2 options for land recovery for commercial housing and land valuation

On November 3, the National Assembly spent the whole day discussing in the hall a number of controversial contents of the draft Land Law (amended).

In the report on receiving, explaining and revising the draft law sent to National Assembly deputies, the National Assembly Standing Committee proposed 2 options for land recovery to implement commercial housing projects, mixed housing and commercial and service projects, and 2 options for land valuation.

Land acquisition for commercial housing is also for socio-economic development.

The National Assembly Standing Committee recognizes that real estate business is one of the important economic sectors contributing to the country's economic growth, and is and will continue to be one of the important driving forces of socio-economic development.

The development of commercial housing projects, mixed housing and commercial and service projects not only brings economic efficiency but also contributes to implementing social security policies and building modern civilized urban areas.

Therefore, land acquisition to implement these projects is also for socio-economic development for national and public interests.

The report also clearly analyzes the regulation of land rent differences, which is implemented through the State's allocation and lease of land to implement projects of this type in the form of land use rights auctions and bidding to select investors using land.

Regarding this content, Article 128 of the draft law stipulates that people who have land use rights or receive land use rights transfers are allowed to carry out investment projects in general, commercial housing development projects, mixed housing and commercial and service projects in particular in accordance with land use planning and legal provisions on investment, construction, housing, etc.

This regulation will limit cases where the state reclaims land to implement commercial housing development projects, mixed housing and commercial and service projects.

Based on the opinions and reports of the Government, the draft law designs two options.

Option 1: The draft law has been revised in the direction that commercial housing projects, mixed housing and commercial business projects, and services will conduct auctions of land use rights and bids to select investors using land.

However, auctioning land use rights and bidding to select investors using land are only forms of land allocation and land lease by the State, not criteria and conditions for land recovery, and are not consistent with the requirements of Resolution No. 18 on specific regulations on conditions and criteria for the State to recover land for socio-economic development for national and public interests.

Option 2: Accept opinions in the direction of regulating commercial housing projects, mixed housing and commercial and service projects associated with specific criteria and conditions in cases where the state reclaims land for socio-economic development for national and public interests.

The National Assembly Standing Committee seeks the National Assembly's opinion on this content. Based on the opinions of National Assembly deputies, the National Assembly Standing Committee will coordinate with the Government to direct agencies to carefully study and assess the impact to absorb, design appropriate options in the law or provide convincing explanations if they cannot be absorbed.

There are also many different opinions about land valuation methods and applicable cases and conditions.

Incorporating the opinions of National Assembly delegates, the draft law clearly stipulates the content of land valuation methods including: comparison method, surplus method, income method, and adjustment coefficient method.

At the same time, the Government is assigned to specify the implementation procedures of land valuation methods.

Regarding the cases and conditions for applying land valuation methods, the draft Law designs two options:

Option 1: The Government shall prescribe the cases and conditions for applying each method.

The majority of opinions of the National Assembly Standing Committee agreed with option 2 and asked for the National Assembly's opinion on this content.

The draft revised Land Law after being accepted and revised includes 16 chapters and 265 articles. Compared to the draft submitted to the National Assembly at the 5th session, the draft law has removed 4 articles, added 6 articles, and amended 229 articles.

Many major contents have been revised and improved, such as: Land use planning and plans; land policies for ethnic minorities; land recovery for socio-economic development for national and public interests; grounds and conditions for land recovery for national defense, security, socio-economic development for national and public interests; compensation, support, resettlement; land finance, land prices;...