From August 1, the 2024 Land Law officially comes into effect. One of the new regulations attracting much attention is the removal of the “land price framework” previously stipulated in the 2013 Land Law.

The 2013 Land Law stipulated that the land price framework, issued by the Government every 5 years, served as the basis for provinces and cities to develop and publish local land price tables. However, two levels of land prices existed: the State framework price used for tax calculation and compensation, and the market price, which was usually much higher. The 2024 Land Law, following Resolution 18/NQ-TW 2022, has abolished the land price framework and instead establishes annual land price tables. Provincial People’s Committees will base these on principles, valuation methods, standards, and market land price fluctuations. This approach helps align land price tables with market prices but also increases the workload for local authorities.

The 2024 Land Law eliminates the “land price framework” stipulated in Article 113 of the 2013 Land Law. Under the previous regulation, the government issued the land price framework every 5 years for each type of land and region. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.

Specifically, under Article 113 of the 2013 Land Law, the Government issued the land price framework every 5 years for each type of land and region, serving as the basis for provinces and cities to develop and publish local land price tables. If the market land price increased or decreased by more than 20% compared to the framework price, the framework price would be adjusted.

This regulation is replaced by the 2024 Land Law with annual land price tables applicable to cases such as:

Calculating land use fees when the State recognizes land use rights or changes the land use purpose; Calculating annual land rent (except for cases of auction); Calculating land use tax and income tax from transferring land use rights; Calculating fees in land management, use, and administrative penalties; Calculating compensation to the State for damages; Calculating land use fees when recognizing land use rights or land rent for the entire lease period in a lump sum; Setting the starting price for auctioning land use rights that have been invested in infrastructure; Calculating land use fees when allocating land without auction; Calculating land use fees when selling State-owned houses to tenants.

The land price tables will be developed annually based on area and location and will be constructed by the provincial People’s Committee, submitted to the People’s Council for approval, and published from January 1, 2026. The provincial land management authority is responsible for adjusting the land price tables annually or as needed.

This law also stipulates four land valuation methods as follows:

Comparison: Based on the prices of similar plots of land that have been transferred on the market.

Income: Based on average net income divided by savings interest rate.

Surplus: Based on estimated total revenue minus estimated total development costs.

Land price adjustment coefficient: The land price in the price table multiplied by the land price adjustment coefficient.

Land valuation must adhere to market principles, correct methods, transparency, and ensure independence in the stages of determination, appraisal, and decision of land prices.

This bulletin is for informational purposes only regarding newly enacted legal regulations and is not intended for advising or applying to specific cases.

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