Việt Nam promulgates new Land Law, Credit Institutions Law

February 19, 2024 - 15:12
The amended Land Law eliminates regulations pertaining to the Government's land price framework, instead delineating principles, bases and methodologies for land valuation.
At the meeting to announce the two new laws. VNA/VNS Photo

HÀ NỘI - The Office of the President announced on Monday the passage of two new laws by the 15th National Assembly: the amended Land Law and the amended Law on Credit Institutions.

The amended Law on Credit Institutions consists of 15 chapters and 210 articles, and is scheduled to take effect on July 1, 2024.

This legislation comprehensively regulates various aspects, including the establishment, organisation, operation, early intervention, special control, reorganisation, dissolution and bankruptcy of credit institutions.

It also addresses the establishment, organisation, operation, early intervention, dissolution and termination of foreign bank branches, along with the establishment and operation of representative offices in Việt Nam by foreign credit institutions and other organisations engaged in banking activities.

Additionally, it outlines protocols for handling bad debts and collateral assets, extending to credit institutions, foreign bank branches and state-owned organisations involved in debt transactions.

The development of this law aims to enhance legal regulations governing the organisation and operation of credit institutions, rectifying existing issues, and fostering the adoption of advanced technologies within the banking sector. It seeks to strengthen internal governance, promote transparency, and establish a robust legal framework for managing credit institutions facing liquidity risks. Moreover, it introduces provisions for addressing bad debts within credit institutions, further bolstering the sector's resilience.

Land Price

The amended Land Law, comprising 16 chapters and 260 articles, is set to take effect on January 1, 2025, with certain provisions taking immediate effect.

Of particular significance, this legislation eliminates regulations pertaining to the Government's land price framework, instead delineating principles, bases and methodologies for land valuation. It mandates the annual formulation of land price lists, which will be initially published and applied from January 1, 2026, and subsequently revised and supplemented each year thereafter.

The construction of these lists will be tailored to different value areas and standard land plots, leveraging digital cadastral maps and a comprehensive land price database.

Moreover, the law stipulates specific timelines for determining land prices, calculating land use fees, and determining land rent across various scenarios, including land allocation, leasing and changes in land use purpose or tenure. It imposes a strict requirement on competent People's Committees to issue specific land price decisions within 180 days of determining land prices.

Furthermore, in cases where land prices from the list are used to calculate land use fees and rent, the competent People's Committee is obligated to document these prices in decisions related to land allocation, leasing and changes in land use, ensuring transparency and consistency in land management processes.

Additionally, the amended Land Law introduces several key provisions, including the implementation of stable annual land rent. According to this provision, annual land rent will remain stable for a period of five years from the date of land lease by the State, with provisions allowing for changes in land use purpose.

Subsequent land rent cycles will be calculated based on the land price list applicable at the time of determining the next land rent. Any increase in land rent compared to the previous cycle will be adjusted within the limits prescribed by the Government for each period.

The authority to determine specific land prices will be decentralised to Chairpersons of district-level People's Committees. The law delineates four land valuation methods and sets conditions for their application. It empowers the Government to introduce additional land valuation methods upon approval from the National Assembly Standing Committee. If land valuation methods yield results lower than those in the Land Price List, the prices in the list will take precedence. VNS