A man reads a newspaper by a railway line in Hanoi on August 15, 2024. (Photo by Nhac NGUYEN / AFP)
HANOI: Starting Aug 1, 2024, three key laws, the 2024 Land Law, the amended Housing Law, and the amended Real Estate Business Law came into effect.
The laws are expected to significantly boost the land, housing and real estate markets by improving legal frameworks, enhancing policy mechanisms, removing obstacles, and better allocating resources for economic growth.
Phan Duc Hieu, a standing member of the National Assembly’s Economic Committee, told a conference held in Hanoi last week that the enactment of the three laws is timely and necessary.
“The 2024 Land Law addresses five key areas: protecting land users’ rights, ensuring market transparency and fairness, improving land use efficiency, updating land finance policies and enhancing government management,” he said.
For acquiring land for production and business, there are three options: the government can reclaim the land, change its use, or negotiate if reclamation is not pursued. The law drafting committee and the government have reviewed the provisions to prevent overlaps, discrepancies and loopholes, he added.
When the government reclaims land for allocation or leasing to businesses, it generally uses auctions or bidding, with limited exceptions for direct land allocation.
For these crucial laws to be effectively implemented, it’s essential that the related decrees, circulars and guidance documents are thorough, clear and detailed to prevent overlap, misapplication, and legal loopholes, he added.
Nguyen Thuy Duong, editor-in-chief of Business Magazine said the amended Land Law is garnering significant attention from all levels of government, local governments and especially the business community.
This is because it intersects with 22 other laws and codes, making it a major legislation with a profound impact on economic and social life as well as on the rights of businesses and individuals.
The National Assembly’s adoption of the amended Land Law, along with the amended Housing Law and Real Estate Business Law, which all took effect on Aug 1, fulfills the need for a comprehensive overhaul of land management and use policies.
The laws align with the development goals of a socialist-oriented market economy, aiming for efficient, sustainable land use and promoting industrialisation, modernisation, fairness, social stability and national defence, she said.
“The new laws are expected to positively influence the market, driving recovery and providing a solid legal foundation for the Vietnamese real estate sector’s healthy and sustainable development,” she added.
Dao Trung Chinh, director of the Department of Planning and Land Resources Development under the Natural Resources and Environment Ministry said that businesses and real estate investors should focus on land access methods, particularly auctions and bidding.
“When land is allocated or leased without an auction and if the government provides land without charging fees for certain years of basic construction, businesses must be aware that the law requires specific land designation for such cases,” Chinh said.
Nguyen Van Dinh, vice-chairman of Vietnam Real Estate Association said the 2024 Land Law has been revised to put people first and protect home buyers’ interests.
“In response to the issue of abandoned resettlement housing that fails to meet people’s needs, the new law mandates that resettlement arrangements must be completed before any land recovery decisions are made,” he said. — Viet Nam News/ANN
