Rising agricultural land prices are an opportunity to keep land from going to waste.

The 2024 Land Law, which will take effect from August 1, 2024, is gradually "permeating" into life, and is expected to help the agricultural land market develop. However, as the value of agricultural land increases, there are also concerns about land speculation, especially during periods of "land fever."

However, according to Le Van Binh, Deputy Director of the Department of Land (Ministry of Natural Resources and Environment), when agricultural land prices increase, people can take advantage of the land and take better care of their fields. This is also a good sign that agricultural land is not wasted or abandoned.

Sharing with reporters, Mr. Binh said that the concept of land speculation needs to change, and be viewed as an investment. “As for agricultural land, the price has increased, I think this is the correct view of its inherent value,” Mr. Binh said.

Further analysis, Mr. Binh said that agricultural land increased, partly due to the land price list, but mostly because people saw the land value increase.

“I think that when agricultural land prices increase, people who use land will value the land more and at the same time be aware of investing capital and spending effort to improve the land to increase profits from the land, stimulating the conversion of agricultural land. At that time, people who want to buy will have easier access,” Mr. Binh said.

Mr. Binh also noted that previously, only those who directly produced agricultural land were allowed to receive the right to use rice land. However, the new regulations of the 2024 Land Law have "expanded" to allow individuals who are not directly involved in agricultural production, if they have the conditions and ability to grow rice, to also receive the right to transfer and invest in rice production. However, receiving this right also depends on the local land allocation limit. If it exceeds, it will be transferred to the competent State agency for consideration and acceptance.

According to Mr. Binh, previously, the 2013 Land Law did not allow non-agricultural people to own or use agricultural land or rice-growing land, but now they can receive transfers. This can help people working in other fields such as civil servants and public employees who are passionate about agriculture to receive transfers to grow rice, which brings benefits to the owner.

In addition, the 2024 Land Law also stipulates that enterprises and organizations are entitled to receive the right to use agricultural land for agricultural production, provided that they have a land use plan and are approved by competent authorities. They will be allowed to collect land from individual households for agricultural production projects. This is one of the regulations that will increase the value of agricultural land.

“Therefore, I am not worried about speculation when agricultural land prices increase. The concern is how to avoid wasting agricultural land and leaving it fallow. Therefore, when agricultural land prices increase, people can take advantage of the land and take better care of their fields,” said Mr. Binh.

Regarding concerns about investors buying agricultural land for speculation, Mr. Binh said that it would not be simple because when buying land, the State must allow it according to the planning; when negotiating compensation, people and businesses must ask the State for agreement, and only when the State agency gives permission will they have the right to negotiate with the people.