Some new points according to the draft Land Law

The Land Law 2013 is the current Law adjusting the management and use of land. However, the current implementation of the Land Law 2013 has many limitations and inadequacies and is no longer suitable for reality. Therefore the draft amendment of the Land Law is organized and here are some new points of the draft.

Some new points according to the draft Land Law

Renovate and improve the quality of land use master plans and plans

The draft amendments of the Land Law include some additional provisions as follows:

• Land use master plans and master plans on sectors and fields that use land must be consistent with the national land use master plans and the same-level land use master plans that are approved. Land use planning at all levels must synthesize, balance and allocate land use demands of the master plans of sectors and fields that use land.
• The national land use master plans must ensure specificity and regional linkage; ensuring the balance between the land use needs of the sectors, fields, and localities and consistent with the land potential of the country to use land economically and efficiently.
• Land use master plans and plans are made at the national, provincial, and district levels, responding to the requirements of implementing the Strategy for rapid and sustainable socio-economic development; ensuring national defense and security; environmental protection, and adaptation to climate change.
• (According to Article 60 of the draft Land Law (amended)).

This is a new point regulated based on Resolution 18 of the Central Executive Committee to ensure the appropriateness, consistency, and synchronization between national planning land use planning and sectoral, field planning that uses the land to create a close connection to promote mutual development.

Rejected regulations on land price frames

According to Article 113 of the Land Law 2013: “The Government shall promulgate land price frames once every 5 years for each type of land and each region. During the implementation of land price frames, if the popular price in the market increases 20% or more over the maximum price or reduces 20% or more below the minimum price prescribed in land price frames, the Government shall adjust land price frames accordingly.”

According to the new draft, the land price bracket will be abolished, this is an important new point that has been legislated in the spirit of Resolution 18 of the Central Committee.

There is a huge gap between the market land price and the state-regulated price, although the Land Law 2013 has been based on the market price to adjust the land price frame accordingly, however, this difference still occurs, creating an association for corruption and profiteering. Therefore, the draft rejected regulations to reduce the gap between the market value and the regulated price as well as prevent corruption problems from occurring in practice.

Change the basis for land allocation, land lease

According to Article 52 of the Land Law 2013 regulated bases for land allocation, land lease and change of land use purpose will be based on The annual district-level land use plans which have been approved by competent state agencies and land use demands as indicated in investment project documents or applications for land allocation, land lease or change of land use purpose.

The current draft has changed the basis for land allocation and land leases based on the approval of auctions of land use rights and bidding for projects using the land.

This change is based on Resolution 18 of the Central Committee to overcome the situation of land allocation and land lease arbitrarily and rampantly; demonstrating the openness, transparency, and equality among the subjects in land allocation and land lease.

Additional financial revenue from land

The draft law adds some financial revenues from land, including:

• Land use levy when using land in combination with other purposes of Article 209 of this Law;
• Land use levy, land rent, and additional tax for projects that do not put the land into use or are behind schedule.

(Based on Article 147 of the draft amendments to the 2013 Land Law).

Besides, additional revenues from public land services in Article 149.

Regulation of higher rates for users of many land areas, many houses, land speculation, slow land use, and abandoned land as well as the addition of revenues for public services to ensure the harmonization of benefits. interests of the State, land users, and investors; create a reasonable and effective regulatory mechanism for the participants and minimize speculation, profiteering, and delay in using land for the intended purpose.

Additional cases of Land expropriation

The draft of the Land Law adds some cases of Land expropriation, including:

• Construction of medical treatment facilities for the people’s armed forces (Clause 8, Article 77 draft);
• Building guest houses of the people’s armed forces (Clause 9, Article 77 draft);
• Land expropriation in the case of termination of investment projects by the provisions of the law on investment but not in the case of transfer of land use rights or sale of land-attached assets as prescribed (point g, clause 1, Article 81 draft).

At the same time, it also amends and stipulates in more detail the cases of land expropriation specified in the Land Law 2013.

Some of the above supplements are intended to provide more specific and stricter provisions on the purposes and scope of land acquisition by the State for socio-economic development for the national and public interests, ensuring compliance with the law constitution on the legal rights of the people.

Regulations on management and multi-purpose land use 

Article 209 of the draft Land Law (amended) regulates new content on multi-purpose land which is legislated based on Resolution 18 of the Central Committee. Accordingly, it is proposed to regulate the management and use of land in combination with multi-purpose, residential land combined with commerce and services; agricultural land combined with trade and services; land for national defense and security combined with economy; land for tourism projects with spiritual elements; land for construction of aerial works, underground works, land formed from sea reclamation activities.

This is a new regulation introduced to create a basis for the state to manage as well as create conditions for different types of business combinations to be developed and implemented effectively. However, because it is a new regulation, the content is somewhat incomplete to solve all the problems in reality and needs more time to adjust accordingly.