Tran Quoc Toan, former Vice Chairman of the Government Office, said there were many shortcomings relating to the land market. The legal system regarding the local land market has not caught up with reality though it was regularly adjusted and supplemented, causing difficulties for State management on land issues.
According to the municipal Department of National Resources and Environment, the capital has faced five big issues when implementing the Land Law 2013 including land allocation, land lease, land use rights, property rights attached to land and problems in the work of price determination.
In addition, the land and property market management has been ineffective, causing improper land acquisition and compensation and wrong use of public land.
Toan told Hai Quan (Customs) Newspaper that the land price evaluation issue has encountered shortcomings and has not followed market prices. Currently, the land prices stipulated by the Government have been 30 to 60 per cent of the transfer prices or much lower. The country has not had an effective system to observe land prices in the market as a basis for land price evaluation.
Doan Hong Nhung from the Law Faculty of Ha Noi National University said land acquisition for construction of urban areas, serving for the country’s socio-economic development in the industrialisation and modernisation process is necessary. However, when the interests between the State, land development investors and farmers are not allocated in a harmonised manner, there is a risk of disputes related to land acquisition.
Nhung told the newspaper that when purchasing or transferring land use right and assets attached to land, most people did not declare the real value to evade tax of two per cent on the transfer value. This results in dishonest land transactions, which do not serve as the basis and information on land transactions.
She said that to overcome shortcomings in the land market in Viet Nam, the country should complete its institution on the issue. The land transfer mechanism should ensure benefits of relevant parties.
Prof. Dang Hung Vo, former deputy minister of Natural Resources and Environment said many developed and developing countries have limited the use of compulsory land transfer mechanisms. The land transfer mechanism would be chosen if 70 per cent of the community accepts it. The mechanism should be based on the principle of benefit sharing.
Part of the benefits from the investment project must be shared with the local community losing land. The benefit-sharing mechanism needed to be given special attention in cases of land use for the purpose of natural resources exploitation such as investments in hydropower or mining projects.
Nguyen Thi Ly from the Institute of Strategy and Policy on Natural Resources and Environment said the country should review and complete land acquisition mechanisms for national socio-economic development. In addition, the Government should have specific regulations relating to benefits and rights of land owners.
