LAND VALUATION IS A KEY FACTOR TO UNLOCKING LAND RESOURCES

On the afternoon of August 7, Deputy Prime Minister Tran Hong Ha chaired a meeting in person and online on the draft Decree amending and supplementing several articles of Decree 44/2014/ND-CP of the Government regulating land price.

At the meeting, the Deputy Prime Minister emphasized the difficulties in mobilizing land resources for socio-economic development, which arise from the land valuation process, leading to incorrect valuation. causing a loss of revenue to the State budget.

Regarding the cause, the Deputy Prime Minister said that the errors in land valuation are mainly due to the wrong application of the method or the use of non-objective, transparent, and accurate input data. Besides, there are also reasons due to the application and application of complex valuation methods, and incomplete and unreliable land price databases on the market, leading to different results for each method.

The Deputy Prime Minister said that, in the immediate future, management agencies and valuation consulting units need to agree on how to select and apply land valuation methods combined with appropriate verification, ensuring honesty. objective, "close, correct, in line with market value", less dependent on subjective will, "trusted by management agencies, consulting units, land valuation, law enforcement agencies ".

Improve land valuation methods

According to the report of MONRE, there are 5 methods of land valuation in Decree 44, including methods: Direct comparison; subtraction; income; excess; land price adjustment coefficient. Through specific land valuation, land prices have been in line with market prices, limiting loss of state budget revenue, and ensuring the interests of people whose land is recovered.

However, after more than 9 years of implementation, several regulations on land valuation methods revealed limitations existed. Some localities are still confused about the application and implementation which affect the progress of land price determination. Some methods of land price determination are not suitable with the actual conditions of market information, the land use rights are not transparent, and not suitable for the State management of land prices in the incomplete context. land price database. Regulations on the content and conditions for applying land valuation methods are not suitable and specific, leading to a parcel of land applying different methods for different results.

Purpose of amending and supplementing regulations on land valuation methods, order, and procedures for applying land valuation methods by the conditions of information sources, input data, and practical conditions of implementation, remove difficulties and obstacles, handle backlogs and inadequacies in land valuation, promote budget collection, and create favorable conditions for projects to be implemented in localities.

Regulations on land valuation to promote decentralization and decentralization go hand in hand with inspection and supervision, simplifying procedures, and minimizing intermediaries.

Completing regulations on the order, procedures, and responsibilities of relevant agencies in determining specific land prices, appraising land price plans, and deciding land prices.

Create peace of mind and trust for people doing land valuation

From practical experience, economic expert Can Van Luc recommends developing a set of criteria in case it is necessary to apply more verification valuation methods depending on the ability to collect data and conditions of the land to be valued.

Regarding the surplus method, expert Can Van Luc suggested that the draft Decree should have more detailed and specific guidance in determining initial assumptions such as expected future profitability, project reports the costs incurred… when implementing the project.

Supporting the integration of the subtraction method into the comparison method, Mr. Nguyen Tien Thoa, Chairman of the Valuation Association affirmed that each method has different application conditions, so there must be very specific criteria and guidelines. detailed and specific for the practitioner to understand correctly and apply correctly. "The provisions of the Draft Decree have helped people who do land valuation more assured and confident," said Mr. Nguyen Tien Thoa.

Deputy Minister of Finance Nguyen Van Chi suggested that the draft Decree needs to design conditions for applying a land plot that can only apply 1 method or from 2 or more valuation methods; stipulate strict methods of collecting land price information.

Deputy Inspector General of the Government Le Sy Bay said that the most important thing is to publicize the content of the valuation method, input data information, and valuation results.

Deputy Minister of Public Security Le Van Tuyen discussed and added that the main mistake in land valuation is due to collusion between valuation officers, management agencies, and enterprises to price land below the prescribed price. , not by the method.

Clarifying authority and responsibility when conducting land valuation

Concluding the meeting, Deputy Prime Minister Tran Hong Ha stated: Land valuation is a key issue in solving current difficulties, problems, and violations of land. The amendment of Decree 44 requires the correct methodology, scientific and practical basis.

Land valuation methods (comparison, income, surplus) have been used by many countries around the world, in which, information and input data on the land market is an important basis for applying the method. exact valuation. Each valuation method is applied to correspond to each land plots information and input data conditions.

MONRE needs to closely coordinate with the Ministry of Finance, the Ministry of Construction, ministries, branches, and associations to clarify criteria and conditions for collecting information and input data for each land plot and project. the specific project as the basis for applying the most appropriate valuation method, avoiding arbitrariness and subjectivity.

"The criteria for input information must be uniform, transparent, public, simple, and feasible, serving as a basis for applying the appropriate valuation method," the Deputy Prime Minister said and asked the drafting agency to clarify the assessment. rights and responsibilities of management agencies, valuation consulting organizations, price appraisal councils, etc. in the order and procedures for land valuation.

The Deputy Prime Minister also noted that, even if the revised draft Land Law is approved to allow the application of the land valuation method by value area, other valuation methods still need to be applied to the areas where the land value is located. For localities that closely monitor the price fluctuations of the land market in the area, it is possible to proceed to apply the valuation method according to the value area.

According to VGP