On May 11th 2017, Ho Chi Minh City Real Estate Association (HoREA) issued Document No. 47 to the Prime Minister on recommendations on some issues related to land management and use that the Ministry of Finance has just Submitted to the Prime Minister recently, which is causing the special attention of public opinion.
In that document, HoREA proposed the Prime Minister should soon issue the amending, supplementing or replacing decision No. 09/2007 / QD-TTg on January 19th 2007, Decision No. 140/2008 / QD-TTg on October 21st 2008, Decision No. 86/2010 / QD-TTg on December 21st 2010 of the Prime Minister so as to create transparent, equal, competitive, strict legal corridors to carry out the policy of rearranging and handling houses and land under state ownership, relocating establishments which pollutes and establishments must move according to urban construction planning.
See more: Vietnam Real Estate News
Along with that, HoREA has proposed the Prime Minister has directed the amendment of the Land Law on the auction of land use rights; amended the Bidding Law regarding the designation of bidding for land use projects so as to ensure publicity, transparency, equality and fair competition and overcome the bidding phenomena with signs of “wooden legs, green pawn, red pawn “.
In addition, HoREA has proposed the Prime Minister has still allowed investors to continue construction of the project provided that the project owner has a written commitment to fulfill financial obligations arising for the conclusion of inspection and examination by the competent authority to complete the project and put it to use, which avoids wasting time and social wealth and ensures the interests of the buyers for the project.
In particular, the Association has recommended that home buyers have entered into and executed a home purchase contract for these projects, so they have not been liable for any financial obligations of the project investor.
Previously, the Ministry of Finance has written reports on the review of land use by equitized enterprises. Basing on the review report of the General Department of Taxation, there are 60 cases that state-owned enterprises (SOEs) and joint-stock state-owned enterprises are permitted by competent state agencies to change their land use purposes. However, the valuation of enterprises during the period prescribed does not include the value of land use rights in the value of enterprises for equalization, but no auction when equalization.
Last but not least, the determination of land prices for the collection of land use fees and land rents is mainly based on the results of the consultancy enterprise but it is not sufficient and not close to the market price.
On the basis of the results of the above review, the Ministry of Finance has asked the Chairman of the People’s Committee of provinces and cities to temporarily suspend the construction of high-rise building projects. In the big city centers, they have not yet properly exercised the competence to hand over land without auction, and it must sum up and report them to the Prime Minister according to their competence.
In cases that the Prime Minister of the Government approves the sale of decision, the People’s Committees of provinces and cities must conduct market prices for land; The determination of land prices is the basis for collection of land use fees and rental land of the provincial or municipal People’s Committees which has not yet consulted the Standing People’s Councils and cities and has not reported them to the People’s Councils of provinces or cities in the nearest session, they has to report to the provincial People’s Council before implementation”.
HoREA said that during the implementation of the Prime Minister’s Decision No. 09/2007 / QD-TTg on January 19th 2007 and some related documents, some points were inconsistent, not tight and easy, which causes loss of state property. HoREA has recognized that many projects have been completed, people have been living stably, there are projects are under construction and in the process of investment preparation … so there is in need of the appropriate solutions handling in order to ensure that the process of converting the land use purpose in accordance with the law, determining the land price to the market price, not losing the state budget and to ensure the legitimate interests of investors. Especially, it should respect and protect the legitimate rights and interests of home buyers.
You are reading the article “HoREA Has Recommended Tightening Regulations On Land Management And Use” in the Real Estate category at www.realestatevietnam.com.vn. Any information sharing, feedback please email to firstname.lastname@example.org, Hotline 0909890897 (24/7).
Special thanks for visiting our website!