Vietnam proposes changes to Land Law pricing mechanisms

A draft amendment to Vietnam's Land Law proposes significant changes to how land is valued, including the removal of the requirement to price land based on market principles. Under the new proposal, land prices would be determined by the State using land price lists and adjustment coefficients rather than specific market-based valuations.

During a workshop organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Ministry of Natural Resources and Environment, experts discussed the need for a stable, transparent, and predictable legal framework for long-term investments. Business representatives emphasized that land costs directly impact logistics, factory rentals, and consumer goods prices.

The draft aims to streamline the law from approximately 260 articles down to over 100. Proponents suggest that the current method of relying on secondary market prices and consultancy results creates inconsistencies and delays. By shifting to a State-determined pricing model based on land type, area, and location, the government seeks to reduce risks that cause officials to hesitate in decision-making and to ensure land is used effectively for production.