Deputy Minister of Natural Resources and Environment Lê Minh Ngân: Enhancing land access for businesses

DNHN - Deputy Minister Lê Minh Ngân mentioned the difficulties businesses face in accessing land, particularly in healthcare and education projects.

Could you tell us about the provisions in the Land Law 2024 and its guiding documents regarding land allocation for projects providing services in healthcare and education?

Deputy Minister Lê Minh Ngân: Compared to the Land Law 2013, the Land Law 2024 has significant changes, especially in the provisions for land recovery for economic and social development for the national and community interest. The state has the authority to recover land in necessary cases to implement projects that bring public benefits, thereby improving land use efficiency and developing social infrastructure in a modern direction. This is clearly regulated in 31 specific cases under Article 79 of the Law, regardless of the source of investment funds, including projects in education, healthcare, and sports.

Regarding these cases, Clause 5 of Article 124 of the Land Law allows land allocation or land lease without auctioning land use rights or bidding for investor selection for projects falling under state land recovery, provided public investment funds are not used, or they are not public-private partnership (PPP) projects. However, if two or more investors are interested, the auctioning of land use rights or bidding for investor selection will be conducted to ensure fairness and transparency, thereby minimizing land concentration into the hands of a few interest groups.

In addition, Clause 1 of Article 127 states that in cases where public budget funds are not used and land recovery is applicable, investors can negotiate for land use rights without requiring state recovery. If the current land user proposes an investment project that aligns with land use planning, they may continue to use the land without state recovery, with approval from the competent authority.

Thus, service projects in healthcare and education fall under the scope of state land recovery under the provisions of the Land Law 2024, with no distinction between investment sources.

So, what are the methods for investors to access land in these sectors?

Deputy Minister Lê Minh Ngân: The Land Law 2024 outlines various flexible methods for land access, especially for projects related to healthcare and education. These methods not only support and promote investment, such as land allocation or leasing without going through auctions or bidding, but also ensure market principles through competition among businesses.

Specifically, the first access method is land allocation or land lease without going through auctions or bidding, to facilitate favorable conditions for investors.

Secondly, land use rights auctions and investor selection bidding for land-use projects ensure fairness and transparency in the access process.

Thirdly, investors can negotiate for land-use right transfers or continue using land to which they already have rights, to enhance proactivity in project implementation.

Thanks to these provisions, investors' access to land in healthcare and education has become easier, contributing to creating an open, transparent, and fair environment. This not only helps investors access land more easily but also promotes local economic and social development, in line with the state's policies and directives.

There are concerns that the Land Law 2024 has stipulated that businesses renting land from the state have the right to mortgage it, but the lack of implementation guidelines has caused difficulties in determining the entities receiving mortgages when issuing bonds secured by real estate. What is your opinion on this issue?

Deputy Minister Lê Minh Ngân: The Land Law 2024 clearly regulates the mortgage rights of economic organizations related to various forms of land use. Specifically, organizations allocated land by the state with land use fees, or leasing land with a one-time payment for the entire lease period, have the right to mortgage land use rights and assets attached to the land at legal credit institutions in Vietnam, as well as other economic organizations or individuals (according to Point đ, Article 33). For organizations leasing land with annual payments, overseas Vietnamese and foreign-invested organizations also have the right to mortgage assets attached to the land at credit institutions (according to Point b, Article 34).

To exercise these mortgage rights, businesses must meet all the conditions stipulated by the Land Law (Article 45). These conditions include possessing one of the valid land use right certificates, having no related disputes (or disputes that have been resolved), the land use rights not being seized or used as security for enforcement of judgments, and the land use period still being valid.

In summary, the Land Law has established a fairly comprehensive legal framework for businesses to exercise their mortgage rights related to land use rights.

However, regarding mortgages when issuing bonds secured by real estate, this issue does not fall within the scope of the Land Law but is governed by the Law on Credit Institutions. Therefore, specialized regulatory agencies will have their own regulations and rationale to address this content, ensuring legality and transparency in financial transactions.

What do you think about concerns that the Land Law 2024 and its guiding documents stipulate that the tax calculation for commercial service land is based on the residential land price in the same area multiplied by 70-80%, leading to high commercial service land prices and causing difficulties for businesses in production and business?

Deputy Minister Lê Minh Ngân: The Land Law 2024 has specified that land prices for tax calculation are based on the Land Price Table. Specifically, Clause 1, Article 12 of Decree No. 71/2024/ND-CP states that the commercial service land price must be clearly defined in the Land Price Table issued by the Provincial People's Council.

Previously, under the Land Law 2013 and Decree No. 44/2014/ND-CP, the commercial service land price was one of the mandatory contents in the Land Price Table, issued by the Provincial People's Committee. Only in cases where the land is used for public purposes with business elements, or for building agency offices or non-profit structures, can the Provincial People's Committee base the price on residential land to determine the rate for these types of land.

Therefore, both the Land Laws of 2013 and 2024 do not stipulate that the commercial service land price is based on the residential land price. The occurrence of this situation may be due to inconsistent implementation.

The Ministry of Natural Resources and Environment will take note of and consider this feedback. We are committed to reviewing, inspecting, and promptly addressing the issues to adjust policies and ensure the effective implementation of the Land Law 2024 in the near future.

Thank you, Deputy Minister!

Phan Chinh