Decree 71/2024/ND-CP prescribing land prices

DECREE

Prescribing land prices

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Pursuant to the Law on Organization of the Government dated June 19, 2015, and 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 January 18, 2024;

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

The Government promulgates the Decree prescribing land prices.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides regulations on methods of land valuation specified in Article 158; development, adjustment, modification and supplementation of land price lists specified in Article 159; determination of specific land prices specified in Article 160; conditions for practicing consultancy on land price determination specified at Point b Clause 3 Article 162; application of land valuation methods in transitional cases specified at Point c Clause 2 Article 257 of the Land Law.

Article 2. Subjects of application

1. Agencies performing the state management of land; agencies in charge of developing, adjusting, modifying, supplementing, appraising and deciding land price lists; agencies and persons competent to determine, appraise and decide specific land prices.

2. Land price determination consultancy organizations, individuals practicing consultancy on land price determination.

3. Other related organizations and persons.

Article 3. Interpretation of terms

In this Decree, the terms and phrases below are construed as follows:

1. Transfer on the market means the transfer of land use rights or the transfer of land use rights and land-attached assets when procedures on taxes, fees and charges have been carried out at the tax office, or registration of land information changes has been carried out at land registration office or a transfer contract between the owner of a real estate or commercial housing project and the customer has been signed in accordance with law.

2. Land area to be valuated means a collection of land parcels in the same area or land-using project that need to be valuated.

3. Comparable land parcel means a land parcel with the same land use purpose, certain similarities in factors affecting land price with the land parcel to be valuated that has been transferred on the market, won the land use rights auction in which the auction winner has fulfilled the financial obligations according to the auction winning decision.

4. Land valuation organization means an organization providing land valuation consultancy services as prescribed in Clause 3 Article 162 of the Land Law, that is hired or assigned by the agency with land management function to provide land valuation consultancy services.

Chapter II

METHODS OF LAND VALUATION

Article 4. 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 valuated, including:

a) Land use purpose;

b) Factors affecting land prices as prescribed in Article 8 of this Decree.

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

a) Input information for land valuation, including land prices in successful transactions in the market, winning prices in auctions of land use rights after financial obligations specified at Points a, b and c Clause 3 Article 158 of the Land Law are fulfilled;

b) Information specified at Point a of this Clause, which is collected from the following sources: National land database, national database on prices; Land Registration Office; unit organizing the auction of land use rights, unit and organization involved in asset auction; real estate transaction floors, real estate enterprises; information collected through investigation and survey;

c) Factors affecting land prices as prescribed in Article 8 of this Decree.

3. The selection of information about comparable parcels shall be carried out according to the following order of priority:

a) Information collected at the time closest to the time of land valuation.

In case there are many different sources of information at the same time, priority shall be given to selecting information sources in the following order: National land database, national database on prices; Land Registration Office; unit organizing the auction of land use rights, unit and organization involved in asset auction; real estate transaction floors, real estate enterprises; information collected through investigation and survey;

b) Sharing certain similarities in land price-affecting factors with the land parcel;

c) 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 and district level within provincial-level administrative units. In case of expanding the scope of information collection beyond the provincial-level administrative units, the land valuation organization must specifically explain the reason in the explanatory report on the development of the land price plan for the appraisal council for land prices for consideration and decision.

4. In case the comparable parcel has assets attached to the land, the value of land-attached assets (if any) of the comparable parcel shall be determined as follows:

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

The value of land-attached assets at the time of successful transfer or winning of auction of the land use rights shall be determined as follows:

The method of calculating the new construction value and the depreciation value of land-attached assets shall be carried out in accordance with specialized laws. In case there are no regulations or instructions on the method of calculating the value of new construction and the value of depreciation, 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 value of land-attached assets at the time of successful transfer or winning of auction of the land use rights shall be the exploitation value calculated based on income from harvesting the products corresponding to the remaining years in the harvest cycle or determined according to the compensation unit price for perennial plants issued by the provincial-level People's Committee.

For planted forests, the value of land-attached assets at the time of successful transfer or winning of auction of the land use rights shall comply with specialized laws. In case where no regulations are available, the 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 successful transfer or winning of auction of the land use rights, or determined according to the compensation unit price for planted forests issued by the provincial-level People's Committee.

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

6. Based on the factors affecting land prices specified in Article 8 of this Decree and the characteristics of the land plot or land parcel that needs to be valuated, the price adjustment of the comparable parcel according to percentage (%) shall be carried out on the following principles:

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

b) In case there is a factor that affects the land price of the comparable parcel in a way that reduces the land price compared to that of the land parcel to be valuated, the price of the comparable parcel shall be increased (plus) according to that factor. In case there are factors that affect the land price of the comparable parcel in a way that increases the land price compared to that of the land parcel to be valuated, the land price of the comparable parcel shall be decreased (minus) according to that factor;

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

7. The estimated land price of the land parcel to be valuated shall be determined by adjusting the land price of each comparable parcel due to different factors of comparable parcels compared to the land parcel to be valuated as follows:

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

9. The determination of land prices using comparison method is detailed in example No. 01 of Appendix II to this Decree.

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

1. Surveying and collecting income-related information of the land parcel or land plot that needs to be valuated

a) For non-agricultural land, information shall be surveyed and collected from land leases and ground leases for a period of 3 consecutive years (from January 1 to December 31) preceding the time of valuation of the land plot or parcel to be valuated or within 1 year from January 1 to December 31) preceding the valuation time of 3 land parcels with the closest distance to the land plot or parcel to be valuated for comparison.

In case of failing to collect information from land lease or ground lease, information on income from production and business activities recorded in financial statements for a period of 3 consecutive years (from the date January 1 to December 31) preceding the valuation time of the land plot or parcel to be valuated or in the financial statements of one year preceding the valuation time of 3 land parcels with the closest distance to the land plot or parcel to be valuated, shall be collected;

b) For agricultural land, information on income from the use of agricultural land at the statistical agency, tax office, or agricultural and rural development agency shall be surveyed and collected. To be specific:

- During a period of 3 consecutive years (calculated from January 1 to December 31) preceding the valuation time of the land for cultivation of annual crops, land for aquaculture, land for salt production, and other agricultural land;

- At least 3 consecutive harvests before the valuation time for land for cultivation of perennial trees;

- During an exploitation cycle before the time of valuation of the land for production forests in accordance with relevant laws.

In case data from statistical agency, tax office, or agricultural and rural development agency is unavailable, information on actual income popular in the market of 3 land parcels with the closest distance to the land plot or parcel to be valuated shall be collected.

2. Surveying and collecting cost-related information of the land parcel or land plot that needs to be valuated

a) For non-agricultural land

Costs to generate income from land use specified at Point a Clause 1 of this Article are costs of operating and maintaining construction works attached to land, and production costs that are determined according to norms and unit prices issued by competent state agencies; taxes related to land use.

In case competent state agencies have not yet issued norms or unit prices for costs to generate income from the use of land, information on costs stated in financial statements shall be collected. In case the financial statements fail to clearly specify costs to generate income from the use of land, the costs generating income from the use of land actually popular in the market shall be surveyed.

b) For agricultural land

Costs from the use of agricultural land include taxes relating to land use rights, production costs shall be based on the norms and unit prices issued by competent state agencies at statistical agencies, tax offices, or agricultural and rural development agencies, and shall comply with Point b Clause 1 of this Article.

In case data from statistical agency, tax office, or agricultural and rural development agency is unavailable, information on actual costs popular in the market of 3 land parcels with the closest distance to the land plot or parcel to be valuated shall be collected.

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

In which:

a) Average annual income is the average of the income specified in Clause 1 of this Article over a period of 1 year. In case where income is determined from land lease or ground lease of 3 land parcels, the land rental and ground rental for calculation of the average annual income shall be determined in the order and content as same as land valuation using the comparison method specified in Clauses 6, 7 and 8 Article 4 of this Decree;

b) Average annual cost is the average of the cost specified in Clause 2 of this Article over a period of 1 year.

4. The land use right value of the land parcel to be valuated 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 (hereinafter referred to as state-owned commercial banks) for 03 consecutive years up to the end of the latest quarter with data before the valuation 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 valuated (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 valuated shall be determined as follows:

In cases where the land parcel to be valuated has been invested and built with land-attached construction works serving production and business for generating income, after determining the value of the land parcel and land-attached works, it is necessary to minus the value of land-attached works in accordance with Point a Clause 4 Article 4 of this Decree.

6. Within 5 working days from the date of receiving the written request from the agency with land management function, state-owned commercial banks shall provide in writing information about average savings deposit interest rate specified in Clause 4 of this Article.

7. The determination of land prices using income-based method is detailed in example No. 02 of Appendix II to this Decree.

Article 6. 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 valuated; information on land use master plan, detailed construction master plan or general site master plan, dossiers and documents as prescribed by the law on construction appraised and approved by competent state agencies to determine the most land use efficiency, and other necessary information serving the land valuation.

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, land and ground rentals, product and service business prices, fluctuations in transfer prices, land and ground rentals, product and service business prices during the project implementation period and other factors that generate revenue, including sales time; time to start selling and trading products and services; sales rate; fill rate.

Product and service business prices shall be applied in cases where transfer prices, land and ground rentals cannot be collected;

b) Surveying and collecting information about transfer prices, land and ground rentals; product and service business prices.

Information on selling prices of houses, apartments, construction works, part of construction works, and land prices shall be collected in accordance with Clauses 2 and 3 Article 4 of this Decree; information on land and ground rentals shall be collected through land and ground lease contracts; information on product and service business prices shall be collected through investigation and survey of projects with similar product and service business forms that are closest to the land plot or parcel to be valuated;

c) The transfer price, land and ground rentals, product and service business prices 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 valuated that has been invested and built according to the approved detailed construction master plan or general site master plan;

d) The fluctuations in transfer prices, land and ground rentals, product and service business prices shall be determined based on data of statistical agencies or real estate market management agencies. In case where data of statistical agencies or real estate market management agencies is unavailable:

In case of determining the fluctuations in transfer prices, the consumption criteria for house and construction material groups for 3 consecutive years preceding the time of land valuation as announced for applying in provincial-level administrative units by competent state agencies shall be based on. In case the locality fails to announce the consumption criteria for house and construction material groups, the consumption criteria for house and construction material groups of the whole country shall be used as the basis for determining the fluctuations in transfer prices;

In case of determining the fluctuations of land and ground rentals, the fluctuations shown in land or ground lease contracts shall be based on. In case of determining the fluctuations of product and service business prices, actual data in the market surveyed, investigated and proposed by land valuation organizations shall be used as basis for appraisal councils for land prices for decision;

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 sales rate and fill rate for application no later than January 1, 2025. In case of necessity, the provincial-level People’s Committee shall make adjustment to suit the actual situation of the locality.

During the period in which the provincial-level People's Committee has not yet regulated the sales rate and fill rate, the land valuation organization shall, based on actual data of 3 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valuated, propose in the explanatory report on the development of the land price plan for each project for the appraisal council for land prices for consideration and decision.

For sales time, the time to start selling and trading products and services, the progress determined in the investment policy or bidding dossiers for implementation of the investment project or decision of approval of investment projects shall be based on to estimate the project's development revenue. In cases in the documents on investment policies or bidding for implementation of the investment project or decision of approval of investment projects, the sales time and start time of sales have not yet been determined, the provincial-level People's Committee shall prescribe regulations appropriate to the actual situation in the locality for groups of projects with the same main land use purpose or each specific project for application, or the land valuation organization shall, based on actual data of 3 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valuated, propose the appraisal council for land prices for consideration and 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 works and items of the project (taking into account contingency costs for price inflation factors);

- Costs for building temporary and auxiliary works and items, serving construction; costs for demolition of construction works that are not within the scope of site clearance demolition work determined in compensation, support, and resettlement costs;

- Equipment costs;

- Project management expenses

- Construction investment consultancy expenses;

- Other costs as prescribed by the law on constructions, that directly contribute to the development revenue of the project, are selected by the land valuation organization for each specific project and proposed to the appraisal council for land prices for consideration and decision.

In case of applying investment capital rate, the law on construction investment capital rate shall be complied with.

In case of determining the land price for a sea reclamation project or sea reclamation item in an investment project, in addition to the sea reclamation costs approved by the competent state agency, construction investment costs in this Point, which have not yet been identified in the sea reclamation project or sea reclamation item in the approved investment project, will also be included.

In case the land plot or land parcel that needs to be valuated 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: Marketing, advertising, sales and operating management costs, calculated as a percentage (%) of revenue appropriate to characteristics and scale of the project and actual conditions in the locality;

c) Interest costs and profits of investors taking into account equity and business risks shall be calculated as a percentage (%) multiplied by the total costs specified at Points a and b of this Clause and the use right value of the land plot or land parcel to be evaluated under Clause 6 of this Article;

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 authority; The refund of compensation, support and resettlement expenses that investors have voluntarily advanced shall comply with Clause 2 Article 94 of the Land Law;

dd) Based on information about similar projects in the valuation area or the nearest neighboring area, 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 to specifically stipulate percentages to determine business expenses; interest costs, investor profits taking into account equity, business risks for project groups with the same main land use purpose or each specific project for application no later than January 1, 2025. In case of necessity, the provincial-level People’s Committee shall make adjustment to suit the actual situation of the locality.

During the period on which the provincial-level People’s Committee does not stipulate business expenses, such expenses shall be determined by the average of 03 investment projects with the same main land use purpose with the closest distance to the land plot or parcel to be valuated.

During the time on which the provincial-level People's Committee has not yet stipulated the percentage to calculate interest costs and investors' profits, taking into account equity and business risks, the land valuation organization shall propose in the explanatory report on the development of the land price plan for each project for the appraisal council for land prices for consideration and decision.

For the construction time and construction progress, the progress determined in the investment policy or bidding dossiers for implementation of the investment project or decision of approval of investment projects shall be based on to estimate the project's development expenditures. In cases in the documents on investment policies or bidding for implementation of the investment project or decision of approval of investment projects, the construction time and construction progress have not yet been determined, the provincial-level People's Committee shall prescribe regulations appropriate to the actual situation in the locality for groups of projects with the same main land use purpose or each specific project for application, or the land valuation organization shall, based on actual data of 3 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valuated, propose the appraisal council for land prices for consideration and decision.

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

a) Construction investment costs shall be estimated according to the detailed construction master plan or general site master plan or basic design dossier or construction design dossier appraised and approved by a competent agency. Construction investment costs specified at this Point shall be estimated 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 appraised or verified by a consulting agency. Independent appraisal or verification consulting agencies and organizations shall take responsibility before the law for the appraisal or verification results of the construction estimates they have implemented;

- Construction investment ratio announced by the Ministry of Construction;

c) In case the grounds specified at Point b of this Clause are unavailable, the land valuation organization shall collect information about the common actual costs of 3 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valuated, to propose in the explanatory report on the development of the land price plan for use as a basis for the appraisal council for land prices for consideration and decision.

5. Estimates of revenues and costs shall be made for each year of project implementation and must be discounted to the current value at the time of land valuation. 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 cost = 

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) in VND applicable to real estate business and investment projects of stated-own commercial banks of the preceding year up to the end of the most recent quarter with data before the valuation time;

- n is the number of sales years of the project (rounded years);

- m is the number of years of construction and incurred costs of the project (rounded years).

6. Determining the price of the land plot or land parcel to be valuated

The land use right value of the land plot or land parcel to be valuated shall be determined according to the following formula:

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

7. In case the land area has land area allocated with land use levy (hereinafter referred to as allocated land), and leased land area with one-off payment of land rental for the remaining lease period (hereinafter referred to as leased land, the price of the land parcel to be valuated 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 each allocated or leased land area shall be allocated according to the following formula:

In which: Total technical infrastructure construction cost of the project determined in construction investment cost specified in Clause 3 of this Article shall comply with the law on construction.

8. In case the land parcel or land plot to be valuated is allocated or leased by the competent state agency for the implementation of investment projects under many decisions:

a) In case there are full conditions to calculate the development revenue and development costs of the land plot or land parcel, the estimated development revenue and estimated development costs shall be determined according to the allocated or leased land area of that decision;

b) In case the development revenue of the land plot or parcel cannot be fully estimated or the estimated development cost is greater than the estimated development revenue for the area requiring land valuation, the determination of estimated development revenue and estimated development cost shall be made for the entire project according to the detailed construction master plan or general site master plan approved by the competent agency.

9. Within 5 working days from the date of receiving the written request from the agency with land management function, state-owned commercial banks shall provide in writing information about medium-term loan interest rate specified in Clause 5 of this Article.

10. The determination of land prices using surplus-based method is detailed in example No. 03 of Appendix II to this Decree.

Article 7. Order and procedures for determining the land prices by the land price adjustment coefficient method

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

2. Surveying and collecting information about land price in accordance with Points a, b and c Clause 3 and Clause 4 Article 158 of the Land Law, for each land location and area.

In case the land parcel selected for information collection 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 Clause 5 Article 4 of this Decree.

3. Determining the market land price of each land location and area:

a) Making statistics of land prices collected by each land location and area;

b) In case land prices are collected for each land location or area where many land parcels have certain similarities in land price, if there are cases where the land price is too high or too low compared to the general level, the information about this land price will be removed before determining the market land price;

c) The market land price of each land location and area shall be determined by taking the arithmetic average of the land prices at that land location and area.

4. Determining the land price adjustment coefficient

The land price adjustment coefficient shall be determined for each land type and location by dividing the market land price by the land price in the land price list at that land location or area.

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

Article 8. Land price-affecting factors

1. Land price-affecting factors, for non-agricultural land, include:

a) Location of land plot or land parcel;

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) Land use term;

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

2. Land price-affecting factors, for agricultural land, include:

a) Crop and livestock productivity;

b) Location and characteristics of land plot or land parcel: closest distance to the place of production and consumption of products;

c) Traffic conditions serving production and product consumption: width, road grade, road surface structure; terrain conditions;

d) Land use term, except 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;

dd) Other factors affecting land prices consistent with reality, cultural traditions, and local customs and practices.

3. 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 factors affecting land prices and the maximum difference level of each factor affecting land prices to determine a certain level of similarity, and adjustment method for each level of difference in each land price-affecting factor.

In case the provincial-level People's Committee fails to provide land price-affecting factors, or provide insufficient land price-affecting factors, the maximum difference of each factor affecting land prices, and the method of adjustment for each level of difference in each factor affecting land prices, the land valuation organization shall specifically propose in the explanatory report on the development of the land price plan for the appraisal council for land prices for consideration and decision.

Article 9. Application of land valuation methods of the cases specified at Point c Clause 2 Article 257 of the Land Law

1. In case of land allocation with land use levy payment, land lease with one-off land rental payment for the entire lease period, according to regulations at the time of decision issuance, the price adjustment coefficient method is applied, and in case of land lease with annual land rental payment, the land price list multiplied by the land price adjustment coefficient at the time of decision issuance shall be applied. In cases where the decision is issued during the period of between July 1, 2014, and December 31, 2014, the land price adjustment coefficient method is applied at the time of decision issuance and in the case of land lease with annual land rental payment, the land price list at the time of decision issuance multiplied by the land price adjustment coefficient in 2015 shall be applied.

2. In case of land allocation with land use levy payment, land lease with one-off land rental payment for the entire lease period, according to regulations at the time of decision issuance, the price adjustment coefficient method is not applied, methods specified at Points a, b and c Clause 5, Points a, b and c Clause 6 Article 158 of the Land Law and Articles 4, 5 and 6 of this Decree shall be applied.

3. In case of land allocation or land lease according to the compensation, support and resettlement schedule, provisions of Clauses 1 and 2 of this Article shall be used as a basis for applying land valuation methods according to each decision.

4. For the cases specified in Clause 3 of this Article where the surplus-based method is applied to determine land prices:

a) In case there are full conditions to estimate the development revenue and development costs of the land plot or land parcel, the estimated development revenue and estimated development costs shall be determined according to the allocated or leased land area of that decision;

b) In case the development revenue of the land plot or parcel cannot be fully estimated or the estimated development cost is greater than the estimated development revenue for the area requiring land valuation, the determination of estimated development revenue and estimated development cost shall be made for the entire project according to the detailed construction master plan or general site master plan approved by the competent agency.

5. The land valuation using surplus-based method for the cases specified in Clause 4 of this Article is detailed in example No. 04 of Appendix II to this Decree.

Article 10. Responsibilities of agencies and units in information provision

Agencies, organizations and units assigned to manage, exploit and use information sources specified at Point b Clause 2 Article 4 and Point b Clause 1 Article 5 of this Decree shall be responsible for providing information in writing or using electronic methods to serve the land valuation within 5 working days from the date of receiving the land valuation organization's written request.

Chapter III

LAND PRICE LIST

Section 1

GENERAL PROVISIONS

Article 11. Grounds for development, adjustment, modification and supplementation of the land price list

The development, adjustment, modification and supplementation of the land price list must comply with Article 158 of the Land Law, and Articles 4, 5, 6 and 7 of this Decree; results of synthesis and analysis of information on market land prices; results of implementing the current land price list; natural, socio-economic, land management and use factors, land price-affecting factors.

Article 12. Contents of development, adjustment, modification and supplementation of the land price list

1. Specific regulations on prices for different types of land:

a) The price of land for cultivation of annual crops including land for paddy and land for cultivation of other annual crops;

b) The price of land for perennial trees;

c) The price of land for production forests;

d) The price of land for aquaculture;

dd) The price of land for salt production;

e) The price of rural residential land;

g) The price of urban residential land;

h) The price of land for industrial parks and industrial clusters;

i) The price of commercial or service land;

k) The price of land for non-agricultural production establishments;

l) The price of land used for mineral activities;

m) The price of land types in high-tech zones;

n) The price of other types of land under land classification specified in Article 9 of the Land Law, that has not been regulated from Points a thru m of this Clause according to local management requirements.

2. Determination of land prices for some other types of land in the land price list:

a) For land for protection forests and special-use forests, land price levels shall be determined based on the price of land for production forests in the surrounding area;

b) For land for livestock production and other types of agricultural land, land price levels shall be determined based on the price of agricultural land in the surrounding area;

c) For land used for public purposes with business purposes and other non-agricultural land, land price levels shall be determined based on the land price of non-agricultural production establishments in the surrounding area;

d) For land for construction of working offices, land for construction of non-business facilities; land used for public purposes without business purposes, land for religious activities, land for belief activities; land for cemeteries, funeral homes and cremation facilities; land for columbaria, land price levels shall be determined based on prices of land for the same use purposes in the surrounding area. In case the land price list does not stipulate the price for the type of land for the same use purpose, the land price level shall be determined based on the price of the residential land in the surrounding area;

dd) For land with rivers, streams, canals, springs and special-use water surface, the land price level shall be determined based on the purpose of use;

3. The land price in the land price list for land for definite-term use shall be calculated corresponding to the land use term of 70 years; except 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.

Article 13. Preparation for development of the land price list

The preparation for development of the land price list for the first time for announcement and application from January 1, 2026, shall be as follows:

1. The provincial-level Department of Natural Resources and Environment shall make a project for development of land price list, which includes the contents, time, progress, estimated implementation costs, and relevant contents.

2. The provincial-level Department of Natural Resources and Environment shall prepare a dossier for appraisal of the project for development of land price list and submit it to the provincial-level Department of Finance; the latter shall appraise it and send the written appraisal of the dossier of project for development of land price list to the provincial-level Department of Natural Resources and Environment. Such a dossier for appraisal of the project for development of land price list must comprise:

a) A written request for appraisal of the project for development of land price list;

b) A draft project for development of land price list;

c) A draft request for approval of the project;

d) The provincial-level People’s Committee’s draft decision on approval of the project.

3. The provincial-level Department of Natural Resources and Environment shall receive and complete appraisal opinions, and submit the dossier of project for development of land price list to the provincial-level People’s Committee. Such a dossier of project for development of land price list must comprise:

a) The project to develop land price list after receiving and completing appraisal opinions;

b) A written request for approval of the project;

c) The provincial-level People’s Committee’s draft decision on approval of the project;

d) A written appraisal of the dossier of project for development of land price list.

4. The provincial-level People’s Committee shall direct departments, sectors, district-level People’s Committees, Management Boards of economic zones and hi-tech parks (if any) to develop the land price list.

5. The provincial-level Department of Natural Resources and Environment shall select land valuation organization to develop the land price list in accordance with the bidding law. If at the time of bid closing, no contractor attends the bidding, once time extension shall be applied. After extension period, if no contractor is selected, the provincial-level Department of Natural Resources and Environment shall assign the task to the public non-business unit qualified to provide consultancy on land valuation.

6. Establishment of land price list appraisal council and the council's assisting team:

a) The provincial-level Department of Finance shall submit to the provincial-level People’s Committee the composition of land price list appraisal council in accordance with Clause 1 Article 161 of the Land Law for appraisal of the draft land price list, including

representative of the land price determination consultancy organization participating in the council being a person qualified to practice consulting on land valuation as prescribed and not belonging to a land price determination consultancy organization that is hired to develop, adjust, modify and supplement the land price list;

Land experts participating in the council must be those with at least 5 years of experience working in one of the fields of land finance, price management, land management, and price appraisal.

b) The provincial-level Department of Finance shall submit the chairperson of the land price list appraisal council to decide on establishing the council’s assisting team, including representative of the leader of the provincial-level Department of Finance as the head; representatives of agencies with the functions of land management, construction, planning and investment, tax and other members as decided by the chairperson of the council. The assisting team shall be responsible for preparing the assigned contents to propose and report to the land price list appraisal council for consideration at the appraisal meeting.

Article 14. Order of and procedures for development of land price lists

The development of the land price list for the first time for announcement and application from January 1, 2026, shall be as follows:

1. The land valuation organization shall develop the land price list as follows:

a) Investigating, surveying, and collecting information serving the development of the land price list according to area and location. The development of land price list shall be made by land parcel based on value zone and standard land parcel;

b) Determining the type of land, area, and location of land in each commune, ward, and town for the area of which the land price list is developed by area and location; determining the type of land, the total number of land parcels, the number of land parcels of each land type for the area of which the land price list is developed by land parcel based on value zone and standard land parcel;

c) Synthesizing and completing dossiers of investigation, survey and information collection results at commune, district and provincial levels; analyzing and evaluating the results of implementing the current land price list for the development of land price lists by area and location;

d) Summarizing results of investigation, survey and information collection; setting value zone; selecting a standard land parcel and determining the price for the standard land parcel; preparing a comparison ratio table for developing a land price list for each land parcel on the basis of value zone and standard land parcel;

dd) Preparing the draft land price list and draft explanatory report on the development of the land price list.

2. The provincial-level Department of Natural Resources and Environment shall develop a draft proposal on promulgating the land price list; post dossiers for comments on the draft land price list on the websites of the provincial-level People's Committee and the provincial-level Department of Natural Resources and Environment within 30 days; collect written opinions on the draft land price list from the provincial-level Vietnam Fatherland Front Committee, member organizations of the Front, tax agencies, state notary organizations, and land price determination consultancy organizations; receive and complete the draft proposal on promulgating the land price list; direct the land valuation organization to receive and explain comments, complete the draft land price list and explanatory report on the development of the land price list.

3. The provincial-level Department of Natural Resources and Environment shall submit the dossier for appraisal of land price list to the land price list appraisal council; the latter shall appraise the land price list and send the written appraisal of land price list to the provincial-level Department of Natural Resources and Environment.

4. The provincial-level Department of Natural Resources and Environment shall organize to receive, explain, modify and complete the draft land price list according to the land price list appraisal council's opinions; submit it to the provincial-level People’s Committee.

5. The provincial-level People’s Committee shall submit to the People’s Council of the same level to decide on the land price list, publicize and direct to update it the national land database.

Article 15. Dossiers for collecting comments on the draft land price list, submitting to the land price list appraisal council, and submitting to the provincial-level People's Council for approval of the land price list

1. A dossier for collecting comments on the draft land price list must comprise:

a) A draft report on the promulgation of the land price list;

b) The draft land price list;

c) A draft explanatory report on the development of the land price list.

2. A dossier submitted for appraisal of land price list must comprise:

a) A report on the promulgation of the land price list;

b) The draft land price list;

c) An explanatory report on the development of the land price list;

d) A report on receiving and explaining comments on the draft land price list.

3. A dossier submitted to the provincial-level People’s Council for decision on land price list must comprise:

a) A report on the promulgation of the land price list;

b) The draft land price list;

c) An explanatory report on the development of the land price list;

d) A report on receiving and explaining comments on the draft land price list;

dd) The appraisal document on the land price list;

e) A report on receiving and explaining appraisal opinions of the land price list.

Article 16. Adjustment, modification and supplementation of the land price list

1. The land price list shall be submitted by the provincial-level People’s Committee to the People’s Council of the same level for adjustment, modification and supplementation on an annual basis for announcement and application from January 1 of the following year, or in the implementation year as follows:

a) Adjusting and modifying the land price of each land type in each area and location with fluctuations in the market, for the area where the land price list is developed by area or location; the land price of each land parcel with fluctuations in the market for the area where the land price list is developed by land parcel on the basis of value zone and standard land parcel;

b) Adding the land price not yet stipulated in the current land price list of each land type in each area and location with fluctuations in the market, for the area where the land price list is developed by area or location; of each land parcel, for the area where the land price list is developed by land parcel on the basis of value zone and standard land parcel;

c) Remaining the land price in the developed, adjusted, modified or supplemented land price list of each land type in each area and location without fluctuations in the market, for the area where the land price list is developed by area or location; the land price of each land parcel without fluctuations in the market for the area where the land price list is developed by land parcel on the basis of value zone and standard land parcel.

2. The order and procedures for amending, modifying and supplementing the land price list shall comply with Articles 13, 14 and 15 of this Decree.

3. For the cases where the land price list is applied, but at the time of land valuation, the land parcel or land plot to be valuated has not yet been regulated in the land price list, the provincial-level agency performing the state management of land shall, based on prices in the land price list of the area or location with similar infrastructure conditions, determine the land price for submission to the provincial-level People’s Committee for decision, except for the cases specified in Clause 3 Article 111 of the Land Law.

Article 17. Order of adjustment of a land price list applicable to the cases defined in Clause 1 Article 257 of Land Law

1. Provincial-level Departments of Natural Resources and Environment shall select a land valuation organization in accordance with Clause 5 Article 13 of this Decree.

2. Land valuation organizations shall adjust land price lists in accordance with Clause 1 Article 14 of this Decree.

3. Provincial-level Departments of Natural Resources and Environment shall be responsible for formulating draft Reports on issuance of land price list; organizing the collection of opinions from relevant agencies, organizations and individuals on the consultation dossier for the draft land price list; receiving opinions and completing the Reports on issuance of land price list; absorbing opinions of, giving explanations on issues about, and completing the draft land price list and the explanatory reports on the development of the land price lists.

4. Provincial-level Departments of Natural Resources and Environment shall submit them to Councils for appraisal of land price lists.

5. Councils for appraisal of land price lists shall appraise the land price lists and send their appraisal documents to provincial-level Departments of Natural Resources and Environment.

6. Provincial-level Departments of Natural Resources and Environment shall absorb opinions of, give explanations on issues about, modify and complete the draft land price lists, submit them to the provincial-level People's Committees for decision on adjustment of land price tables, complying with the dossier components defined in Clause 3 Article 15 of this Decree.

Section 2

LOCATION-BASED LAND PRICE LISTS

Article 18. Determination of area in development of land price lists

1. Types of land subject to determination of area in land price list include: agricultural land, rural residential land; rural trading and service land; non-agricultural production and business land that is not rural trading and service land; land for construction of working offices, land for construction of non-business facilities, land for public purposes and other types of rural non-agricultural land.

2. Area in development of land price lists shall be determined by each commune-level administrative unit and based on productivity, crops, livestock, distance to production and consumption places, traffic conditions serving production and consumption of products (for agricultural land); based on technical infrastructure conditions, social infrastructure, advantages for production and business; distance to political, economic and commercial centers in the region (for rural residential land; rural trading and service land; non-agricultural production and business land that is not rural trading and service land; land for construction of working offices, land for construction of non-business facilities, land for public purposes and other types of rural non-agricultural land) and carried out according to the following regulations:

a) Area 1 is the area with the highest profitability and the most favorable infrastructure conditions;

b) The following areas are areas with profitability lower and infrastructure conditions less favorable than the previous adjacent area.

Article 19. Information collection, survey and investigation

1. Collect information on natural elements, socio-economic factors, land management and use that affect land prices in communes, wards and townships, using Form No. 01 Appendix I issued together with this Decree.

2. Collect input information as prescribed in Points a and b, Clause 2, Article 4 of this Decree created within 24 months from the time of survey or earlier. For information arising at the same time, the selection of information sources shall comply with the following order of priority: National land database, national price database; land registration offices; units organizing the auction of land use rights, property auction units/organizations; real estate trading floors, real estate enterprises; information collected through investigation and survey.

3. Investigate, survey, and collect information on income and expenses to determine the land prices by the income-based method in cases the conditions for applying the comparison method are not fully satisfied, but income and expenses from land use according to the land use purpose can be determined.

4. The information collection, survey and investigation specified in Clause 2 and Clause 3 of this Article shall be carried out, using Form No. 02 to Form No. 03 of Appendix I issued together with this Decree. In addition to the investigation and survey contents specified in this Clause, provincial-level People's Committees may add other information to the investigation form to meet the requirements for developing local land price lists in the localities.

Article 20. Determination of land location in development of land price lists

1. Bases for determination of land location in development of land price lists

a) For agricultural land: Land locations in development of land price lists shall be determined by region and shall be as follows:

Location 1 is the location where the land parcels have the most favorable factors and conditions;

The other locations are locations where the land parcels have factors and conditions less favorable than the previous adjacent location.

b) For non-agricultural land: Land location shall be determined by roads, road sections, streets, street sections (for urban residential land, urban trading and service land, and non-agricultural production and business land that is not urban trading and service land), roads, road sections or areas (for types of non-agricultural land specified in Clause 1 Article 18 of this Decree) and based on the conditions of technical infrastructure, social infrastructure, advantages for production and business; distance to political, economic and commercial centers in the area as follows:

Location 1 is the location where the land parcels have the most favorable factors and conditions;

The other locations are locations where the land parcels have factors and conditions less favorable than the previous adjacent location.

2. Based on Clause 1 of this Article and the actual situation in the localities, provincial-level People's Councils shall prescribe specific criteria for determining the location for each type of land and the number of land locations in their land price lists. Provincial-level People's Councils are allowed to increase or decrease the price levels of land parcels and land areas with favorable or unfavorable factors in land use, respectively, as follows:

a) Provincial-level People's Councils may, based on local practical conditions, define higher price levels for trading and service land, non-agricultural production and business land that is not trading and service land having high profitability and advantages in being used as ground for production, business, trading and services; agricultural land in residential areas or within the administrative boundaries of wards;

b) Provincial-level People's Councils may, based on local practical conditions, increase or decrease the price levels for residential land parcels with more or less favorable factors affecting the land prices compared to residential land parcels at the same land location in the land price lists, respectively.

Article 21. Synthesis and completion of records on information collection, survey and investigation results in communes, wards and townships

1. Check and review all survey forms and determine the prices of land locations after collecting land price information specified in Article 19 of this Decree. The price of a land location shall be determined by taking the arithmetic average of the prices of the investigated and surveyed land parcels at the land location.

For land types of which there is no information on land prices specified in Clause 2 Article 19 of this Decree at one or several land locations, the prices of the remaining land locations shall be determined by the method of comparison, based on the land price in the current land price table and the determined prices of other land locations of such types of land.

The land price applicable to land types of which there is no information on land prices specified in Clause 2 Article 19 of this Decree shall be determined by the income-based method based on the information specified in Clause 3 Article 19 of this Decree.

2. Carry out the statistics on input land prices in communes, wards and townships, using the Form No. 04 of Appendix I issued together with this Decree and make reports on the situation and results of land price investigation in communes, wards and townships. A report must contain the following principal details:

a) General assessment of communes, wards and townships;

b) Assessment of the situation and results of land price investigation in communes, wards or townships; the situation of fluctuation and the level of fluctuation (increase or decrease) between the investigated land price and the price of the same type of land in the current land price list;

c) Proposal on the prices of land locations in communes, wards or townships.

3. Complete records information collection, survey and investigation results in communes, wards and townships. Such a dossier must comprise:

a) Commune-, ward- or township-related information collection form;

b) Land parcel-related information collection form;

c) Statistical table of land prices in commune, ward or township;

d) Report on the situation and results of land price investigation in commune, ward or township.

Article 22. Synthesis and completion of records on information collection, survey and investigation results at district and provincial levels; analysis and evaluation of results of the implementation of the current land price lists

1. Synthesize the results of  investigation and collection of land price-related information at the district level, using Form No. 05 thru Form No. 08 of Appendix I issued together with this Decree and prepare a report on the situation and results of land price investigation at the district level. A report must contain the following principal details:

a) Assessment of natural elements, socio-economic factors, land management and use that affect land prices at the district level;

b) Assessment of the situation and results of land price-related information collection and investigation; the situation of fluctuation and the level of fluctuation (increase or decrease) between the investigated land price and the price of the same type of land in the current land price list at the district level;

c) Proposal on the prices of land locations in districts.

2. Complete records land price-related information collection, survey and investigation results at district level. Such a dossier must comprise:

a) Summary table of land prices at the district level;

b) Report on the situation and results of market land price investigation at the district level.

3. Synthesize the results of  investigation and collection of land price-related information at the provincial level, using the Forms No. 09 thru Form No. 11 of Appendix I issued together with this Decree.

4. Analyze and assess the results of implementation of the existing land price table

a) Assessment of the situation of fluctuation and the level of fluctuation (increase or decrease) between the investigated land price and the price of the same type of land in the current land price list;

b) Assessment of regulations in the current land price list.

Article 23. Development of draft land price lists, draft explanatory reports on the development of the land price list by land location and area

1. Land price lists shall be developed by area and land location, using the Forms No. 12 thru Form No. 15 of Appendix I issued together with this Decree.

2. An explanatory report on the development of the land price list by area and location must comprise the following detailed contents:

a) Assessment of natural and socio-economic conditions, situation of land management and use that affect land prices at the provincial level;

b) Assessment of the situation and results of investigation and collection of land price-related information at the provincial level; results of implementation of current land price list;

c) Assessment of the suitability or unsuitability of land prices defined in the draft land price list compared to the results of the land price survey;

d) Regulations on land locations and areas; application of land valuation methods and prices of land types in the draft land price list; land price plans for land types (if any);

dd) Assessment of the impact of the draft land price list on the socio-economic situation, investment environment, implementation of financial policies on land and income, life of households, individuals and organizations using land.

Section 3

LAND PRICE LISTS FORMULATED BY

SEPARATE LAND PARCELS BASED ON VALUE ZONES AND STANDARD LAND PARCELS

Article 24. Conditions for areas of development of land price lists for separate land parcels based on value zones and standard land parcels

An area subject to development of land price list for separate land parcels based on value zones and standard land parcels must meet the following conditions:

1. Have a digital cadastral map that is adjusted and updated when there are changes in shape, size or area of land parcels and other factors related to contents of cadastral maps and, at the same time, updated to the national land database in accordance with the law on cadastral maps.

2. Have a land price database, including: land prices stated in land use rights transfer contracts; winning bids in auctions of land use rights after financial obligations are fulfilled; information on land prices collected via survey and investigation within 24 months prior to the time of land valuation.

Article 25. Investigation, survey, collection and synthesis of information

1. Collect the information on natural elements, socio-economic factors, land management and use that affect land prices at the area subject to development of land price list for separate land parcels based on value zones and standard land parcels.

2. Collect the information about properties of all land parcels at the area subject to development of land price list for separate land parcels based on value zones and standard land parcels by criteria for land parcel’s properties.

3. Collect input information for land valuation in accordance with Clauses 3 and 4 Article 158 of the Land Law, using Form No. 02 and Form No. 03 in Appendix I issued together with this Decree.

4. Synthesize the results of information collection, survey and investigation for formulating land price lists for separate land parcels based on value zones and standard land parcels.

a) Synthesize the information about properties of all land parcels;

b) Synthesize the information about input prices for land valuation.

Article 26. Creation of value zones

1. Land valuation organizations shall, based on the factors affecting land prices specified in Article 8 of this Decree, select factors affecting land prices for creating the value zones as specified in Clause 48 Article 3 of the Land Law to suit the practical local conditions.

After creation of value zones, if there are land parcels that are not adjacent to each other but have the same land use purpose and have certain similarities in location, profitability, infrastructure conditions and factors affecting land price compared to land parcels in other value zones, value zones suitable for these land parcels shall be created, based on the specific situation in the localities.

2. The value zones shall be demarcated, numbered and represented on a digital cadastral map.

Article 27. Selection of standard land parcels and determination of standard land parcels’ prices

1. Selection of standard land parcels

A land parcel with properties of area, shape, and size that are representative of land plots in the value zone; and with stability in location, use purpose, shape, and planning shall be selected as a standard land parcel to determine the price of other land parcels in the same value zone.

2. Determination of standard land parcels’ prices

a) In case a standard land parcel has input information as prescribed in Points a and b Clause 2 Article 4 of this Decree and the use of information as prescribed in Clause 4, Article 158 of the Land Law, the price of the standard land parcel shall be the input information;

b) In case the standard land parcel does not have the information on land price as specified in Point a of this Clause, the price of the standard land parcel shall be determined through land valuation methods specified in Points a, b and c Clause 5 Article 158 of the Land Law and Articles 4, 5 and 6 of this Decree.

Article 28. Preparation of comparative ratio tables

1. A comparative ratio table prescribes the adjustment method to determine the price of a specific land parcel based on the difference in factors affecting the land price of the standard land parcel and the specific land parcel.

2. A land valuation organizations shall, based on factors affecting land prices, the information about land prices on the market and practical local conditions, make a comparative ratio table to propose in the explanatory report on the development of the land price list as a basis for the agency with land management function to submit to the appraisal council for land price lists for consideration and decision.

Article 29. Formulation of draft land price lists, draft explanatory reports on the development of the land price lists for separate land parcels based on value zones and standard land parcels

1. Valuation of specific land parcels  in each value zone

a) Based on the properties of the land parcel and the price of the standard land parcel, the adjustment method in the comparative ratio tables shall be applied to calculate the price of specific land parcels in each value zone;

b) Review, check, and adjust the results of determining the price of the specific land parcels: verify the difference in land prices between adjacent land parcels with the same use purpose in each value zone; verify the difference in land prices of adjacent land parcels with the same use purpose between value zones; adjust the price of the specific land parcels.

2. Making of draft land price lists for separate land parcels based on value zones and standard land parcels.

3. Formulation of draft explanatory reports on the development of the land price lists for separate land parcels based on value zones and standard land parcels. Such a report must contain the following detailed contents:

a) Assessment of natural and socio-economic conditions, situation of land management and use that affect land prices at the provincial level;

b) Assessment of the conditions of the area subject to development of land price list for separate land parcels based on value zones and standard land parcels;

c) Assessment of results of information collection, survey and investigation for formulating land price lists for separate land parcels based on value zones and standard land parcels;

d) Results of creation of value zones, selection of standard land parcels and determination of standard land parcel’s price, preparation of comparative ratio tables and prices of land types in the draft land price lists; and price plans for land types (if any);

dd) Assessment of the impact of the draft land price list on the socio-economic situation, investment environment, implementation of financial policies on land and income, life of households, individuals and organizations using land.

Chapter IV

DETERMINATION OF SPECIFIC LAND PRICES

Article 30. Grounds of determination of specific land prices

1. Determination of specific land prices must comply with Article 158 of the Land Law and Articles 4, 5, 6, 7 of this Decree; results of synthesis and analysis of information on market land prices; factors affecting land prices.

2. Specific land prices shall be determined by land use purpose, land area determined in the dossier of land allocation or lease, recognition of land use rights, permission to change land use purpose, extension of land use term, adjustment of land use term, adjustment of detailed master plan, permission for conversion of land use forms, equitization of state enterprises, plans on auction of land use rights, notification of land recovery, and results of investigation, survey, measurement and inventory.

Article 31. Preparation of specific land valuation dossiers and selection of land valuation organizations

1. Agencies with land management function shall be responsible for preparing the specific land valuation dossiers. Such a specific land valuation dossier must comprise:

a) Purpose of land valuation, implementation time 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, adjustment of detailed construction master plan, land recovery;

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

2. Agencies with land management function shall, based on specific land valuation dossiers, select the land valuation organizations in accordance with Clause 5 Article 13 of this Decree.

Article 32. Establishment of a council for appraisal of specific land prices

1. The finance agency at the same level shall submit to the competent People's Committee a decision on establishment of council for appraisal of specific land prices as defined in Clause 2 and Clause 3 Article 161 of the Land Law to appraise land price plans in the form of a standing council or an ad hoc council, in which:

a) The representative of a land price determination consultancy organization participating in the council must be a person eligible to practice consultancy on land price determination according to regulations and does not belong to a land price determination consultancy organization hired to determine specific land prices;

b) An expert in land prices participating in the council must have at least 05 years of experience working in one of the following fields: land-related finance, price management, land management, and price appraisal.

2. The finance agency at the same level shall submit to the Chairperson of the council for appraisal of specific land prices competent to decide on the establishment of its assisting team, including: the representative of the finance agency at the same level as the team leader and representatives of agencies with management functions of land, construction, planning and investment, tax at the same level and other members decided by the council’s Chairperson. The assisting team shall be responsible for preparing assigned contents for proposing and reporting to the council for appraisal of specific land prices for consideration at the appraisal meeting.

Article 33. Order of and procedures for determination of specific land prices

Land valuation organizations shall carry out the determination of specific land prices with the following contents:

1. Collect, synthesize, analyze information

a) The information to be collected includes information about the land parcel to be valued and input information for applying land valuation methods.

The collection and synthesis of information about the land parcel and input information for applying land valuation methods shall be carried out using the Form No. 02 to Form No. 03 of Appendix I issued together with this Decree;

b) The land valuation organization shall be responsible for the accuracy and completeness of information used for application of the land valuation method and providing the information on results of investigation and collection of input information to the agency with land management function to update the land price database.

2. Select a land valuation method

Based on the use purpose of the land to be valued, characteristics of the land plot or land parcel to be valued, collected information, conditions for applying land valuation methods prescribed in Clause 6 Article 158 of the Land Law, the land valuation organization shall be responsible for analyzing and selecting the appropriate land valuation method to propose to the council for appraisal of specific land prices for decision.

3. Develop an explanatory report on the development of the land price plan and draft a land valuation certificate

a) A land valuation organization shall develop and send an explanatory report on the development of the land price plan and a draft land valuation certificate to the agency with land management function;

b) The explanatory report on the development of the land price plan shall be made using the Form No. 16 in Appendix I issued together with this Decree. A land valuation certificate shall be made using Form No. 17 in Appendix I issued together with this Decree.

Article 34. Specific land price appraisal

1. The agency with land management function shall examine the completeness of the content of the explanatory report on the development of the land price plan; prepare a report on the land price plan, a document requesting appraisal of the land price plan; and submit them to the council for appraisal of specific land prices for appraisal of the land price plan. A document submitted to a council for appraisal of specific land prices shall comprise:

a) The written request for appraisal of the land price plan;

b) A report on the land price plan;

c) Explanatory report on the development of the land price plan and draft land valuation certificate;

d) Specific land valuation dossier.

2. The council for appraisal of specific land prices shall appraise the land price plan and send the document appraising the land price plan to the agency with land management function.

Article 35. Decision of specific land prices

1. The agency with land management function shall absorb opinions of, give explanations on issues about, modify and complete the land price plan.

2. The agency with land management function shall submit the Chairperson of a competent People's Committee for decision of specific land prices. A land price plan dossier to be submitted to the Chairperson of a competent People's Committee for decision of specific land prices must comprise:

a) Report on the land price plan by an agency with land management function;

b) Explanatory report on the development of the land price plan and land valuation certificate;

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

d) Minutes of meetings of the council for appraisal of specific land prices;

dd) Report on receiving the opinions about, modifying and completing the land price plan in accordance with the document appraising the land price plan of the council for appraisal of specific land prices.

3. In case the specific land prices are applied for calculating the compensation money when the State recovers land under Point e Clause 1 Article 160 of the Land Law, agencies with land management function shall provide the completed land price plans as defined in Clause 1 of this Article to the units or organizations performing compensation, support and resettlement tasks for including them in compensation, support and resettlement plans in accordance with the law on compensation, support and resettlement.

4. Agencies with land management function shall be responsible for storing and updating all specific land price determination results in the localities in the national land database. Specific land valuation dossiers shall be stored for at least ten years from the date of decisions approving specific land prices by the competent state agency, unless otherwise provided by law.

5. 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 specific 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.

Article 36. Conditions for individuals practicing consultancy on land price determination

1. Individuals may practice consultancy on land price determination in land price determination consultancy organizations if satisfying the following conditions:

a) Have a university degree or higher in the disciplines or specializations of management of land, cadastral work, real estate, price appraisal, economics, finance, accounting, audit, banking;

b) Have at least 36 months of actual working experience in the discipline or specialization of training after obtaining a degree in the discipline or specialization specified at Point a of this Clause until the date of registration of the list of valuators, or of change, supplement to the list of valuators;

c) Possess a certificate of completion of land price-related professional training and further training by a land price-related professional training and further training institution defined in Clause 3 of this Article.

2. Individuals possessing a price appraiser card in accordance with the law on prices must not satisfy the conditions specified in Clause 1 of this Article.

3. A land price-related professional training and further training institution must meet the following conditions:

a) Be a higher education institution, vocational education institution, training institution for cadres, civil servants, public employees or other training organization established by the State or having its operation permitted by the State in accordance with the law;

b) Have at least 3 permanent lecturers, visiting lecturers that meet the standards, professional qualifications and skills as prescribed by law, holding a master’s or higher degree in the disciplines or specializations of management of land, cadastral work, real estate, price appraisal, economics, finance, accounting, audit, banking and have 10 years or more of working experience directly related to the teaching subject;

c) Develop the land price-related professional training and further training plan and report on them to the Ministry of Natural Resources and Environment for monitoring and examination of its operation. A land price-related professional training and further training plan includes the following contents:

- Time and form of training, in which the time of on-site and full-time learning must be at least 60% of the total training course duration;

- Competency profiles of the expected lecturers (including permanent lecturers and visiting lecturers);

- Expected course books and teaching materials that are formulated based on the framework of land price-related professional training and further training program issued by the Ministry of Natural Resources and Environment;

- Set of exam questions for completion of land price-related professional training and further training course.

d) Land price-related professional training and further training institutions must evaluate the training process of learners, organize examinations for completion of land price-related professional training and further training course, issue certificates of completion of land price-related professional training and further training course, and store information for 10 years or more.

4. Within no more than 10 working days from the date of receiving the complete and valid dossier specified in Clause 3 of this Article, the Ministry of Natural Resources and Environment shall be responsible for publicizing land price-related professional training and further training institutions that meet the conditions specified at Point c, Clause 3 of this Article on its portal or notifying in writing those that do not meet the conditions; inspecting and examining the compliance with Clause 3 of this Article by land price-related professional training and further training institutions.

5. Provincial-level agencies with land management function shall be responsible for making a list of land price determination consultancy organizations and valuators and reporting on it to the Ministry of Natural Resources and Environment for comments before publicizing the list of qualified land price determination consultancy organizations and valuators, updating it on the portal of Ministry of Natural Resources and Environment; examine and monitor the observance of the law on land price determination consultancy of land price determination consultancy organizations and valuators.

Chapter V

IMPLEMENTATION PROVISIONS

Article 37. Pursuant to Clause 2 Article 112 of the Land Law dated November 29, 2013 amending and supplementing the Government’s Decree No. 44/2014/ND-CP dated May 15, 2014, prescribing land prices (amended and supplemented by Decree No. 12/2024/ND-CP dated February 5, 2024, 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)

1. To amend and supplement 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 valued; information on land use master plan, detailed construction master plan or general site master plan, dossiers and materials under the law on construction that have been appraised and approved by competent state agencies for determination of the most land use efficiency and other necessary information for land valuation.

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, land rentals, premises rentals, and product and service business prices; fluctuations in transfer prices, land rentals, premises rentals, and product and service business prices during the project implementation period and other factors that generate revenue, including sales time, start time of sales or business of products or services, sales rate, fill rate.

Product and service business prices shall be applied in cases the collection of transfer prices, land rentals or premises rentals cannot be carried out;

b) Survey and collection of information about transfer prices, land rentals, premises rentals, or product and service business prices shall comply with Clause 1 and Clause 2 Article 5b of this Decree;

c) The transfer prices, land rentals, premises rentals, and product and service business prices 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;

d) The fluctuations in transfer prices, land rentals, premises rentals, and product and service business prices shall be determined based on data from statistical agencies or real estate market management agencies. In cases of no data from statistical agencies or real estate market management agencies, the following regulations shall be applied:

For cases of determination of fluctuations in transfer prices, to base on the average consumer price index of the housing and construction material group of the 3 consecutive years prior to the time of land valuation announced by the competent state agency applied in the provincial-level administrative locality; in case the locality does not announce the consumer price index of the housing and construction material group, to base on the consumer price index of the housing and construction material group of the whole country;

For cases of determination of fluctuations in land rentals, premises rentals, to base on the fluctuations shown in land or premises lease contracts; for cases of determination of fluctuations in product and service business prices, to base on the actual market data investigated, surveyed by the land valuation organization and propose them to the appraisal council for land prices for decision;

dd) The provincial-level Department of Natural Resources and Environment shall, based on the practical local situation, 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 sales rate and fill rate.

In case the provincial-level People's Committee has not defined the sales rate and fill rate, the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose with the closest distance to the land plot or land parcel to be valued, make a proposal in the explanatory report on the development of the land price plan for each project for the appraisal council for land prices’ consideration and decision.

For sales time, start time of sales or business of products or services, the development revenue of the project shall be estimated based on the progress determined in the investment policy or bidding dossier for the implementation of investment project or decision on approval or acceptance of investment project. In case of no contents on sales time, sales start time in the documents on investment policy or bidding dossier for implementation of investment project or decision on approval or acceptance of investment project, the provincial-level People's Committee shall define it in conformity with the practical local situation for groups of projects with the same main land use purpose or specific projects for application or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose with the closest distance to the land plot or land parcel to be valued, make a proposal for the appraisal council for land prices’ consideration and 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 construction of works or work items of the project (including provisional costs for price inflation factors);

- Costs for construction of makeshift or auxiliary works or work items serving the construction; costs for demolition of construction works that are not within the scope of demolition for ground clearance being determined in the compensation, support and resettlement expenses;

- Equipment costs;

- Project management expenses;

- Construction investment consultancy expenses;

- Other costs as specified by the law on construction that are directly contributed in the project’s development revenue, selected by the land valuation organization for specific projects and proposed to the appraisal council for land prices for decision.

In case of using investment capital ratio, to comply with the construction law related to work construction investment capital ratio.

In case of determining land price for sea encroachment project or sea encroachment item in an investment project, in addition to sea encroachment costs approved by the competent state agency, construction investment costs at this Point which has not been determined in the sea encroachment project or sea encroachment item in investment project as approved shall also be included.

In case the land plot or land parcel that needs to be valued 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: marketing, advertising, sales and operating management costs, calculated as a percentage (%) of revenue appropriate to the project's nature and scale, and actual conditions in the locality;

c) Costs of loan interest and profits of the investors taking into account the equity and business risks shall be calculated as a percentage (%) multiplied by the total costs specified at Point a and Point b of this Clause and the land use right value of the land plot or land parcel to be valued in accordance with Clause 6 of this Article;

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 authority. Reimbursement of compensation, support and resettlement expenses that investors have voluntarily advanced shall comply with Point a Clause 1 Article 21 of the Government’s Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy, Point c Clause 1 Article 23 of the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014, on collection of land rental and water surface rental;

dd) Based on information on similar projects in the valuation area or the nearest neighboring area, 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 percentage used to determine business expenses; interest costs, profits of the investors taking into account equity and business risks for project groups with the same main land use purpose or for specific projects.

In case the provincial-level People's Committee has not yet defined business expenses, the business expenses shall be determined by the average data of 03 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valued.

In case the provincial-level People's Committee has not yet prescribed the percentage to calculate the interest costs and profits of the investors taking into account the equity and business risks, the land valuation organization shall propose in the explanatory report on the development of the land price plan for each project for the appraisal council for land prices for consideration and decision.

For the construction time, construction progress, the development cost of the project shall be estimated based on the progress determined in the investment policy or bidding dossier for the implementation of investment project or decision on approval or acceptance of investment project. In case of no contents on the construction time, construction progress in the documents on investment policy or bidding dossier for implementation of investment project or decision on approval or acceptance of investment project, the provincial-level People's Committee shall define them in conformity with the practical local situation for groups of projects with the same main land use purpose or specific projects for application or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose with the closest distance to the land plot or land parcel to be valued, make a proposal for the appraisal council for land prices’ consideration and decision.

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

a) Construction investment costs shall be estimated according to the detailed construction master plan or general site master plan or basic design dossier or construction design dossier appraised and approved by a competent agency. Construction investment costs specified at this Point shall be estimated in accordance with the law on construction;

b) The 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 appraised or verified by a consulting agency or organization. Independent appraisal or verification consulting agencies and organizations shall take responsibility before the law for the appraisal or verification results of the construction estimates they have implemented;

- Construction investment ratio announced by the Ministry of Construction;

c) In case the grounds specified at Point b of this Clause are unavailable, the land valuation organization shall collect information about the common actual costs of 3 investment projects with the same main land use purpose that are closest to the land plot or land parcel to be valued, to propose in the explanatory report on the development of the land price plan for use as a basis for the appraisal council for land prices for consideration and decision.

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

In which:

TRi is the project's revenue in year i;

Ci 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 for real estate investment and business projects at state commercial banks of the preceding year up to the end of the most recent quarter with data before the time of price determination;

- n is the number of sales years of the project (rounded years).

- m is the number of years of construction of the project (rounded years).

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

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

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

7. In case the land area has land area allocated with land use levy (hereinafter referred to as land allocation), and leased land area with one-off payment of land rental for the entire lease period (hereinafter referred to as land lease), the price of the land parcel that needs to be valued 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 determined in the construction investment cost specified in Clause 3 of this Article shall comply with the law on construction.

8. In case the land plot or land area that needs to be valued is allocated or leased by the competent state agency for the implementation of investment projects under multiple decisions:

a) In case there are sufficient conditions to calculate the development revenue and development costs of the land plot or land parcel, the estimated development revenue and estimated development costs shall be determined according to the allocated or leased land area of that decision;

b) In case the development revenue of the land plot or land parcel cannot be fully estimated or the estimated development costs is greater than the estimated development revenue for the area requiring land valuation, the determination of estimated development revenue and estimated development costs shall be made for the entire project according to the detailed construction master plan or general site master plan approved by the competent agency.

9. Within 05 working days from the date of receipt of the written request from the agency with land management function, state-owned commercial banks shall be responsible for providing written information on medium-term loan interest rates specified in Clause 5 of this Article.”

2. The determination of land prices using surplus-based method detailed in Example No. 03 of Appendix II issued together with this Decree.

Article 38. Responsibilities of ministries, sectors and provincial-level People’s Committees, persons competent to decide land prices

1. The Ministry of Natural Resources and Environment shall:

a) Detail regulations on the development, adjustment, amendment and supplementation of land price lists for land parcels based on value zones and standard land parcels;

b) Inspect, examine and handle violations in the application of land pricing methods; develop, adjust, amend and supplement land price lists; define specific land prices and consultancy on land price determination in accordance with law;

c) Detail regulations on training, retraining, and updating knowledge for individuals practicing land valuation consultancy; framework of land price-related professional training and further training program.

2. Provincial-level People's Committees shall:

a) Organize the development, adjustment, amendment and supplementation of the land price lists and submit them to the People's Councils for promulgation;

b) Guide and examine the implementation of laws on land prices in the localities; settle arising difficulties related to land prices according to their competence;

c) Inspect, examine and handle violations in land prices and in the provision of consultancy on determination of land prices in the localities;

d) Develop, update, manage and exploit the database on local land prices in accordance with regulations of the Ministry of Natural Resources and Environment;

dd) Define the contents as assigned in this Decree;

e) Annually report to the Ministry of Natural Resources and Environment on the implementation of the law on land prices in the localities.

3. Chairpersons of provincial-level People’s Committees and chairpersons of district-level People’s Committees shall determine specific land prices in accordance with this Decree.

4. Funds for organizing the development, adjustment, amendment, and supplementation of land price lists, determining specific land prices, appraising, monitoring, and updating land prices shall be allocated from current expenditure sources under the Law on the State Budget.

Article 39. Effect

1. This Decree takes effect from the effective date of the Land Law No. 31/2024/QH15, except for cases prescribed in Clause 2 of this Article.

2. Article 37 of this Decree takes effect from the signing date of this Decree.

3. The following Decrees cease to be effective from the effective date of this Decree:

a) Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on prescribing land prices;

b) Article 2 of Decree No. 136/2018/ND-CP dated October 05, 2018 of the Government on amending a number of articles of Decrees providing for regulatory requirements for trade and investment in the environment and natural resource sector;

c) Article 2 of Decree No. 10/2023/ND-CP dated April 3, 2023 of the Government, on amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law;

d) Decree No. 12/2024/ND-CP dated February 5, 2024 of the Government on 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. Examples of applying the surplus-based method provided in Appendix III to the Decree No. 12/2024/ND-CP shall cease to be effective from the signing date of this Decree;

dd) Article 37 of this Decree.

4. Transitional provisions

a) Individuals possessing a land valuation certificate whose land valuation certificates are still valid and are not subject to revocation of the land valuation certificate under the law until before the effective date of this Decree shall continue to practice land valuation during the remaining term of their land valuation certificates;

b) Individuals who have been granted a certificate of completion of course on land valuation under the training program on land valuation issued by the Ministry of Natural Resources and Environment but have not been granted a land valuation certificate until the date before the effective date of this Decree and fully satisfy conditions for practicing consultancy on land price determination prescribed at Points a and b Clause 1 Article 36 of this Decree shall be allowed to practice land valuation consultancy in accordance with this Decree.

5. Ministries, ministerial-level agencies, government-attached agencies, provincial-level People's Committees shall review legal documents issued by themselves that are contrary to the Land Law and this Decree for amendment, supplementation, or abolition thereof.

Article 40. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People’s Committees at all levels, and other related organizations and individuals shall implement this Decree.

* All Appendices are not translated herein.