As of early January 2025, approximately 25 provinces across Việt Nam have issued new land price frameworks, effective until the end of 2025. These adjustments are part of the reforms introduced under the Land Law 2024, which aims to enhance transparency and align land prices more closely with actual market values.The updated land price frameworks allow provincial authorities to revise land prices periodically, enabling a gradual transition towards a market-oriented valuation system, expected to be fully implemented by 2026. This approach is intended to mitigate sudden price hikes that could disrupt the interests of both land users and investors.Despite this, the dramatic price hikes in some localities have caught both residents and businesses off guard, stirring significant concern in the real estate sector.In HCM City, for example, land prices have risen by up to 38 times, with some areas now valued at VNĐ687.2 million (US$27,055) per square metre. Hà Nội has also seen significant increases, ranging from two- to six-fold, with the highest price recorded at VNĐ695.3 million per square metre. These sharp adjustments have sparked concerns among real estate developers and investors about the potential for reduced affordability and investment attractiveness.Chairman of the Vietnam Association of Construction Contractors (VACC),Nguyễn Quốc Hiệp, expressed concern about how these rising land prices could affect Việt Nam’s investment environment.He pointed out that competitive land prices, coupled with affordable labour and efficient logistics, have traditionally been key factors in attracting foreign direct investment (FDI). With labour costs rising and now land prices escalating, Việt Nam’s competitiveness could be at risk, potentially deterring future investment.MONRE recommends fixing delays in local land price decisionsThe Ministry of Natural Resources and Environment has recently instructed provincial authorities to improve land price management and prevent land waste. They are urged to follow the Prime Minister’s directive to review and adjust land prices in auction areas before setting starting prices for land use rights.Local authorities must also speed up the process of determining specific land prices for calculating land use and lease fees, especially for land allocated or leased before the Land Law 2024 came into effect. Reports are required by April 30, 2025, with plans to address any delays in land price decisions.Provinces are also asked to set rules on sales ratios, occupancy rates, and investor costs as per new regulations, ensuring that land prices follow the required procedures and principles. Local authorities are responsible for any delays in land pricing. — VNS (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News