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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 188/2004/ND-CP
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Hanoi, November 16, 2004
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DECREE
ON METHODS OF
DETERMINING LAND PRICES AND ASSORTED-LAND PRICE BRACKETS
THE GOVERNMENT
Pursuant
to the December 25, 2001 Law on Organization of the Government;
Pursuant to November 26, 2003 Land Law No. 13/2003/QH11;
Pursuant to April 26, 2002 Price Ordinance No. 40/2002/PL-UBTVQH;
At the proposal of the Finance Minister,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Objects of regulation
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Article 2.- Scope of application
1.
Land prices decided by the People’s Committees of the provinces or centrally
run cities (hereinafter called the provincial-level People’s Committees for
short) under the provisions of this Decree shall be used as basis for:
a)
Calculating tax on land use and land use right transfer according to law
provisions;
b)
Calculating land use levies and land rents upon land assignment, land lease
without going through auctions of land use rights or bidding for projects
involving land use, for the cases prescribed in Articles 34 and 35 of the 2003
Land Law;
c)
Calculating the land use right value when land is assigned without the
collection of land use levies to organizations, individuals in the cases
prescribed in Article 33 of the 2003 Land Law;
d)
Determining the land use right value for calculation into the value of assets
of State enterprises upon their equitization, with the selection of form of
land assignment with the collection of land use levies under the provisions in
Clause 3, Article 59 of the 2003 Land Law;
e)
Calculating the land use right value to collect fees for registration of land
use right transfer according to law provisions;
f)
Calculating the land use right value for payment of compensations when the
State recovers land for use for defense, security, national interest, public
interest and/or economic development purposes as prescribed in Articles 39 and
40 of the 2003 Land Law;
g)
Calculating damages to be paid by persons who have committed acts of violating
land legislation, thus causing damage to the State as provided for by law.
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3.
This Decree shall not apply to cases where the land use right possessors reach
agreement on land prices when exercising the right to transfer, lease or
sublease their land use rights; or to contribute capital with the land use rights.
Article 3.- Interpretation of terms and phrases
In
this Decree, the following terms and phrases shall be construed as follows:
1.
Rural land region classification means the determination of land fund which
embraces categories of land with similar soil, adaphic and climatic conditions
in the region, and thereby the categorization of land in the delta, midland and
mountain regions for price determination.
2.
The actual market price of land use right transfer under normal conditions
means the amount of VNdong calculated on a land acreage unit formulated from
the results of common actual transactions between people who wish to transfer
and people who wish to be transferred without being affected by such factors as
price rise due to accumulation, change of planning, transfer under conditions
of coercion, blood relations.
3.
Land in adjacent areas between provinces, centrally run cities mean land areas
bordering on each other at the administrative boundaries between provinces,
centrally run cities.
4.
Adjacent land means land areas adjacent to each other, successive to land areas
already determined.
Chapter II
METHODS OF DETERMINING LAND PRICES AND
ASSORTED-LAND PRICE BRACKETS
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1.
Method of direct comparison means the method of determining the price levels
through analysis of actual land use right transfer market price levels of
similar land categories (in term of land categories, land acreage, land plots,
land grade, urban center grades, street grades and position) for comparison and
determination of prices of the land plots, land categories which need to be
priced.
2.
The income-based method means the method of determining the price level being
the quotient between the annual net income level earned on a land acreage unit
and the annual average savings interest rate (up to the time of land pricing)
of VND deposits with one-year (12 months) term at the State-run commercial bank
having the highest savings interest rate in the locality.
Article 5.- Conditions on application of land
price-determining methods
1.
The method of direct comparison shall apply to determine land prices when there
are on the market similar land categories with the land use rights being
already transferred, which are comparable with the categories of to be- priced
land.
The
land use right transfer prices of similar land categories, used for analysis
of, comparison with, the categories of land which need to be priced, must be
the actual market prices of land use right transfer under normal conditions.
2.
The income-based method shall apply only to determine the prices of land
categories with incomes from land being determined.
3.
Basing themselves on the practical situation of land use right transfer market,
dossiers on various land categories, and the gathered data, the
provincial-level People’s Committees shall select appropriate price-determining
methods; in case of necessity, two land price-determining methods prescribed in
this Decree can be combined together for examining, comparing the estimated price
levels to decide on the specific price levels.
4.
Upon the determination of specific land prices in localities, if a number of
land categories fail to fully meet the conditions for application of the land
price-determining methods mentioned in Article 4, the provisions at Points 6
and 7, Item a, Clause 1; Points 5 and 6, Item b, Clause 1 and Item c, Clause 1,
Article 6 of this Decree shall apply to determine the prices.
Article 6.- Assorted-land price brackets
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a)
For agricultural land group:
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The annual crop planting land price bracket (Table 1).
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The perennial tree planting land price bracket (Table 2).
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The production-forest land price bracket (Table 3).
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The aquaculture land price bracket (Table 4).
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The salt-making land price bracket (Table 5).
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For protective-forest land and special-use forest land, the provincial-level
People’s Committees shall base on the production- forest land prices set by
themselves and on the method of determining the production-forest land prices,
prescribed in Article 13 of this Decree, to determine the price levels suitable
to local practical situation.
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For other agricultural land categories as provided for by the Government, the
provincial-level People’s Committees shall base on the prices of adjacent
agricultural land categories they have set and on the land price-determining
methods applicable to the adjacent agricultural land categories prescribed in
Article 13 of this Decree to determine the price levels suitable to the local
practical situation.
b)
For non-agricultural land group:
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The urban residential land price bracket (Table 7).
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The rural non-agricultural production and/or business land price bracket (Table
8).
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The urban non-agricultural production and/or business land price bracket (Table
9).
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For land used for construction of working offices and land used for
construction of non-business works, the provincial-level People’s Committees
shall base on the prices of adjacent residential land or the prices of
residential land in the vicinities, which they have decided and on the methods
of determining the prices of residential land prescribed in Article 13 of this
Decree to set the appropriate price levels suitable to the local practical
situation.
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For land used for defense, security purposes; land used for public purposes
under the Government’s regulations; land used by religious establishments; land
with works being communal houses, temples, shrines, small pagodas, worshipping
halls, ancestral worship houses; land used for cemeteries or graveyards and
other non-agricultural land as prescribed by the Government, the
provincial-level People’s Committees shall base on the adjacent land prices
they have decided and on the land price-determining methods applicable to
adjacent land categories prescribed in Article 13 of this Decree to set the
appropriate price levels suitable to the local practical situation.
c)
For unused-land group
For
categories of land with use purposes being not yet identified, including unused
delta land, unused hilly and mountainous land, rock mountains without forests,
when needing their prices for calculation of damages to be paid by persons who
commit acts of violating legislation on such land categories, the
provincial-level People’s Committees shall base on the prices of adjacent land
categories they have prescribed and on the methods of determining the prices of
adjacent land categories prescribed in Article 13 of this Decree to set the
appropriate land price levels. When unused land is put to use under permission
of competent authorities, the provincial-level People’s Committees shall base
on the bracket of the prices of land of the same category, the same use
purposes, prescribed by the Government, to determine the specific price levels.
2.
Basing themselves on the actual land use right transfer prices in localities,
the provincial-level People’s Committees can decide on the specific land prices
within the permitted limits of increase of not more than 20% compared with the
maximum price level and decrease of not more than 20% compared to the minimum
price level of the bracket of prices of land of the same category prescribed in
Clause 1 of this Article.
Article 7.- Adjustment of assorted-land price brackets
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Chapter III
DETERMINATION OF PRICES OF VARIOUS
LAND CATEGORIES IN LOCALITIES
Article 8.- Principles on rural land region
classification, agricultural-land categorization for land price determination
1.
Land region classification
Land
is divided into three regions: delta, midland and mountain; each region has the
following fundamental characteristics:
a)
Delta is the low-lying land, fairly flat at the height equal to sea water
level. It has a high population density. Its infrastructure and conditions for
goods production and circulation are more convenient than in the midland and
mountain.
b)
Midland is the land region of medium height (lower than the mountain region but
higher than the delta), consisting largely of hilly land. Its population
density is lower than that of the delta but higher than that of the mountain;
its infrastructure and conditions for goods production and circulation are less
convenient than those in the delta but more convenient than those in the
mountain.
c)
Mountain region is a land region lying higher than the midland, consisting
largely of high-mountain areas with complicated terrain. Its population density
is low; its infrastructure and conditions for goods production and circulation
are less convenient than those in the midland.
The
recognition of communes to be mountain communes shall comply with the
regulations of the Committee for Ethnicity and Mountainous Regions (now the
Committee for Ethnic Affairs).
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The
land grade used for land price determination shall comply with the land grade
for calculation of agricultural land use tax in localities, approved by
competent authorities according to the current regulations of the State.
Article 9.- Determination of land region, land grade and
position of every specific land category in rural areas for land price
determination
1.
Agricultural land group
a)
For annual crop land, perennial tree land, aquaculture land, production-forest
land, protective-forest land, special-use forest land and other agricultural
land categories, they are graded according to three types of commune classified
according to administrative boundaries: delta, midland and mountain.
b)
For salt-making land, it is graded according to position. The salt-making land
positions are determined on the basis of the distance from salt-making fields
to salt storehouses in production areas or near traffic roads on the principle
that: Position No. 1 applies to salt-making fields nearest the salt storehouses
or traffic roads; the subsequent positions from No. 2 onwards lie at distances
farther from the salt storehouses and from traffic roads.
2.
Non-agricultural land group in rural areas
For
rural residential land, non-agricultural production and/or business land in
rural areas and other rural non-agricultural land categories such as land for
construction of working offices, construction of non-business works; land used
for defense or security purposes; land used for public purposes including
traffic land, irrigation land; land for construction of cultural, medical,
education and training, physical training and sport facilities in service of
public interests; land with historical or cultural relics, scenic places; land
for construction of other public works as provided for by the Government; land
used by religious establishments; land with works being communal houses,
temples, shrines, small pagodas, worshipping halls, ancestral worship houses;
land for cemeteries, graveyards and other non-agricultural land, as provided
for by the Government, it shall be graded according to position of each land
category and according to three types of commune classified according to
administrative boundaries: delta, midland and mountain for price determination.
The
positions of each land category in each type of commune are divided according
to three regions within the commune-level administrative boundaries:
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Region 1: Land with frontage bordering on main traffic axis lying in the center
of communes or commune clusters (near the commune-level People’s Committees,
schools, market places, health stations); near trade and service areas, tourist
resorts, industrial parks, export processing zones; or not lying in the center
of communes but near traffic hubs or rural marketplaces.
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Region 3: Covering the remaining positions in communes
The
land region classification for land price determination shall comply with the
principle that Region 1 is capable of generating the highest profits, has the
most convenient infrastructures; Region 2 and region 3 are capable of
generating lower profits and have less convenient infrastructures.
The
positions of each land category in each region shall be determined on the basis
of profit-generating capability, the distances to frontage of traffic axes and
the infrastructure conditions are convenient for daily-life, business
activities and service provisions on the principle that positions No. 1 have
the highest profit-generating capability, the most convenient infrastructure
conditions, are nearest the main traffic axes; the successive positions from
No. 2 onward have lower profit-generating capability and less convenient
infrastructures.
Article 10.- Classification of urban areas, streets, land
positions in urban centers of each specific land category for land price
determination
For
urban residential land, non-agricultural production and/or business land and
other non-agricultural land categories in urban centers such as land for
construction of working offices, construction of non-business works; land used
for defense or security purposes; land used for public purposes, including
traffic land, irrigation land; land for construction of cultural, medical,
education and training, physical training and sport facilities in service of
public interests; land with historical and/or cultural relics, scenic places;
land for construction of other public works as provided for by the Government;
land used by religious establishments; land with works being communal houses,
temples, shrines, small pagodas, worshipping halls, ancestral worship houses;
land for cemeteries, graveyards and other non-agricultural land as provided for
by the Government shall be graded according to types of urban centers, types of
street and land positions for price determination.
1.
Urban centers include cities, provincial capitals, district townships, set up
and graded under decisions of competent state agencies. Urban centers are classified
into 6 grades: special-grade urban centers, grade-I urban centers, grade-II
urban centers, grade-III urban centers, grade-IV urban centers, grade-V urban
centers according to the current regulations of the State.
For
provincial capitals, district townships not yet graded as urban centers, they
shall be classified into grade-V urban centers.
2.
Classification of urban streets
Types
of street in each grade of urban center shall be determined mainly on the basis
of profit-generating capability, infrastructure conditions convenient for
daily- life, production, business, service, tourist activities, on the distance
to urban centers, trade, service and tourist centers.
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In
cases where a street consists of various street sections with different
profit-generating capabilities, different infrastructure conditions, such
street sections shall be graded into the corresponding street grades.
3.
Land positions in every street grade of each grade of urban center shall be
determined on the basis of profit-generating capability, infrastructure
conditions favorable for daily-life, production, business and/or service
activities, on the distance to traffic axes. Land positions in each street
grade of each urban center grade shall be classified into positions from No. 1
on. Position No. 1 shall apply to land adjacent to streets (with frontage) with
the highest profit-generating capability, most convenient infrastructure
conditions; the following positions from No. 2 onwards shall apply to land not
adjacent to streets, with lower profit-generating capability and less
convenient infrastructure conditions.
Article 11.- Competence to classify land region, land
grades, street grades and specific land positions for price determination
Based
on the provisions in Articles 8, 9 and 10 of this Decree and on the practical
situation and practices of each locality, the provincial-level People’s
Committee shall prescribe specific criteria and provide for region
classification, land grades, decide on the quantity of positions of each land
category; the quantity of street grades, the quantity of land positions of each
street grade corresponding to grades of urban center in the locality for use as
basis for price determination.
Annually,
the provincial-level People’s Committees must readjust land categories, street
grades and land positions upon any changes in previously classified land
categories, land grades, street grades and/or land positions due to planning,
investment in upgrading or construction of infrastructures.
Article 12.- Adjacent land areas
1.
Adjacent land areas between provinces, centrally run cities
a)
For agricultural land in adjacent land areas, it shall be determined as from
the administrative boundaries between provinces further deep inside the region
of each province for at least 500 meters.
b)
For rural non-agricultural land in adjacent land areas, it shall be determined
as from the administrative boundaries between provinces further deep into the
region of each province for at least 300 meters.
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d)
In cases where the land areas between provinces are separated by rivers, lakes,
canals of a width of 100 meters or less, the adjacent land areas shall be
determined as from the banks of rivers, lakes, canals to each side further deep
into the region of each province as provided for at Points a, b, c of this
Clause. If the rivers, lakes or canals are over 100 meters in width, they shall
not be graded as adjacent land.
2.
Adjacent land areas between rural districts, urban districts, or towns of
provinces, centrally run cities.
The
provincial-level People’s Committees shall base on the practical local
situation to specify the appropriate adjacent land areas between urban
districts, rural districts, towns in the provinces or cities.
Article 13.- Determination of prices of specific land
categories in localities
1.
When determining or adjusting the prices of specific land categories in the
localities, the provincial-level People’s Committees must:
a)
Classify land regions, land grades, street grades and land positions according
to the provisions in Articles 8, 9, 10 and 11 of this Decree.
b)
Based on the land price-determining principles prescribed in Article 56 of the
Land Law; the land price-determining methods and assorted- land price brackets
prescribed in Articles 4, 5 and 6; the methods of determining price of every
specific land category in this Decree and the actual common market prices of
land use right transfer under normal conditions formulate price tables for
various specific land categories in localities and submit them to the People’s
Councils of the same level for comments before deciding thereon.
2.
Methods of determining specific prices for every land category
When
prices are determined for any land categories, the price brackets prescribed by
the Government for such land categories shall apply. The methods of determining
specific prices for every land category according to price brackets shall be as
follows:
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Grade-1
land of each region (delta, midland, mountain) and each land category, which
contains soil elements, is situated at the best positions and endowed with the
best climatic, weather, irrigation and drainage conditions, shall correspond to
the highest price level; land of lower grades from grade 2 onwards with poorer
conditions shall correspond to lower price levels.
b)
For salt-making land: Land in Position No. 1 shall have the highest price; land
in positions from No. 2 onwards shall correspond to lower price levels.
c)
For residential land, non-agricultural production and/or business land and
other non-agricultural land categories in the rural areas:
Land
in region 1 has the highest price level; land in regions from No. 2 onwards
shall correspond to lower price levels.
In
each land region, the land prices shall be determined according to positions.
Land in position No. 1 of region 1 shall have the highest price level in region
1, land in other positions from No. 2 onwards shall correspond to lower price
levels. Similarly, land in position No. 1 of region 2 shall have the highest
price level in region 2, and land in other positions from No. 2 onwards shall
correspond to lower price levels; land in position No. 1 of region 3 shall have
the highest price level in region 3, land in other positions from No. 2 onwards
shall correspond to lower price levels.
d)
For garden, pond land lying mixedly in rural residential land areas, and not
issued the land use right certificate by competent authorities, the land prices
shall be determined as equal to the land prices of the perennial tree land of
the highest grade in the same regions; and at the same time basing on the
practical situation in localities, the provincial-level People’s Committees
shall prescribe higher price levels which, however, must not exceed twice the
prices of perennial tree land of the highest grade in the same region, set by
the provincial-level People’s Committees.
e)
For residential land, non-agricultural production and/or business land and
other non-agricultural land categories in urban centers:
In
urban centers of each grade, the land prices shall be determined according to
street grades.
The
grade-1 street land in the hearts of urban centers, trade and service centers
shall have the highest price levels. Land in streets of other grades from grade
2 onwards shall correspond to lower price levels.
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In
cases where a street of a certain grade consists of various sections with
different profit-generating capabilities, different actual land use right
transfer prices and different infrastructure conditions, each street section
shall be classified into the corresponding street grade for determination of
its specific price to be decided by the provincial-level People’s Committees.
f)
For agricultural land lying mixedly within urban centers, which is, under
planning, classified as neither residential land nor other agricultural land,
the land price shall be determined as equal to the price of the perennial tree
land of highest grade in the same region; at the same time, basing on the
practical situation in the localities, the provincial-level People’s Committees
shall prescribe higher land price levels which, however, must not more than
double the price of the perennial tree land of the highest grade in the same
region, set by the provincial-level People’s Committees.
g)
For rural residential land lying along main traffic axes (national highways, provincial
roads), traffic hubs, trade zones, tourist resorts, industrial zones, the
provincial-level People’s Committees shall base on the practical situation in
their localities to prescribe the appropriate land prices at these positions,
which, however, must not more than treble the maximum price of the rural land
price brackets prescribed by the Government in Clause 1, Article 6 of this
Decree.
Article 14.- Prices of land in adjacent areas
1.
The prices of land in adjacent areas between provinces, centrally run cities
a)
When determining the prices of land in adjacent areas between provinces,
centrally run cities, the People’s Committees of the provinces having the
adjacent land must base on the provisions in Clause 1, Article 12 of this
Decree to reach mutual agreement on the land prices and plans on adjustment of
land prices in the adjacent areas, on the principles:
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For the adjacent land of any land category, the price bracket prescribed by the
Government for such land category shall apply.
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For land in adjacent areas between provinces, centrally run cities as provided
for in Clause 1, Article 12 of this Decree, if having the same natural
conditions, infrastructure conditions, the same use purposes at present and the
same use purposes under planning, the price levels shall be the same.
For
special cases, the price levels may differ, but the maximum difference level
must not exceed 20%.
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2.
Prices of land in adjacent areas between urban districts, rural districts,
towns and cities of provinces or centrally run cities
The
provincial-level People’s Committees shall base on the provisions in Clause 2,
Article 12 and the principles for determining prices of land in adjacent areas
prescribed at Point a, Clause 1 of this Article to determine the appropriate
specific prices of land in the adjacent areas.
Article 15.- Adjustment of specific land prices in
localities
The
provincial-level People’s Committees must adjust land prices in the following
cases:
1.
When the actual land use right transfer market prices under normal conditions
in localities of certain land categories, certain land positions constantly
fluctuate for 60 days or more, thus causing big price differences: if
decreasing by 10% or more as compared with the prices set by the
provincial-level People’s Committees, they shall adjust by reducing such
prices; if increasing by 20% or more over the prices set by the
provincial-level People’s Committees, they shall adjust by increasing the
prices which, however, must not exceed 20% of the maximum prices of the price
brackets prescribed in Clause 2, Article 6 of this Decree.
2.
When competent authorities adjust land use plannings, plans, change land use
purposes, change land grades, urban center grades, street grades and/or land
positions, they must adjust the prices of land in regions where such changes
occur according to appropriate land price brackets, which, however, must not
exceed the price levels prescribed in Clause 1 of this Article.
3.
When the Government’s land price brackets are adjusted.
Chapter IV
IMPLEMENTATION ORGANIZATION
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1.
The Finance Ministry shall, according to its competence, have to guide the
implementation, check the organization of implementation of this Decree and
settle arising problems related to land prices at the requests of localities;
to organize networks for land price statistics, investigation and monitoring
nationwide; to assume the prime responsibility for formulating assorted-land
price brackets for submission to the Government; to organize professional
fostering on land price determination.
2.
The ministries, branches, organizations and agencies using land shall have to
direct, examine and inspect the observance of land prices as provided for in
this Decree.
3.
The People’s Committees of different levels shall have the responsibility:
a)
To determine land prices, adjust land prices promptly according to the
provisions of this Decree. To publicize land prices in their respective
localities on January 1st every year and upon land price adjustment;
to organize and examine the observance of land prices in their respective
localities.
In
case of necessity, when considering to decide on land prices in localities, the
provincial-level People’s Committees may hire units with price-evaluating
function or land price consultancy agencies to survey or investigate the land
use right transfer prices, to advise on formulation of prices of specific land
categories in localities.
b)
Not to decentralize or authorize the assorted land price determination to
branches, People’s Committees of urban districts, rural districts, provincial
capitals or towns.
c)
To inspect, handle and settle specific matters related to land prices, which
fall under the jurisdiction of localities.
d)
To regularly monitor the regular fluctuation of land use right transfer prices,
to organize land price statistics.
e)
To report to the Finance Ministry the situation on land use right transfer
prices of assorted land categories in localities once every six months; the
report submission deadlines shall be before June 15 and December 15 every year.
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Article 17.- Implementation provisions
1.
This Decree takes effect 15 days after its publication in the Official Gazette
and replaces the Government’s Decree No. 87/CP of August 17, 1994 prescribing
price brackets for various land categories, the Prime Minister’s Decision No.
302/TTg of May 13, 1996 adjusting coefficient (k) in land price brackets and
the Government’s Decree No. 17/1998/ND-CP of March 21, 1998 amending and
supplementing Clause 2, Article 4 of Decree No. 87/CP of August 17, 1994
prescribing assorted-land price brackets.
2.
The provincial-level People’s Committee shall base on this Decree to promulgate
and publicize specific prices of different land categories for application from
January 1, 2005.
3.
The ministers, the heads of the ministerial-level agencies, the heads of the
Government-attached agencies and the presidents of the provincial/municipal
People’s Committees shall have to implement this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai
ATTACH
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