At the meeting on August 7 discussing amendments and supplements to a government decree on land valuation. (Photo: vneconomy.vn) Ha said improper application of methods or the use of subjective,non-transparent, and inaccurate data inputs employed during the valuationprocess has often resulted in inaccurate pricing and caused revenue losses tothe State budget. Additionally, the complexity of valuation methods and thelack of comprehensive and reliable land price databases in the market alsocontribute to inconsistent results.
He said the forthcoming amended Land Law will provide a legalframework to establish a land prices database and land value map for thecountry.
In a report by the Ministry of Natural Resources and Environment(MoNRE), there are currently five different methods to evaluate land pricesused by Government agencies: direct comparison, deduction, income, surplus, andland price adjustment coefficient methods. The aim of said methods has been tobring prices closer to market level, minimising losses to the State budget, andensuring the rights of landowners whose land is being acquired.
However, in the last decade, there have been concerns voiced overtheir shortcomings and limitations. Certain localities are still uncertain intheir application, affecting the progress of determining land prices. Some landvaluation methods are not suitable for real market information conditions, andthe transparency of land use rights is lacking, making them inconsistent withstate management on land prices, especially in the absence of a complete landprice database.
The ministry said it's high time the country reviewed and revisedits land valuation methods, as well as created new procedures. In addition,detailed guidance should be given to local authorities to help them with theimplementation of such methods. This is especially important as the newapproach to land valuation places local governments at the centre withadditional autonomy and delegation of power.
The new approach should aim to minimise assumptions and subjectivepreferences, ensure uniformity in selecting and applying these methods, specifythe information sources required for applying each method and expand the casesin which the land price adjustment coefficient method can be used.
Economist Can Van Luc urged the Government to quickly establish aset of criteria for cases where additional valuation methods are required, withconsideration given to data collection capabilities and the conditions of theland being valued.
Regarding the surplus method, he said that the law should providedetailed and specific guidelines for determining initial assumptions, such asexpected future profits and forecasted incurred costs when implementingprojects.
Nguyen Tien Thoa, Chairman of the Vietnam Valuation Association,said as each method has different application conditions, there must be verydetailed and specific criteria and guidelines for each.
Deputy Minister of Finance Nguyen Van Chi stressed the importanceof a strict and scientific method in collecting land information.
Collecting information is the first, and the most crucial step inthe valuation process. Without a proper database of information, it doesn'tmatter what methods are being employed, said Deputy Minister of Public SecurityLe Van Tuyen.
He said a large number of violations during the process have beencommitted by Government officials and businesses, often to put lands' valuesignificantly lower than their market level.
The Deputy PM instructed MoNRE, the Ministry of Finance and theMinistry of Construction to closely collaborate with other ministries toclarify the criteria and conditions for collecting information and input datafor each specific land plot or project.
The criteria for input information must be standardised,transparent, publicly available, simple, and feasible to serve as the basis forapplying the appropriate valuation method, he said./.
VNA
