News about land

Nguyễn Thị Việt Nga, deputy head of the Hải Phòng delegation to the National Assembly, proposed letting businesses that have not fully paid land fees transfer unfinished projects, so frozen resources can return to the economy. Draft Article 30 of the amended Real Estate Business Law requires investors to complete land financial obligations before transferring all or part of a project. Nga agrees with the rule, which prevents debt write-offs through transfers, but says investors that lose or seriously weaken financial capacity need a solution, as stalled projects tie up land and credit. Her proposal allows the buyer to take over outstanding obligations, subject to the authority confirming the amount, the buyer proving financial capacity, and the balance being paid from the transfer price into the budget, with no debt write-off. Bùi Xuân Hải, rector of Hải Phòng University, backs a similar approach but asks for written commitments on deadlines for meeting obligations to the State.

On October 22, the National Assembly spent the day in group debate on three amended laws: the Land Law, the Housing Law and the Real Estate Business Law, after ministers presented the drafts and committees reported on them. For the Land Law, the draft aims to base land valuation on scientific data and methods, refine land price tables and adjustment coefficients to prevent manipulation and “virtual” land prices, and clearly define the limited cases in which land may be recovered before compensation plans are approved. Vice Chairman Nguyễn Hồng Diên urged safeguards against interest-group capture and corruption, and a review to keep the three laws consistent. For the Real Estate Business Law, he called for a mechanism to resolve projects whose investors can no longer carry them out, consider widening the types of contracts that may be transferred, and standardise public disclosure of model contracts to reduce disputes.