PRIME MINISTER: THE STATE TO TAKE A MORE ACTIVE ROLE IN LAND PRICE REGULATION TO HELP STABILIZE THE REAL ESTATE MARKET

Toward a More Integrated Land Management Framework

One of the issues emphasized by the Prime Minister was the need to reform land-use planning and planning mechanisms. The proposed direction is to strengthen the integration of different types of planning in order to reduce overlaps and make implementation easier for local authorities.

However, changes to land-use plans should be accompanied by clear criteria and conditions to prevent arbitrary adjustments to land-use objectives. At the same time, the legal framework should remain sufficiently flexible to respond to practical development requirements.

Regarding land allocation, land leasing and changes in land-use purposes, the Prime Minister said these mechanisms should continue to be improved toward greater transparency, openness and competition. Regulations should clearly distinguish between cases subject to land-use rights auctions, investor selection through bidding, and direct allocation of land to investors.

In addition, the methods for determining and paying land-use fees and land rents should be clearly regulated so that businesses can proactively prepare financial plans and assess the feasibility of their investments.

Land Prices Seen as a Key Factor in Investment Costs

According to the Prime Minister, land prices directly affect the input costs of many projects and economic activities. In addition to land prices themselves, prolonged administrative procedures can also increase business costs.

The proposed direction is for the State to strengthen its regulatory and price-management role based on data and appropriate valuation methodologies, while improving transparency and connectivity between land information systems and other relevant databases.

At the same time, greater decentralization and delegation of authority, together with administrative reform, are expected to help shorten the time required to process land-related procedures.

The Prime Minister said that better control of input factors and greater transparency in project costs would provide a stronger basis for establishing more reasonable housing and real estate prices. This is also considered important for improving market transparency and supporting sustainable development.

Reforming Compensation, Support and Resettlement Policies

Another issue discussed was the mechanism for land acquisition, compensation, support and resettlement.

Under the orientation set out in Resolution No. 21-NQ/TW, policies should gradually shift from an approach focused primarily on compensating for acquired assets toward one that places greater emphasis on stabilizing and rebuilding people's lives after land acquisition by the State.

The Prime Minister said this approach should be incorporated into the amendments to the Land Law to safeguard the lawful rights and interests of affected people while creating a stronger basis for the smooth implementation of development projects.

Increasing the Supply of Rental and Social Housing

Regarding the Housing Law, the Prime Minister said housing policy should gradually move away from an approach focused primarily on home ownership toward ensuring that people have stable housing that is affordable and suitable for their circumstances.

The development of rental housing and social housing is considered an important direction. Potential models include state-funded housing, socially funded projects, accommodation for workers in industrial parks, and housing for experts and workers outside industrial parks.

The State may utilize public land funds to develop rental housing or mobilize private-sector resources for investment and operation. Certain land and credit support mechanisms may also be considered to encourage the development of long-term rental housing.

The goal is to establish an adequate supply of housing at an appropriate scale while meeting actual demand and ensuring sufficient infrastructure and living conditions for tenants.

Clarifying the Service Life of Apartment Buildings

Regarding the service life of apartment buildings, the Prime Minister said it is necessary to distinguish between the service life of a building and residents' property rights.

Under the proposed approach, residential buildings would be subject to safety inspections when they reach the prescribed service period. If they continue to meet safety requirements, their use may be extended. If they fail to meet technical standards, renovation or reconstruction would be required.

When an apartment building is reconstructed, residents' lawful property rights should continue to be protected under the law. Related regulations need to be clearly and transparently formulated so that residents fully understand their rights and obligations during the renovation or reconstruction process.

Toward a More Transparent Real Estate Market

Regarding the Law on Real Estate Business, the Prime Minister said further consideration should be given to integrating and harmonizing relevant regulations to make them easier to implement in practice.

The overarching objective is to develop a real estate market that is transparent, stable and sustainable. Accordingly, information related to real estate transactions should be made increasingly transparent, while bank-based payments should be encouraged and the use of cash reduced.

Connecting databases covering population information, planning, taxation, notarization, banking and real estate is also regarded as an important solution for strengthening market management and oversight.

In addition, drafting agencies have been asked to continue studying mechanisms to protect the lawful rights and interests of parties involved in real estate transactions, particularly parties in weaker positions, while ensuring consistency with regulations on consumer protection.