Opening opportunities: A woman walks past the Hoan Kiem lake in Hanoi. The new land law is expected to remove legal bottlenecks for real estate projects. — AFP
HANOI: The amended Land Law which was passed at the 15th National Assembly’s fifth extraordinary session in mid-January is expected to provide a firm legal framework to enhance land management efficiency and create new momentum for Vietnam to become a high-income country by 2045.
Comprising 16 chapters and 260 articles, the law would solve existing problems in land management and contribute to promoting growth with innovations and breakthroughs in thinking, deputy prime minister Tran Hong Ha said, emphasising that improving the legal framework for land has been a focus of the party and the government.
As land and land management are a huge and complicated issue with an important role in the country’s socio-economic development and impacting all walks of life and the business community, the new law has drawn significant attention.
Efficient and sustainable use of land resources would help accelerate the country’s industrialisation and modernisation process, ensure social stability and national security, and protect the environment, creating motivation for Vietnam to become a developed economy, Tran Minh Son from the Justice Ministry said.
“The new land law is able to answer three major questions, which are what purpose the land is for, who the land is allocated to, and at what prices,” Le Xuan Nghia, member of the National Financial and Monetary Policy Advisory Council, said.
Answering these questions would help bring land back to its true value as a rare and precious resource for socio-economic development, he said.
Residents, enterprises and state management agencies expected that the law would help solve existing bottlenecks in land procedures.
“During recent years, hundreds of projects have been stuck while new projects cannot be approved,” Nghia said, adding that the new land law would provide a solution.
There are hundreds of new points in this 16-chapter law, one of the notable points is that the law creates opportunities for users of land without records on use rights to be granted a red book.
This regulation would have a huge impact, bringing peace of mind, making land more valuable and encouraging its more efficient use, Nghia said.
The new law also abolishes the land price frame. Instead, the land price table will be updated annually and the first land price table will be applied on Jan 1, 2026.
Nghia said that the land prices would be more market based, contributing to improving fairness and social stability while encouraging the efficient use of land.
The new land law allows expanding the limit of individuals who can receive transfer of agricultural land use rights under regulations on “concentration of agricultural land” and “accumulation of agricultural land”.
Son said that this would create conditions for large-scale farming and promote agriculture to develop rapidly and sustainably to ensure national food security. There would also be impacts on the real estate market and the entire economy.
There are also specific regulations on land revocation and compensation to ensure transparency.
The new law allows the lump sum payment of land rent or annual instalments, which is flexible to create favourable conditions for production and business.
“The 2024 Land Law will have positive impacts,” Nghia said.
Together with the Law on Housing 2023 and the Law on Real Estate Business 2023, the new land law would remove legal bottlenecks for real estate projects, which have been a major problem to the property market in recent years, including credit policies, interest rates and bond issuance. — Viet Nam News/ANN
