Consolidated Document number 12/VBHN-BTNMT on land prices

MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT ENVIRONMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 12/VBHN-BTNMT	Hanoi, November 28, 2018

DECREE

REGULATIONS ON LAND PRICES

Decree No. 44/2014/NĐ-CP dated May 15, 2014 of the Government on land prices, which took effect from July 1, 2014, has been amended and supplemented by:

Decree No. 01/2017/NĐ-CP dated January 6, 2017 of the Government amending and supplementing some Decrees detailing the implementation of the Land Law, which took effect from March 3, 2017.

Decree No. 136/2018/NĐ-CP dated October 5, 2018 of the Government amending some articles of Decrees related to investment conditions in the field of natural resources and environment, which took effect from October 5, 2018.

Pursuant to the Law on Organization of the Government dated December 25, 2001;

The Government issues this Decree on management and development of industrial clusters.

At the request of the Ministry of Natural Resources and Environment,

The Government promulgates this Decree on land prices.[1]

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the methods for valuing land; establishing, adjusting the framework of land prices, land price lists; specific land valuation, and activities providing consultancy services for determining land prices.

Article 2. Applicability

1. State agencies responsible for managing land; agencies responsible for establishing, adjusting, and reviewing the framework of land prices, land price lists, and specific land valuation.

Organizations providing consultancy services for determining land prices, individuals practicing consultancy services for determining land prices.

MECHANISMS AND POLICIES REGARDING THE PRICE OF AUCTION SERVICES FOR ASSETS THAT MUST BE SOLD THROUGH AUCTIONS AS PRESCRIBED BY LAW

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Vacant plot means a plot that at the time of valuation does not have houses or other assets attached to the land.

2. Net income is determined by subtracting total expenses from total revenue.

3. Market common land price is the price appearing most frequently in transactions already transferred on the market, winning auctions for land use rights, and land prices determined from costs and revenues of plots with the same purpose of use in a certain area and within a specific period.

Article 4. Methods for Valuing Land

1. Direct comparison method is a method of valuing land through analyzing the prices of similar vacant plots regarding land use purposes, location, profitability, infrastructure conditions, size, shape, and legality of land use rights (hereinafter referred to as comparable plots) already transferred on the market or won in auctions for land use rights to compare and determine the price of the plot to be valued.

2. Deduction method is a method of valuing land for plots with attached assets by excluding the value of the attached assets from the total value of real estate (including land value and asset value).

3. Income method is a method of valuing land calculated as the ratio between the average net income obtained annually per unit area of land compared to the annual average interest rate of savings deposits in VND for a 12-month term at state-owned commercial banks with the highest interest rates on savings deposits in the province.

4. Residual method is a method of valuing land for plots with potential for development according to land use planning, construction planning, or permitted change of land use purpose to the highest and best use by excluding estimated total costs from the assumed total revenue of real estate development.

5. Land price adjustment factor method is a method of valuing land by using the land price adjustment factor multiplied (x) by the land price in the land price list issued by the People's Committee of the province or centrally administered city (hereinafter referred to as the provincial People's Committee).

Article 5. Application of land valuation methods

1. Requirements for information in applying land valuation methods:

a) Information on land prices that have been transferred on the market, land prices won through auctions for land use rights, land prices in land databases, land prices on real estate trading floors, and land prices determined from costs and income of the plot (hereinafter referred to as market land prices) must ensure objectivity and honesty.

In cases where there is insufficient information in the area being valued, information can be collected from adjacent areas to the area of the plot needing valuation.

b) When applying land valuation methods, priority should be given to selecting the information specified in point a of this clause in the area being valued and at the time closest to the valuation time.

2. Conditions for applying land valuation methods:

a) The direct comparison method is applied to value land when there are comparable plots on the market that have been transferred on the market or won through auctions for land use rights.

b) The subtraction method is applied to value land with attached assets when there is sufficient data on the prices of similar real estate (including land and attached assets) that have been transferred on the market or won through auctions for land use rights.

c) The income method is applied to value land when it is possible to determine revenues and expenses from land use.

d) The residual method is applied to value land with development potential due to changes in planning or land use purposes when it is possible to determine estimated total development revenue and total cost estimates.

đ) The land price adjustment factor method is applied to value land for cases prescribed in Clause 2, Article 18 of this Decree.

Chapter II

CONSTRUCTION, ADJUSTMENT OF LAND PRICE FRAMEWORKS, LAND PRICE TABLES, SPECIFIC LAND VALUATION AND ADVISORY DETERMINATION OF LAND PRICES

Section 1. CONSTRUCTION, ADJUSTMENT OF LAND PRICE FRAMEWORKS

Article 6. Basis for constructing land price frameworks

Constructing land price frameworks must be based on the principles of land valuation stipulated in Article 112 of the Land Law, land valuation methods prescribed in Clauses 1, 2, 3, and 4 of Article 4 of this Decree; results of compiling and analyzing market land price information; natural, socio-economic, management, and land use factors affecting land prices.

Article 7. Content of land price frameworks

1. Prescribing minimum and maximum prices for the following types of land:

a) Agricultural land group:

- Framework for annual crop land prices including paddy fields and other annual crop lands;

- Framework for perennial crop land prices;

- Framework for production forest land prices;

- Framework for aquaculture land prices;

- Framework for salt-making land prices.

b) Non-agricultural land group:

- Framework for rural residential land prices;

- Framework for rural commercial and service land prices;

- Framework for non-agricultural production and business land prices not classified as commercial or service land in rural areas;

- Framework for urban residential land prices;

- Framework for urban commercial and service land prices;

- Framework for non-agricultural production and business land prices not classified as commercial or service land in urban areas.

2. The land price framework is defined according to the following economic regions and types of cities:

a) Economic regions include: North Midland and Northern Mountain region, Red River Delta region, North Central Coast region, South Central Coast region, Central Highlands region, Southeast region, and Mekong Delta region.

The definition of agricultural land price frameworks and non-agricultural land price frameworks in rural areas for each economic region is determined according to three types of communes: plain, midland, and mountainous.

b) Types of cities include: Special-class city, Class I city, Class II city, Class III city, Class IV city, and Class V city.

The definition of non-agricultural land price frameworks in urban areas is determined according to economic regions and types of cities.

3. The land price framework serves as a basis for provincial People's Committees to establish land price tables in their localities.

4.[2] For land used with a limited term within the land price framework and land price table, the land price is calculated corresponding to a 70-year usage period.

For localities where provincial People's Committees have established land price tables using different usage periods than those stipulated in this clause, adjustments must be made accordingly.

Article 8. Procedures and formalities for establishing the land price framework

1. The procedures for establishing the land price framework shall be carried out as follows:

a) Identifying types of land, economic zones, and types of urban areas in the establishment of the land price framework;

b) Surveying, compiling, and analyzing information on market land prices; natural, socio-economic, management, and land use factors affecting land prices;

c) Analyzing and evaluating the results of implementing the current land price framework;

d) Establishing the land price framework and preparing a proposal for issuing the land price framework;

đ) Organizing the solicitation of opinions on the draft land price framework;

e) Reviewing the draft land price framework;

g) Completing the land price framework to submit to the Government for issuance.

2. The dossier for establishing the land price framework to be submitted to the Government for issuance includes:

a) A proposal for issuing the land price framework;

b) The draft land price framework;

c) A report explaining the establishment of the land price framework;

d) Documents reviewing the land price framework.

3. The Ministry of Natural Resources and Environment is responsible for organizing the establishment and submission to the Government for issuance of the land price framework every five years. The Ministry of Finance is responsible for organizing the review of the land price framework.

Article 9. Adjusting the land price framework

1. When the general land price on the market increases by 20% or more compared to the maximum price or decreases by 20% or more compared to the minimum price in the land price framework over a period of 180 days or more, the Government will adjust the land price framework.

2. Contents of adjusting the land price framework:

a) Adjusting the minimum and maximum prices of one type of land or several types of land or all types of land in the land price framework;

b) Adjusting the land price framework in one economic zone or several economic zones or all economic zones; in one type of urban area or several types of urban areas or all types of urban areas.

3. The procedures for adjusting the land price framework shall be carried out as follows:

a) Identifying types of land, economic zones, and types of urban areas that need to have their land price framework adjusted;

b) Surveying, compiling, and analyzing information on market land prices; natural, socio-economic, management, and land use factors affecting land prices;

c) Analyzing and evaluating the results of implementing the current land price framework;

d) Establishing the adjusted land price framework and preparing a proposal for adjusting the land price framework;

đ) Organizing the solicitation of opinions on the draft adjusted land price framework;

e) Reviewing the draft adjusted land price framework;

g) Completing the adjusted land price framework to submit to the Government for issuance.

4. The dossier for the adjusted land price framework to be submitted to the Government for issuance includes:

a) A proposal for issuing the adjusted land price framework;

b) The draft adjusted land price framework;

c) A report explaining the establishment of the adjusted land price framework;

d) Documents reviewing the adjusted land price framework.

5. The Ministry of Natural Resources and Environment is responsible for organizing the establishment and submission to the Government for issuance of the adjusted land price framework. The Ministry of Finance is responsible for organizing the review of the adjusted land price framework.

Section 2. ESTABLISHING AND ADJUSTING THE LAND PRICE TABLE

Article 10. Basis for establishing the land price table

The establishment of the land price table must be based on the principles of land valuation stipulated in Article 112 of the Land Law, the methods of land valuation stipulated in Clauses 1, 2, 3, and 4 of Article 4 of this Decree, the land price framework prescribed by the Government; the results of compiling and analyzing information on market land prices; natural, socio-economic, management, and land use factors affecting land prices.

Article 11. Content of the land price table

1. Regulations on the land price table for the following types of land:

a) The land price table for annual crop land including paddy fields and other annual crop land;

b) The land price table for perennial crop land;

c) The land price table for production forest land;

d) The land price table for aquaculture land;

đ) The land price table for salt-making land;

e) The land price table for residential land in rural areas;

g) The land price table for commercial and service land in rural areas;

h) The land price table for non-agricultural production and business land that is not commercial or service land in rural areas;

i) The land price table for residential land in urban areas;

k) The land price table for commercial and service land in urban areas;

l) The land price table for non-agricultural production and business land that is not commercial or service land in urban areas;

In addition to the land price tables specified in this clause, the provincial People's Committee may issue detailed land price tables for various types of land according to the land classification stipulated in Article 10 of the Land Law, in accordance with local conditions.

2. The land price table is established based on the location of the land. For localities that already have cadastral maps and have human resources and financial conditions, the land price table can be established for each individual plot of land.

3. Regulations on land prices in the land price table:

a) The land prices in the land price table are set according to the principle that land belonging to a certain type of land shall apply the land price framework of that type of land as stipulated in Article 7 of this Decree and must be consistent with the land price framework.

For residential land in urban areas; commercial and service land in urban areas; non-agricultural production and business land that is not commercial or service land in urban areas, which have high profitability and advantages in using land for production, business, commerce, and services, based on local realities, the provincial People's Committee may set higher land prices but not exceeding 30% above the maximum price of the same type of land in the land price framework; in cases where the land price is set higher than 30%, it must be reported to the Ministry of Natural Resources and Environment for consideration and decision.

For agricultural land within residential areas and within the administrative boundaries of wards, based on local realities, the provincial People's Committee may set higher land prices but not exceeding 50% above the maximum price of the same type of land in the land price framework;

b) For protective forest land and special-use forest land, the provincial People's Committee bases the land prices on the prices of production forest land in nearby areas already specified in the land price table and based on the land valuation method to set the land prices;

c) For other types of agricultural land, the provincial People's Committee bases the land prices on the prices of various types of agricultural land in nearby areas already specified in the land price table to set the land prices;

d) For land used for public purposes with business objectives, land for building agency headquarters, and land for construction of public works, the provincial People's Committee bases the land prices on the prices of production and business land for public purposes with business objectives or residential land prices for agency headquarters and construction of public works in nearby areas already specified in the land price table to set the land prices;

d) For river, stream, canal, creek, and spring land, and surface water specifically used for aquaculture purposes, the aquaculture land price range shall be applied; if used for non-agricultural purposes or combined with aquaculture purposes, the provincial People's Committee shall determine the land price level based on the non-agricultural land price in nearby areas as prescribed.

e) For non-agricultural land used by religious or belief organizations; cemetery land; other non-agricultural land, the provincial People's Committee shall determine the land price level based on the non-agricultural production and business land price that is not commercial or service land in nearby areas as prescribed in the land price table.

4. For unused land, when the competent state agency transfers or leases the land for use, the provincial People's Committee shall determine the land price level based on the valuation method and the price of the same type of land for the same purpose that has been transferred or leased in nearby areas.

5. The land price table shall be used as a basis for application in cases prescribed in Clause 2 of Article 114 of the Land Law.

Article 12. Procedures and formalities for establishing the land price table

1. The procedures for establishing the land price table shall be carried out as follows:

a) Determining the type of land and location according to plains, midlands, mountainous regions, and types of urban areas within the administrative unit of the province;

b) Surveying, compiling, and analyzing market land price information; natural, socio-economic, management, and land use factors affecting land prices;

c) Analyzing and evaluating the implementation results of the current land price table;

d) Establishing the land price table and the proposal for issuing the land price table; handling land prices in border areas according to the provisions of Article 13 of this Decree;

đ) Organizing the solicitation of opinions on the draft land price table;

e) Completing the draft land price table for submission to the provincial People's Committee;

g) Reviewing the draft land price table;

h) Submitting the land price table to the provincial People's Council for approval;

i) The provincial People's Committee decides to issue the land price table.

2. The dossier for establishing the land price table submitted to the provincial People's Committee includes:

a) Proposal for issuing the land price table;

b) Draft land price table;

c) Report explaining the establishment of the land price table;

d) Document reviewing the land price table.

3. The dossier for establishing the land price table submitted to the provincial People's Council for approval includes: Proposal from the provincial People's Committee; draft land price table and Report explaining the establishment of the land price table.

4. The review of the land price table shall be conducted by the Land Price Table Review Board. The provincial People's Committee shall decide to establish the Land Price Table Review Board consisting of the following components:

a) A representative of the provincial People's Committee as Chairman of the Board;

b) A representative of the Department of Finance as permanent member of the Board; representatives of the Department of Natural Resources and Environment, the Department of Justice, and the People's Committee of districts, towns, cities under provinces (hereinafter referred to as district-level People's Committees), organizations with functions to advise on land valuation or experts in land valuation, and other members decided by the provincial People's Committee.

5. The Department of Natural Resources and Environment shall organize the establishment and submit to the provincial People's Committee for issuance of the land price table at the local level every five years, and publicly announce it on January 1 of the first year of each period.

Article 13. Handling land prices in border areas between provinces and centrally governed cities when establishing the land price list

1. The border area between provinces and centrally governed cities (hereinafter referred to as the border area) shall be defined according to the following types of land:

a) For agricultural land in the border area, it is determined from the administrative boundary line between provinces and centrally governed cities into each province's territory up to a maximum of 1,000 meters;

b) For non-agricultural land in the border area, it is determined from the administrative boundary line between provinces and centrally governed cities into each province's territory up to a maximum of 500 meters;

c) For border areas separated by rivers, lakes, canals with a main width of 100 meters or less, the border land area is determined from the riverbank, lakebank, canal bank of each side of the river, lake, canal into the territorial boundary of each province and centrally governed city as provided for in points a and b of this clause. In cases where the main width of the river, lake, canal exceeds 100 meters, the border land category will not be classified.

2. Land in the border area with the same purpose of use, profit-making capacity, and income from land use similar to each other shall have the same pricing level. In cases where there are differences in the above factors, the land price level in the border area may differ but the maximum difference shall not exceed 30%.

3. The provincial People's Committee is responsible for sending the draft land price list of the locality to the provincial People's Committee with adjacent land; publishing the draft land price list on the website of the provincial People's Committee, Department of Natural Resources and Environment.

If the difference in land price levels in the border area in the draft land price list exceeds the limit specified in Clause 2 of this Article, the provincial People's Committee with adjacent land must proactively unify the land price level in the border area.

In case of inability to reach an agreement, report to the Ministry of Natural Resources and Environment before September 15 of the year when the land price list is being established for resolution. In case the provincial People's Committee and the Ministry of Natural Resources and Environment cannot reach an agreement on the land price in the border area, the Ministry of Natural Resources and Environment shall report to the Prime Minister for consideration and decision.

4. The provincial People's Committee is responsible for coordinating to handle the difference in land price levels in the border area during the process of establishing the land price list.

Article 14. Adjusting the land price list

1. Cases for adjusting the land price list:

a) When the Government adjusts the land price range and the adjusted land price increases by 20% or more compared to the maximum land price or decreases by 20% or more compared to the minimum land price in the land price list of the same type of land;

b) When the market price of land generally increases by 20% or more compared to the maximum land price or decreases by 20% or more compared to the minimum land price in the land price list over a period of 180 days or more.

2. Content of adjusting the land price list:

a) Adjusting the price of one type of land or several types of land or all types of land in the land price list;

b) Adjusting the land price list at one location or several locations or all locations.

3. The land price in the adjusted land price list must be consistent with the land price range and the regulations on the price difference in border areas stipulated in Clause 2 of Article 13 of this Decree.

4. The procedure for adjusting the land price list shall be implemented as follows:

a) Identifying the type of land and location of land that need adjustment in the land price list;

b) Surveying, compiling, and analyzing information on market land prices; natural, socio-economic, management, and land use factors affecting land prices;

c) Analyzing and evaluating the implementation results of the current land price table;

d) Preparing the adjusted land price list and the Memorandum on issuing the adjusted land price list;

đ) Organizing opinions on the draft adjusted land price list;

e) Completing the draft adjusted land price list for submission to the provincial People's Committee;

g) Reviewing the draft adjusted land price list;

h) Submitting to the Standing Committee of the Provincial People's Council for approval and reporting to the Provincial People's Council at the nearest session;

i) The provincial People's Committee decides to issue the adjusted land price list.

5. Documents for adjusting the land price list submitted to the provincial People's Committee include:

a) Memorandum on issuing the adjusted land price list;

b) Draft adjusted land price list;

c) Report explaining the construction of the adjusted land price list;

d) Document reviewing the adjusted land price list.

6. Documents for adjusting the land price list submitted to the Standing Committee of the provincial People's Council for approval include: Memorandum of the provincial People's Committee; draft adjusted land price list and Report explaining the construction of the adjusted land price list.

7. The Department of Natural Resources and Environment is responsible for organizing the construction and submitting to the provincial People's Committee for issuance of the adjusted land price list in the locality.

Section 3. SPECIFIC LAND VALUATION

Article 15. Determining specific land value

1\. Based on the principles of land valuation stipulated in Article 112 of the Land Law, the methods of land valuation specified in Clauses 1, 2, 3, and 4 of Article 4 of this Decree, and the results of compiling and analyzing information about the plot of land and market land prices, the People's Committee of the province shall decide on the specific land value.

2\. The specific land value shall be used as a basis for the cases prescribed in Clause 4 of Article 114, Clause 2 of Article 172, and Clause 3 of Article 189 of the Land Law; it serves as the starting price for auctioning the right to use land when the State grants land with payment for land use rights or leases land with a one-time payment covering the entire lease period.

Article 15a. Responsibility for organizing the determination of the starting price for auctioning the right to use land

[4]

1\. The Department of Natural Resources and Environment shall be responsible for organizing the determination of the starting price for auctioning the right to use land when the State grants land with payment for land use rights or leases land with a one-time payment covering the entire lease period as stipulated in Clause 1 of Article 15 of this Decree.

2\. The Department of Finance shall take the lead and coordinate with the Department of Natural Resources and Environment to organize the implementation of determining the starting price for auctioning the right to use land attached to state-owned assets in accordance with the laws on management and use of state assets.

Article 16. Procedures and formalities for implementing the determination of specific land value

1\. The procedures for implementing the determination of specific land value as stipulated in Article 15 of this Decree shall be carried out as follows:

a\. Determine the purpose of valuing specific land;

b\. Investigate, compile, and analyze information about the plot of land and market land prices; apply the method of land valuation;

c\. Develop a land price plan to submit to the People's Committee of the province;

d) Review the land price plan;

d\. Finalize the draft land price plan to submit to the People's Committee of the province for decision;

e\. The People's Committee of the province decides on the land price.

2\. The dossier for determining specific land value to be submitted to the People's Committee of the province for decision shall include the following:

a\. A proposal on the land price plan;

b\. A draft land price plan;

c\. A report explaining the construction of the land price plan;

d\. An appraisal document on the land price plan.

3\. The appraisal of the land price plan shall be conducted by the Appraisal Council. The People's Committee of the province shall decide to establish the Appraisal Council consisting of the following components:

a\. The Chairman of the People's Committee of the province shall serve as the Chairman of the Council;

b\. A representative from the Department of Finance shall serve as the permanent member of the Council; representatives from the Department of Natural Resources and Environment and the People's Committee of the district where the land is located; organizations with functions to advise on land valuation or experts in land valuation, and other members decided by the People's Committee of the province.

Article 17. Selection of organizations with functions to advise on specific land valuation

1\. Based on the need for specific land valuation at the local level, the Department of Natural Resources and Environment shall prepare a plan for specific land valuation to submit to the People's Committee of the province for approval and organize the implementation of the approved plan.

2\. The selection of organizations with functions to advise on specific land valuation shall be carried out in accordance with the laws on bidding.

Article 18. Determination of specific land value using the land price adjustment coefficient method

1\. Based on the common land price on the market, economic and social conditions in the locality, and the land price list, the People's Committee of the province shall stipulate and decide on the land price adjustment coefficient to determine the specific land value.

2\. [5] The specific land value determined by the land price adjustment coefficient method prescribed in Clause 5 of Article 4 of this Decree shall be applied in the following cases:

a\. Cases prescribed in Points a, b, c, and d of Clause 4 of Article 114, Clause 2 of Article 172, and Clause 3 of Article 189 of the Land Law, determining the land price to serve as the starting price for auctioning the right to use land when the State grants land with payment for land use rights or leases land with a one-time payment covering the entire lease period, where the plot of land or project area has a value (calculated based on the land price in the land price list) under 30 billion VND for central cities; under 10 billion VND for mountainous and highland provinces; under 20 billion VND for other provinces; determining the land price to serve as the basis for calculating annual land rent when the State leases land with annual rent payments that require the recalculation of the rental rate for the next cycle; determining the land price to serve as the basis for setting the starting price for auctioning the right to use land when the State leases land with annual rent payments;

b\. Cases prescribed in Point d of Clause 4 of Article 114 of the Land Law for projects with adjacent plots of land having the same purpose of use, profit-making capacity, and income from land use, or cases in areas where land expropriation does not meet the requirements for information to apply the methods of land valuation stipulated in Clauses 1, 2, 3, and 4 of Article 4 of this Decree to determine the specific land value of each plot of land.

3\. Annually, the People's Committee of the province shall stipulate the land price adjustment coefficient to apply to the cases prescribed in Point a of Clause 2 of this Article.

For the cases prescribed in Point b of Clause 2 of this Article, the People's Committee of the province shall decide on the land price adjustment coefficient for each type of land according to the project or area to determine the land price for compensation when the State expropriates land.

4\. Responsibilities for building the land price adjustment coefficient:

a\. The Department of Finance shall take the lead and coordinate with the Department of Natural Resources and Environment and relevant departments to build and submit to the People's Committee of the province for stipulating the land price adjustment coefficient prescribed in Point a of Clause 2 of this Article;

b\. The Department of Natural Resources and Environment shall take the lead and coordinate with the Department of Finance and relevant departments to build and submit to the People's Committee of the province for deciding the land price adjustment coefficient prescribed in Point b of Clause 2 of this Article.

5\. The Ministry of Natural Resources and Environment shall take the lead and coordinate with the Ministry of Finance to guide the construction of the land price adjustment coefficient prescribed in this Article.

Section 4. LAND APPRAISAL ADVICE ON LAND PRICES

Article 19. Principles of Land Appraisal Advice on Land Prices Activities

Organizations with the function of providing land appraisal advice on land prices must comply with the following principles when conducting such advice:

1. Adhering to the principles, methods of land valuation, procedures, and contents for establishing the framework of land prices, land price lists, and specific land valuations;

2. Independence, honesty, and objectivity;

3. Fulfilling the obligations stipulated in Clause 2, Article 116 of the Land Law.

Article 20. Conditions for Engaging in Land Appraisal Advice on Land Prices Activities, and Individuals Practicing Land Appraisal Advice on Land Prices

1. An organization may engage in land appraisal advice on land prices activities if it meets the following conditions:

a) Having the function of providing land appraisal advice on land prices, or valuation review, or real estate valuation consultancy;

b) Having at least three qualified land appraisers as stipulated in Clause 2 of this Article.

2.[7] An individual may only practice land appraisal advice on land prices within an organization that has the function of providing land appraisal advice on land prices under one of the following circumstances:

a) Holding a Land Valuation Certificate issued in accordance with the laws on land;

b) Possessing a Price Reviewer Card or Real Estate Valuation Certificate and a Certificate confirming completion of a training course on land valuation according to the land valuation training program issued by the Ministry of Natural Resources and Environment.

3.[8] An individual granted a Land Valuation Certificate must meet the following conditions:

aa) Having a university degree or higher in fields related to land management, cadastral affairs, real estate, commodity pricing, valuation review, economics, finance, accounting, auditing, banking, economic-engineering, engineering, or law;

b) Having at least thirty-six months of practical work experience in the field of education after obtaining a degree in the specified field as of the date of submitting the application for a Land Valuation Certificate;

c) Holding a Certificate confirming completion of a training course on land valuation according to the land valuation training program issued by the Ministry of Natural Resources and Environment.

Chapter III

IMPLEMENTATION

Article 21. Responsibilities of Ministries, Sectors, and Provincial People's Committees

1. The Ministry of Natural Resources and Environment shall be responsible for:

a) Organizing the establishment and adjustment of the land price framework to be submitted to the Government for issuance;

b) Guiding the methods of land valuation; the construction, adjustment, and specific land valuation according to regulations; land appraisal advice on land prices activities; building, updating, managing, and utilizing land price databases in the land information system; creating land price maps;

c) Inspecting, supervising, and handling violations in the application of land valuation methods; applying land price lists and specific land prices, land auctions, and land appraisal advice on land prices activities according to the law;

d) Issuing training programs on land laws and land valuation;

đ) Building, updating, managing, and utilizing the national land price database in the land information system.

2. The Ministry of Finance shall be responsible for:

a) Reviewing the land price framework and adjusted land price framework;

b) Leading and coordinating with the Ministry of Natural Resources and Environment to guide the content of reviewing land price lists and specific land valuations by the Land Price List Review Council and the Land Valuation Review Council.

3. Provincial People's Committees shall be responsible for:

a) Organizing the establishment, adjustment, and issuance of land price lists; deciding specific land prices and proposing adjustments to the land price framework; determining and deciding land price adjustment coefficients;

b) Guiding and inspecting the implementation of legal provisions on land prices at the local level; resolving issues arising from land prices within their authority;

c) Inspecting, supervising, and handling violations concerning land prices and land appraisal advice on land prices activities at the local level;

d) Organizing the construction, updating, management, and utilization of local land price databases, creating land price maps according to the regulations of the Ministry of Natural Resources and Environment; announcing market land price fluctuation indices;

đ) Annually reporting to the Ministry of Natural Resources and Environment on the implementation of legal provisions on land prices at the local level.

4. The budget for organizing the establishment, adjustment, review of the land price framework, land price lists; specific land valuations; monitoring and updating land prices locally, announcing market land price fluctuation indices; constructing land price databases and creating land price maps shall be allocated from the state budget.

Article 22. Handling certain issues arising after this Decree takes effect

1. Specific land prices proposed by competent authorities before July 1, 2014, which have not yet been decided by the provincial People's Committee, shall continue to be used for submission to the Land Price Appraisal Council for review prior to the provincial People's Committee's decision.

2. For localities that had signed contracts with consulting organizations to determine land prices before July 1, 2014, such contracts shall continue to be implemented; the consulting results on land prices shall be used for submission to the Land Price Appraisal Council for review prior to the provincial People's Committee's decision.

3. The land price list for 2014 issued by the provincial People's Committee shall be applied until December 31, 2014.

Chapter IV

IMPLEMENTING PROVISIONS

[9]

Article 23. Effectiveness of Implementation

1. This Decree takes effect from July 1, 2014.

2. This Decree replaces Decree No. 188/2004/NĐ-CP dated November 16, 2004 of the Government on methods for determining land prices and price ranges for various types of land, and Decree No. 123/2007/NĐ-CP dated July 27, 2007 of the Government amending and supplementing certain provisions of Decree No. 188/2004/NĐ-CP; it abolishes the content regarding land prices stipulated in Clause 6, Article 1 of Decree No. 189/2013/NĐ-CP dated November 20, 2013 of the Government amending and supplementing certain provisions of Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on converting state-owned enterprises with 100% state capital into joint-stock companies.

Article 24. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government, and related organizations and individuals are responsible for implementing this Decree.

Place of Receipt: - Office of the Government (for publication in the Official Gazette); - Ministries, agencies equivalent to ministries, and government agencies; - People's Committees of provinces and centrally governed cities; - Provincial Departments of Natural Resources and Environment under the Central Government; - Department of Legal Drafting, Ministry of Justice; - Government Portal (for publication); - Units subordinate to the Ministry of Natural Resources and Environment; - Electronic Information Portal of the Ministry of Natural Resources and Environment; - To be filed: VT, PC.

CERTIFIED CONSOLIDATED DOCUMENT THE MINISTER TRAN HONG HA