Does The Land Law 2013 Prevent Gold Land Loss?

Along with the development of the market economy, the Government of Vietnam extends the scope of leasing land to domestic and foreign enterprises for equitization. However, in the process of converting, equitization, the loss of “gold land” occurred more and more powerful.

What is the Land Law of “golden land”? The status of gold land loss concern, what is the cause and solution?

Aspects of the 2013 Land Law for “Golden Land”

Under Section 1 Chapter 2 of the Land Law of 2013, the state has full discretion over the form and purpose of land use as well as the regulation of land use levies for long-term or long-term land.

Land Law 2013

Article 13, section 1 states that the state has the right to represent the owner of the land (planning decision, requisition, revocation, valuation, empowerment, change of use purpose).

Article 18, Section 1 states that the state has the right to stipulate the principles and methods of property valuation. At the same time, the state is the agency promulgating the land price framework, the land price list and determining the specific land price.

Accordingly, when the enterprise needs to change the purpose of land use, the state has the right to set prices and decide to change the purpose of land use, so that both fit the needs of enterprises and ensure the transparency in gold land conversion avoids loss.

Clause 2, Article 21, Section 1 stipulates that People’s Councils at all levels shall exercise their land rights through land use zoning and planning of their respective localities … having the competence to approve and adopt land price lists and enforce a land law in the locality.

Accordingly, localities owning land are responsible for evaluating the land plus the value of the enterprise for conversion before paying it to the state budget.

Concerned about the loss of gold land

With the market economy, competition to survive, in recent years SOEs have been continuously equitized. On the one hand refreshes itself, on the other hand, creates the potential to compete with other competitors.

The concept of “golden land” from which it was born. If the land is the majority of assets of SOEs, equitization and foreign investment into the property becomes “gold land”.

According to the latest report released by the State Audit, there is a concern about the risk of losses from the valuation of gold plots when equitizing SOEs in Hanoi and Ho Chi Minh City is a base.

According to statistics from Dantri.com, from 2014 to 2016 the country has about 60 SOEs with a total area of 834,000 m2 equitization. However, in the process of changing the purpose of use and valuation of enterprises, people “forget” lost the value of land ownership, causing loss of state budget.

Thousands of billions of dong lost due to “gold land”

In fact, the land area of the ‘golden land’ is very large and high value (3000 m2 land lottery company, District 1, HCMC when equitization earned 1,430 billion in budget for So, the business of “forgetting” the value of land brings about the loss of a trillion dong budget to the state.

You can read more information at Vietnam Real Estate News

Solutions to prevent the loss of gold

According to real estate experts, besides inspecting, detecting and severely violating the land law, the State should have appropriate solutions to ensure both the process and the change of purpose. Use the land legally, enabling businesses to survive and grow. On the other hand, this also helps prevent the loss of state budget revenues, ensuring the legitimate interests of investors.

Also according to the Land Law of 2013, along with land losses on land ownership occurred in recent years. The Party and Government also clearly define their views on land tenure auctions to maximize revenues for the state budget, facilitate infrastructure construction, and develop the economy. At the same time, to completely limit the situation of “forgetting” the value of land into the common values of enterprises, creating transparency.

In addition, the National Assembly also reviewed the sanctions and loopholes in the Land Law to avoid the risk of sprain, damaging the transparency as well as the reputation of the state.

Congress considers the issue of “gold land”

For enterprises which have been equitized and have not yet calculated the value of “golden land”, the Ministry of Finance and the local People’s Committees shall have to suspend their operation to report to the Prime Minister at the same time. Have a plan to re-auction in accordance with the legal order.

The loss of “gold land” has been taking place harming the state budget as well as legal regulation of our country. Thanks to the early recognition of loopholes in the law, and the Party and State have taken timely measures to ensure transparency in the housing law and ensure that the state budget is not lost.

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