RESOLUTION 170/2024/QH15
The National Assembly has issued Resolution No. 170/2024/QH15 on special mechanisms and policies to address difficulties and obstacles related to projects and land issues mentioned in inspection and audit conclusions, as well as court rulings in Ho Chi Minh City, Da Nang City, and Khanh Hoa Province. This resolution will take effect from April 1, 2025.
Resolution 170/2024/QH15 primarily aims to address the remaining difficulties arising from inspection conclusions, such as:
- Da Nang: Inspection conclusion 2852/KL-TTCP and 269/KL-TTCP on transferring land without auctions, extending land use right fees without late payment penalties, granting long-term use LURC for commercial and non-agricultural production land, and exceeding land allocation in special use forest limit.
- Khanh Hoa: Inspection conclusion 250/KL-TTCP on converting state-owned properties and land to other land use purposes, illegally allocating and leasing state land, failing to take action against companies that delay project implementation and violating provincial master plan.
- Ho Chi Minh City: Inspection conclusion 757/KL-TTCP and 332/BC-TTCP on converting state-owned properties and land to other land use purposes, determining of land use right fee and valuation time.
In general, Resolution 170/2024/QH15 provides clear guidance on resolving longstanding legal difficulties, thereby preventing the shirking of responsibility by state agencies.
- Inspection Conclusion 2852/KL-TTCP in Da Nang:
Context:
From 2001 to 2010, the practice of transferring land without auctions led to the determination of land use right fees that did not reflect market prices. Many investors, after receiving land transfer and land use rights certificates from the government, did not proceed in accordance with the primary plan but instead continued transferring the land to other investors.
In addition, the Da Nang People’s Committee approved extensions for investors to pay land use fees without imposing late payment penalties. In some projects, late payment penalties were initially determined, but the City People’s Committee later granted exemptions. The inspection of land use rights certificate issuance revealed that the Committee granted long-term use LURC (Land Use Rights Certificates) for commercial and non-agricultural production, which is 30% lower than residential land prices. After that, the approval and adjustment of detailed land-use planning were carried out arbitrarily (3 changes in 10 years).
For these reasons, most of the LURC issued during the period of violations have faced legal bottlenecks. They have been transferred multiple times to different individuals, leading to discrepancies in the recorded land use duration on the certificates.
Resolution:
The resolution 170/2024/QH15 aligns with the recorded land use duration discrepancies on the certificates, shall be adjusted to 50 years, starting from the date of the land allocation decision, land lease approval, land use conversion approval, or the actual handover of the land for commercial and service, and non-agricultural. In cases where the lands have been converted to residential land and align with land use planning, although the resolution did not specify, it should remain long-term land use in my opinion.
The land price for calculating land use fees, land lease fees, and financial obligations for those projects is determined by the land price framework at the time of allocation or conversion.
- Inspection Conclusion 269/KL-TTCP in Da Nang
Context:
The Son Tra Peninsula is a 4,439-hectare area noted for its diverse natural and coastal ecosystems, significant biodiversity, and strategic importance for both tourism and national defense. It has been designated as a National Tourism Area.
Over time, forest classifications on Son Tra have evolved—from “prohibited forests” before 1991 to “special-use forests” after 1991—reflecting changes in legal frameworks. Between 2003 and 2013, Da Nang approved 18 tourism and resort projects on the peninsula, covering over 1,200 hectares and providing extensive accommodation facilities. A 2016 Master Plan reduced the designated tourism area to 1,056 hectares, meaning the previously allocated area exceeded the approved limit by 166.5 hectares.
The allocation and leasing of land for three violated projects were carried out without the required investment project dossier.
Resolution:
Investors are allowed to continue using the land to implement the project provided that, after review and completion of procedures, the project fully meets the following conditions:
- It complies with the approved land use plan or urban planning (either the master plan or zoning plan) as prescribed by law;
- It does not violate any approved national defense land use planning, security land use planning, or the planning for the three types of forests (or forestry planning);
- The investor meets all the necessary capabilities and conditions to implement the project as required by relevant laws.
The land price for calculating land use fees, land lease fees, and financial obligations for those projects is determined by the land price framework at the time of allocation or conversion.
- Inspection Conclusion 250/KL-TTCP in Khanh Hoa
Context:
The Government Inspectorate of Vietnam has pointed out a series of violations related to Khanh Hoa Province converting state-owned properties and land to other land use purposes without going through competitive bidding or auction; illegally allocating and leasing state land; and failing to take action against companies that delay project implementation and show signs of causing losses to the State budget.
In addition, there is a series of projects allocated to real estate developers that violates Nha Trang city master plan approved by the Prime Minister, as well as local land use plans. The Khanh Hoa People’s Committee selected the investor without going through a competitive bidding process and those leasing land contradicts the land use plan through 2020 and was not included in the initial land use plan for 2011–2015 of Cam Ranh City.
Resolution:
For those projects that were allocated or leased land without competitive bidding, investors can continue with their projects only if they meet all legal conditions, including compliance with approved land or urban plans and not violating national defense or security plans. Additionally, land prices will be re-assessed, and investors must pay all outstanding financial obligations. If a project fails to meet these requirements, the land will be reclaimed in accordance with the law.
- Inspection Conclusion 757/KL-TTCP in HCMC
Context:
The Government Inspectorate identified that the 39-39B Ben Van Don land in District 4, HCMC, originally belonged to the state and was managed by Dong Nai Rubber Corporation and Ba Ria Rubber Company (GVR).
- 2009: Phu Viet Tin Co., Ltd. was established, with Dong Nai Rubber Corporation owning 72% and Ba Ria Rubber Company 28%.
- 2010: HCMC People’s Committee reclaimed and allocated the land to Phu Viet Tin for business investment.
- 2014: QCG acquired 99.5% of Phu Viet Tin.
- 2015: QCG sold 40% of Phu Viet Tin to Thinh Vuong Real Estate for over 340 billion VND, 0.5% to an individual for 3 billion VND, and 54% to City Villas Company for 459 billion VND.
- 2017: Phu Viet Tin merged into Phuc Nguyen Real Estate, becoming Nova Phuc Nguyen.
Resolution:
Investors are allowed to continue using the land for project implementation after administrative and criminal actions have been taken against individuals and organizations involved in violations, the consequences of economic violations have been remedied, and material benefits gained from the violations have been recovered in accordance with legally effective judgments.
- Inspection Conclusion 332/BC-TTCP in HCMC
a. New City, TTC Land
Context:
The 1,330 New City’s apartments are among 5,600 surplus units that HCMC People’s Committee no longer requires for settlement of residents displaced from the Thu Thiem New Urban Area.
The determination of land use rights value is carried out based on market prices, in accordance with the land use purpose. The Ho Chi Minh City People’s Committee has also approved the developer’s temporary payment of over VND 712 billion in land use fees to the budget, corresponding to a unit price of VND 26 million per square meter.
However, the developer had unilaterally altered the design from resettlement housing to commercial housing and the Ho Chi Minh City People’s Committee terminated the contract for the construction of the resettlement area without obtaining the Prime Minister’s approval for the land allocation, which was not in compliance with regulations.
Resolution:
For the land area corresponding to the land use fee temporarily paid by the investor, the land valuation date is March 30, 2018 (the date of contract termination with the investor).
For the land area where the land use fee has not been paid, the land valuation date is December 11, 2020 (the date the competent state authority issued the land allocation decision).
b. The Water Bay (Binh Khanh) and Lakeview City (Nam Rach Chiec)
Context:
Lakeview City was exchanged with a 30.2-hectare project in Binh Khanh Ward, Thu Duc City, where the company had completed land clearance in 2008 based on a 2004 land allocation decision.
- 2016: HCMC People’s Committee approved land pricing based on market value for both land plots, using 2008 as the valuation time.
- 29/12/2020: HCMC issued Decision No. 4777/QĐ-UBND, setting the land price for Lakeview City based on April 2017, instead of 2008.
- 08/01/2021: HCMC Tax Department required the company to pay nearly 5.176 trillion VND in land lease and land use fees.
- Novaland disagreed with using 2017 as the valuation time, arguing that compensation was completed in 2008.
Resolution:
For exchanged land area or The Water Bay (30.2ha Binh Khanh) corresponding to the amount invested in plot until 2008, land price determined at the time of completed land recovery and compensation (November 20, 2008).
For land area with unpaid land use fees or Lakeview City (30.1 ha Nam Rach Chiec), land price determined at the time of the land allocation decision (April 18, 2017).
- Conclusion on Real Estate tickers
Resolution 170/2024/QH15 provides clear guidance on resolving longstanding legal difficulties, thereby preventing the shirking of responsibility by state agencies.
The top beneficial for this Resolution theme is NVL, which enjoys lower land price determined at 2008 compared with 2017 previously.
Le Thang Anh Tuyen – Investment Department – PHFM