PROPOSED AMENDMENTS TO THE LAND LAW: TOWARD MARKET-BASED AND TRANSPARENT LAND VALUATION

Vietnam's Ministry of Agriculture and Environment has circulated the draft amended Land Law for public consultation, seeking feedback from ministries, local authorities, professional associations, and relevant organizations. The draft focuses on several major policy areas, with particular attention given to improving land valuation mechanisms and strengthening transparency in land management.

One of the key objectives of the proposed amendments is to further align land pricing with actual market conditions while enhancing the management framework through comprehensive data systems. The proposal also aims to reduce inconsistencies in land valuation and improve the transparency of pricing practices.

The draft amendment covers seven major policy groups, including land-use planning, land allocation and leasing, land recovery and compensation, land finance and valuation, the rights and obligations of land users, administrative reform and digital transformation, as well as inspection, dispute resolution, and legal enforcement.

Regarding land finance and valuation, the proposed changes seek to modernize land governance by promoting a more transparent, data-driven management approach. The draft envisions land becoming a strategic resource that supports sustainable economic development while ensuring balanced interests among the State, businesses, and citizens.

A notable direction in the proposal is the transition from traditional administrative management toward digital governance. Under this approach, land valuation would rely on comprehensive databases and information systems designed to better reflect market conditions. The integration of land data with taxation, notarization, banking, and real estate information is also expected to enhance consistency and improve management efficiency.

The proposal also outlines a framework in which the State would continue issuing land price tables, adjustment coefficients, and financial calculation methods based on applicable regulations. At the same time, responsibilities for land valuation would be more clearly defined, with central authorities establishing methodologies and oversight mechanisms, while local governments would be responsible for determining specific land prices.

In addition, the draft includes proposals related to financial policies for production and commercial land, rental housing developments, and transit-oriented development (TOD) areas surrounding key transportation infrastructure. These mechanisms are intended to support more efficient land use and facilitate long-term urban development.

The Ministry of Agriculture and Environment has invited comments on the draft from relevant stakeholders before the consultation deadline, after which the feedback will be consolidated and submitted to the Government for further consideration.