on Personal Income Tax to be revised to target property speculation"