Decree 12/2024/ND-CP amend Decree 44/2014/ND-CP prescribing land prices, and Decree 10/2023/ND-CP amending decrees guiding the Land Law

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 44/2014/ND-CP dated May 15, 2014, prescribing land prices, and the Government’s Decree No. 10/2023/ND-CP dated April 3, 2023, amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Land Law dated November 29, 2013;

At the proposal of the Minister of Natural Resources and Environment;

The Government hereby promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 44/2014/ND-CP dated May 15, 2014, prescribing land prices, and the Government’s Decree No. 10/2023/ND-CP dated April 3, 2023, amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law.

Article 1. Amending and supplementing a number of articles of the Government’s Decree No. 44/2014/ND-CP dated May 15, 2014, prescribing land prices

1. To amend Clause 1 and add Clause 4 Article 3 as follows:

“1. Land area to be priced means a collection of land parcels that need to be priced in the same land-using project.”

“4. Transfer on the market means the transfer of land use rights or the transfer of land use rights and houses, and other land-attached assets when procedures on taxes, fees and charges have been carried out at the tax office or land registration office or a transfer contract between the investor of a real estate or commercial housing project and the customer has been signed.”

2. To amend and supplement Article 4 as follows:

“Article 4. Land pricing methods

1. Method of comparison is performed by adjusting the prices of land parcels with the same land use purpose and certain similarities in factors that affect the prices of transferred land on the market or at the auctions of land use rights, for which the winning bidder has fulfilled financial obligations according to the winning decision through analyzing and comparing factors affecting land prices after excluding the value of land-attached assets (if any) for determining prices of land parcels that need to be priced.

2. Income-based method means a method of determining the land price by dividing the average annual net income per land area by the average savings deposit interest rate of 12-month term deposits in Vietnamese currency at commercial banks in which the State holds more than 50% of the charter capital or the total number of voting shares in the provincial area for 03 consecutive years up to the end of the latest quarter with data before the pricing time.

3. Surplus-based method is performed by subtracting the total estimated development costs of the land parcel or land plot from the total estimated development revenue based on the most effective land use (land use coefficient, construction density, maximum number of floors of the building) according to the land use master plan and detailed construction master plan approved by the competent agency.

4. Land price adjustment coefficient method means a method of determining the land price by multiplying the land price in the land price table by the land price adjustment coefficient, which is promulgated by the People’s Committee of a province or centrally run city (below referred to as provincial People’s Committee) by comparing the land price in the land price table with the land price in the market.”

3. To amend and supplement Article 5 as follows:

“Article 5. Conditions for application of land pricing methods

1. The comparison method may be applied to determine the price in cases where there are at least 03 land parcels with the same land use purpose and certain similarities in terms of factors affecting the price of the land already transferred in the market and winning price in auctions of land use rights for which the auction winner has fulfilled its financial obligations according to the winning auction decision (hereinafter referred to as the comparable parcel), except for the cases specified at Points a, b, c and d Clause 1 of this Article.

2. The income-based method may be applied to determine the price in cases where the land parcel, agricultural land plot, or non-agricultural land plot is not residential land and the land plot or land parcel to be priced fails to meet the conditions for applying the comparison method, but income and expenses from land use according to the legal land use purpose at the time of pricing can be determined, except for the cases specified at Points a, b, c and d Clause 4 of this Article.

3. The surplus-based method may be applied for land pricing in cases where the land plot or land parcel used to implement an investment project fails to meet the conditions for applying the comparison method or income-based method but the total development revenue and the total development costs of the project can be estimated, except for the cases specified at Points a, b, c and d Clause 4 of this Article.

4. The land price adjustment coefficient method may be applied to determine the land price of the land parcel or land plot that has been regulated in the land price table promulgated by the provincial-level People’s Committee in any of the following cases:

a) The cases specified at Point a Clause 4 Article 114 and Clause 3 Article 189 of the Land Law;

b) Calculating annual land rentals for the land leased by the State without auction of land use rights;

c) Calculating the reserve price for auction of land use rights when the State allocates or leases land in cases where the land plot or land parcel has been invested in technical infrastructure according to the detailed construction master plan;

d) Determining the land price of the land parcel or land plot that needs to be priced of which the land use levy-liable area or land rental-liable area is valued (calculated at the land price in the land price table) at under VND 30 billion, for centrally-run cities; under VND 10 billion, for mountainous and highland provinces; or under VND 20 billion, for other provinces, in the following cases:

The cases specified at Points b and d Clause 4 Article 114 and Clause 2 Article 172 of the Land Law;

Calculating one-off land rental payment amount for the entire lease period of the land leased by the State without auction of land use rights.

dd) Calculating the compensation money when the State recovers land in cases of recovery of many adjacent parcels of land with the same use purpose that do not meet the conditions to apply the comparison method.

5. Comparable parcels applying the land pricing methods specified in Clauses 1, 2 and 3 of this Article must be eligible to exercise the rights of land users in accordance with the Land Law.”

4. To add Article 5a as follows:

“Article 5a. Determining factors affecting land prices in the comparison method

1. Factors affecting land prices in the comparison method include:

a) Location of land plot or land parcel: Closest distance to administrative centers, commercial centers, markets, medical facilities, education and training facilities, sports, parks, and entertainment areas;

b) Traffic conditions: width, pavement structure, adjacent to 01 or more pavements;

c) Conditions on water supply, drainage and electricity supply;

d) Area, size, shape of the land parcel or plot;

dd) Factors related to construction master plan, including land use coefficient, construction density, construction boundary, limit on construction height, limit on number of basements built according to the detailed construction master plan approved by competent state agencies (if any);

e) Current status of environment and security;

g) Factors related to production conditions for agricultural land, including irrigation system, terrain, transportation system serving production;

h) Other factors affecting land prices consistent with actual conditions, cultural traditions, and local customs and practices;

i) Land use term. For agricultural land allocated by the State to households and individuals according to the agricultural land allocation limit, and agricultural land within the quotas for acquisition of agricultural land use rights, the land use term shall not be based;

k) Legality of land use rights.

2. An organization with the function of consultancy on land price determination or a public non-business unit with the function of consultancy on land price determination or an interdisciplinary working group assigned the task of determining specific land prices (hereinafter referred to as the unit determining land prices) shall propose factors affecting land prices, adjustment rates for each factor affecting land prices in the explanatory report on the development of the land price plan as a basis for natural resources and environment agencies to submit to the appraisal board for specific land prices for consideration and agreement as a basis for completing the land price plan and submitting it to the competent People's Committee for decision.”

5. To add Article 5b as follows:

“Article 5b. Information for application of land pricing methods

1. Information on land prices, land rentals, ground rental prices to apply the comparison method, surplus-based method and build the land price adjustment coefficient specified at Point b Clause 1 Article 5e of this Decree includes:

a) Winning price at the auction of land use rights in case the auction winner has fulfilled the financial obligations according to the winning auction decision;

b) Land price that has undergone tax procedures at the tax agency or registered at the land registration office for cases of transfer of land use rights;

c) Land rentals, ground rental price;

d) Land transfer price on the market.

2. The information for application of the land pricing methods specified in Clause 1 of this Article means information within a period of no more than 24 months from the time of determining the land price or earlier, with priority given to using information closest to the time of determining the land price, that is collected from the following sources:

a) National land database, price database;

b) Land registration office, unit organizing the auction of land use rights, property auction unit/organization;

c) Tax agencies, agricultural and rural development agencies;

d) Real estate trading floors, real estate enterprises;

dd) Organizations with the function of consultancy on land price determination, valuation enterprises;

e) Credit institutions, real estate associations, research institutes/centers;

g) Directly interviewing the transferor or transferee in case where the land has already been transferred on the market.

3. Information on income and expenses from non-agricultural land for application of the income-based method shall be collected from the following sources:

a) Income from production and business activities recorded in financial statements or income from land or ground rentals collected over a period of 3 consecutive years (calculated from January 1 to the end of January 31) preceding the time of determining the land price.

In case the income of the land plot or land parcel that needs to be priced is incomplete according to each year and does not accurately reflect the actual income from land use, the information on the land rental and ground rental price of at least 03 land parcels shall be collected for comparison;

b) Costs to generate income from land use specified at Point a of this Clause shall be determined based on norms, unit prices issued by competent state agencies or construction investment capital ratio announced by the Ministry of Construction. In case such norms, unit prices or construction investment capital ratio issued by competent state agencies are unavailable, the information and average data of actual costs popular on the market from at least 03 land parcels with the closest distance to the land plot or land parcel that needs to be priced as specified at Point b Clause 5 of this Article shall be used as a basis.

4. Information on income and expenses from the use of agricultural land for application of the income-based method shall be collected at statistical agencies, tax agencies, agricultural and rural development agencies. In case there is no statistical data or data from tax agencies or agricultural and rural development agencies, information on actual income and expenses popular on the market of at least 03 land parcels with the closest distance to the land plot or land parcel that needs to be priced as specified at Point b Clause 5 of this Article shall be collected. To be specific:

During a period of 03 consecutive years (calculated from January 1 to December 31) preceding the time of determining the price for land for cultivation of annual crops, land for aquaculture, land for salt production, and other agricultural land;

At least 03 consecutive harvests before the time of determining the price for land for cultivation of perennial trees;

During an exploitation cycle before the time of determining the price for land for production forests and land for cultivation of industrial crops in accordance with relevant laws.

5. When applying comparison methods, the surplus-based method, the comparable parcel shall be selected in the following order of priority:

a) Similar in location, infrastructure conditions, area, size, shape, land use coefficient, construction density, building height and other factors that affect land prices compared to the land parcel that needs to be priced;

b) Having the closest distance to the land plot or land parcel that needs to be priced and is not limited by the administrative boundaries of commune-level, district-level, and provincial-level administrative units.

6. The land price determination unit, when collecting information for application of land pricing methods, must be honest, objective and take responsibility before the law for the accuracy of the surveying information.

7. Land registration offices, units organizing the auction of land use rights, property auction units/organizations; tax agencies, agriculture and rural development agencies; real estate trading floors, real estate enterprises; organizations with the function of consultancy on land price determination, land valuation enterprises; credit institutions, real estate associations, research institutes and centers shall be responsible for providing information to serve the determination of land prices in writing or electronically within 05 working days from the date on which the written request from the land valuation unit is issued. The land valuation unit shall be responsible for storing, managing and using collected information and data in accordance with law provisions.”

6. To add Article 5c as follows:

“Article 5c. Order and procedures for determining the land prices by the comparison method

1. Surveying and collecting information on the land parcel or land plot that needs to be priced, including:

a) Location, land use purpose, area, size, shape, traffic conditions, water supply and drainage conditions, electricity supply, term of use;

b) Information on detailed construction master plans approved by competent state agencies;

c) Other information and documents related to factors affecting the price of the land plot or land parcel to be priced (if any).

2. Surveying and collecting information for the comparable parcel, including:

a) The value of the comparable parcel shall be collected in accordance with Clauses 1 and 2 Article 5b of this Decree, time of transfer, winning auction;

b) Land use purpose;

c) Factors affecting land prices as prescribed in Article 5a of this Decree.

3. In case the comparable parcel has assets attached to the land, the current value of land-attached assets shall be determined (if any).

a) In case where land-attached assets are construction works

The current value of land-attached assets shall be determined as follows:

The method of calculating the value of new construction and the value of depreciation and amortization of land-attached assets shall be carried out in accordance with relevant laws.

In case there are no regulations or instructions on the method of calculating the value of new construction and the value of depreciation and amortization, the calculation shall be based on actual information and data collected on the market.

b) In case where land-attached assets are perennial plants or planted forests

For perennial plants, the current value of land-attached assets shall be the remaining exploitation value of the perennial plants calculated based on income from harvesting the products of the perennial plants. In case at the time of determining the land prices, perennial plants have not yet reached harvest time, the current value of land-attached assets shall be determined by the total cost invested in planting and taking care of them up to the time of determining the price.

For planted forests and industrial crops, the current value of land-attached assets shall comply with relevant laws. In case where no regulations are available, the current value of land-attached assets shall be determined by the total costs invested in planting and taking care of the forests up to the time of price determination.

c) The current value of land-attached assets specified at Points a and b of this Clause shall be calculated at the time of transferring the land use rights or winning the auction of land use rights.

4. Price of the comparable parcel shall be determined as follows:

5. Based on the factors affecting land prices specified in Article 5a of this Decree and the characteristics of the land plot or land parcel that needs to be priced, the price adjustment of the comparable parcel according to percentage (%) shall be carried out according to the following principles:

a) Taking the factors affecting the land price of the land parcel to be priced as the standard to adjust the price of the comparable parcel;

b) If the factors of the comparable parcel are inferior to the land parcel to be priced, the price of the comparable parcel shall be increased (plus). If the factors of the comparable parcel are better than the land parcel to be priced, the price of the comparable parcel shall be decreased (minus);

c) If the factors of the comparable parcel are similar to the land parcel to be priced, the price of the comparable parcel shall remain the same.

6. The estimated land price of the land parcel to be priced shall be determined by adjusting the land price of each comparable parcel due to factors different from the land parcel to be priced as follows:

7. The land price of the land parcel to be priced shall be determined by taking the arithmetic average of the estimated land prices of the land parcel to be priced according to each comparable parcel determined in Clause 6 of this Article. The difference between the determined price of the land parcel to be priced with each estimated land price must not be more than 15%.

8. In case of determining the price of non-agricultural land parcel other than residential land without at least 03 comparable parcels, the price of the land parcel that needs to be priced shall be determined as same as the land price in the same location, then adjust the difference in percentage (%) between the price of the land parcel to be priced and the land price in the land price table in the area where the land parcel to be priced is located.

Examples of applying the comparison method to determine land prices are provided in Appendix I to this Decree.”

7. To add Article 5d as follows:

“Article 5d. Order and procedures for determining the land prices by the income-based method

1. Surveying and collecting information on income of the land parcel that needs to be priced in accordance with Point a Clause 3 and Clause 4 Article 5b of this Decree.

2. Surveying and collecting information on costs from the use of the land parcel that needs to be priced in accordance with Point b Clause 3 and Clause 4 Article 5b of this Decree, including:

a) Taxes related to the use of land;

b) Production costs based on norms and unit prices issued by competent state agencies or construction investment capital ratio announced by the Ministry of Construction.

In case such norms, unit prices or construction investment capital ratio are unavailable, the statistical data of statistical agencies or information on actual costs popular in the market shall be used as a basis in accordance with Point b Clause 3 Article 5b of this Decree.

3. The average annual net income shall be determined as follows:

In which:

The average annual income is calculated as the average of the surveyed income, collected in accordance with Clause 1 of this Article. For non-agricultural land, the average annual income is calculated as the average of income from production and business activities or land rental and ground rental prices over a period of 3 consecutive years (calculated from January 1 until the end of December 31) preceding the time of price determination.

In case the information about the income of the land parcel that needs to be priced is incomplete each year and does not accurately reflect the actual income from land use, the average annual income of the land parcel that needs to be priced shall be calculated by the land rental, ground rental price for a period of one year according to the same order and content as determining land price by the comparison method as specified in Clauses 5, 6 and 7 Article 5c of this Decree.

The average annual cost is calculated as the average of the surveyed cost, collected in accordance with Clause 2 of this Article.

4. The value of the land parcel to be priced shall be determined as follows:

Average savings deposit interest rate (r) of 12-month term deposits in Vietnamese currency at commercial banks in which the State holds more than 50% of the charter capital or the total number of voting shares in the provincial area for 03 consecutive years up to the end of the latest quarter with data before the pricing time.

Particularly for definite-term non-agricultural production and business land, the average savings deposit interest rate shall be adjusted according to the following formula:

In which: n is the remaining land use term of the land parcel to be priced (in years) in case of land lease with one-off land rental payment for the entire lease period.

5. The price of the land parcel to be priced shall be determined as follows:

In cases where the land parcel to be priced has been invested and built with land-attached assets to put into production and business, after determining the value of the land parcel and land-attached assets, it is necessary to minus the current value of land-attached assets as prescribed in Clause 3 Article 5c of this Decree.

6. Commercial banks in which the State holds more than 50% of charter capital or total voting shares in the provincial area shall be responsible for providing information on average savings deposit interest rates specified in Clause 4 in writing within 05 working days from the date on which the written request from the land valuation unit is issued to determine the land price according to the income-based method.

Examples of applying the income-based method to determine land prices are provided in Appendix II to this Decree.”

8. To add Article 5dd as follows:

“Article 5dd. Order and procedures for determining the land prices by the surplus-based method

1. Surveying and collecting information about the land plot or land parcel that needs to be priced; information on land use master plan, detailed construction master plan or general site master plan, permission to change land use purposes and construction regulations approved by competent state agencies to determine the most land use efficiency.

2. Estimating the total development revenue of the land plot or land parcel

a) Total development revenue of the land plot or land parcel shall be determined on the basis of estimated transfer prices and rentals, fluctuations in transfer prices and rentals during the project implementation period and other factors that generate revenue, including sales time, sales start time, sales rate, fill rate;

b) The transfer price and rentals to determine the total development revenue of the land plot or land parcel shall be estimated using the comparison method as for the land plot or land parcel to be priced that has been invested and built according to the approved detailed construction master plan or general site master plan;

c) The fluctuations in transfer prices and rentals shall be estimated based on data from statistical agencies or real estate market management agencies or data on transfer prices and rentals on the market;

d) Based on the actual situation in the locality, the provincial-level Department of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with relevant departments and branches in, advising and submitting to the provincial-level People's Committee for specific regulations on other factors generating revenue specified at Point a of this Clause.

In case the provincial-level People's Committee has not specifically stipulated other factors generating the revenue, the land valuation unit shall propose sales time, sales start time, sales rate, and fill rate in the explanatory report on development of land price plan as a basis for the natural resources and environment agency to submit to the appraisal board for land prices for consideration and agreement as a basis for completing the land price plan to submit to the competent People's Committee for decision.

3. Estimating the total development cost of the land plot or land parcel

a) Construction investment costs to determine land prices in this Decree include: Costs for building technical infrastructure, social infrastructure, houses, and other construction works; equipment costs; construction investment consultancy expenses; project management expenses and other cost items as prescribed in the investment capital ratio in case of using investment capital rate.

In case the land plot or land parcel that needs to be priced to implement a housing construction project for sale or for combined sale and lease, land use rights are transferred in the form of dividing land parcels for sale, housing construction costs shall not be included in construction investment costs;

b) Business expenses include: Advertising, sales and operating management costs, calculated as a percentage (%) of revenue in accordance with the local general level;

c) The investor's profit (including the equity and loan capital) shall be calculated as a percentage of the construction investment cost specified at Point a of this Clause;

d) Total development costs of the land plot or land parcel specified in this Clause shall not include compensation, support and resettlement expenses according to the plan approved by the competent agency;

dd) Based on the actual situation in the locality, the provincial-level Department of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with relevant departments and branches in, advising and submitting to the provincial-level People's Committee for specific regulations on construction time, construction progress; advertising and sales costs; operation management costs; investor profits.

In case the provincial-level People's Committee has not specifically stipulated In case the Provincial People's Committee has not specifically stipulated the construction time, construction progress, advertising and sales costs, operation management costs, and investor profits, the land valuation unit shall propose them in the explanatory report on development of land price plan for use as a basis for the natural resources and environment agency to submit to the appraisal board for land prices for consideration and agreement as a basis for completing the land price plan to submit to the competent People's Committee for decision.

4. The total construction investment costs shall be determined as follows:

a) Construction investment costs according to the detailed construction master plan or general site master plan approved by a competent agency. Construction investment costs specified at Point a Clause 3 of this Article shall be determined in accordance with the law on construction.

b) Total construction investment costs shall be estimated based on the following order of priority:

The construction estimates already appraised by a specialized construction agency in accordance with the law on construction.

Construction estimates based on norms and unit prices issued and announced by competent state agencies and independently valuated by a consulting agency.

Construction investment ratio announced by the Ministry of Construction.

c) In case the basis specified at Point b of this Clause is unavailable, the land valuation unit shall collect information on the popular actual costs of at least 03 similar projects with the closest distance to the land plot or land parcel to be priced in accordance with Clause 5 Article 5b of this Decree to propose in the explanatory report on the development of the land price plan as a basis for the natural resources and environment agency to submit to the appraisal board for land prices for consideration and agreement for completing the land price plan and submitting it to the competent People's Committee for decision.

5. Estimates of revenues and costs of the land parcel or land plot shall be made for each year of project implementation and must be discounted to the current value at the time of land price determination. Total development revenue and total development costs of a land parcel or land plot shall be estimated according to the following formula:

Total development revenue =

Total development costs =

In which:

TR_i is the project's revenue in year i.

C_i is the cost of year i of the project.

r is the discount rate calculated based on the average medium-term loan interest rate (from 01 year to 03 years) of VND loans at commercial banks in which the State holds more than 50% of charter capital or total voting shares in the provincial area of the preceding year up to the end of the most recent quarter with data before the time of price determination to implement real estate investment and business projects.

n is the number of sales years of the project (1, 2,…, n).

m is the number of years of construction of the project (1, 2,…, m).

6. Determining the price of the land plot or land parcel that needs to be priced

The value of the land plot or land parcel that needs to be priced shall be determined according to the following formula:

The price of the land plot or land parcel that needs to be priced shall be determined according to the following formula:

7. In case the land area has land area allocated with land use levy, and leased land area, the price of the land parcel that needs to be priced as prescribed in Clause 6 of this Article shall be determined according to total development revenue and total development costs of each allocated or leased land area.

Technical infrastructure construction costs according to each allocated or leased land area shall be allocated according to the following formula:

In which: Total technical infrastructure construction cost of the project shall be determined in accordance with Clause 4 of this Article.

8. Commercial banks in which the State holds more than 50% of charter capital or total voting shares in the provincial area shall be responsible for providing average savings medium-term lending interest rates specified in Clause 5 in writing within 05 working days from the date on which the written request from the land valuation unit is issued to determine the land price according to the surplus-based method.

Examples of applying the surplus-based method to determine land prices are provided in Appendix III to this Decree.”

9. To add Article 5e as follows:

“Article 5e. Order and procedures for determining the land prices by the land price adjustment coefficient method

1. Formulating the land price adjustment coefficient

a) For the cases specified at Points a, b, c and d Clause 4 Article 5 of this Decree, the finance agency shall preside over, develop and submit to the provincial-level People's Committee to decide and announce the annual land price adjustment coefficient after consulting the People's Council at the same level. In case of necessity, the provincial-level People's Committee shall decide to adjust the issued land price adjustment coefficient according to the actual land prices in the locality.

The formulation and adjustment of the land price adjustment coefficient specified at this Point shall comply with the law on land use levy and land rental collection.

b) For the cases specified at Point dd Clause 4 Article 5 of this Decree, the natural resources and environment agency shall take the lead in advising and submitting to the competent People's Committee to decide on the land price adjustment coefficient for each project or area.

2. The order and content of determining the land price adjustment coefficient specified at Point b Clause 1 of this Article are as follows:

a) Surveying and collecting information about land parcels that need to be priced according to land location, and regulations in the land price table, including location, area, land type and term of use, land price information in the land price table.

b) Surveying and collecting information on the prices of at least 03 land parcels in accordance with Clause 1 and Clause 2 Article 5b of this Decree, for every land location.

In case the land parcel has land-attached assets, the value of the land-attached assets shall be deducted to determine the price of the land parcel in accordance with Clauses 3 and 4 Article 5c of this Decree.

c) Determining the popular land price on the market for each land location:

Making statistics on market land prices for each land location for the information collected under Point b of this Clause and determining the common land price on the market for each land location.

In case the land price on the market focuses on a price range, the common land price on the market for each land location shall be determined by taking the arithmetic average of the land prices at that land location.

d) Determining the land price adjustment coefficient

The land price adjustment coefficient shall be determined for each land location by dividing the common land price on the market by the land price in the land price table at that land location.

3. The land price of the land parcel to be priced at each land location shall be determined as follows:

110. To amend and supplement Article 15 as follows:. To amend and supplement Article 15 as follows:

“Article 15. Determination of specific land prices

1. Based on the principles of land pricing prescribed in Clause 1 Article 112 of the Land Law, conditions for application of the land pricing methods prescribed in Clauses 1, 2, 3, and Point dd 4 of Article 5 of this Decree and results of valuation of the land price plans of the appraisal boards for land prices, the provincial-level People’s Committees shall determine specific land prices, or the district-level People’s Committees shall determine specific land prices in case they are authorized by the provincial-level People's Committees in accordance with the Law on Organization of Local Administration.

2. Specific land prices may be used as the basis for the cases prescribed in Clause 4 Article 114, Clause 2 Article 172 and Clause 3 Article 189 of the Land Law; the reserve price for auctions of land use rights when the State allocates land with land use levy or leases land with full one-off rental payment for the entire lease term.

3. Natural resources and environment agencies shall be responsible for assisting the People's Committee at the same level to organize the determination of specific land prices as prescribed in Clause 1 of this Article.

4. Agencies, organizations and persons competent to determine, appraise and decide on specific land prices shall be responsible for applying land pricing principles and methods, order and procedures for determining land prices, appraising and deciding on specific land prices as prescribed in this Decree; and shall not take responsibility for other contents that have been previously appraised, approved, decided or resolved by competent agencies or persons.

5. The land valuation unit shall be responsible for the accuracy and completeness of the information to apply the land pricing method; comply with the land pricing principles and methods, order and procedures for land price determination specified in this Decree; on independence, objectivity, and honesty in land price determination consulting activities; ensure compliance with professional ethics of valuers within their organization; take responsibility before the law for the results of consulting on land price determination.”

11. To amend and supplement Article 16 as follows:

“Article 16. Order of and procedures for determination of specific land prices

1. The order for determining specific land prices specified in Clause 1 Article 15 shall comply with the following regulations:

a) Preparing specific land pricing dossiers;

b) Collecting, synthesizing and analyzing information about the land parcel and information to apply the land pricing method specified in Article 5b of this Decree; applying land pricing method;

c) Developing an explanatory report on the development of the land price plan, draft proposal on the land price plan;

d) Appraising the land price plan;

dd) Completing the land price plan dossier and submitting it to the competent People's Committee for decision;

e) The People's Committee competent to decide land prices.

2. A land price plan dossier to be submitted to the competent People's Committee for decision must comprise:

a) Proposal on land price plan from the natural resources and environment agency;

b) Explanatory report on the development of the land price plan modified and completed under the document on appraising the land price plan of the appraisal board for specific land prices;

c) Document appraising the land price plan of the appraisal board for specific land prices;

d) Minutes of meetings of the appraisal board for land prices.”

12. To amend and supplement Article 17 as follows:

“Article 17. Preparation of determining land prices and selection of organizations with the function of consultancy on determination of specific land prices

1. The natural resources and environment agency shall prepare a specific land pricing dossier including the following contents:

a) Purpose of land price determination, implementation period and cost estimate;

b) Decision on land allocation or lease, permission to change land use purpose, recognition of land use rights, permission to change from annual land rental payment to one-off land rental payment for the entire lease period, extension of land use term, adjustment of land use term, and adjustment of detailed construction master plan;

c) Other legal documents related to the land plot or land parcel that needs to be priced.

2. Based on specific land pricing dossiers, the natural resources and environment agency shall select an organization with the function of consultancy on land price determination in accordance with the bidding law. In case an organization with the function of consultancy on land price determination cannot be selected, a public non-business unit with the function of consultancy on land price determination shall be assigned to determine a specific land price or establish an interdisciplinary working group to determine land prices.

The interdisciplinary working group shall be established by the People's Committee competent to decide specific land prices, including the representative of the leader of the natural resources and environment agency as the leader and a representative of the finance agency as the deputy leader, representatives of construction, planning and investment agencies at the same level, representatives of leaders of the People's Committee of the commune where the land is located and other members decided by the competent People's Committee. Members of the interdisciplinary working group are not allowed to be members of the appraisal board for specific land prices.

3. Funding for the activities of the interdisciplinary working group shall be guaranteed by the state budget according to current budget decentralization; and shall be arranged in the annual budget estimates of the natural resources and environment agency and used in accordance with law.”

13. To add Article 17a as follows:

“Article 17a. Collecting, synthesizing and analyzing information about the land parcel and information to apply the land pricing method; formulating explanatory reports on the development of the land price plan

1. The information about the land parcel and information to apply land pricing methods specified in Clauses 1, 2, 3 and Point dd Clause 4 Article 5 of this Decree shall be collected and synthesized using the Form No. 01, Form No. 02 provided in Appendix IV to this Decree.

2. The land valuation unit shall prepare an explanatory report on the development of the land price plan according to Form No. 03 provided Appendix IV to this Decree.

3. In case of hiring an organization with the function of consulting on determining land prices or assigning tasks to a public non-business unit with the function of the function of consulting on determining land prices, a land pricing certificate must be made using the Form No. 04 provided in Appendix IV to this Decree and sent to the natural resources and environment agency.

4. The natural resources and environment agency shall be responsible for checking the completeness of the content of the explanatory report on the development of the land price plan specified in Clause 2 of this Article; developing a draft proposal on the land price plan.

5. The natural resources and environment agency shall be responsible for submitting the land price plan dossier to the appraisal board for specific land prices. Such dossier must comprise:

a) Written request for appraisal of land price plan;

b) Draft proposal on land price plan;

c) Draft explanatory report on the development of the land price plan;

d) Specific land pricing dossier.”

14. To add Article 17b as follows:

“Article 17b. Appraisal boards for specific land prices

1. The competent People's Committee shall decide to establish an appraisal board for specific land prices that operates on a full-time or case-by-case basis in accordance with the actual situation in the locality, consisting of:

a) The Chairperson of the People's Committee, who will act as the chairperson of the board;

b) The head of the finance agency at the same level, who will act as deputy chairperson of the board;

c) The representative of the leader of finance agency, who will act as the permanent member of the appraisal board for specific land prices;

d) Representative leaders of natural resources and environment, construction, planning and investment, tax agencies at the same level, leaders of the People's Committee at the immediate lower level where the land is located and other members as decided by the competent People's Committee, the competent People's Committee may invite representatives of organizations with the function of consultancy on land price determination or experts on land prices to participate as board members.

The representative of an organization with the function of consultancy on land price determination participating in the board must be a person qualified to practice consulting on determining land prices according to regulations and not belong to an organization with the function of consultancy on land price determination that is hired to determine specific land prices. Land experts participating in the board must be those with at least 5 years of experience working in one of the fields of land finance, price management, land management, price appraisal and not belong to agencies specified at this Point.

2. The finance agency shall be the standing agency of the appraisal board for specific land prices.

3. Based on the actual situation in the locality, the chairperson of the board shall decide to establish a supporting team of the appraisal board for specific land prices (if necessary), including: representative of the finance agency at the same level as the head; representatives of natural resources and environment, construction, planning and investment, tax agencies at the same level and other members as decided by the chairperson of the board.

The chairperson of the board shall manage the operations of the supporting team of the appraisal board for specific land prices. The supporting team shall be responsible for preparing the assigned content to propose and report to the appraisal board for specific land prices for consideration at the land price plan appraisal meeting. Funding for the operations of the appraisal board for specific land prices and its supporting team shall be guaranteed by the state budget according to current budget decentralization; and shall be arranged in the annual budget estimates of the finance agency and used in accordance with law.

4. Operational sequence of the appraisal board for specific land prices

a) Within 03 working days from the date of receiving the land price plan, the standing agency of the board shall send the document and attached land price plan dossier to the board members for comments;

b) Within 05 working days from the date of receiving the land price plan, the board members must send their written comments to the standing agency of the board;

c) Within 15 working days from the date of sending the document soliciting opinions of the board members on the land price plan, the board’s standing agency shall synthesize the board members’ comments and report to the chairperson of the board on the organization of the board meetings;

d) Within 10 working days from the date of receiving the report from the standing agency of the board, the chairperson of the board shall decide to organize a meeting to appraise land prices;

dd) The land price appraisal meeting shall be held when at least two-thirds (2/3) of the board members attend the meeting, including the chairperson of the board or deputy chairperson of the board in case of obtaining the chairperson of the board’s authorization, representative of the standing agency of the board; representatives of natural resources and environment agency and land valuation unit;

e) The appraisal board for specific land prices shall work independently, objectively, according to a collective regime, and decide by majority; publicly discuss and approve land price appraisal meeting minutes by voting. The board shall conclude according to the opinion of the majority of the board members presenting, voting and approving at the meeting. In case of equal opinions, the side with the vote of the chairperson of the board or the deputy chairperson of the board, in case authorized by the chairperson of the board, shall have the deciding opinion. Members of the board have the right to reserve their opinions if they do not agree with the conclusions decided by the board.

5. The appraisal board for specific land prices shall appraise the land price plan according to the following contents:

a) Completeness and validity of land pricing dossier;

b) Compliance with land pricing principles;

c) Decision on the application of land pricing methods proposed by the land valuation unit;

d) Conformity in the adjustment ratio of factors affecting land prices between the comparable parcel and the land parcel to be priced in case of applying the comparison method; conformity in terms of sales time, sales start time, sales rate, fill rate, fluctuation of transfer price, rental price, construction period, construction progress, advertising costs, sales costs, operation management costs, investor profits, and popular actual costs of similar projects in the case of applying the surplus-based method;

dd) The suitability, legality, and completeness of the information collected.

6. The standing agency of the appraisal board for specific land prices shall send documents appraising the land price plan and minutes of the meeting of the appraisal board for specific land prices to the natural resources and environment agency for completion of the land price plan submitted to the People's Committee at the same level for decision.”

15. To add Article 17c as follows:

“Article 17c. Completing the land price plan dossier and submitting it to the competent People's Committee for decision

1. After receiving the appraisal document and minutes of the meeting of the appraisal board for specific land prices agreeing with the land price plan, the natural resources and environment agency shall submit the land price plan dossier to the People's Committee at the same level for decision.

In case the appraisal document of the appraisal board for specific land prices specifically requires modification and completeness to the land price plan, the natural resources and environment agency shall request the land valuation unit to receive, explain and complete the explanatory report on the development of the land price plan and land pricing certificate; complete the land price plan dossier at the request of the appraisal board for specific land prices before submitting to the People's Committee at the same level for decision.

2. The natural resources and environment agency shall be responsible for storing all specific land price determination results in the locality. The provincial-level Department of Natural Resources and Environment shall synthesize and report to the Ministry of Natural Resources and Environment on specific land price determination results in the locality before January 5 every year.”

16. To repeal Article 18.

17. To amend and supplement Clause 2 Article 20 as follows:

“2. Individuals may practice consultancy on land price determination in organizations with the function of consultancy on land price determination in any of the following cases:

a) Having the land pricing certificate granted in accordance with the land law;

b) Possessing a price appraiser card granted in accordance with the law on prices.”

Article 2. Supplementing and repealing a number of phrases of Decree No. 10/2023/ND-CP dated April 3, 2023, amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law

1. To add the phrase “or many land parcels to implement a land-using investment project” after the phrase “for each land parcel” at Point c Clause 3 Article 17a of Decree No. 43/2014/ND-CP, which was amended and supplemented under Clause 3 Article 1 of Decree No. 10/2023/ND-CP.

2. To amend and supplement Clause 9 Article 1 as follows:

“Article 68a. Conditions and criteria for repurposing of land for rice cultivation, land for protection forests and land for special-use forests for implementation of investment projects

1. The investment policy has been approved or the investment registration certificate has been granted for the concerned project in accordance with the investment law.

2. The concerned project complies with the district-level land-use master plan and is included in the approved district-level annual land-use plan in accordance with law.

3. The project owner has a plan on planting of replacement forests or a document proving its/his/her fulfillment of the obligation to pay for the planting of replacement forests in accordance with the law on forestry, in case of repurposing of land for protection forests or land for special-use forests; or the project owner has a plan on use of the surface land area in accordance with the law on crop production, in case of repurposing of paddy land.

4. The preliminary environmental impact assessment or environmental impact assessment (if any) is conducted in accordance with the law on environmental protection.

5. Agencies or persons competent to appraise or approve the policy on repurposing of land for protection forests, land for special-use forests and paddy land shall take responsibility only for the contents specified in Clauses 2 and 3 of this Article and are not required to take responsibility for other contents which were previously appraised, accepted, decided, approved or processed by other competent agencies or persons.”

Article 3. Transitional provisions

1. In case the land price plan is submitted by the natural resources and environment agency to the People's Committee competent to decide the specific land prices before the effective date of this Decree, the competent People's Committee shall decide specific land prices according to the submitted plan; the provisions of this Decree shall not be applied.

2. In case the decision on allocating land, leasing land, or allowing the change of land use purpose, or change from land lease with annual payment to land lease with one-off payment for the entire lease period, extension or adjustment of land use term, adjustment of the detailed master plan in accordance with the land law and other relevant laws, that are not subject to recovery by the State due to violation of land law, is issued before the effective date of this Decree but the specific land price has not been decided:

a) In case of land allocation or land lease in accordance with the Land Law No. 24-L/CTN, Land Law No. 13/2003/QH11 and guiding documents in which the land has actually been handed over by competent State agencies before January 1, 2005, the land price to calculate land use levy and land rental shall apply the 2005 land price table issued by the provincial-level People’s Committee.

b) In case of land allocation or land lease in accordance with the Land Law No. 24-L/CTN, Land Law No. 13/2003/QH11 and guiding documents in which the land has actually been handed over by competent State agencies during the period between January 1, 2005 and the effective date of this Decree, the land price shall be determined at the time of actual handover of the land.

c) In case the decision on allocating land, leasing land, or allowing the change of land use purpose, or change from land lease with annual payment to land lease with one-off payment for the entire lease period, extension or adjustment of land use term, adjustment of the detailed construction master plan (hereinafter referred to as the decision) in accordance with the Land Law No. 45/2013/QH13 and guiding documents has been issued, but the competent agency has not submitted to the competent People's Committee the land price plan, the land price shall be determined at the time of issuance of such decision.

d) The determination of specific land prices for the cases specified at Points b and c of this Clause is not subject to the application of the land price adjustment coefficient method in accordance with the law on land prices before the effective date of the Decree shall comply with the comparison method, income-based or surplus-based method as prescribed in this Decree.

dd) The additional amount of money the land user must pay for the period on which the land use levy or land rental has not yet been calculated for the cases specified at Points a, b and c of this Clause shall comply with the Government’s Decrees on land use levy and land rental collection.

3. The competent People's Committee shall organize to review the cases specified at Points a, b and c Clause 2 of this Article for determining land prices.

Article 4. Implementation provisions

1. This Decree takes effect on the date of its signing.

2. To repeal Clause 4 Article 3 of the Government’s Decree No. 01/2017/ND-CP dated January 6, 2017, amending and supplementing a number of decrees detailing the implementation of the Land Law.

3. To repeal provisions on the cases of applying the land price adjustment coefficient specified at Point c Clause 3 Article 3, Point b Clause 1 Article 4 of the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy; Clause 5 Article 4, Point a Clause 4 Article 12 of the Government Decree No. 46/2014/ND-CP dated May 15, 2014, on collection of land rental and water surface rental; Clause 1 Article 2, Clause 1 Article 3 of the Government's Decree No. 135/2016/ND-CP dated September 9, 2016, amending and supplementing a number of articles of the decrees on collection of land use levy, land rental and water surface rental; Clause 1 Article 3 of the Government's Decree No. 123/2017/ND-CP dated November 14, 2017, amending and supplementing a number of articles of the Decrees on collection of land use levy, land rental and water surface rental.

4. To repeal Clause 1 Article 2 of the Government’s Decree No. 136/2018/ND-CP dated October 5, 2018, amending certain Decrees providing for regulatory requirements for trade and investment in the environment and natural resource sector.

Article 5. Implementation responsibilities

Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of People’s Committees of provinces and centrally-run cities, relevant organizations and individuals shall implement this Decree./.

* All Appendices are not translated herein.