DECREE

ON LAND PRICE

Pursuant to the Law on Government Organization dated June 19, 2015 and the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Land Law dated January 18, 2024;

At the request of the Minister of Natural Resources and Environment;

The Government hereby promulgates a Decree on land price.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree provides for land valuation methods prescribed in Article 158; compilation of, adjustment and amendment to the land price list specified in Article 159; determination of specific land prices in Article 160; qualifications to become practising land price determination consultants specified in point b clause 3 Article 162; application of land valuation methods of transitional cases specified in point c clause 2 Article 257 of the Land Law.

Article 2. Regulated entities

1. Land authorities; authorities with the power to compile, adjust, amend, appraise and decide land price lists; authorities and persons with the power to determine, appraise and decide specific land prices.

2. Land price determination consulting firms, individuals working as practicing land price determination consultants.

3. Other relevant organizations and individuals.

Article 3. Interpretation of terms

For the purposes of this Decree, the terms below are construed as follows:

1. “Conveyance on the market" means the conveyance of land use rights (LURs) or both LURS and ownership of property affixed to land applied if the conveyor has followed procedures relating to taxes, fees or charges at a tax authority or has registered land-related changes at a land registry office or has signed a conveyance contract between the project developer of a real estate and commercial housing project with a customer as per the law.

2. “land zone to be valued" means a collection of land parcels within the same area or land-based project that require valuation.

3. “comparable land parcel” means a land parcel with the same land use purpose and certain similarities in factors affecting land price as the land parcel to be valued that has been conveyed on the market or the land parcel whose LURs were granted at an auction to a successful bidder that has fulfilled his/her financial obligations under the decision to recognize the successful bidder.

4. “land valuation organization” means a land price determination consulting firm specified in Clause 3, Article 162 of the Land Law that is hired or assigned to provide land valuation consulting services by a land authority.

Chapter II

LAND VALUATION METHODS

Article 4. Orders and contents of land price determination following the comparison method

1. Survey and collect information about the land parcel or land zone to be valued, including:

a) Land use purpose;

b) Factors affecting the land price as prescribed in Article 8 of this Decree.

2. Survey and collect information of the comparable land parcel, including:

a) Input information serving the land valuation purpose is the price of the land that has been conveyed on the market or the land whose LURs were granted at an auction to a successful bidder that has fulfilled his/her financial obligations specified in points a, b and c clause 3 Article 158 of the Land Law;

b) Information specified in point a of this clause, which is gathered from: National database on land, national database on prices; land registry office; unit conducting the LUR auction, property auction unit and organization; real estate trading floor, real estate enterprise; information collected through investigation and survey;

c) Factors affecting the land price as prescribed in Article 8 of this Decree.

3. The information of land parcels serving the selection of a comparable land parcel shall be decided in the following order of priority:

a) Information closest to the time of land valuation.

In case there are many different sources of information disclosed at the same time, the information sources shall be selected in the following order of priority: National database on land, national database on prices; land registry office; unit conducting the LUR auction, property auction unit and organization; real estate trading floor, real estate enterprise; information collected through investigation and survey;

b) Certain similarities in factors affecting the land price;

c) Which land parcel has the closest distance to the land parcel or land zone to be valued and is not limited by the administrative boundaries of third- and second-level administrative units within the first-level administrative division.            In case of expanding the scope of information beyond the first-level administrative division, the organization making land valuation must specifically explain the reasons in the Descriptive report on developing the land price arrangements for the Land price appraisal council to consider and decide.

4. The value of property affixed to land (if any) of a comparable land parcel is determined as follows:

a) In case the property affixed to land is a construction work

The value of the property affixed to land at the time of getting LURs by conveyance or purchase at auction shall be determined as follows:

The method of calculating the value of the new property and the depreciation value of the property affixed to land is in accordance with relevant laws. In cases where there are no regulations or instructions on methods of calculating the value of the new property and the depreciation value, the calculation is based on actual information and data collected on the market;

b) In case where the property affixed to land is a perennial crop or planted forest

For a perennial crop, its value at the time of getting LURs by conveyance or purchase at auction is the harvesting value calculated based on income from harvesting its product corresponding to the remaining years during the harvest cycle or is determined according to the compensation rate applicable for perennial crops issued by the first-level People's Committee.

For a planted forest, its value at the time of getting LURs by conveyance or purchase shall be determined according to relevant laws; in case relevant laws have not yet promulgated, its value shall be equal to the total investment cost for planting and caring such planted forest by the time of getting LURs by conveyance or purchase at auction or be determined according to the compensation rate applicable to planted forests issued by the first-level People’s Committee.

5. The price of a comparable land parcel shall be determined as follows:

6. On the basis of factors affecting land price prescribed in Article 8 of this Decree and characteristics of the land parcel or land zone to be valued, the adjustment to the price of the comparable land parcel by percentage (%) shall be made according to the following principles:

a) Take the factors affecting the land price of the land parcel to be valued as the standard to adjust the price of the comparable land parcel;

b) In case there is a factor that produces a decrease in the price of the comparable land parcel compared to that of the land parcel to be valued, an increase in land price of the comparable land parcel in accordance with that factor is applied; In case there is a factor that produces an increase in the price of the comparable land parcel compared to that of the land parcel to be valued, a decrease in land price of the comparable land parcel in accordance with that factor is applied.

c) In case of the factors that produce the same change in the land price of the comparable land parcel as the land parcel to be valued, the price of the comparable land parcel remains unchanged.

7. The estimated land price of the land parcel to be valued is determined on the basis of adjustments to the land price of each comparable land parcel produced by different factors of the comparable land parcels compared to the land parcel to be valued as follows:

8. The land price of the land parcel to be valued shall be the arithmetic mean of estimated land prices of the land parcel to be valued according to each comparable land parcel that have been determined according to the provisions of Clause 7 of this Article; the difference between the determined land price of the land parcel to be valued and each estimated land price must not exceed 15%.

9. The land price determination using the comparison method is illustrated in detail in example No. 01, Appendix II enclosed herewith.

Article 5. Orders and contents of land price determination using the income-based method

1. Survey and collect information about incomes earned from a land parcel or land zone to be valued.

a) For non-agricultural land, survey and collect information from land leases and premises leases during 03 consecutive years (from January 1 to December 31) immediately preceding the year of valuing the land parcel or land zone to be valued or during 01 year (from January 1 to December 31) immediately preceding the year of valuing 03 land parcels with the closest distance to the land parcel or land zone to be valued for comparison.

In case it is not possible to collect information from the land leases and premises leases, collect information about incomes earned from production and business activities recorded in financial statements during 03 consecutive years (from January 1 to December 31) immediately preceding the year of valuing the land parcel or land zone to be valued or in the financial statements of 01 year immediately preceding the year of valuing 03 land parcels with the closest distance to the land parcel or land zone to be valued;

b) For agricultural land, survey and collect information on incomes earned from agricultural land used at a statistical agency, tax authority, or agriculture and rural development authority, to be specific:

- During 03 consecutive years (from January 1 to December 31) immediately preceding the year of valuation, in case of determining land price of annual crop land, land for aquaculture, land for salt production, and other agricultural land;

- For at least 03 consecutive harvests before the time of valuation, in case of perennial crop land;

- During a harvesting cycle before the time of valuation, in case of production forest land, as prescribed by relevant laws.

In case there is no available data from the statistical agency, tax authority, agriculture and rural development authority, collect information on the actual common incomes on the market earned from 03 land parcels with the closest distance to the land parcel or land zone to be valued.

2. Survey and collect information about incurred costs relating to the land parcel or land zone to be valued

a) For non-agricultural land

Costs incurred to generate income from land use specified in Point a, Clause 1 of this Article are the costs of operating and maintaining construction works affixed to land, and production costs that are determined according to norms and unit prices issued by competent regulatory authorities; taxes related to land use.

In case norms or unit prices applied to costs incurred to generate income from land use have not been issued by competent regulatory authorities, collect information on the above costs recorded in the financial statements; in case the financial statements do not clearly show the costs incurred to generate income from land use, then survey the costs incurred to generate common income from actual land use on the market.

b) For agricultural land

Costs incurred from the use of agricultural land including taxes related to land use, and production costs are determined on the basis of norms and unit prices issued by competent regulatory authorities at statistical agencies, tax authorities, and agriculture and rural development authorities and in accordance with the provisions of Point b, Clause 1 of this Article.

In case there is no available data from any statistical agency, tax authority or agriculture and rural development authority, collect information on the common costs actually incurred on the market of 03 land parcels with the closest distance to the land parcel or land zone to be valued.

3. The average annual net income is determined as follows:

where:

a) The average annual income is the average of the incomes specified in Clause 1 of this Article for 01 year. In case the income is from land leases or premises leases of 03 land parcels, the determination of land rent or premises rent to calculate the average annual income is in the same order and content as land price determination using the comparison method specified in Clauses 6, 7 and 8, Article 4 of this Decree

b) The average annual cost is the average of the costs specified in Clause 2 of this Article for 01 year.

4. The LUR value of the land parcel to be valued is determined as follows:

The average interest rate on savings accounts (r) is the average interest rate of 12-month term deposits in Vietnamese currency at commercial banks where the State holds more than 50% of charter capital or total voting shares in a first-level division (hereinafter referred to as “state-owned commercial banks”) of 03 consecutive years preceding the latest quarter with available data before the time of valuation.

Regarding land used for non-agricultural business and production purposes for a limited period of time, the average interest rate on savings accounts is adjusted according to the following formula:

where: n: the remaining land use term of the land parcel to be valued (in years) in case of land lease under one-off arrangement.

5. Land price of the land parcel to be valued is determined as follows:

In cases where works affixed to land directly serving production and business to generate income have been invested and constructed on the land parcel to be valued, the value of the works affixed to land must be subtracted from the value of the land parcel and works affixed to land as prescribed in Point a, Clause 4, Article 4 of this Decree.

6. Within 05 working days from the date on which the written request of a land authority is received, state-owned commercial banks shall provide in writing the information on the average interest rate on savings accounts specified in clause 4 of this Article.

7. The land price determination using the income-based method is illustrated in detail in example No. 02, Appendix II enclosed herewith.

Article 6. Orders and contents of land price determination using the surplus-based method

1. Survey and collect information about the land parcel or land zone to be valued; information on land use planning, detailed construction planning or detailed planning under abridged procedures, records and documents prescribed by construction law that have been appraised and approved by competent regulatory authorities to determine the highest land use efficiency and other necessary information serving the land valuation.

2. Make an estimate of total development revenue of the land parcel or land zone

a) Total development revenue of the land parcel or land zone is determined on the basis of estimated conveyancing fee, land rent, premises rent, and/or selling prices of products or services, and fluctuations thereof during project execution and other factors that form revenue including: sales period; time to start selling products and services; sales rate; occupancy rate.

The selling prices of products and services are applied in cases where the conveyancing fee, land rent, and premises rent cannot be collected;

b) The following information on the conveyancing fee, land rent, and premises rent; and the selling prices of products and services is surveyed and collected.

Information on selling prices of houses, apartments, entire construction works, partial construction works, and land price that are collected according to the provisions of Clauses 2 and 3, Article 4 of this Decree; information on land rent and premises rent that are under land and premises lease contracts; information on selling prices of products and services that are collected through investigation and survey of projects with similar product and service sales forms that are the closest distance from the land parcel or land zone to be valued;

c) The conveyancing fee, land rent, premises rent, and/or selling prices of products and services serving the determination of the total development revenue of the land parcel or land zone shall be estimated using the comparison method similarly to the land parcel or land zone to be valued for which detailed construction planning or detailed planning under abridged procedures has been approved;

d) Fluctuations in conveyancing fee, land rent, premises rent, and/or selling prices of products and services are determined on the basis of data from statistical agencies or real estate market management agencies. In case there is no available data from statistical agencies or real estate market management agencies,

The fluctuations of conveyancing fee is determined on the basis of the average consumer price index of the housing and construction materials group in the 3 consecutive years preceding the year of land valuation announced by a competent regulatory authority to be applied in a first-level administrative division; if the division does not announce the consumer price index, the consumer price index of the housing and construction materials group of the whole country will be applied;

The fluctuation in land rent or premises rent is determined on the basis of the fluctuation stated in land lease and premises lease contracts; the fluctuations of the selling prices of products and services are determined on the basis of the actual market data collected by a land valuation organization and are submitted to the Land price appraisal council for decision;

dd) Based on the actual situation of a first-level division, the Department of Natural Resources and Environment shall take charge and cooperate with relevant departments and local authorities in advising and submitting specific regulations on sales rate and occupancy rate to the first-level People's Committee to be applied no later than January 1, 2025. If necessary, the first-level People's Committee will adjust them to suit the actual situation of the first-level division.

While the first-level People's Committee has not yet regulated the sales rate and occupancy rate, the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued, submit a proposal in the descriptive report on developing land price arrangements for each project to the Land price appraisal council for consideration and decision.

For the sales period, and the time to start selling products and services, the project’s development revenue shall be estimated according to the schedule determined in the investment guidelines or bidding documents for investment project execution or investment project approval decisions. In case investment guidelines or bidding documents for investment project execution or investment project approval decisions do not indicate sales period and starting time of sales, the first-level People's Committee shall prescribe them in a manner that is appropriate to the actual situation in the first-level division for groups of projects with the same main land use purpose or each specific project, or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance to the land parcel or land zone to be valued, propose them to the Land price appraisal council for consideration and decision.

3. Make an estimate of total development cost of the land parcel or land zone

a) Construction investment costs incurred to determine land prices in this Decree include:

- Costs incurred to construct works and project items (adjusted for inflation);

- Costs incurred to construct temporary and auxiliary construction works and items; costs incurred to demolish construction works that are not subject to site clearance and demolition that were included in compensation, support, and resettlement costs;

- Equipment costs;

- Project management costs;

- Construction investment consulting costs;

- Other costs prescribed by construction law that directly contribute to the project’s development revenue that are selected for each specific project and proposed to the land price appraisal council for consideration and decision by the land valuation organization.

In case investment rates are applied, provision of construction law on investment rates shall be complied with.

In case of determining the land price for a land reclamation project or land reclamation item in an investment project, in addition to the land reclamation costs approved by a competent regulatory authority, the construction investment costs specified in this point that have not yet been determined in the land reclamation project or land reclamation item in the approved investment project will also be included.

In case a land parcel or land zone to be valued for execution of an investment project to build and sell housing for sale or for both sale and lease is divided into multiple subdivisions for sale, housing construction costs are not included in construction investment costs;

b) Operating expenses include: marketing, advertising, sales, and administrative costs that are calculated as a percentage (%) of revenue in accordance with the nature, scale of the project and the local practicalities;

c) Interest expenses and profits of the investor taking into account equity and business risks are calculated as a percentage (%) multiplied by the total costs/expenses specified in Points a and b of this Clause and the LUR value of the land parcel or land zone to be valued according to the provisions of Clause 6 of this Article;

d) Total development costs of the land parcel or land zone specified in this Clause do not include compensation, support, and resettlement costs under the approved plan by a competent authority. The refund of the compensation, support, and resettlement costs that the investor has voluntarily advanced shall comply with the provisions of Clause 2, Article 94 of the Land Law;

dd) Based on information about similar projects within the valuation area or the nearest neighbouring area, the Department of Natural Resources and Environment shall take charge and cooperate with relevant departments and local authorities in advising and proposing to the first-level People’s Committee to specifically impose percentages (%) for determining operating expenses; interest expenses, profits taking into account equity and business risks for groups of projects with the same main land use purpose or each specific project to be applied no later than January 1, 2025. If necessary, the first-level People's Committee will make adjustments to suit the actual situation of the first-level division.

When the first-level People’s Committee has not yet stipulated operating expenses, the operating expenses of the land parcel or land zone to be valued are equal to the average of operating expenses of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued.

When the first-level People's Committee has not yet stipulated the percentage (%) for calculating interest expenses and profits of the investor, taking into account equity and business risks, the land valuation organization shall submit a proposal in the descriptive report on developing land price arrangements for each project to the Land price appraisal council for consideration and decision.

The construction period or progress shall be determined on the basis of the progress determined in the investment guidelines or bidding documents for investment project execution or investment project approval decision to make an estimate of the project's development costs. In case investment guidelines or bidding documents for investment project execution or investment project approval decisions do not indicate construction period or progress, the first-level People's Committee shall prescribe them in a manner that is appropriate to the actual situation in the first-level division for groups of projects with the same main land use purpose or each specific project, or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance to the land parcel or land zone to be valued, propose them to the Land price appraisal council for consideration and decision.

4. The total construction investment costs are estimated as follows:

a) Construction investment costs are estimated according to detailed construction planning or detailed planning under abridged procedures or basic design documents or construction design documents appraised and approved by competent authorities. The estimation of construction investment costs specified in this Point shall comply with the provisions of construction law;

b) Order of priority of the information used for estimation of total construction investment costs is as follows:

- The construction estimate that has been appraised by a construction authority according to the provisions of construction law;

- The construction estimate that is based on the norms and unit prices issued and announced by a competent regulatory authority and has been independently appraised or verified by a land price determination consulting firm or agency. The consulting firm or agency shall be responsible to the law for the appraisal or verification results of the construction estimate that they have appraised or verified;

- Investment rates announced by the Ministry of Construction;

c) In case the information mentioned in point b of this clause is not available, the land valuation organization shall collect information on the actual common costs of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued, and submit a proposal in the descriptive report on developing land price arrangements, which will be the basis for the Land price appraisal council to consider and make decisions.

5. Estimates of revenues and costs are made for each year of project implementation and must be discounted to the present value at the time of land valuation. The formula for estimation of the total development revenue and total development costs of the land zone or land parcel:

Total development revenue =

Total development costs =

where:

- TR_i is the project's revenue in year i;

- C_i is the project’s costs in year I;

- r is the discount rate calculated based on the average interest rates on medium-term loans (from 01 year to 03 years) in Vietnamese currency of real estate investment and business projects of state-owned commercial banks of the year preceding the latest quarter with available data before valuation time;

- n is the number of sales years of the project (rounded to the nearest year);

- m is the number of years of construction with incurred costs of the project (rounded to the nearest year).

6. Determination of land price of the land parcel or land zone to be valued

The formula for determining LUR value of the land parcel or land zone to be valued:

The formula for determining land price of the land parcel or land zone to be valued:

7. In cases where the land zone includes the area of ​​land allocated with land levy payment (hereinafter referred to as “allocated land”), the area of ​​land leased out under one-off arrangement (hereinafter referred to as “land for lease”), the land price of the land parcel to be valued specified in Clause 6 of this Article is determined according to the total development revenue and total development costs for each area of subdivision of allocated land and land for lease.

The formula for finding technical infrastructure construction costs of allocated land and land for lease:

where: The total technical infrastructure construction cost of the project is part of the construction investment costs specified in Clause 3 of this Article in accordance with the provisions of law on construction.

8. In case the land parcel or land zone to be valued is allocated or leased out by a competent regulatory authority for investment project execution under multiple decisions,

a) In case all conditions for calculating the development revenue or development costs of the land parcel or land zone are met, the estimated development revenue or estimated development costs are determined according to the area of allocated land or land for lease of that decision;

b) In case the development revenue of the land parcel or land zone cannot be fully estimated or the estimated development cost is greater than the estimated development revenue for the area requiring land valuation, the development revenue or estimated development costs are estimated for the entire project according to the detailed construction planning or detailed planning under abridged procedures approved by a competent authority.

9. Within 05 working days from the date on which the written request of a land authority is received, state-owned commercial banks shall provide in writing the information on the interest rates on medium-term loans specified in clause 5 of this Article.

10. The land price determination using the surplus-based method is illustrated in detail in example No. 03, Appendix II enclosed herewith.

Article 7. Orders and contents of land price determination using the land price adjustment coefficient method

Survey and collect information about land parcels to be valued according to land locations and zones specified in the land price list, including: locations, area, land types and land use terms, land prices in the land price list.

2. Survey and collect information concerning land prices according to the provisions of Points a, b, c, Clause 3 and Clause 4, Article 158 of the Land Law for each land location or zone.

In case of the land parcel selected to collect information with property thereon, the property value shall be deducted to determine the land price of the land parcel according to the provisions of Clauses 4 and Article 5 of this Decree.

3. Determine prevailing land prices on the market for each land location or zone:

a) Produce statistics on collected land prices by each land location or zone;

b) In case land prices that are collected by each land location or zone where many land parcels have certain similarities in land price are too high or too low compared to the average price, this information on land prices will be removed before determining prevailing land prices on the market;

c) Prevailing land price on the market for each land location or zone is the arithmetic mean of land prices stipulated for such land location or zone.

4. Determine land price adjustment coefficients

A land price adjustment coefficient determined by each type of land, land location or zone equals (=) the land price on the market divided by (:) the land price in the land price list stipulated for such land location or zone.

5. Determine land price of the land parcel to be valued in each land location or zone:

Article 8. Factors affecting land prices

1. Factors affecting prices for non-agricultural land include:

a) Location of the land parcel or land zone;

b) Traffic conditions: road width, surface structure, whether the non-agriculture land adjoins a road or roads;

c) Conditions on water supply, drainage and electricity supply;

d) Area, size, shape of the land parcel or land zone;

dd) Factors pertaining to construction planning, including: Factors pertaining to construction planning including: land use coefficient, building density, building line, structure height limits, basement limits according to detail construction planning approved by competent state authority (if any); e) Current status of environment and security;

g) Land use term;

h) Other factors affecting land prices consistent with actual conditions, cultural traditions, and local customs and practices.

2. Factors affecting prices for agricultural land include:

a) Crop and livestock productivity;

b) Location and characteristics of the land parcel or land zone: The closest distance to the place of production and consumption of products;

c) Traffic conditions serving production and consumption of products: road width, road class, surface structure; terrain conditions;

d) Land use term, not applicable if agricultural land is allocated by the State to households and individuals within limits on agricultural land allocation and agricultural land and within limits on receipt by disposition;

dd) Other factors affecting land prices consistent with actual conditions, cultural traditions, and local customs and practices.

3. The Department of Natural Resources and Environment shall take charge and cooperate with relevant departments and local authorities in providing advices and proposing specific factors affecting land prices, maximum difference of each factor affecting land prices for determining certain similarities, adjustment methods for each difference level of each factor affecting land prices to the first-level People’s Committee.

If the First-level People’s Committee has not yet issued regulations or issued lack of regulations on factors affecting land prices, maximum difference of each factor affecting land prices, adjustment methods for each difference level of each factor affecting land prices, the land valuation organization shall submit a proposal in details in the descriptive report on developing land price arrangements to the land price appraisal council for consideration and decision.

Article 9. Application of land valuation methods in cases specified in point c clause 2 Article 257 of the Land Law

1. For the case of land allocation with land levy payment, or land lease under one-off arrangement which, under regulations at the time of issuance of the decision, applies the land price adjustment coefficient method, and land lease with annual land rent payments, the land price in the land price list shall be multiplied by the land price adjustment coefficient at the time of issuance of the decision. For the case where the decision was issued within the period of from July 01, 2014 to December 31, 2014 during which the land price adjustment coefficient method is applied, and the case where land is leased out with annual land rent payments, the land price in the land price list at the time of issuance of the decision shall be multiplied by the land price adjustment coefficient of 2015.

2. For the case of land allocation with land levy payment, or land lease under one-off arrangement which, under regulations at the time of issuance of the decision, does not fall under the cases of application of land price adjustment coefficient method, methods as prescribed in points a, b and c clause 5, points a, b and c clause 6 Article 158 of the Land Law and Articles 4, 5 and 6 of this Decree shall be applied.

3. In case land is allocated or leased out according to the recompense, support and resettlement schedule, clause 1 and clause 2 of this Article shall be based to apply land valuation methods according to each decision.

4. For the case specified in clause 3 of this Article, when applying the surplus-based method for land valuation,

a) In case all conditions for calculating the development revenue or development costs of the land parcel or land area are met, the estimated development revenue or estimated development costs are determined according to the area of allocated land or land for lease of that decision;

b) In case the development revenue of the land parcel or land zone cannot be fully estimated or the estimated development cost is greater than the estimated development revenue for the area requiring land valuation, the development revenue or estimated development costs are estimated for the entire project according to the detailed construction planning or detailed planning under abridged procedures approved by a competent authority.

5. The land price determination using the surplus-based method for the case specified in clause 4 of this Article is illustrated in detail in example No. 04, Appendix II enclosed herewith.

Article 10. Responsibilities of agencies and units for providing information

Agencies, organizations and units assigned to manage, exploit and use information sources specified in Point b, Clause 2, Article 4 and Point b, Clause 1, Article 5 of this Decree are responsible for providing information serving land valuation in writing or electronically within 05 working days from the date of receipt of the written request from the land valuation organization.

Chapter III

LAND PRICE LIST

Section 1. GENERAL PROVISIONS

Article 11. Basis for compilation of, adjustment and amendment to land price list

The compilation of, adjustment and amendment to a land price list shall comply with the provisions in Article 158 of the Land Law and Articles 4, 5, 6 and 7 of this Decree; results of aggregating and analyzing information concerning the prevailing land price on the market; and the current land price list; natural, socio-economic, land management and use factors, factors affecting land prices.

Article 12. Contents of compilation of, adjustment and amendment to land price list

1. Specific regulations on prices for land types:

a) Price of land for annual production, including land for rice cultivation/paddy cultivation and other annual crop land;

b) Price of perennial crop land;

c) Price of production forest land;

d) Price of land for aquaculture;

dd) Price of land for salt production;

e) Price of rural homestead land;

g) Price of urban homestead land;

h) Price of land for industrial parks or industrial clusters;

i) Price of commercial land;

k) Price of non-agricultural production establishment land;

l) Price of land used for mineral-related activities;

m) Price of types of land in high-tech parks;

n) Price of other types of land according to land classification in Article 9 of the Land Law that are not specified in point a to point m of this clause according to local management requirements.

2. Determination of prices for other land types in the land price list:

a) Price of dedicated forest land and protective forest land is determined on the basis of prices of production forest land in neighbouring areas;

b) Price of Land for intensive farming or other agricultural land types shall be determined on the basis of prices for agricultural land types in neighbouring areas;

c) Price of land used for both public purposes and commercial purposes, or other non-agricultural land is determined on the basis of prices of non-agricultural production establishment land in neighbouring areas;

d) Price of land for construction of head offices/offices, land for construction of public works; land used for public purposes, not for business purposes, religious land or belief land in use; land used for cemeteries, funeral service centers and cremation centers; land for ashes storage facilities is determined on the basis of price of land used for the same purpose in neighbouring areas. If the price of type of land used for the same purpose is not included in the land price list, price of land in neighbouring areas is based to determine them;

dd) Price of land covered by rivers, streams, canals, creeks or streams, or dedicated water-covered land is determined on the basis of its uses;

3. The price of land used for a term equivalent to 70 years, excluding agricultural land that is allocated by the State to households and individuals within limits on agricultural land allocation and agricultural land that is within limits on receipt by disposition, will not be based on the land use term.

Article 13. Preparation of compilation of land price list

The compilation of the first land price list for announcement and application from January 01, 2026 shall be prepared as follows:

1. The Department of Natural Resources and Environment shall prepare a land price list compilation project, which shows the contents, duration, schedule, estimated funding and relevant contents.

2. The Department of Natural Resources and Environment shall prepare an application for appraisal of the land price list compilation project dossier and submit it to the Department of Finance, which is responsible for making appraisal and sending a document concerning the appraisal of the application of the land price list compilation project dossier to compile land price list to the Department of Natural Resources and Environment. The application for appraisal of the land price list compilation project includes:

a) An Official Dispatch requesting appraisal of the land price list compilation project;

b) Draft land price list compilation project;

c) Draft Proposal for project approval;

d) Draft Decision of the first-level People's Committee on project approval.

3. The Department of Natural Resources and Environment shall receive and complete appraisal opinions, and submit a land price list compilation project dossier to the First-level People's Committee. The land price list compilation project dossier includes:

a) Land price list compilation project after receiving and completing appraisal opinions;

b) Proposal for project approval;

c) Draft Decision of the first-level People's Committee on project approval.

d) The document concerning the appraisal of the land price list compilation project dossier.

4. The First-level People’s Committee shall direct departments, local authorities, second-level People’s Committees, management boards of high-tech zones and economic zones (if any) to compile land price list.

5. The Department of Natural Resources and Environment shall select a land valuation organization to compile land price list according to provisions of bidding law. At the deadline for submission of bids, the bidding for land valuation organization selection shall be extended once if no bidder participates in. After extension, the Department of Natural Resources and Environment must assign duties to a public service provider qualified for land price determination consulting if no contractor is selected.

6. A land price list appraisal council and its assistance team shall be established:

a) The Department of Finance shall submit the list of members of the land price list appraisal council as prescribed in Clause 1, Article 161 of the Land Law to the First-level People's Committee which will appraise the draft land price list, where:

The representative of the land price determination consulting firm participating in the Council is the person who is qualified to practice land price determination consulting according to regulations and is not part of the land price determination consulting firm hired for compilation of, adjustment, amendment to the land price list;

Land price experts participating in the Council are people with at least 05 years of experience working in one of the fields of land finance, price management, land management, and price appraisal.

b) The Department of Finance shall submit a decision to establish the Council's assistance team to the Chairperson of the land price list appraisal council, including: The representative leader of the Department of Finance acting as the Team Leader and representatives of land, construction, planning, investment and tax authorities, and other members decided by the Chairperson of the Council. The assistance team is responsible for preparing the assigned contents to propose and report to the Land price list appraisal council for consideration at the appraisal meeting.

Article 14. Order and procedures for compiling land price list

The first land price list for announcement and application from January 01, 2026 shall be compiled as follows:

1. The land valuation organization shall compile a land price list as follows:

a) Investigate, survey, and collect information serving the compilation of the land price list by zone and location; the compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

b) Determine the type of land, zone, and land location in each commune, ward, and commune-level town for areas serving land price list compilation by zone and location; determine the type of land, the total number of land parcels, the number of land parcels of each land type for areas serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

c) Consolidate and complete records of information collection, investigation, and survey results in third-level divisions, second-level divisions and first-level divisions; analyze and evaluate the current land price list with regard to the compilation of land price list by zone and location;

d) Synthesize information collection, investigation, and survey results; set value range; select a standardized land parcel and determine its price; prepare a compa-ratio table with regard to the compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

dd) Compile a draft land price list and draft descriptive report on compiling land price list.

2. The Department of Natural Resources and Environment is responsible for developing a draft Proposal concerning promulgation of the land price list; post a survey dossier on the draft land price list on the website of the Provincial People's Committee and the Department of Natural Resources and Environment within 30 days; collect written opinions on the draft land price list from the first-level Vietnam Fatherland Front Central Committee, membership organizations of the Front, tax authorities, state notary organizations, and land price determination consulting firms; receive and complete the draft Proposal on promulgation of land price list; direct the land valuation organization to receive and explain comments, complete the draft land price list and Descriptive report on compiling the land price list.

3. The Department of Natural Resources and Environment shall submit an application for land price list appraisal to the Land price list appraisal council, which will make an appraisal of the land price list and submit the document concerning the land price list appraisal to the Department of Natural Resources and Environment.

4. The Department of Natural Resources and Environment shall receive, explain, edit and complete the draft land price list according to the opinions of the Land price list appraisal council; and submit it to the First-level People's Committee.

5. The First-level People’s Committee shall send the land price list to the People's Council at the same level for making decision, publicly disclosing and directing update on the national land database.

Article 15. Survey dossiers on draft land price lists, applications submitted to land price list appraisal councils for appraisal and applications submitted to the first-level People's Councils for approval

1. A survey dossier on a draft land price list:

a) Draft proposal concerning the promulgation of land price list;

b) Draft land price list;

c) Draft descriptive report on compiling land price list.

2. An application for land price list appraisal:

a) Proposal concerning the promulgation of the land price list;

b) Draft land price list;

c) Descriptive report on compiling land price list;

d) Report on receiving and explaining comments on the draft land price list.

3. An application for land price list decision by the first-level People's Council:

a) Proposal concerning the promulgation of the land price list;

b) Draft land price list;

c) Descriptive report on compiling land price list;

d) Report on receiving and explaining comments on the draft land price list;

dd) Document concerning the land price list appraisal;

e) Report on receiving and explaining comments on the land price list appraisal.

Article 16. Adjustment and amendment to land price list

1. A land price list submitted by the first-level People’s Committee to the People's Council at the same level for decision shall be adjusted or amended annually to be disclosed and applied from January 01 of the following year or in the year as follows:

a) Adjust and amend the land price of each type of land in each zone or location with market fluctuations for areas serving land price list compilation by zone or location; the land price of each land parcel with market fluctuates for areas serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

b) Supplement land prices that are not included in the current land price list of each land type in each zone or location for areas serving land price list compilation by zone or location; of each land parcel for areas serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

c) Maintain the land prices in the current land price list that was compiled, adjusted, amended or supplemented of each type of land in each zone or location without market fluctuations for areas serving land price list compilation by zone or location; the land price of each land parcel without market fluctuates for areas serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

2. Procedures for adjusting, amending, or supplementing land price list shall comply with the provisions in Articles 13, 14 and 15 of this Decree.

3. If the land parcel or land zone to be valued is covered by the land price list but its price is not included in the land price list at the time of land valuation, on the basis of the specific local situation, the first-level land authority shall, based on the land prices in the land price list of the zone or location with the similar infrastructure conditions, determine its land price and submit it to the first-level People’s Committee for decision, except for the cases specified in clause 3 Article 111 of the Land Law.

Article 17. Procedures for adjusting land price list in the cases specified in clause 1 Article 257 of the Land Law

1. The Department of Natural Resources and Environment shall select a land valuation organization according to the provisions in clause 5 Article 13 of this Decree.

2. The land valuation organization shall adjust the land price list according to the provisions of clause 1 Article 14 of this Decree.

3. The Department of Natural Resources and Environment shall develop a draft proposal concerning the promulgation of land price list; consult relevant agencies, organizations and individuals about the survey dossier on the draft land price list; receive and complete the proposal concerning the promulgation of land price list, perfect the draft land price list and descriptive report on compiling land price list.

4. The Department of Natural Resources and Environment shall submit the land price list to the land price list appraisal council.

5. The land price list appraisal council shall appraise the land price list and send a document concerning the appraisal to the Department of Natural Resources and Environment.

6. The Department of Natural Resources and Environment shall receive, explain, adjust and complete the draft land price list, submit it to the first-level People’s Committee for deciding adjustment to the land price list according to the documents specified in clause 3 Article 15 of this Decree.

Section 2. Land price list according to land location

Article 18. Classification of areas serving land price list compilation

1. Types of land requiring classification of areas serving land price list compilation include: agricultural land, rural homestead land; rural commercial land; land used for non-agricultural business and production purposes, not used for commercial purposes in rural areas; land for construction of head offices/offices, land for construction of public works, land used for public purposes and other non-agricultural land in rural areas.

2. Areas serving land price list compilation shall be classified by each third-level administrative division on the basis of productivity, crops, livestock, distance to places of production and consumption of products, and traffic conditions serving production and consumption of products (for agricultural land); on the basis of conditions of technical infrastructure, social infrastructure, advantages for production and business; distance to political, economic, and commercial centers within areas (for rural homestead land; rural commercial land; land used for non-agricultural business and production purposes, not used for commercial purposes in rural areas; land for construction of head offices/offices, land for construction of public works, land used for public purposes and other non-agricultural land in rural areas) and comply with the following regulations:

a) Zone 1: the area with highest profitability and most convenient infrastructure;

b) Zone 2 onwards: the areas with lower profitability and less convenient infrastructure than the superior zone.

Article 19. Investigation, survey and collection of information

1. Collect information on natural, socio-economic, land management and use factors affecting land prices in communes, wards and commune-level towns using Form No. 01 of Appendix I enclosed herewith.

2. Collect input information as prescribed in Points a and b, Clause 2, Article 4 of this Decree that is formed within 24 months from the time of the survey backwards. In case the information is provided at the same time, information sources will be selected in the following order of priority: National database on land, national database on prices; land registry office; unit conducting the LUR auction, property auction unit and organization; real estate trading floor, real estate enterprise; information collected through investigation and survey;

3. Investigate, survey, and collect information about income and expenses to determine land prices using the income-based method for cases where the comparison method is not eligible but income and expenses for the land use can be determined according to land use purposes.

4. The investigation, survey, and collection of information specified in Clauses 2 and 3 of this Article shall be carried out using Form No. 02 to Form No. 03 of Appendix I enclosed herewith. In addition to the investigation and survey contents specified in this Clause, the first-level People's Committee may add other information to the survey form to meet the requirements for land price list compilation in the first-level division.

Article 20. Classification of land location serving land price list compilation

1. Basis for classification of land locations serving land price list compilation

a) Regarding the non-agricultural land category: Land locations serving land price list compilation shall be determined by each zone as follows:

Location 1: the location where the conditions and factors are most convenient;

Location 2 onwards: the locations where the conditions and factors are less convenient compared to the superior location;

b) Regarding non-agricultural land: Land locations shall be determined to be associated with each road, road section, street, street section (for urban homestead land, urban commercial land, land used for non-agricultural business and production purposes, not used for commercial purposes in urban areas), road, road section or zone (for non-agricultural land types specified in Clause 1, Article 18 of this Decree) and on the basis of conditions of technical infrastructure, social infrastructure, advantages for production and business; distance to the political, economic, or commercial center in the zone as follows:

Location 1: the location where the conditions and factors are most convenient;

Location 2 onwards: the locations where the conditions and factors are less convenient compared to the superior location;

2. Based on the provisions in Clause 1 of this Article and the actual situation in the first-level division, the first-level People's Council stipulates specific criteria to determine the location of each type of land and the number of land locations mentioned in the land price list. For the land parcel or land zone where the factors are convenient or less convenient in land use, the first-level People's Council is allowed to increase or decrease its price as follows:

a) For the commercial land, or land used for non-agricultural business and production purposes, not used for commercial purposes with high profitability and advantages in using land as production, business, trade and service premises; agricultural land in residential areas or within ward administrative boundaries, based on the current situation of the first-level division, the first-level People's Council may set higher land prices;

b) For the homestead land parcel with more or less convenient factors affecting land prices compared to homestead land parcels at the same location mentioned in the land price list, the first-level People's Council shall, based on the actual situation in their division, increase or decrease the price of land.

Article 21. Consolidation and completion of records of information collection, investigation, and survey results in third-level divisions (communes, wards and commune-level towns)

1. Inspect and review all survey forms and determine prices of land locations after collecting information on land prices specified in Article 19 of this Decree. Land price of a land location is determined as the arithmetic mean of land prices of the surveyed land parcels in each location.

For a land type, information concerning land prices in one or a number of land locations specified in clause 2 Article 19 of this Decree is not provided, based on the land prices in the current land price list, land prices of other land locations that were determined of such land type, the comparison method shall be applied to determine land prices of the remaining land locations.

For a land type, information concerning land prices specified in clause 2 Article 19 of this Decree is not provided, the income-based method shall be applied to determine land prices on the basis of the information specified in clause 3 Article 19 of this Decree.

2. Produce statistics for input land prices in a commune, ward or commune-level town using Form No. 04 of Appendix I enclosed herewith and compile a report on the performance and results of investigation into land prices in the commune, ward or commune-level town. The report includes the following main contents:

a) Overall assessment of the commune, ward, or commune-level town;

b) Assess the performance and results of investigation into land prices in the commune, ward or commune-level town; fluctuations (increase or decrease) between the price of the surveyed land and the price of the land of the same type in the current land price list;

c) Propose land prices of land locations in the commune, ward or commune-level town.

3. Complete the record of land price investigation, survey and information collection results in the commune, ward or commune-level town. The record consists of:

a) Information sheets for the commune, ward or commune-level town;

b) Land parcel information sheets;

c) Statistical table of land prices in the commune, ward or and commune-level town;

d) Report on the performance and results of investigation into land prices in the commune, ward or commune-level town.

Article 22. Consolidation and completion of records of information collection, investigation, and survey results in third-level divisions, second-level divisions and first-level divisions; analysis and evaluation of the current land price list

1. Synthesize results of investigation and collection of land prices in a second-level division using Form No. 05 to Form No. 08 Appendix I enclosed herewith and compile a report on the performance and results of investigation into land prices in the second-level division. The report includes the following main contents:

a) Assessment of natural, socio-economic, land management and use factors affecting land prices in the second-level division;

b) Assessment of the performance and results of investigation and collection of land prices; fluctuations (increase or decrease) between the price of the land underwent investigation and the price of the land of the same type in the current land price list in the second-level division;

c) Proposal of prices for land locations in the second-level division.

2. Complete the record of land price investigation, survey and collection results in the second-level division. The record consists of:

a) Summary table of land prices in the second-level division;

b) Report on the performance and results of investigation into market prices of land in the second-level division.

3. Consolidate results of investigation and collection of land prices in a first-level division using Form No. 09 to Form No. 11 Appendix I enclosed herewith.

4. Analyze and evaluate the current land price list

a) Assess fluctuations (increase or decrease) between the price of the land underwent investigation and the price of the land of the same type in the current land price list;

b) Assess regulations in the current land price list.

Article 23. Compilation of draft land price list and draft descriptive report on compiling land price list by zone or land location

1. The land price list is compiled by zone or land location using Form No. 12 to Form No. 15 of Appendix I enclosed herewith.

2. The descriptive report on compiling land price list by zone or land location includes the following main contents:

a) Assessment of natural, socio-economic conditions, land management and use situation affecting land prices in the first-level division;

b) Assessment of the progress and results of land price surveys in the first-level division; and the current land price list;

c) Assessment of the conformity of land prices in the draft land price list with the land price survey results;

d) Stipulation of zone, land location; application of land valuation methods and land prices in the draft land price list; land price arrangements (if any);

dd) Assessment of the impacts of the draft land price list on socio-economic developments, investment environment, implementation of financial policies on land, incomes and life of land users.

Section 3. land price list compiled for each land parcel on the basis of value range and standarized land parcels

Article 24. Requirements for area serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels

An area serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels must meet the following requirements:

1. The area has a digital cadastral map that is adjusted or updated when there is a change in shape, size, area of land parcels and other factors relating to the cadastral map and the adjustments are updated on the national land database according to the provisions of law on cadastral maps.

2. The area has a land price database including: Land prices stated in contracts for conveyance of LURs; hammer prices of LURs after fulfilling financial obligations; Land prices collected through investigations and surveys within 24 months from the time of land valuation backwards.

Article 25. Investigation, survey, collection and aggregation of information

1. Collect information on natural, socio-economic, land management and use factors that affect land prices in the area serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels.

2. Collect information about the characteristics of all land parcels in the area serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels according to criteria on land parcel characteristics.

3. Collect input information for land valuation according to the provisions of Clauses 3 and 4, Article 158 of the Land Law using Form No. 02 and Form No. 03, Appendix I enclosed herewith.

4. Aggregate results of investigating, surveying, and collecting information serving the compilation of a parcel-specific land price list on the basis of value range and standardized land parcels.

a) Aggregate information about the characteristics of all land parcels;

b) Aggregate information on input land prices for land valuation.

Article 26. Setting value range

1. Based on the factors affecting land prices specified in Article 8 of this Decree, the land valuation organization shall select factors affecting land prices to set the value range specified in Clause 48, Article 3 of the Land Law in a manner that is suitable for the local practicalities.

In cases where, after setting the value range, there are land parcels that are not adjacent to each other but have the same use purpose and have similar factors in terms of location, profitability, infrastructure conditions and other factors affecting land prices compared to land parcels belonging to the other value range, the value range shall be set in a manner that is suitable for the actual local situation and such land parcels.

2. The value range has its boundaries determined, is numbered and represented on a digital cadastral map.

Article 27. Selection of standardized land parcel and determination of its price

1. Selection of a standardized land parcel

The land parcel with characteristics of area, shape and size that are representative of land parcels in the value range; and stability in location, purpose, shape, and planning will be chosen as the standardized land parcel for valuation of other land parcels in the value range.

2. Determination of price for a standardized land parcel

a) Price of the standardized land parcel with input information as prescribed in Points a and b, Clause 2, Article 4 of this Decree that is used according to the provisions in Clause 4, Article 158 of the Land Law shall be stated in the input information;

b) Price of the standardized land parcel without information concerning land prices specified in point a of this clause shall be determined using land valuation methods specified in points a, b and c clause 5 Article 158 of the Land Law and Articles 4, 5 and 6 of this Decree.

Article 28. Preparation of compa-ratio table

1. The compa-ratio table specifies the adjustment method to determine the price of a specific land parcel on the basis of differences in factors affecting the land price of a standardized land parcel and a specific land parcel.

2. Based on the factors affecting land prices, information on market prices of land and the specific local situation, the land valuation organization shall prepare a compa-ratio table to propose in the descriptive report on compiling land price list serving as a basis for the land authority to submit to the Land price list appraisal council for consideration and decision.

Article 29. Compilation of draft land price list, draft descriptive report on compiling a parcel-specific land price list according to value range and standardized land parcels

1. Make a valuation of specific land parcels in each value range

a) Apply the adjustment method in the land price compa-ratio table to calculate the price of each specific land parcel in each value range on the basis of the characteristics of the land parcel and the price of the standardized land parcel;

b) Review, check and adjust the results of determining the price of a specific land parcel: verify the land price difference between adjacent land parcels with the same use purpose in each value range; verify the difference in land prices of adjacent land parcels with the same use purpose between value ranges; adjust the price of the specific land parcel.

2. Compile a draft parcel-specific land price list on the basis of value range and standardized land parcels.

3. Compile a draft descriptive report on compiling a parcel-specific land price list according to value range and standardized land parcels. Detailed contents of the report:

a) Assessment of natural, socio-economic conditions, land management and use situation affecting land prices in the first-level division;

b) Assessment of requirements for area serving compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

c) Aggregation of results of investigating, surveying, and collecting information serving the compilation of a parcel-specific land price list on the basis of value range and standardized land parcels;

d) Results of setting value range, selecting a standardized land parcel and determining price for the standardized land parcel, preparing a compa-ratio table and determining prices of land types in the draft land price list; price arrangements for land types (if any);

dd) Assessment of the impacts of the draft land price list on socio-economic developments, investment environment, implementation of financial policies on land, incomes and life of land users.

Chapter IV

SPECIFIC LAND VALUATION

Article 30. Basis for specific land valuation

1. The specific land valuation shall comply with the provisions in Article 158 of the Land Law and Articles 4, 5, 6 and 7 of this Decree; results of aggregating and analyzing information concerning the prevailing market price of land; factors affecting land prices.

2. The specific land price is determined according to each land use purpose, the land area is determined in dossiers on land allocation, land lease, recognition of LURs, permission for land repurposing, and land use extension, adjustment to land use term, adjustment to detailed planning, permission for change of land use form, equitization of state-owned enterprises, LUR auction arrangements, notification of land expropriation, results of investigation, survey, measurement.

Article 31. Preparation of specific land valuation dossier and selection of land valuation organization

1. Land authorities shall prepare specific land valuation dossiers. A dossier includes:

a) Purpose of the land valuation, duration and estimated costs;

b) b) Decision on land allocation, land lease, permission for land repurposing, recognition of LURs, permission to convert from land lease with annual land rent payments to land lease under one-off arrangement, land use extension, adjustment to land use term, adjustment to detailed construction planning, land expropriation;

c) Other legal documents related to the land parcel to be valued.

2. Pursuant to the specific land valuation dossier, the land authority shall select a land valuation organization according to the provisions in clause 5 Article 13 of this Decree.

Article 32. Establishment of specific land valuation organization

1. The financial agency at the same level proposes to the People's Committee at the relevant level to decide establishment of a specific land price appraisal council according to the provisions of Clauses 2 and 3, Article 161 of the Land Law to appraise the land price arrangement in the form of a standing Council or a case-by-base Council, in which:

a) The representative of the land price determination consulting firm participating in the Council is the person who is qualified to practice land price determination consulting according to regulations and is not part of the land price determination consulting firm hired for determination of specific land prices;

b) Land price experts participating in the Council are people with at least 05 years of experience working in one of the fields of land finance, price management, land management, and price appraisal.

2. The financial agency at the same level proposes to the Chairperson of the Specific Land Price Appraisal Council competent to decide establishment of the Council’s assistance team, including: The representative leader of the financial agency at the same level acting as the Team Leader and representatives of land, construction, planning and tax authorities at the same level, and other members decided by the Chairperson of the Council. The assistance team is responsible for preparing the assigned contents to propose and report to the specific land price list appraisal council for consideration at the appraisal meeting.

Article 33. Procedures for determination of specific land price

Each land valuation organization determines specific land prices with the following tasks:

1. Collection, aggregation and analysis of information

a) Information to be collected includes information concerning the land parcel to be valued, input information serving the application of land valuation methods.

The collection and aggregation of information concerning the land parcel and input information serving the application of land valuation methods shall be carried out using Form No. 02 to Form No. 03 of Appendix I enclosed herewith;

b) The land valuation organization shall take responsibilities for the accuracy and adequacy of information serving the application of land valuation methods and provide information on results of investigation and collection of input information to the land authority for updating the land database.

2. Selection of land valuation methods

On the basis of the purpose of land use for which valuation is given, characteristics of the land parcel or land zone to be valued, information collected, conditions for applying land valuation methods specified in Clause 6 of Article 158 Land Law, the land valuation organization is responsible for analyzing and choosing an appropriate land valuation method to propose to the Specific land valuation council for decision.

3. Preparation of a descriptive report on making land price arrangement, drafting land valuation certificate

a) The land valuation organization shall make a descriptive report on making land price arrangement and draft a land valuation certificate, and submit them to the land authority;

b) The descriptive report on making land price arrangement shall be made using Form No. 16 of Appendix 16 enclosed herewith. The land valuation certificate shall be made using Form No. 17 of Appendix I enclosed herewith.

Article 34. Appraisal of specific land prices

1. The land authority shall check the contents of the descriptive report on making land price arrangement in terms of adequacy; prepare a Proposal for land price arrangement, written request for appraisal of land price arrangement; propose to the Specific land price appraisal council to appraise the land price arrangement. The dossier submitted to the Specific land price appraisal council includes:

a) A written request for appraisal of land price arrangement;

b) A proposal for land price arrangement;

c) A descriptive report on making land price arrangement, a draft land valuation certificate;

d) A dossier on specific land valuation.

2. The specific land valuation council shall appraise the land price arrangement and submit a document concerning the appraisal of land price arrangement to the land authority.

Article 35. Decision on specific land prices

1. The land authority shall receive, explain, edit and complete the land price arrangement.

2. The land authority shall propose to the Chairperson of the People’s Committee at the relevant level to decide specific land prices. The dossier on land price arrangement mentioned above includes:

a) The proposal for land price arrangement of the land authority;

b) The descriptive report on making land price arrangement, the draft land valuation certificate;

c) The document concerning the appraisal of land price arrangement of the specific land price appraisal council;

d) The minute of the specific land price appraisal council meeting;

dd) The report on receiving, editing and completing the land price arrangement according to the document concerning the appraisal of land price arrangement of the specific land price appraisal council.

3. In case a specific land price is applied to calculate recompense when the State expropriates land according to the provisions of Point e, Clause 1, Article 160 of the Land Law, the land authority shall provide the land price arrangement that was received and completed according to the provisions of Clause 1 of this Article to the unit or organization in charge of recompense, support or resettlement provision to be added to the recompense, support and resettlement arrangement according to the provisions of law on compensation, support and resettlement.

4. The land authority shall store and update all the results of specific land valuation in their area on the national land database. The dossier on specific land valuation shall be stored for at least 10 years, from the date on which the decision to approve the specific land prices is issued by the competent regulatory authority, unless otherwise provided for by law.

5. The agency, organization or person with the authority to determine, appraise and decide on specific land prices shall take responsibilities for applying principles and methods of land valuation, procedures for determining specific land prices, appraising and deciding specific land prices that were prescribed in this Decree; not take responsibilities for other contents that have been previously appraised, accepted, decided, approved or processed by the competent agency or person.

Article 36. Eligibility requirements of individuals working as practicing land price determination consultants

1. An individual is eligible for working as a practicing land price determination consultant in a land price determination consulting firm if the following requirements are fully satisfied:

a) Have a bachelor's degree or higher in fields or majors in land management, land survey, real estate, price appraisal, economics, finance, accounting, auditing, banking;

b) Have worked in the field or major for at least 36 months after obtaining the degree specified in point a of this clause as of the date of registration for the list of valuers, change or supplementation of the list of valuers;

c) Have a Certificate of completion of a land valuation training course issued by the land valuation training institution specified in Clause 3 of this Article.

2. In case the individual has been issued with a valuer certificate according to the law on prices, the requirements specified in clause 1 of this Article can be waived.

3. An institution providing professional training in land prices must satisfy the following conditions:

a) Is a higher education institution, vocational education and training institution, or a training institution for officials, public employees or other training organizations established and permitted to operate by the State according to provisions of the law;

b) Have at least 03 full-time lecturers or guest lecturers who meet the standards, professional qualifications and skills as prescribed by law, and have master's degrees or higher in management disciplines and majors in land management, cadastral, real estate, price appraisal, economics, finance, accounting, auditing, banking and have at least 10 years of working experience directly related to the teaching topic;

c) Develop a plan for professional training in land prices and report to the Ministry of Natural Resources and Environment for monitoring and inspection during operations. The plan for professional training in land prices includes:

- Time and form of training and re-training, in which in-person learning time makes up at least 60% of the total training duration;

- Competency profiles of proposed lecturers (including full-time lecturers and guest lecturers);

- The proposed curriculum and teaching materials that are built on the basis of the framework program for professional training in land prices issued by the Ministry of Natural Resources and Environment;

- Set of exam questions for completion of professional training and re-training in land prices.

d) The institution providing professional training in land prices must assess the participation in training course of the learners, organize an exam for completion of professional training in land prices, issue a certificate of completion of professional training in land prices and store information for at least 10 years.

4. Within 10 working days from the date of receipt of a valid dossier specified in Clause 3 of this Article, the Ministry of Natural Resources and Environment is responsible for publicizing institutions providing professional training in land prices that meet the conditions specified in Point c, Clause 3 of this Article on the Electronic Information Portal of the Ministry of Natural Resources and Environment or notifying in writing in cases where the conditions are not met; inspecting and checking compliance with the provisions in Clause 3 of this Article of institutions providing professional training and re-training in land prices.

5. The first-level land authority is responsible for making a list of land price determination consulting firms, and valuers and reporting to the Ministry of Natural Resources and Environment which will provide their opinions before publishing the list of qualified land price determination consulting firms or land valuers, and updating it on the Electronic Information Portal of the Ministry of Natural Resources and Environment; inspecting and monitoring the compliance with the law on land price determination consulting firms and land valuers.

Chapter V

IMPLEMENTATION PROVISIONS

Article 37. Pursuant to clause 2 Article 112 of the Land Law dated November 29, 2013 amending Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on land prices

1. Amendments to Article 5dd:

“Article 5dd. Orders and contents of land price determination using the surplus-based method

1. Survey and collect information about the land parcel or land zone to be valued; information on land use planning, detailed construction planning or detailed planning under abridged procedures, records and documents prescribed by construction law that have been appraised and approved by competent regulatory authorities to determine the highest land use efficiency and other necessary information serving the land valuation.

2. Make an estimate of total development revenue of the land parcel or land zone

a) Total development revenue of the land parcel or land zone is determined on the basis of estimated conveyancing fee, land rent, premises rent, and/or selling price for products and services, and fluctuations in such conveyancing fee, land rent, premises rent, and/or selling price for products and services during project execution and other factors that form revenue, including: sales period; time to start selling products and services; sales rate; occupancy rate.

The selling prices for products and services are applied in cases where the conveyancing fee, land rent, and premises rent cannot be collected;

b) Survey and collect information on transfer prices, land rental prices, and premises rental prices; Product and service business prices comply with the provisions of Clauses 1 and 2, Article 5b of this Decree;

c) The conveyancing fee, land rent, premises rent, and/or selling prices of products and services serving the determination of the total development revenue of the land parcel or land zone shall be estimated using the comparison method as for the land parcel or land zone to be valued for which detailed construction planning or detailed planning under abridged procedures has been approved;

d) Fluctuations in conveyancing fee, land rent, premises rent, and/or selling prices of products and services are determined on the basis of data from statistical agencies or real estate market management agencies. In case there is no data from statistical agencies or real estate market management agencies,

The fluctuation of conveyancing fee is determined on the basis of the average consumer price index of the housing and construction materials group in the 3 consecutive years preceding the year of land valuation announced by a competent regulatory authority to be applied in a first-level administrative division; if the division does not announce the consumer price index, the consumer price index of the housing and construction materials group of the whole country will be applied;

The fluctuation in land rent or premises rent is determined on the basis of the fluctuation stated in land lease and premises lease contracts; the fluctuations of the selling prices of products and services are determined on the basis of the actual market data investigated and surveyed by a land valuation organization and are submitted to the Land price appraisal council for decision;

dd) Based on the actual situation of a first-level division, the Department of Natural Resources and Environment shall take charge and cooperate with relevant departments and local authorities in advising and proposing specific sales rates and occupancy rates to the first-level People’s Committee.

If the first-level People's Committee has not yet regulated the sales rate and occupancy rate, the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued, propose land price arrangements for each project in the descriptive report to the Land price appraisal council for consideration and decision.

For the sales period, the time to start selling products and services, the project’s development revenue shall be estimated according to the schedule determined in the investment guidelines or bidding documents for investment project execution or investment project approval decision. In case investment guidelines or bidding documents for investment project execution or investment project approval decisions do not indicate sales period and starting time of sales, the first-level People's Committee shall prescribe them in a manner that is appropriate to the actual situation in the first-level division for groups of projects with the same main land use purpose or each specific project, or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance to the land parcel or land zone to be valued, propose them to the Land price appraisal council for consideration and decision.

3. Make an estimate of total development cost of the land parcel or land zone

a) Construction investment costs incurred to determine land prices in this Decree include:

- Costs incurred to construct works and project items (adjusted for inflation);

- Costs incurred to construct temporary and auxiliary construction works and items; costs incurred to demolish construction works that are not subject to site clearance and demolition that were included in compensation, support, and resettlement costs;

- Equipment costs;

- Project management costs;

- Construction investment consulting costs;

- Other costs prescribed by construction law that directly contribute to the project’s development revenue that are selected for each specific project and proposed to the land price appraisal council for decision by the land valuation organization.

In case investment rates are applied, provision of construction law on investment rates shall be complied with.

In case of determining the land price for a land reclamation project or land reclamation item in an investment project, in addition to the land reclamation costs approved by a competent regulatory authority, the construction investment costs specified in this point that have not yet been determined in the land reclamation project or land reclamation item in the approved investment project will also be included.

In case a land parcel or land zone to be valued for execution of an investment project to build and sell housing for sale or for both sale and lease is divided into multiple subdivisions for sale, housing construction costs are not included in construction investment costs;

b) Business expenses include: marketing, advertising, sales, and administrative costs that are calculated as a percentage (%) of revenue in accordance with the nature, scale of the project and the local practicalities;

c) Interest expenses and profits of the investor taking into account equity and business risks are calculated as a percentage (%) multiplied by the total costs/expenses specified in Points a and b of this Clause and the LUR value of the land parcel or land zone to be valued according to the provisions of Clause 6 of this Article;

d) Total development costs of the land parcel or land zone specified in this Clause do not include compensation, support, and resettlement costs under the approved plan by a competent authority. The refund of recompense, support, and resettlement costs that the investor has voluntarily advanced shall comply with the provisions of Point a, Clause 1, Article 21 of Decree No. 45/2014/ND-CP dated May 15, 2014 of the Government on land levy collection, Point c Clause 1 Article 23 of Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government on collection of land rents and water surface rents;

dd) Based on information about similar projects within the valuation area or the nearest neighbouring area, the Department of Natural Resources and Environment shall take charge and cooperate with relevant departments and local authorities in advising and proposing to the first-level People’s Committee to specifically stipulate percentages (%) for determining operating expenses; interest expenses, profits taking into account equity and business risks for groups of projects with the same main land use purpose or each specific project.

If the first-level People’s Committee does not stipulate operating expenses, the operating expenses of the land parcel or land zone to be valued are equal to the average of operating expenses of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued.

If the first-level People's Committee has not yet stipulated the percentage (%) for calculating interest expenses and profits of the investor, taking into account equity and business risks, the land valuation organization shall propose land price plans for each project presented in the report explaining the development of land price arrangements for each project in the descriptive report to the Land price appraisal council for consideration and decision.

The construction period or progress shall be determined on the basis of the progress determined in the investment guidelines or bidding documents for investment project execution or investment project approval decision to make an estimate of the project's development costs. In case investment guidelines or bidding documents for investment project execution or investment project approval decisions do not indicate construction period or progress, the first-level People's Committee shall prescribe them in a manner that is appropriate to the actual situation in the first-level division for groups of projects with the same main land use purpose or each specific project, or the land valuation organization shall, based on the actual data of 03 investment projects with the same main land use purpose that are the closest distance to the land parcel or land zone to be valued, propose them to the Land price appraisal council for consideration and decision.

4. The total construction investment costs are estimated as follows:

a) Construction investment costs are estimated according to detailed construction planning or detailed planning under abridged procedures or basic design documents or construction design documents appraised and approved by competent authorities. The estimation of construction investment costs specified in this Point shall comply with the provisions of construction law;

b) Order of priority of the information used for estimation of total construction investment costs is as follows:

- The construction estimate that has been appraised by a construction authority according to the provisions of construction law;

- The construction estimate that is based on norms and unit prices issued and announced by competent regulatory authorities and has been independently appraised or verified by land price determination consulting firms or agencies. The consulting firm or agency shall be responsible to the law for the appraisal or verification results of the construction estimate that they have appraised or verified;

- Investment rates announced by the Ministry of Construction;

c) In case the information mentioned in point b of this clause is not available, the land valuation organization shall collect information on the actual common costs of 03 investment projects with the same main land use purpose that are the closest distance from the land parcel or land zone to be valued, and propose land price arrangements, which will be the basis for the Land price appraisal council to consider and make decisions.

5. Estimates of revenues and costs are made for each year of project implementation and must be discounted to the present value at the time of land valuation. The formula for estimation of the total development revenue and total development costs of the land zone or land parcel:

where:

- TRi is the project's revenue in year i;

- C_i is the project’s costs in year i;

- r is the discount rate calculated based on the average interest rates on medium-term loans (from 01 year to 03 years) in Vietnamese currency of real estate investment and business projects of state-owned commercial banks of the year preceding the latest quarter with available data before valuation time;

- n is the number of sales years of the project (rounded to the nearest year);

- m is the number of years of construction with incurred costs of the project (rounded to the nearest year).

6. Determination of land price of the land parcel or land zone to be valued

The formula for determining LUR value of the land parcel or land zone to be valued:

The formula for determining land price of the land parcel or land zone to be valued:

7. In cases where the land zone includes the area of ​​land allocated with land levy payment (hereinafter referred to as “allocated land”), the area of ​​land leased out under one-off arrangement (hereinafter referred to as “land for lease”), the land price of the land parcel to be valued is determined according to the total development revenue and total development costs for each area of subdivision of allocated land and land for lease.

The formula for finding technical infrastructure construction costs of allocated land and land for lease:

where: The total technical infrastructure construction cost of the project is part of the construction investment costs specified in Clause 3 of this Article in accordance with the provisions of law on construction.

8. In case the land parcel or land zone to be valued is allocated or leased out by a competent regulatory authority for investment project execution under many decisions,

a) In case all conditions for calculating the development revenue or development costs of the land parcel or land zone are met, the estimated development revenue or estimated development costs are determined according to the area of allocated land or land for lease of that decision;

b) In case the development revenue of the land parcel or land zone cannot be fully estimated or the estimated development cost is greater than the estimated development revenue for the area requiring land valuation, the development revenue or estimated development costs are estimated for the entire project according to the detailed construction planning or detailed planning under abridged procedures approved by a competent authority.

9. Within 05 working days from the date on which the written request of a land authority is received, state-owned commercial banks shall provide in writing the information on the interest rates on medium-term loans specified in clause 5 of this Article.”

2. The land price determination using the surplus-based method is illustrated in detail in example No. 03, Appendix II enclosed herewith.

Article 38. Responsibilities of ministries, central authorities and first-level People's Committees, persons with authority to decide land prices

1. The Ministry of Natural Resources and Environment shall:

a) Elaborate on compiling, adjusting, amending and supplementing the parcel-specific land price list on the basis of value range and standardized land parcels;

b) Inspect, examine and handle violations against regulations on applying land valuation methods; compile, adjust, amend and supplement land price lists; specific land prices and land price determination consulting activities according to the provisions of law;

c) Elaborate on training, re-training, and updating of knowledge for individuals working as practicing land valuation consultants; framework of program for professional training and re-training in land prices.

2. The First-level People’s Committees shall:

a) Organize the compilation, adjustment, amendment and supplementation and propose to the People's Councils for promulgation of land price lists;

b) Guide and inspect the implementation of legal regulations on land prices in their first-level divisions; resolve arising problems regarding land prices according to authority;

c) Inspect, examine and handle violations of land prices and land price determination consulting activities in their first-level divisions;

d) Organize compilation, update, management and use of database on land prices in their first-level divisions according to the provisions of the Ministry of Natural Resources and Environment;

dd) Organize elaboration of contents assigned herein;

e) Annually, report the implementation of provisions of law on land prices in their first-level divisions to the Ministry of Natural Resources and Environment.

3. The Chairpersons of the First-level People’s Committees and the Chairpersons of the Second-level People’s Committees shall organize specific land price decision according to the provisions hereof.

4. Funding for organizing compilation, adjustment, amendment and supplementation of land price lists, determination of specific land prices, appraisal, monitoring and updating of land prices shall be allocated from regular expenses as prescribed by the Law on State Budget.

Article 39. Effects

1. This Decree comes into force from the date on which the Land Law No. 31/2024/QH15 takes effect, except for the case specified in clause 2 of this Article.

2. Article 37 of this Decree comes into force from the day on which this Decree is signed.

3. The following Decrees are invalid from the day on which this Decree comes into force:

a) Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on land prices;

b) Article 2 of Decree No. 136/2018/ND-CP dated October 05, 2018 of the Government;

c) Article 2 of Decree No. 10/2023/ND-CP dated April 03, 2023 of the Government.

d) Decree No. 12/2024/ND-CP dated February 05, 2024 of the Government. The example for the application of the surplus-based method in Appendix III enclosed with Decree No. 12/2024/ND-CP will be invalid from the date on which this Decree is signed;

dd) Article 37 of this Decree.

4. Transition provisions

a) Individuals who are granted a Certificate of land valuer which is still valid, and are not subject to revocation of the Certificate of land valuer according to the provisions of law before the effective date of this Decree, can continue practicing land valuation for the remaining term of the Certificate of land valuer;

b) Individuals who are issued with a Certificate of completion of a training course on land valuation according to the training program on land valuation issued by the Ministry of Natural Resources and Environment but have not yet been issued with a Certificate of land valuer before the effective date of this Decree, and are qualified to work as practicing land price determination consultants according to the provisions of Points a and b, Clause 1, Article 36 of this Decree, can work as practicing land valuation consultants according to the provisions of this Decree.

5. Ministries, ministerial agencies, Governmental agencies, and the first-level People's Committees are responsible for reviewing legal documents promulgated by them that contravene the provisions of the Land Law and this Decree to amend, supplement or annul.

Article 40. Implementation

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of the People’s Committees of all levels, and relevant organizations and individuals are responsible for implementation of this Decree.