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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence
- Freedom – Happiness
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No.
114/2004/TT-BTC
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Hanoi,
November 26, 2004
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CIRCULAR
188/2004/ND-CP
OF NOVEMBER 16, 2004 ON METHODS OF DETERMINING LAND PRICES AND ASSORTED-LAND
PRICE BRACKET
In furtherance of the
Government’s Decree No. 188/2004/ND-CP of November 16, 2004 on methods of determining
land prices and assorted-land price brackets; after consulting the Ministry of
Natural Resources and Environment, the Finance Ministry hereby guides the
methods of determining land prices, determining the prices of assorted land
categories by the People’s Committees of the provinces and centrally run cities
(hereinafter called the provincial-level People’s Committees for short) for
decision on and publicization of specific land prices in localities as follows:
I. METHODS OF
DETERMINING THE LAND PRICES
1. Direct
comparison method
1.1. The land price
determination by direct comparison method must go through the following steps:
a) Step 1: Survey and
collection of information:
- Determining the locations of
the land plots or land areas, which are comparable with be-
valuated land plots, land areas in order to gather information.
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- Time for information
collection:
be-collected
information must happen within the period nearest the time of survey for
comparison, determination of the prices of the to be-valuated land plots or
land areas.
In cases where information
within the most recent period cannot be collected, the information on the land
use right transfer transactions within one year before the time of land price
determination can be collected. If the information on land use right transfer
transactions in the most recent period or within one year is not available, the
information within three years before the time of land price determination
shall be collected.
- To be-collected information:
+ Locations, current conditions
of the land plots (land category, land grade, position, types of urban center
grade, streets; acreage, shape, geographical features of the land plots, assets
affixed to land);
+ Environment (including the
natural environment characterized by such basic conditions as landscape, water
sources; air and water pollution levels; soil degeneration, etc, and the
socio-economic environment characterized by such basic conditions as good or
bad infrastructure, convenient or inconvenient traffic, trade, information and
communications, healthcare, culture and education, social order and security,
etc.);
+ Legal characteristics (land
planning, land use right certificate, inheritance right, donated, leased,
encroached
+ Time of land use right
transfer, successful transactions or auctions;
+ Statistics on land use right
transfer prices, land rents, land use right auctions;
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- Conditions of information:
The above information must be
gathered from the results of actual land use right transfer transactions on the
market under normal conditions, i.e. voluntary transactions between purchasers
and sellers, each having adequate information on, and full knowledge about, the
land categories, land plots, land areas for which they participate in
transactions. These buying and selling transactions are of no speculative
nature, under no temporal pressure, are not coerced nor conducted between
parties of blood ties or without lawful papers or for other subjective reasons
which adversely affect the normal process of formation and evolution of land
use right transfer prices on the market.
b) Step 2: Comparison,
analysis of information:
Based on the information
surveyed and collected at Step 1, to make comparison and analysis so as to
select similar and different criteria between the comparable land plots or land
areas and the to be-valuated land plots or land areas. On that basis, to
determine similar and different price criteria so as to calculate, determine
the prices of the to be-valuated land plots, land areas.
c) Step 3: To adjust
distinctive price elements between the comparable land plots, land areas and
the to be-valuated land plots, land areas in order to determine the prices of
the to be-valuated land plots.
The estimated prices of the to
be-valuated land plots, land areas shall be calculated by adjusting distinctive
price elements for each comparable land plot, land area as follows:
The estimated price of to
be-valuated land plot land area
=
The land use right transfer
price of each comparable land plot land earea
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The adjusted money level of
the price formed from distinctive price elements of each land plot, land area
comparable with the to be-valuated land plot, land area
In which, the adjusted money
level of price between each comparable land plot, land area and the to
be-valuated land plot, land area is the adjusted level of price differences
originating from differences in the land plot position, infrastructure,
characteristics of land category, environmental pollution extent, etc. The
price difference between the comparable land plot and be-valuated
land plot (which can be calculated according to the absolute value or in
percentage of the land use right transfer price) shall be determined on the
basis of valuation by experts and land-pricing agencies.
Where the land prices fluctuate
within the period from the time of successful land use right transfer of the
comparable land plot to the time of determining the price of the to be-valuated
land plot, the price of the comparable land plot must be adjusted to be equal
to the actual land use right transfer price on the market, then the price of
the comparable land plot shall be further adjusted according to the above-mentioned
formula.
d) Step 4: To determine
the price of the to be-valuated land plots by taking the average of the prices
of 3 to 5 comparable land plots, land areas already calculated for adjustment
of price difference at Step 3.
Example, applying the direct
comparison method to determine the land price (to make it simple and
understandable, this example only presents the comparison method to determine
the price of the to be-valuated land plot, land area with one comparable land
plot, land area).
Assuming that in the course of
determining the price of a residential land area of 20,000 m2 in a
grade-V urban center (coded as land area B), the pricing agency has collected
information on an adjacent land area of 25,000 m2 which is
comparable with the to be-valuated land area and already put up for land use
right auction with success for construction of dwelling houses (coded as land
area A), which happened within the period nearest the time of determining the
price of land area B. The total money amount earned from the auction of land
area A is VND 125 billion, with the unit price per square meter being VND 5
million (VND 5 million/m2).
With all gathered information,
the pricing agency shall proceed with the comparison between land area A and
land area B as follows:
Comparable
criteria
Similarities
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Land area A
Land area B
Land area A
Land area B
1. Legal ground
With land use right
certificate
With land use right
certificate
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2. Use purpose
Residential land in grade-V
urban center
Residential land in grade-V
urban center
3. Land position
Position 1: Land with one
frontage side close to street
Position 1: Land with one
frontage side close to street
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4. Street grade
Grade 2
Grade 2
5. The frontage width (m)
100
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6. The length of the land area
250
285.7
7. Infrastructure - Traffic
road
- Convenient (with 2 sides
fronted to big alleys
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8. Environment
- Noise
- Dust
- Noisy
- Noisy
- Dusty
- Less dusty
7. Assets on land
No
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8. Trading status
Voluntary
Voluntary
Through comparison, the pricing agency
has drawn out 7 similar criteria and 4 different criteria between the two land
areas. To determine the quantitative difference between comparable elements in
order to adjust the price level, the pricing agency applies the expert method
in combination with the statistical method to calculate the coefficient
of differences between criteria.
The method of marking according
to the point scale with the highest point being 10 to every criterion with the
best conditions, (example, when considering the positions, the land occupying
the best position shall be given 10 points; or when considering the street
grades, land lying in streets of highest profitability and with the most
convenient infrastructure shall be given 10 points. Other points of under 10
shall apply to identical criteria with poorer conditions. Based on the
practical situation, localities shall formulate point scales to determine the
specific prices:
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Wider: 10 point
Narrower: 8 points
In land area A
In land area B
- The length of the land area
Shorter: 10 points
Longer: 9 points
In land area A
In land area B
- Traffic
Convenient: 10 points
Less convenient: 8.5 points
In land area A
In land area B
- Dustiness
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In land area A
In land area B
Each lower point shall be
subject to 5% price reduction; vice versa, each higher point shall be added
with 5% of the price of the comparable land area (A). Under such convention:
On the basis of the successful
auction price of the comparable land area A being VND 125 billion to determine
the price for land area B, the price level of land area B shall be reduced:
- The frontage width: B is
inferior to A: 2 points, decrease 10% = VND 12.5 billion.
- The land area’s length: B is
inferior to A: 1 point, decrease 5% = VND 6.25 billion.
- Traffic: B is inferior to A:
1.5 point, decrease 7.5% = VND 9.375 billion.
The total price reduction due
to B’s inferiorities to A: VND 28.125 billion
B shall be added with:
- Dustiness: B is superior to A:
1 point, increase 5% = VND 6.25 billion
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Land area A’s price readjusted
(coded A’) according to different elements of land area B shall be calculated
as follows:
A’ = 125- 28.125 + 6.25 =
103.125 (VND billion).
So, the unit price per square
meter shall be:
VND 103.125 billion : 25,000 m2
= VND 4.125 million/m2.
Similarly, it is assumed that
the pricing agency additionally selects two land areas C and D for comparison
with land area B. The results of analysis and comparison have determined that
land area C’s unit price already adjusted according to elements of land area B
is VND 4.5 million/m2 and land area D’s adjusted unit price being
VND 4.05 million/m2.
Land area B’s unit price is
determined by taking the average price of the three above adjusted prices:
(4.125 + 4.5 + 4.05) : 3 = 4.225
(VND million/m2).
So, the unit price of
residential land of land area B in a grade-V urban center is estimated at VND
4.2 million/m2. This price level shall serve as basis for drawing up
schemes on specific land prices, to be submitted to the provincial-level
People’s Committees for decision.
1.2. Deduction of the value of
assets on land
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Land
price at the time of price determination
=
The
total value of the land area (including the value of land and works on land)
at the time of price determination
-
The
remaining value of the works, houses architectural objects, cultivated plants
at the time of price determination
In which:
The
remaining value of works, houses architectural objects,cultivated plants at
the time of price determination
=
The
historical cost or total cost of investment in the construction of works
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Annual
depreciation percentage (%)
x
Historical
cost or total cost of investment in the construction of works
x
The
number of years of using the investment works
The method of calculating the
total cost of investment in the construction of works, perennial tree gardens; the
method of depreciation calculation; the depreciation percentages shall comply
with the current regulations of the State.
For works, architectural objects
or perennial trees not on the State’s currently prescribed lists of those
subject to depreciation, the provincial/municipal Finance Services shall
coordinate with the concerned provincial/municipal Services and/or branches in
guiding the appropriate depreciation methods, based on the depreciation
calculation principles.
Where works, houses, architectural
objects or perennial trees on the land plots have been fully depreciated but
are still exploited and used, their value shall be calculated according to the
asset re-valuation value.
For cultivated plants being in
the period of capital construction duration, depreciation shall not be
calculated. The historical cost of perennial trees being in the capital
construction duration are the accrued investment value by the time of land
price determination or calculated according to the actual evaluation value.
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2.1. The land price
determination by income-based method must go through the following steps:
a) Step 1: Calculating
the total annual income brought about by the to be-valuated land plots.
- For land used for lease or for
construction of architectural objects (houses) for lease, the total incomes
from the to be-valuated land plots shall be the annual land rents or land and
on-land works rentals.
- For land used for agricultural
production, the total incomes from the to be-valuated land plots are the total
annual revenues from production activities on the land plots, land categories.
b) Step 2: Calculating
the total expenditure on the generation of the total income and the
law-prescribed remittances.
The total expenditure embraces
such specific expenses as taxes, renovation investment costs, production cost.
These expenses are calculated according to the State’s current regulations; any
expenses not prescribed by the State shall be calculated according to the
actual common prices on the local markets, which have been paid by production
and/or business establishments (indicated in contracts, goods purchase and sale
invoices issued by competent finance bodies).
c) Step 3: Determining
the annual net incomes according to the following formula:
The
annual net income
=
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-
The
total expenditure calculated at Step 2
d) Step 4: Estimating the
prices of to be-valuated land according to the following formula:
The
estimated land price
=
The
annual net income from land
The
12-month savings interest rate
Upon determination of land
prices by the income-based method, the expenses determined at Step 1, Step 2
and the net income determined at Step 3 must be the average total income, total
expenditure and net income of the land grade or land position of the categories
of land which needs to be valuated and are used for the right purposes already
approved by competent authorities. At the same time, to calculate the annual
average of three years preceding the time of land price determination.
Where data in three years cannot
be collected, the data of the year preceding the time of land price
determination shall be used.
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Calculation
unit
Year
2001
Year
2002
Year
2003
Total annual paddy
output
kg
15,000
20,000
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Annual average sale
price
VND/kg
2,500
2,500
2,700
Total income
VND
37,500,000
50,000,000
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Cost
VND/kg
1,150
1,100
1,250
Production cost
VND
17,250,000
22,000,000
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12-month savings interest rate
(*)
%
6.5
7.0
7.5
Note: (*) It is assumed that the
annual average savings deposit interest rate of the 12-month savings at a branch
of the Bank for Agriculture and Rural Development, a State-run bank which has
the highest savings interest rate among the State-run commercial banks in the
locality.
+ The total income of three
years is VND 119,900,000 /ha
+ The total production cost of
three years is VND 54,250,000/ha.
+ The average annual net income
is:
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=
65,650,000
=
21,883,333
(VND/ha)
3
3
+ The average interest rate of the
12-month VND savings at the State-run commercial bank is 7%/year.
+ The value of one hectare
(10,000 m2) of the paddy land, calculated according to the formula
mentioned at Step 4, Section 2, Part I of this Circular shall be:
The
value of one hectare of paddy land
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21,883,333
x
100
=
312,619,000
(VND/ha)
7
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or
VND
31,260/m2
So, the value of the paddy
(annual crop) land of grade IV in commune X mentioned above is estimated at
around VND 31,260/m2. This price level constitutes a basis for
elaboration of price schemes to be submitted to the provincial-level People’s
Committees for decision on specific land price levels.
2.2. Deduction of the value of
assets on land
For land where exist
constructions, houses, architectural objects, land where such perennial trees
as rubber, coffee, pepper, cashew,... or fruit trees are grown, upon the land
price calculation, the remaining value of works, houses, architectural objects,
cultivated plants invested in land must be deducted by method of deducting the
value of assets on land as guided at Point 1.2, Section 1, Part I of this
Circular.
3.
Conditions for application of land price-determining methods
3.1. Upon the land price
determination, the direct comparison method shall apply only when the adequate
information and data on the similar land category comparable with the category
of the to be-valuated land as guided at Point 1.1, Section 1, Part I of this
Circular are collected; the income-based method shall apply to determine the
prices of assorted land categories only when the element of income from land is
determined, if the data on land use right transfer prices of various similar
comparable land categories on the market cannot fully collected.
3.2 Where there is a land
category for which the common land use right transfer price on the market can
be collected and the income from the to be-valuated land plot can also be
calculated, the direct comparison method shall be used as the principal method
for land price determination.
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- The land use right transfer
has not yet been common in the market, the collected data are unsystematic;
- The land use transfer prices
on the market have fluctuated unpredictably, failing to correctly reflect the
land supply-demand relationship under normal conditions.
- The land price level estimated
by way of applying either of the land price-determining methods is higher than
the maximum price level of the price bracket prescribed in Clause 1, Article 6
and the limits permitted to be applied to the category of the to be-valuated
land prescribed in Clause 2, Article 6 of the Government’s Decree No.
188/2004/ND-CP of November 16, 2004 on methods of determining land prices and
assorted-land price brackets.
3.4. The above land price-determining
methods shall apply to determine the value of specific land plots, land areas
for use as basis for mass land price determination for each land grade or land
position under the guidance in Part II of this Circular.
II.
DETERMINATION OF SPECIFIC LAND PRICES IN LOCALITIES
1. A
number of jobs to be done in preparation for land price determination
a) To classify communes into
delta communes, midland communes and mountain communes for appropriate
application of assorted-rural land price brackets prescribed by the Government
according to regions: delta, midland, mountain to each type of commune in the
localities (provinces, cities).
b) To grade land for
determination of prices of assorted land categories: annual crop land,
perennial tree land, aquaculture land, production-forest land,
protective-forest land and special-use forest land and other agricultural land
categories according to the Government’s regulations.
Land grading shall comply with
the current provisions of the Agricultural Land Use Tax Law and documents
guiding the implementation thereof.
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c) To prescribe specific
criteria on land positions from No. 1 to the last number, suitable to local
conditions and determine the number of positions of salt-making land and
positions of rural non-agricultural land for land price determination according
to the common criteria prescribed in Article 9 of the Government’s Decree No.
188/2004/ND-CP of November 16, 2004 on methods of determining land prices and
assorted-land price brackets, concretely as follows:
- For salt-making land: Based on
concrete local conditions, the provincial-level People’s Committees shall
classify land positions according to the criteria based on the distance from
salt-making fields to concentrated salt storehouses in production areas or the
distance from salt-making fields to inter-district traffic roads (in case of
non-availability of inter-district traffic roads, to base on the distance to
the inter-commune traffic roads).
- For rural residential land,
rural non-agricultural production and/or business land: Based on concrete local
conditions, the provincial-level People’s Committees shall determine the areas
which need to be valuated; classify land positions and decide on the number of
land positions of each land area for price determination.
d) To prescribe specific
criteria on land positions so as to classify land positions and decide on the
number of land positions in each street grade; to grade streets and decide on
the number of streets in the order from No. 1 to the last number, suitable to
local conditions in each urban center grade for price determination according
to the common criteria prescribed in Article 10 of the Government’s Decree No.
188/2004/ND-CP of November 16, 2004 on methods of determining land prices and
assorted-land price brackets.
Based on concrete local
conditions, the provincial-level People’s Committees may not classify streets,
but can classify land positions and prescribe the number of land positions for
each street section, each specific street name for land price determination.
The land position classification, the street section division, the street
classification of each grade of urban city for price determination must also
comply with the common criteria prescribed in Article 10 of the Government’s
Decree No. 188/2004/ND-CP of November 16, 2004 on methods of determining land
prices and assorted-land price brackets.
e) The provincial-level People’s
Committees shall base on the decisions to set up urban centers and to grade
urban centers, issued by competent authorities for urban centers in their
respective provinces, to properly apply the urban land price brackets
prescribed by the Government to various grades of urban centers in the
localities.
2. Price
determination and adjustment of specific land prices
a) Land prices must be decided
in strict accordance with the land use purposes inscribed in the land use right
certificates issued according to law provisions; the decisions on land
assignment, land lease or land use purpose change permission of competent State
bodies, registration for land use purpose change in conformity with land use
plannings, plans approved by competent authorities.
For land not yet issued the land
use right certificates, not yet put under any land use plannings or already put
under land use plannings which are, however, not yet implemented, not yet
registered for land use rights, the land prices shall be determined according
to current use purposes.
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b) The specific price level of
each land grade, land position of assorted land categories shall be prescribed
by the provincial-level People’s Committees in Vietnam dong on a land acreage
unit (m2) and must not fall beyond the assorted-land price brackets
according to each land region or each urban center grade prescribed by the
Government in Clause 1, Article 6 and the limits permitted for application by
localities under the provisions in Clause 2, Article 6 of the Government’s
Decree No. 188/2004/ND-CP of November 16, 2004 on methods of determining land
prices and assorted-land price brackets.
Where the actual land use right
transfer market prices under normal conditions in localities of certain land
categories, land positions fluctuate (locally) with increase or decrease over
the land prices set by the provincial-level People’s Committees, only the
fluctuating prices of such land categories or land positions shall be adjusted
as provided for in Clause 1, Article 15 of the Government’s Decree No.
188/2004/ND-CP of November 16, 2004 on methods of determining the land prices
and assorted-land price brackets.
c) Determining the specific
prices for each land grade, land positions of various land categories for which
the Government has prescribed the land price brackets:
- For annual crop land,
perennial tree land, aquaculture land, production-forest land, the price shall
be determined for every land grade classified according to three regions as
determined under the guidance at Point a and Point b, Section 1, Part II of
this Circular.
In cases where on the
agricultural land of the same category mentioned above, different animals are
raised or different crops are cultivated, only one uniform price shall be
prescribed for every land category according to land on which plants of one key
kind in the region are cultivated or animals of one key kind in the region are
raised (example, paddy land or the land region cultivated with annual crops);
the different land price of the same grade of land of the same category of agricultural
land in the same land region shall not be prescribed according to every
different kind of plant, animal.
Based on the specific conditions
in localities, the determination of price for each land grade can be made by
either of the two following ways:
+ The first way: Determining the
price directly for each land grade
For each land grade classified
according to three regions within the determined administrative boundaries, to
select at least three typical land plots of representative character. Then, to
determine the price of each land plot by applying the land price-determining
methods as guided in Part I of this Circular and calculating the land acreage
unit (m2) price of each land plot.
The determined land grade price
(per square meter) is the average of various price levels of the selected land
plots as mentioned above.
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The way of determining grade 1-
land price shall comply with the guidance in the direct pricing method
applicable to every land grade mentioned above.
Based on the element criteria of
each land grade used for tax calculation or the land use right transfer price
of assorted land grades, the provincial-level People’s Committees shall
elaborate land grade coefficients to determine land prices on the principle
that grade 1 land has the highest price level corresponding to coefficient 1,
land of subsequent grades shall have lower coefficients corresponding to lower
price levels.
The price-determining land grade
coefficient is the comparative ratio between the land use right transfer price
of land grades and the land use right transfer price of grade 1 land, or the comparative
ratio between element criteria of each tax calculation land grade and grade 1-
land.
The assorted-land prices
calculated according to the above-mentioned land grades shall be calculated by
multiplying the land price of the determined land grade (grade 1) by the land
price- determining coefficient of each land grade.
Example: It is assumed that the
price of annual crop land of grade 1 in delta communes of district X, province
H is determined according to the annual crop land price bracket prescribed by
the Government as being VND 80,000/m2; and the elaborated
coefficients of price-determining land grades of from grade 1 to grade 6 are 1;
0.85; 0.67; 0.50; 0.32; 0.1 respectively, the land prices of the land grades
following grade 1 shall be specifically calculated as follows:
Land
grade
Price-determining
land grade coefficient
Pre-determined
land grade price (VND/m2)
Specific
land grade price (VND/m2)
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2
3
4
= 2 x 3
Grade
1
1.00
80,000
80,000
Grade
2
0.85
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68,000
Grade
3
0.67
53,000
Grade
4
0.50
40,000
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0.32
25,600
Grade
6
0.10
8,000
In localities where grade 1 land
is not available, the highest land grade of every land category shall be used as
coefficient 1.
- For salt-making land, the
price determination shall comply with land positions. Based on the criteria for
land position classification, the provincial-level People’s Committees shall
elaborate the land price- determining position coefficients on the principle
that land at position No. 1 has the highest price level, corresponding to
coefficient 1, land at subsequent positions shall have lower coefficients
corresponding to lower price levels. Ways of determining land price for every
land position shall be similar to that of determining price for each land grade
as guided above.
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Particularly for a number of
rural land positions fronting main traffic axes (provincial road, national
highways) or lying adjacent to industrial parks, trade zones, tourist resorts,
thus being particularly favorable for business and service activities, which
have high actual land use right transfer market prices, the land prices shall
be prescribed higher but must not more than treble the maximum price level of
the rural residential land price bracket prescribed in Clause 1, Article 6 of
the Government’s Decree No. 188/2004/ND-CP of November 16, 2004 on methods of
determining the land prices and assorted-land price brackets.
The provincial-level People’s
Committees shall prescribe the specific criteria and the number of positions
for this land category for price determination.
- For residential land,
non-agricultural production and/or business land in urban centers, the land
prices shall be determined according to land positions for every grade of
street of different urban center grades.
Based on the specific local conditions,
the price determination for every land position can be made by either of the
following two ways:
+ The first way: Determining the
price directly for every land position:
For each land position of every
street grade or every specific street section, to select at least three land
plots at different locations representing all land positions. Then, to proceed
to determine the price of each land plot by way of applying the land
price-determining methods guided in Part I of this Circular and calculate the
land acreage unit (m2) price of each land plot.
The land price of every position
(per square meter) shall be determined as the average of all price levels of
the selected land plots as mentioned above.
+ The second way: Determining
the position 1- land price of every area, every street grade or every street,
then using the land position coefficients to determine prices for the remaining
land positions of every area, every street grade or every street.
The way of determining position
1- land prices shall be the same as way of direct price determination for every
land position mentioned above.
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The above-mentioned land
price-determining position coefficients of all land categories are the
comparative ratios between the actual common land use right transfer market
prices of other land positions as compared to position 1, or the comparative
ratio between criteria of every land position.
The above-mentioned prices of
all land categories, determined according to positions, shall be calculated by
way of multiplying the land price of the determined land position (position 1)
by the land price-determining position coefficient of every land category.
Example: Presumably, the price
of residential land at position 1 on grade -1 street of a special-grade urban
center is determined according to the Government-prescribed price bracket as
being VND 67,000,000/m2; and the price-determining coefficients
elaborated for positions 1 thru 4 of grade-1 street are 1; 0.8; 0.65; 0.4
respectively, the land prices of the positions following position 1 shall be as
follows:
Land
position
Price-determining
position coefficient
Pre-set
land position price (VND 1,000/m2)
Specific
land position price (VND1,000/m2)
1
2
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4
= 2 x 3
Position
No. 1
1.00
67,000
67,000
Position
No. 2
0.80
53,600
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0.65
43,550
Position
No. 4
0.40
26,800
For residential land,
non-agricultural production and/or business land in provincial towns, district townships,
new urban centers not yet graded and lying in rural land areas (outside
boundaries of urban land of graded cities, provincial towns), upon the
determination of specific land prices, the price brackets of residential land,
non-agricultural production and/or business land in grade-V urban centers
prescribed in Clause 1 and the limits permitted for application prescribed in
Clause 2, Article 6 of the Government’s Decree No. 188/2004/ND-CP of November
16, 2004 on methods of determining land prices and assorted land price
brackets.
d) Determining specific prices
for land categories for which the Government has not prescribed the land price
brackets:
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The maximum specific price level
for every grade of protective-forest land, special-use forest land shall not
exceed the specific price level of each land grade of the production-forest
land.
- For other agricultural land as
prescribed in Item e, Section 4, Article 6 of the Government’s Decree No.
181/2004/ND-CP of October 26, 2004 guiding the implementation of the Land Law:
The prices of other agricultural
land categories shall be determined on the basis of specific land price levels
prescribed by the provincial-level People’s Committees for agricultural land
category lying adjacent or in vicinities in the same region (if the adjacent
land is unavailable).
The maximum specific land price
level prescribed for every other agricultural land category shall not exceed
the specific price level set for adjacent agricultural land category or the
highest price level set for agricultural land in the vicinities.
- For land used for construction
of working offices and land used for construction of non-business works:
Based on the specific price
levels prescribed by the provincial-level People’s Committees for residential
land to determine the prices of land used for construction of working offices
and the construction of non-business works on the principle: For land used for
construction of working offices and construction of non-business works in rural
areas, the rural residential land prices shall be based on; for land used for
construction of working offices and construction of non-business works in urban
centers, the urban residential land prices shall be based on.
The maximum specific price level
prescribed for every land position of the land used for construction of working
offices and construction of non-business works shall not be higher than the
specific price levels set by the People’s Committees for similar positions of
adjacent residential land or residential land in the nearest vicinity if the
adjacent land is unavailable.
- 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, worshipping halls, ancestral worship houses;
land for cemeteries, graveyards and other non-agricultural land as prescribed
by the Government (in Item f, Section 5, Article 6 of the Government’s Decree
No. 181/2004/ND-CP of October 29, 2004 on implementation of the Land Law).
Based on the specific price
levels prescribed by the provincial-level People’s Committees for adjacent land
categories to determine the prices of the above land categories, concretely:
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+ In cases where the above land
categories are adjacent to different land categories, the price of the land
category with the highest price level shall be based on.
The maximum specific price level
prescribed for every land position of the above-mentioned land categories shall
not be higher than the specific price level prescribed by the provincial-level
People’s Committees for similar position of the residential land or adjacent
non-agricultural production and/or business land.
3.
Determining the prices of land in adjacent areas:
a) Prices of land in adjacent
areas between provinces, centrally run cities:
- When determining the prices of
land in adjacent areas between provinces, centrally run cities, the People’s
Committees of the provinces having adjacent land must base on the provisions in
Clause 1 of Article 12, Clause 1 of Article 14 of the Government’s Decree No.
188/2004/ND-CP of November 16, 2004 on methods of determining land prices and
assorted-land price brackets and the land price determination guidance in this
Circular.
- Before deciding on the prices
of land in adjacent areas prescribed in Clause 1, Article 12 of the
Government’s Decree No. 188/2004/ND-CP of November 16, 2004 on methods of
determining the land prices and assorted-land price brackets, the
provincial-level People’s Committees must refer to and exchange ideas with one
another on the price levels projected for promulgation and must strictly comply
with the principles prescribed in Item c, Section 1, Article 56 of the 2003
Land Law: “Land in adjacent areas between provinces, cities, having similar
natural conditions, the same current use purposes and the same planned use
purposes shall have the same price level.”
Where land in adjacent areas
between provinces, cities having the same current use purposes, the same
planned use purposes and the same natural conditions and infrastructures, but different
socio-economic development policies, different investment attraction policies,
the prices of land in adjacent areas may differ but the maximum shall not
exceed 20%.
- Where localities cannot reach
agreement with one another on the prices of land in adjacent areas, they shall
report such to the Prime Minister for decision.
b) The prices of land in
adjacent areas between urban districts, rural districts, towns and cities of
provinces, centrally run cities.
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Where the infrastructure
conditions in adjacent areas differ, the prices of land in the adjacent areas
shall be determined on the basis of the practical conditions of each area.
For rural residential land on
the outskirts (covering communes adjacent to inner areas or townships of urban
centers of special grade or grade 1 and villages adjacent to inner areas,
townships of the remaining urban centers), the land prices in these areas shall
be determined on the principle of determining prices for adjacent land plots
and applying land price brackets prescribed by the Government for types of
adjacent urban centers.
The provincial-level People’s
Committees shall specify the rural residential land in suburban areas.
III.
IMPLEMENTATION ORGANIZATION
1. Based on Land Law No.
13/2003/QH11; the Government’s Decree No. 188/2004/ND-CP of November 16, 2004
on methods of determining the land prices and assorted-land price brackets and
the contents guided in this Circular, the provincial-level People’s Committees
shall decide on specific land prices; publicize and inspect the application of
assorted-land price brackets in localities.
2. Annually, the
provincial-level People’s Committees shall each arrange a funding amount from
the local budget for carrying out the investigation, surveys and statistics on
land use right transfer prices, land price consultancy and determination of
assorted-land prices, organizing training on execution of land price decisions,
organizing professional training and fostering for land price-managing
officials in localities. The management of this funding shall comply with the
current regulations of the State.
The provincial-level People’s
Committees shall direct the provincial/municipal Finance Services in organizing
networks to monitor and make statistics on the actual land use right transfer
prices on local markets, periodically report thereon to the Finance Ministry
according to regulations. Where the actual land use right transfer prices
on local markets fluctuate continuously for a long period, thus causing big
price differences, they must report such to the Finance Ministry for sum-up
report to the Government for considering the adjustment of assorted-land price
brackets.
3. This Circular takes
implementation effect 15 days after its publication in the Official Gazette.
This Circular replaces Joint
Circular No. 94 TT/LB of November 14, 1994 of the Government Pricing Committee,
the Finance Ministry, the Construction Ministry and the General Department of
Land Administration guiding the implementation of the Government’s Decree No.
87/CP of August 17, 1994 prescribing the assorted-land price brackets.
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FOR THE FINANCE
MINISTER
VICE MINISTER
Huynh Thi Nhan