Overcoming obstacles in altering land use purposes for enterprises

DNHN - Mr Tran Hong Ha, Minister of Natural Resources and Environment, companies have numerous challenges and problems with land issues, but by listening to each other, the parties will find the best possible way to address the problem and update the Land Law to reflect reality. The practical issues that have been demonstrated to be true will continue to apply, but the historical issues left behind by this modification must be addressed.

The Ministry of Natural Resources and Environment, in partnership with the Vietnam Confederation of Commerce and Industry (VCCI), organized a workshop on the afternoon of August 4 to gather feedback from the business sector on the draft Land Law (amended).

Tran Hong Ha, Minister of Natural Resources and Environment, stated that the Draft Land Law (amended) was developed by the Ministry of Natural Resources and Environment (the drafting agency) in the spirit of fully and timely institutionalizing the Party's views and policies on land management and use; summary of Land Law. Furthermore, to reduce practical barriers to further promoting land resources and resolving conflicts and overlaps between Land Laws and associated laws.

Minister Tran Hong Ha wishes to hear from experts and businesses to adequately answer the following questions: How to keep land prices close to market prices, how to shift focus from administrative management tools to effective use of economic tools while ensuring harmony between the interests of the State - people - businesses...

After hearing from many businesses, Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, stated that the draft contains provisions on the bases for making master plans and land use plans at the national, provincial, and district levels, but not specifically on the approved regional planning to develop master plans and land use plans. 

To synchronize and minimize overlapping and conflicting planning, master plans and land use plans at all levels must first be based on regional planning that has previously been authorized by responsible authorities.

In terms of planning substance, Mr Nguyen Quoc Hiep advised that more precise restrictions on the sequence of execution of land use planning be developed. The sequence of planning by applicable rules (Law on Planning) should be defined in the Land Law for ease of implementation.

"Because the draft Land Law only allows for consultation and assessment of planning, there are many other associated processes to be able to establish a plan that the draft Land Law does not specify." Mr Nguyen Quoc Hiep brought it up.

According to the chairman of the Vietnam Association of Construction Contractors, many firms are worried about land use conversion since there is no conflict between the Law on Housing, the Law on Investment, and the Law on Land.

As a result, the Law on Housing requires investors who own other kinds of property (non-agricultural land, not residential land) to have a portion of that land freshly converted if they desire to alter the use purpose to residential land. Many projects are stalled as a result of this rule.

"There has been progress in the draft Land Law by permitting the conversion of non-agricultural land use purposes that are not residential land to residential land without constraints, similar to the Housing Law, and just requiring permission from the State agency. This is a point that may help companies solve problems. However, in my view, extra requirements must be included to modify the land use purpose, which must comply with the authorized land use planning." Mr Nguyen Quoc Hiep added his thoughts.

Mr Nguyen Quoc Hiep remarked on the land price list, stating that the draft has deleted the restrictions on the land price bracket system and the coefficient of variation every 5 years, in favour of the regulation on the land price list and the adjustment of variations once a year. This is a step forward, but more explanation is required.

To serve as a foundation for changing the land price list, it is required to establish what is regarded as a common land price in the market with variations. Because land values on the market vary daily.

The State's creation of a land price list will have a direct impact on the interests of land users. As a result, if the State merely uses market land price variations to update the land price list throughout the year, the land price list will be modified continually. As a result, it will be unstable, causing debate and inconsistency.

TH