Solve "problems" causing loss and waste of public land

	Must pay rental land fee if using public land for business
	Public auction of “golden land” to avoid loss of national resources
	Many large real estate projects with violations of public land use are inspected

Determining land prices in line with market principles so that both people and businesses are not disadvantaged. Photo: H.V.

What is cause?

Before the negative phenomena, according to economic expert, Dr. Ngo Tri Long, it needs analysis of the causes to identify "loopholes". The first cause is the loose management and overlapping of many agencies. The second cause is that enterprises use the form of calling investment, joint venture investment, equitization to rent cheap land then convert for other purposes.

Mr. Long provided a typical example of the case when Dien Quang Company rented 12 Ton Don land area of 4,700 m2 at a cheap price in the process of equitisation, then converted it for other purposes, to build 320 apartments and 3 floors for rent, with large profits.The procedure of changing land use for different purposes is not legal.

Meanwhile, Mr. Le Hoang Chau, Chairman of the HCM City Real Estate Association, said: In fact, most real estate companies and real estate investors are operating fairly and transparently. In order to develop the projects, businesses have to compensate themselves for land clearance at the market price, according to the agreement to acquire the land fund. However, there are a number of businesses and investors using "friendship", creating relationships, collusion with some individuals who have the authority to get cheap public land through a lack of transparency. These are mainly redundant in the process of relocation of polluting production facilities from the city to industrial parks or in the process of equitization.

From the perspective of State management, Mr. Nguyen Tan Thinh, the Deputy Director General of Public Property Management, under the Ministry of Finance said that: From the legal point of view, from 1998 to now, decentralization in public land management has been specified. Accordingly, the land of the administrative and non-productive agencies is divided into central and local land.. In addition, in regulations on sale and transfer of land and property, it is basically stipulated that public auctions shall be conducted in accordance with the Law, the sale of designation may only take place in certain special cases and this case must be reported under the decision of the Prime Minister. In fact, the legal issue can be stated quite easily, but the stages of implementation of asset management by public officials raises many negative problems. As a result, the Ministry of Finance recognized that further improvement of the policy mechanism in asset management was very important.

Should be transparent in determining land prices

Regarding solutions, Mr. Nguyen Tan Thinh said: In 2017, the National Assembly passed the Law on management and use of public property. In the implementation of this law, the Ministry of Finance has received enthusiastic attention from ministries, sectors and localities from training, propaganda and document preparation at all levels. The Law on Management and Use of Public Assets has an important step in assigning a professional unit to handle land and property management.

According to the representative of the Ministry of Finance, there is a new rule in the law that will build a system of electronic transactions on public assets for all transactions such as lease, transfer and rent to exploit public property, in which humans can not interfere. The advantage of this is the publicity and transparency of when auctions occurs, because participants do not know each other so they can not control each other and the price will be better. At present, the legal basis for building this system is basically satisfactory. The Ministry of Finance is building a plan to select investors and software enterprises. Accordingly, the system of electronic transactions on public property will be independent with the property sale and the assigned participants.

Another solution proposed in the new law is that regular inspections, audits and monitoring, especially community surveillance, will be required to detect early signs of violations. Together with the detection measures, the Ministry of Finance is evaluating and amending Decree No. 192/2013 / ND-CP on sanctioning administrative violations in the management and use of public assets. Thus, it can be said that the "loopholes" in regulations on management and use of public land have basically been resolved in the Law on management and use of public property and the guiding documents.

Assuming that the Government's solutions show visible progress, Mr. Le Hoang Chau said that in practice, it was necessary to perfect the mechanism for determining the specific land price as a starting price. The point of an auction is also to determine the specific price at the start, while ensuring investment attraction. In addition, the State must also have a mechanism to supervise the operation of the property auction. Mr. Chau also recommended that the Ministry of Finance should be the management body that manages the price, including the land price.

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Dr. Ngo Tri Long agreed that the biggest losses now come from land price calculation when renting, allocating land or selling land at much lower prices than market prices. The setting of the price bracket to ensure investment attraction as well as ensuring that people do not suffer too much when the land clearance is implemented.. Therefore, Mr. Long suggested that the Government should assign the local authority to promulgate the land price list, the land price bracket, the coefficient of land price adjustment, and the localities shall take full responsibility for local people on land prices in accordance with market price.