Circular No. 36/2014/TT-BTNMT detailing the methods for land valuation; construction and adjustment of land price lists; specific land valuation; and advice on determining land prices.

CIRCULAR

Detailed regulations on land valuation methods; construction, adjustment

of land price lists; specific land valuation and advice on determining land prices

_______________

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

On the basis of Decision No. 44/2014/NĐ-CP dated May 15, 2014, of the Government on land prices;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

At the request of the Director General of the Land Administration General Department and the Head of the Legal Department,

The Minister of Natural Resources and Environment shall issue a Circular detailing the land valuation methods; construction, adjustment of land price lists; specific land valuation and advice on determining land prices.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular details the land valuation methods; construction, adjustment of land price lists; specific land valuation and advice on determining land prices.

Article 2. Applicability

1. State management agencies for land; agencies with functions to construct, adjust, review land price lists, and conduct specific land valuations.

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

Chapter II

LAND VALUATION METHODS

Article 3. Direct Comparison Method

The procedures and contents for determining land prices according to the direct comparison method are implemented as follows:

1. Surveying and collecting information

a) Conduct field surveys to collect information about the plot of land to be valued.

b) Survey and collect information on at least three plots of land with similar characteristics to the plot of land to be valued regarding land use purpose, location, profitability, technical infrastructure and social infrastructure conditions, area, dimensions, shape, and legal status of land use rights (hereinafter referred to as comparative plots) that have been transferred on the market or won through land use rights auctions within a period not exceeding two years from the valuation date. The collected information includes:

- Land price;

- Land use purpose, location, area, dimensions, shape, factors related to technical infrastructure and social infrastructure, legal status of land use rights, transfer date, auction win date, and other information affecting the land price.

c) Information on the land price of comparative plots is collected from the following sources:

- Auction-winning land price;

- Market land price in the land database;

- Successfully traded land price on real estate trading platforms;

- Successfully traded land price on the market provided by the seller or buyer of land use rights through direct interviews.

A successful transaction is a transaction where the transferee has paid the transferor according to the agreement and received the land use rights.

d) When surveying and collecting information on land prices, prioritize information on auction-winning land prices, successfully traded land prices on real estate trading platforms, market land prices in the land database, the most recent information generated closest to the valuation date and in the valuation area. In cases where there is insufficient information on land prices in the valuation area, collect information from adjacent areas with similar natural, economic, and social conditions, technical infrastructure, and social infrastructure compared to the area with the plot of land to be valued.

During the surveying and information collection process, do not investigate plots of land that will change their land use purpose according to the annual land use plan of the district approved by the competent state authority and plots of land that do not meet the conditions for transfer under the laws on land.

2. Analyzing, comparing, and adjusting prices due to differences between comparative plots and the plot to be valued

a) Analyze and compare to determine common and different factors between comparative plots and the plot to be valued.

b) Adjust prices due to differences between comparative plots and the plot to be valued

Based on the different factors between comparative plots and the plot to be valued, adjust the price of comparative plots either in absolute value or as a percentage (%).

The adjustment of the price of comparative plots is carried out according to the principle of using the plot to be valued as the standard; first, adjust according to the absolute value, then adjust according to the percentage (%); if the factors of comparative plots are inferior to those of the plot to be valued, increase (add) the price of comparative plots; if the factors of comparative plots are superior to those of the plot to be valued, decrease (subtract) the price of comparative plots.

3. Estimating the land price of the plot to be valued

The estimated land price of the plot to be valued is determined by adjusting the land price of each comparative plot based on the different factors between comparative plots and the plot to be valued according to the following formula:

In cases where the market land price fluctuates during the period from the transfer date or auction-winning date of comparative plots to the valuation date, the land price of comparative plots must be adjusted to the valuation date according to the market land price fluctuation index published by the Department of Natural Resources and Environment. If the Department of Natural Resources and Environment has not published it, the market land price fluctuation index for each type of land is calculated based on commonly available market land price information collected over time or statistical data from the statistics agency (if available).

4. Determining the land price of the plot to be valued

Determine the price of the plot to be valued by taking the arithmetic mean of the estimated land prices of the plot to be valued determined in Clause 3 of this Article; the land price of the plot to be valued must ensure a difference of no more than 10% with each estimated land price.

An example of applying the direct comparison method to determine land prices is set forth in Appendix No. 01 issued together with this Circular.

Article 4. Deduction Method

The procedures and contents for determining land value according to the deduction method shall be carried out as follows:

1. Surveying and collecting information

a) Conduct on-site surveys to collect information about the plot of land with attached assets (hereinafter referred to as immovable property) that needs to be appraised.

b) Conduct surveys and collect information on at least three immovable properties with similar characteristics to the plot of land needing appraisal regarding land use purpose, location, profitability, technical infrastructure conditions and social infrastructure, area, dimensions, shape, and legal status concerning land use rights (hereinafter referred to as comparable immovable properties) that have been transferred on the market or won through land use right auctions within a period not exceeding two years from the date of land valuation. The collected information includes:

- Land price;

- Land use purpose, location, area, dimensions, shape, technical infrastructure and social infrastructure factors, legal status concerning land use rights, transfer date, auction win date for land use rights, and other information affecting land value;

- Information about attached assets.

c) Sources of information collection shall be carried out in accordance with Point c Clause 1 Article 3 of this Circular.

d) During the process of surveying and collecting market land prices, the investigator shall carry out in accordance with Point d Clause 1 Article 3 of this Circular.

2. Determination of the current value of attached assets of comparable immovable properties

The current value of attached assets of comparable immovable properties is determined according to the following formula:

Where:

- The new construction value at the time of land valuation is the replacement cost to invest in building new assets with equivalent technical standards or the cost to recreate the attached assets. The new construction value includes direct costs, indirect costs, reasonable profit for the investor in construction, and taxes and fees required under the law.

- The depreciation value of attached assets includes tangible depreciation and intangible depreciation (including physical depreciation due to wear and tear during exploitation and use; depreciation due to obsolescence in function; changes in planning, economic decline, and external factor impacts).

The calculation methods for new construction value and depreciation value of attached assets shall be carried out in accordance with specialized laws. In cases where there are no regulations or guidelines on the calculation methods for new construction value and depreciation value, the calculations shall be based on actual information and data collected from the market.

3. Estimating the land value of comparable immovable properties

The land value of comparable immovable properties is calculated according to the following formula:

The estimation of the land value of comparable immovable properties is carried out according to the following formula:

4. Determining the land value of the immovable property needing appraisal

The determination of the land value of the immovable property needing appraisal shall be carried out in accordance with Clauses 2, 3, and 4 of Article 3 of this Circular.

An example of applying the deduction method to determine land value is provided in Appendix No. 02 issued together with this Circular.

Article 5. Income Approach Method

The procedures and contents for determining land value according to the income approach shall be implemented as follows:

1. Surveying and collecting information on the income of the plot of land to be appraised

a) For non-agricultural land, the average annual income of the plot of land to be appraised is the average amount of money obtained from production, business activities, or leasing over five consecutive years up to the appraisal date.

b) For agricultural land, the average annual income of the plot of land to be appraised shall be calculated as follows:

- For annual crop land, aquaculture land, and salt-making land, the average annual income is the average amount of money obtained from production activities over three consecutive years up to the appraisal date;

- For perennial crop land and productive forest land, the average annual income is calculated based on annual revenue, phased revenue, and lump-sum revenue.

c) In cases where it is not possible to determine the income of the plot of land to be appraised, collect information on the average income of at least three similar plots of land regarding land use purpose, location, profitability potential, technical infrastructure and social infrastructure conditions, area, size, shape, and legal status of land use rights, or based on actual information and data collected from the market.

2. Surveying and collecting information on costs to generate income of the plot of land to be appraised

a) Average annual costs are calculated based on related taxes for land use; investment costs for land improvement; maintenance and repair costs for construction works attached to the land; production costs.

b) The costs specified in Point a of this Clause are calculated based on standards and unit prices issued by competent state agencies. In cases where there are no standards and unit prices issued by competent state agencies, collect information on costs of similar plots of land regarding land use purpose, location, profitability potential, technical infrastructure and social infrastructure conditions, area, size, shape, and legal status of land use rights, or based on actual information and data collected from the market.

3. Determining the average net income per year according to the following formula:

4. Determining the value of the plot of land to be appraised according to the following formula:

The average annual savings deposit interest rate (r) over three consecutive years up to the land appraisal date for VND term deposits of 12 months with state commercial banks having the highest savings deposit interest rates (determined at the land appraisal date) within the province.

Specifically, for non-agricultural production and business land used for a limited time, the average annual savings deposit interest rate is adjusted according to the following formula:

Where: n is the remaining term of land use of the plot of land to be appraised (in years).

In cases where the plot of land to be appraised has been invested in and constructed with assets attached to the land for production and business purposes, after determining the value of the plot of land and the attached assets, subtract the present value of the attached assets to determine the value of the plot of land to be appraised.

The determination of the present value of assets attached to the land is carried out according to Clause 2, Article 4 of this Circular.

5. Determining the land value of the plot of land to be appraised according to the following formula:

An example of applying the income approach to determine land value is provided in Appendix No. 03 issued together with this Circular.

Article 6. Surplus Method

The procedures and contents for determining land prices using the surplus method shall be carried out as follows:

1. Survey and collect information on the plot of land to be appraised; information on land use planning, construction planning, permission to change land use purposes, and construction regulations approved by competent state agencies to determine the highest and best use of the land.

2. Estimate the total hypothetical development income of real estate

The total hypothetical development income of real estate is estimated based on surveying and collecting information on transfer prices, rental prices, and other factors forming income from projects with similar characteristics to the planned investment construction project in the appraisal area or the nearest adjacent area with comparable profitability, technical infrastructure, and social infrastructure conditions; taking into account trends and levels of fluctuation in transfer prices, rental prices, and other factors forming income.

3. Estimate the total hypothetical development cost of real estate

a) Development costs include:

- Construction costs for technical infrastructure, social infrastructure, housing construction, and other construction works according to the approved planning by competent state agencies; temporary construction works and auxiliary construction works for construction services;

- Equipment costs including: equipment purchase and installation costs; technology transfer costs; installation, testing, and calibration costs; transportation and insurance costs; taxes and related fees;

- Investment consulting costs including: surveying, project preparation, design, construction supervision, and other related consulting costs;

- Project management costs;

- Business costs including: advertising, sales, and management costs; investor profit considering business risk and capital costs;

- Contingency costs for unexpected work volumes and inflation factors during the implementation period of the project;

- Other expenses as prescribed by law.

The total hypothetical development cost does not include compensation, support, and resettlement funds according to the approved plan by the competent authority.

b) The estimation of total development costs is carried out as follows:

Total development costs are estimated based on the costs specified in Point a of this Clause and according to the norms and unit prices issued by competent state agencies. In cases where there are no norms and unit prices issued by competent state agencies, information on the actual costs of similar projects in the appraisal area or the nearest adjacent area with comparable profitability and technical infrastructure conditions should be collected.

4. In cases where the real estate development project spans multiple years and phases, the estimation of revenues and costs should be done annually and discounted to present value at the time of land appraisal. The estimation of total development income and total development costs of real estate is carried out according to the following formula:

Where:

- TR_i is the revenue of year i of the project

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_i is the cost of year i of the project

- r is the discount rate (calculated based on the average medium-term loan interest rate at the time of land appraisal for VND loans from state commercial banks in the provincial area to implement the real estate development project).

- n is the number of years implementing the project

5. Determine the price of the plot of land to be appraised

The value of the plot of land to be appraised is determined according to the following formula:

The land price of the plot of land to be appraised is determined according to the following formula:

An example of applying the surplus method to determine land prices is provided in Appendix No. 04 issued together with this Circular.

Article 7. Method for Adjusting Land Price Coefficient

The procedures and contents for determining land prices according to the method for adjusting land price coefficients shall be implemented in accordance with the following provisions:

1. Surveying and collecting information

a) Survey and collect information on land prices from a minimum of three transferred plots on the market or plots that won auctions for land use rights within a period not exceeding two years from the valuation date at each location (according to the land price table) within the area being valued.

In cases where there is insufficient information on land prices in the area being valued, collect information from adjacent areas with similar natural conditions, socio-economic conditions, technical infrastructure, and social infrastructure as the area being valued.

During the process of surveying and collecting market land prices, the investigator shall comply with the provisions set out in Point d Clause 1 Article 3 of this Circular.

b) For plots of land where income and expenses from land use can be determined, collect information on income and expenses from land use from a minimum of three plots to determine land prices using the income approach at each location (according to the land price table) within the area being valued.

Collect information on socio-economic conditions in the locality.

2. Determine the average land price on the market for each location

a) Statistically compile market land prices for each location based on the collected information as stipulated in Points a and b Clause 1 of this Article.

b) The determination of the average land price on the market for each location shall be carried out in accordance with the provisions set out in Clause 3 Article 3 of Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on land prices (hereinafter referred to as Decree No. 44/2014/ND-CP). In cases where market land prices concentrate within a certain range, the average land price on the market for each location shall be determined by calculating the arithmetic mean of the land prices at that location.

3. Determine the land price adjustment coefficient

The land price adjustment coefficient shall be determined based on the average land price on the market, specific socio-economic conditions in the locality, and land prices in the land price table.

4. Determining the land price of the plot to be valued

Article 8. Selection of Land Valuation Methods

Based on the collected information and the applicability of the land valuation methods prescribed in Clause 2 Article 5 of Decree No. 44/2014/ND-CP, select an appropriate land valuation method. If necessary, combine the land valuation methods prescribed in Clauses 1, 2, 3, and 4 of Article 4 of Decree No. 44/2014/ND-CP to check, compare, verify, and decide on the land price.

Chapter III

CONSTRUCTION AND ADJUSTMENT OF THE LAND PRICE TABLE

Section 1

CONSTRUCTION OF THE LAND PRICE TABLE

Article 9. Content of the Land Price Table

1. Based on the principles of land valuation prescribed in Article 112 of the Land Law; the land valuation methods prescribed in Clauses 1, 2, 3, and 4 of Article 4 of Decree No. 44/2014/ND-CP, the People's Committee of the province or centrally governed city (hereinafter referred to as the provincial People's Committee) shall submit the draft land price table for approval by the same-level People's Council before issuing the land price table for the types of land prescribed in Clause 1 Article 11 of Decree No. 44/2014/ND-CP.

In addition to the land price tables prescribed in this Clause, for localities with high-tech zones, the provincial People's Committee shall issue detailed land price tables for the types of land in such zones.

2. The provincial People's Committee shall base its decisions on the actual situation in the locality to adjust the land prices for residential plots with more favorable or less favorable factors regarding size, shape, profitability, and other factors affecting land prices compared to residential plots with the same location in the land price table.

3. During the issuance period of the land price table, if the competent authority adjusts the land planning and utilization plan; changes the land use purpose and supplements streets and roads without names in the current land price table but not falling under the provisions of Clause 1 Article 14 of Decree No. 44/2014/ND-CP, the provincial People's Committee shall base its decisions on the current land price table to supplement land prices in the land price table and submit them for approval by the Standing Committee of the same-level People's Council before issuing the decision. The Department of Natural Resources and Environment shall assist the provincial People's Committee in supplementing land prices in the land price table and report to the Ministry of Natural Resources and Environment within fifteen days from the date of the decision to supplement land prices in the land price table.

4. In cases where the land price table has been issued and the land prices are defined by location, if there are human resources and financial conditions, the provincial People's Committee shall assign the Department of Natural Resources and Environment to organize the implementation of transferring land prices from the land price table by location to individual plots in areas with cadastral maps linked to the construction of land price databases.

Article 10. Establishing a Project to Develop the Land Price List

1. The project to develop the land price list includes the following contents: types of land to be surveyed and investigated; number of market land price survey forms; number of communes, wards, towns to be surveyed (hereinafter referred to as survey points); human resources, equipment, time, plan, and budget for implementing the project to develop the land price list.

2. The procedure for establishing a project to develop the land price list shall be carried out as follows:

a) Collecting general information and materials to serve the development of the project including: geographical location, topography, geomorphology; socio-economic situation, land management and utilization affecting land prices and the current land price list;

b) Determining the number of survey points: survey points must focus on areas with fluctuations in land prices and must reach at least 50% of the total number of communes, wards, towns (hereinafter referred to as commune level) in each district, town, city under province (hereinafter referred to as district level); survey points must represent the type of land being surveyed and be evenly distributed within the district level;

c) Determining the number of parcels of land to be surveyed

The number of parcels of land to be surveyed for each type of land at each survey point must reach at least 50% of the total number of parcels of that type of land that have been transferred on the market or won through land use rights auctions within a period not exceeding two years from the date of the survey but not less than three parcels of land.

In cases where the income and expenses from land use can be determined, the number of parcels of land to be surveyed and information collected to determine land prices using the income approach must reach at least three parcels of land at each survey point.

3. Responsibilities for establishing and approving the project

a) The Department of Natural Resources and Environment is responsible for establishing the project to develop the land price list and submitting it to the Provincial People's Committee for approval before April 1 of the year when the land price list is developed.

The project file for developing the land price list includes: the project to develop the land price list; the report on the approval of the project; the draft Decision of the Provincial People's Committee regarding the approval of the project.

b) The Provincial People's Committee approves the project to develop the land price list before April 15 of the year when the land price list is developed.

Article 11. Preparing to Develop the Land Price List

1. Establishing the Steering Board

The Provincial People's Committee decides to establish the Steering Board to implement the approved project to develop the land price list. The members of the Steering Board include:

a) The representative of the leadership of the Provincial People's Committee is the Chairman;

b) The Director of the Department of Natural Resources and Environment is the Deputy Chairman;

c) Members of the Steering Board are representatives of the leadership of the Departments of Finance, Justice, Planning and Investment, Agriculture and Rural Development, Construction; representatives of the leadership of the District People's Committees; representatives of the leadership of the High-Tech Zone Management Board, Economic Zone (if any);

The Steering Board has the responsibility to assist the Provincial People's Committee in directing relevant levels and sectors to organize the implementation of the project to develop the land price list at the local level.

2. The Chairman of the Steering Board decides to establish working groups to assist the Steering Board.

3. The Department of Natural Resources and Environment is responsible for assisting the Steering Board in organizing the implementation of the project to develop the land price list:

a) Selecting organizations with the function of consulting to determine land prices to carry out the market land price survey and develop the land price list;

b) Assisting the Steering Board in organizing professional training for the working groups; directing the working groups to conduct inspections and acceptance of the results of the market land price survey, the results of compiling the market land price at the provincial level, the draft land price list, and performing other tasks assigned by the Chairman of the Steering Board.

Article 12. Determining Types of Communes for Land Price List Construction

1. The determination of types of communes for land price list construction concerning agricultural land; residential land in rural areas; commercial and service land in rural areas; non-agricultural production and business land that is not commercial or service land in rural areas shall be carried out according to three types of communes: plain, midland, mountainous; each type of commune has the following basic characteristics:

a) Plain commune is a commune with low terrain, relatively flat, and at sea level height; population density is high, infrastructure structure and conditions for production and commodity circulation are more favorable than midland and mountainous areas;

b) Midland commune is a commune with moderate elevation (lower than mountainous, higher than plain), mainly consisting of hills; population density is lower than plain but higher than mountainous areas, infrastructure structure and conditions for production and commodity circulation are less favorable than plain but better than mountainous areas;

c) Mountainous commune is a commune with higher terrain than midland, mainly consisting of high mountains with complex terrain; population density is low, infrastructure structure and conditions for production and commodity circulation are less favorable than midland;

Mountainous communes are determined based on the characteristics stipulated herein and guidelines from the National Ethnic Committee.

2. Provincial People's Committees establish lists of plain communes, midland communes, and mountainous communes within their provincial territory according to the provisions of Clause 1 of this Article.

Article 13. Determining Types of Urban Areas for Land Price List Construction

The determination of types of urban areas for land price list construction concerning 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; land for building agency headquarters, land for building public works, land used for public purposes, and other non-agricultural land in urban areas shall be carried out according to the following regulations:

1. Urban areas include cities, towns, and townships established and classified by competent state agencies;

2. Urban areas are divided into six categories including special-class urban areas, Class I urban areas, Class II urban areas, Class III urban areas, Class IV urban areas, and Class V urban areas as prescribed by law. For townships not yet classified as urban areas, they are categorized as Class V urban areas;

3. Provincial People's Committees base on decisions on establishment and classification of urban areas approved by competent state agencies for urban areas within their provincial territory to apply appropriate land price ranges.

Article 14. Determining Zones for Land Price List Construction

The determination of zones for land price list construction concerning residential land in rural areas; commercial and service land in rural areas; non-agricultural production and business land that is not commercial or service land in rural areas; land for building agency headquarters, land for building public works, land used for public purposes, and other non-agricultural land in rural areas, by commune, and carried out according to the following regulations:

1. Zone 1: is the area with the highest profitability and most favorable infrastructure conditions;

2. Subsequent zones: are areas with lower profitability and less favorable infrastructure conditions compared to the adjacent zone before them.

Article 15. Determining the location of land for compiling the land price list

1. For annual crop land including paddy fields and other annual crop land; perennial crop land; production forest land; aquaculture land; salt-making land, the determination of land location based on each commune administrative unit or district administrative unit shall be based on crop yield, infrastructure conditions, advantages for production and business (for annual crop land and perennial crop land); based on infrastructure conditions, advantages for production and business, distance from the place of residence of the land users to the production site, distance from the production site to the centralized product market (for aquaculture land and salt-making land), and shall be implemented according to the following provisions:

a) Location 1: is the location where parcels of land have the most favorable factors and conditions;

b) Subsequent locations: are locations where parcels of land have less favorable factors and conditions compared to the immediately preceding location.

2. For rural residential land; rural commercial and service land; non-agricultural production and business land that is not rural commercial and service land, the determination of land location based on each street, section of road, or area shall be based on technical infrastructure conditions, social infrastructure conditions, advantages for production and business within the area; distance to the political, economic, and commercial center within the area, and shall be implemented according to the following provisions:

- Location 1: is the location where parcels of land have the most favorable factors and conditions;

- Subsequent locations: are locations where parcels of land have less favorable factors and conditions compared to the immediately preceding location.

3. For urban residential land; urban commercial and service land; non-agricultural production and business land that is not urban commercial and service land, the determination of land location based on each street or avenue; section of road or avenue shall be based on technical infrastructure conditions, social infrastructure conditions, advantages for production and business within the area; distance to the political, economic, and commercial center within the area, and shall be implemented according to the following provisions:

a) Location 1: is the location where parcels of land have the most favorable factors and conditions;

b) Subsequent locations: are locations where parcels of land have less favorable factors and conditions compared to the immediately preceding location.

4. The provincial People's Committee shall base on the provisions of Clauses 1, 2, and 3 of this Article, market land prices, and actual conditions at the locality to specify specific criteria to determine the location for each type of land; the number of land locations and the price level of each location in accordance with the land price range.

Article 16. Surveying, investigating, collecting information on market land prices; natural factors, socio-economic factors, land management and utilization affecting land prices at the survey point

1. The surveying, investigating, and collecting information on market land prices; natural factors, socio-economic factors, land management and utilization affecting land prices at the survey point shall be carried out from May 1st to before July 1st of the year of compiling the land price list and according to the following provisions:

a) Surveying and collecting information on market land prices of at least three representative parcels of land for each location at the survey point for each type of land according to Model Nos. 01 to 05 of Appendix No. 05 issued together with this Circular.

In addition to the contents of the survey and investigation specified in this Point, the provincial People's Committee may supplement other information into the survey form to meet the requirements of building the land price list at the locality;

b) Surveying and collecting information on natural factors, socio-economic factors, land management and utilization affecting land prices at the survey point according to Model No. 06 of Appendix No. 05 issued together with this Circular.

2. Upon completion of the survey and collection of information on market land prices at each survey point, all survey forms must be reviewed and the price levels of each location must be determined. The price level of a location is determined by the arithmetic average of the prices of the surveyed parcels of land at each location.

For locations without information on market land prices, reference shall be made to the current land price list, the prices of locations already determined, and the direct comparison method prescribed in Clause 1 of Article 4 of Decree No. 44/2014/NĐ-CP and Article 3 of this Circular to determine the prices of remaining locations.

3. The statistical work on market land prices at the survey point shall be conducted according to Model No. 07 of Appendix No. 05 issued together with this Circular and a report on the situation and results of the market land price survey at the survey point shall be prepared. The report includes the following main contents:

a) General assessment of the survey point;

b) Assessment of the situation and results of the market land price survey at the survey point; the situation and fluctuation rate (increase or decrease) between market land prices and the same type of land prices in the current land price list;

c) Proposal of the price levels of locations at the survey point.

4. The file of the survey and collection of information on market land prices at the survey point must be completed before July 10th of the year of compiling the land price list. The file includes:

a) Information collection form for the survey point;

b) Information collection form for the parcel of land;

c) Statistical table of information collection forms for the parcel of land;

d) Report on the situation and results of the market land price survey at the survey point.

Article 17. Compilation of Results of Land Price Market Survey and Information Collection at District Level

1. The compilation of results of land price market survey and information collection at district level shall be carried out according to Forms No. 08 to No. 11 of Appendix No. 05 issued together with this Circular.

2. Prepare a report on the situation and results of the land price market survey at district level. The report shall include the following main contents:

a) Evaluation of natural factors, socio-economic factors, land management and utilization affecting land prices within the district's territory;

b) Evaluation of the situation and results of the land price market survey; fluctuations and fluctuation levels (increase or decrease) between market land prices and current land price lists of the same type at the district level;

c) Propose land prices for positions within the district's territory.

3. The dossier compiling the results of land price market surveys and information collection at the district level must be completed before July 20 of the year when the land price list is being built. The dossier includes:

a) A table summarizing land prices within the district's territory;

b) A report on the situation and results of the land price market survey at the district level.

Article 18. Compilation of Results of Land Price Market Survey and Information Collection at Provincial Level and Assessment of Implementation of Current Land Price Lists

1. The compilation of results of land price market survey and information collection at provincial level shall be carried out according to Forms No. 12 to No. 14 of Appendix No. 05 issued together with this Circular and must be completed before August 1 of the year when the land price list is being built.

2. Analyze and evaluate the implementation results of the current land price list

a) Evaluate the fluctuations and fluctuation levels (increase or decrease) between market land prices and current land price lists of the same type.

b) Evaluate the provisions in the current land price list.

Article 19. Construction of Land Price List

1. The land price list shall be constructed based on land positions according to Forms No. 15 to No. 19 of Appendix No. 05 issued together with this Circular. In cases where the land price list is constructed down to individual plots, it shall be carried out according to Form No. 20 of Appendix No. 05 issued together with this Circular.

2. Handling land prices in border areas

a) The People's Committee of the province shall base on Clause 1 of Article 13 of Decree No. 44/2014/ND-CP to define border areas between provinces and centrally-run cities (hereinafter referred to as border areas).

b) The People's Committee of the province shall have the responsibility to send the draft land price list of the locality to the People's Committee of the province having adjacent land for comments; continuously publish the draft land price list on the website of the People's Committee of the province, Department of Natural Resources and Environment. Within no more than 15 days from the date of receipt of the draft land price list, the People's Committee of the province having adjacent land must provide a written response.

In case the difference in land price levels in the draft land price list in border areas exceeds the level specified in Clause 2 of Article 13 of Decree No. 44/2014/ND-CP, the People's Committee of the province having adjacent land must reach consensus among themselves regarding the proposed land price level to be issued in border areas.

In case consensus cannot be reached, they shall report to the Ministry of Natural Resources and Environment before September 15 of the year when the land price list is being built for resolution. In case the People's Committee of the province and the Ministry of Natural Resources and Environment cannot reach consensus on land prices in border areas, the Ministry of Natural Resources and Environment shall report to the Prime Minister for consideration and decision.

3. Prepare a report explaining the construction of the land price list. The report shall include the following main contents:

a) Evaluation of natural conditions, socio-economic conditions, land management and utilization situations affecting land prices within the provincial territory;

b) Evaluation of the situation and results of the land price market survey and information collection within the provincial territory; results of implementing the current land price list;

c) Evaluation of the appropriateness or inappropriateness of land prices in the draft land price list compared to the land price framework; results of the land price market survey; land prices in the draft land price list of centrally-run cities with adjacent land (if any);

d) The determination of land positions; application of land valuation methods and land price levels in the draft land price list; land price options (if any);

đ) Evaluation of the impact of the draft land price list on economic and social conditions, investment environment, implementation of land finance policies, income, and living standards of households, individuals, and organizations using land.

4. Prepare a proposal for issuing the land price list.

5. Organize the solicitation of opinions from relevant agencies, organizations, and individuals on the draft land price list and perfect the draft land price list.

Article 20. Review of draft land price list

1. The Department of Natural Resources and Environment shall submit to the Land Price List Review Council the review dossier of the draft land price list before October 15 of the year when the land price list is established. The dossier includes:

a) Proposal for issuing the land price table;

b) Draft land price table;

c) Explanation report on the establishment of the land price list (including Form No. 12 to Form No. 14 of Appendix No. 5 issued together with this Circular).

2. The content of the land price list review by the Land Price List Review Council shall be carried out in accordance with the guidelines of the Ministry of Finance and the Ministry of Natural Resources and Environment.

Article 21. Finalizing the draft land price list; submitting to the Provincial People's Council for approval; deciding to promulgate the land price list

1. Based on the review document of the Land Price List Review Council, the Department of Natural Resources and Environment shall organize the revision and finalization of the draft land price list and submit it to the Provincial People's Committee. The dossier submitted to the Provincial People's Committee shall be implemented in accordance with Clause 2, Article 12 of Decree No. 44/2014/NĐ-CP.

2. The Provincial People's Committee shall submit to the same-level People's Council for approval. The dossier submitted to the Provincial People's Council shall be implemented in accordance with Clause 3, Article 12 of Decree No. 44/2014/NĐ-CP.

3. After receiving the Resolution of the Provincial People's Council, the Provincial People's Committee shall direct the Department of Natural Resources and Environment to organize the completion of the dossier for establishing the land price list; decide to promulgate and publicly announce the land price list at the local level on January 1 of the first year of the period.

4. The Department of Natural Resources and Environment shall have the responsibility to report to the Ministry of Natural Resources and Environment about the results of establishing the land price list before January 15 of the first year of the period for consolidation and reporting to the Prime Minister. The results of establishing the land price list include:

a) Decision on promulgating the land price list;

b) Explanation report on the establishment of the land price list;

c) Table summarizing land prices for each type of land within the provincial area.

Section 2

ADJUSTMENT OF THE LAND PRICE LIST

Article 22. Preparation for adjusting the land price list

Based on the cases for adjusting the land price list stipulated in Clause 1, Article 14 of Decree No. 44/2014/NĐ-CP, the Department of Natural Resources and Environment shall be responsible for organizing the implementation of the following contents:

1. Preparing the project to adjust the land price list shall be carried out in accordance with Article 10 of this Circular, focusing on investigating and surveying market land prices for types of land, locations, and areas where land prices have fluctuated.

2. Selecting organizations with the function of consulting to determine land prices to implement the project to adjust the land price list in accordance with the provisions of the law.

Article 23. Investigation, survey, and collection of information on market land prices; natural, socio-economic, management, and land use factors affecting land prices at the investigation point

1. The investigation, survey, and collection of information on market land prices; natural, socio-economic, management, and land use factors affecting land prices shall be carried out in accordance with Clauses 1, 2, and 3, Article 16 of this Circular.

2. The dossier of the results of the investigation, survey, and collection of information on market land prices at the investigation point includes:

a) Information collection form for the survey point;

b) Information collection form for the parcel of land;

c) Statistical table of information collection forms for the parcel of land;

d) Report on the situation and results of the market land price survey at the survey point.

Article 24. Summarizing the results of the investigation and collection of information on market land prices and evaluating the implementation of the current land price list

1. Summarizing the results of the investigation and collection of information on market land prices at the district level

a) The summary and preparation of reports on the situation and results of the investigation and collection of information on market land prices at the district level shall be carried out in accordance with Clauses 1 and 2, Article 17 of this Circular.

b) The dossier of the summary of the results of the investigation and collection of information on market land prices at the district level includes:

- Summary table of land prices in the district;

- Report on the situation and results of the investigation of market land prices at the district level.

2. Summarizing the results of the investigation and collection of information on market land prices at the provincial level and evaluating the implementation of the current land price list.

The summary of the results of the investigation and collection of information on market land prices at the provincial level and the evaluation of the implementation of the current land price list shall be carried out in accordance with Article 18 of this Circular.

Article 25. Construction of Adjusted Land Price List

1. The construction of an adjusted land price list for one type of land, several types of land, or all types of land in the land price list; adjustment of land prices at one location, several locations, or all locations shall be carried out in accordance with Clause 1 of Article 19 of this Circular.

2. Handling land prices in the land price list in border areas (if any).

3. Preparing a report explaining the construction of the adjusted land price list.

4. Preparing a proposal on the issuance of the adjusted land price list.

5. Organizing to collect opinions from relevant agencies, organizations, and individuals on the draft of the adjusted land price list and perfecting the draft of the adjusted land price list.

Article 26. Review of Draft Adjusted Land Price List

1. The Department of Natural Resources and Environment sends the Land Price Review Council the review file of the adjusted land price list. The file includes:

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 (including Model Nos. 12 to 14 of Appendix No. 05 issued together with this Circular).

2. The content of the review of the adjusted land price list by the Land Price Review Council shall be carried out in accordance with the guidance of the Ministry of Finance and the Ministry of Natural Resources and Environment.

Article 27. Perfecting the Draft Adjusted Land Price List; Submitting to the Standing People's Council of the Province for Approval and Issuance of the Adjusted Land Price List

1. Based on the review document of the Land Price Review Council, the Department of Natural Resources and Environment organizes the revision and perfection of the draft of the adjusted land price list and submits it to the Provincial People's Committee. The file submitted to the Provincial People's Committee shall be carried out in accordance with Clause 5 of Article 14 of Decree No. 44/2014/ND-CP.

2. The Provincial People's Committee submits to the Standing People's Council of the same level. The file submitted to the Standing People's Council of the Province shall be carried out in accordance with Clause 6 of Article 14 of Decree No. 44/2014/ND-CP.

3. After receiving the document from the Standing People's Council of the Province, the Provincial People's Committee directs the Department of Natural Resources and Environment to organize the completion of the adjusted land price list file; decides to issue and publicly announce the adjusted land price list in the locality and reports to the People's Council of the same level at the nearest session.

4. The Department of Natural Resources and Environment is responsible for reporting to the Ministry of Natural Resources and Environment about the results of constructing the adjusted land price list within no more than 15 days from the date of signing the decision to issue for consolidation and reporting to the Prime Minister. The results of constructing the adjusted land price list include:

a) Decision to issue the adjusted land price list;

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

c) Summary table of market land prices for each type of land in the provincial area.

Chapter IV

SPECIFIC LAND VALUATION AND ADVICE ON DETERMINING LAND PRICES

Article 28. Preparation of Plan for Specific Land Valuation

1. Based on the annual land use plan of the district, the plan for the corporatization of state-owned enterprises, the Department of Natural Resources and Environment prepares the specific land valuation plan for the following year to submit to the Provincial People's Committee before June 30 each year.

2. The specific land valuation plan includes the following main contents:

a) Forecast of cases requiring specific land valuation;

b) Forecast of cases that must hire organizations with the function of advising on land price determination and the number of organizations with the function of advising on land price determination;

c) Forecast of time and budget for implementing specific land valuation.

Article 29. Preparation for Specific Land Valuation

Based on the specific land valuation plan approved by the Provincial People's Committee, the Department of Natural Resources and Environment shall prepare for specific land valuation, including the following contents:

1. Determining the purpose of land valuation, the time of implementation, and the budget estimate.

2. Preparing the land parcel valuation file, which includes:

a) The location, area, type of land, and the period of use of the land parcel to be valued;

b) Information about planning, land use plans, detailed construction planning that have been approved by competent state agencies, and other relevant regulations related to the management and use of the land parcel to be valued.

3. Selecting and signing a contract with an organization having the function of consulting to determine land value in cases where consultancy services for determining land value are hired.

Article 30. Investigation, compilation, analysis of information about the land parcel and market land prices; application of land valuation methods and establishment of land price schemes

1. The investigation and compilation of information about the land parcel and market land prices shall be carried out according to Forms No. 01 to No. 05 of Appendix No. 05 issued together with this Circular.

2. Based on the collected information, applying the land valuation methods prescribed in Clauses 1, 2, 3, and 4 of Article 4 of Decree No. 44/2014/NĐ-CP and the provisions of Articles 3, 4, 5, and 6 of this Circular to determine the land value.

In cases where consultancy services for determining land value are hired, the organization providing consultancy services for determining land value must establish a Land Valuation Certificate according to Form No. 21 of Appendix No. 05 issued together with this Circular.

3. Establishing a land price scheme accompanied by a report explaining the establishment of the land price scheme, including the following main contents:

a) The purpose of land valuation and information about the land parcel to be valued;

b) Evaluation of the situation and results of investigating and compiling information about market land prices;

c) Application of land valuation methods;

d) Results of determining the land value and proposals for land price schemes;

e) Economic and social impact assessment of land price schemes.

4. The Department of Natural Resources and Environment shall inspect and evaluate the results of determining the land value and the land price scheme; establish a proposal for deciding the land value.

Article 31. Review of the Land Price Scheme

1. The Department of Natural Resources and Environment shall submit the land price scheme file to the Land Valuation Review Board. The file includes:

a) Proposal for deciding the land value;

b\. A draft land price plan;

c) Draft report explaining the establishment of the land price scheme.

2. The content of the land price scheme review by the Land Valuation Review Board shall be implemented in accordance with the guidance of the Ministry of Finance and the Ministry of Natural Resources and Environment.

Article 32. Finalizing the Draft Land Price Scheme and Submitting to the Provincial People's Committee for Decision on Land Value

1. Within no more than five working days from the date of receipt of the review document from the Land Valuation Review Board, the Department of Natural Resources and Environment shall finalize the draft land price scheme for submission to the Provincial People's Committee for decision. The file submitted to the Provincial People's Committee shall comply with the provisions of Clause 2 of Article 16 of Decree No. 44/2014/NĐ-CP.

2. Within no more than five working days from the date of receipt of the proposal from the Department of Natural Resources and Environment, the Provincial People's Committee shall be responsible for deciding the land value.

3. The Department of Natural Resources and Environment shall be responsible for storing all results of specific land valuation at the local level; summarizing, compiling, and reporting to the Ministry of Natural Resources and Environment on the results of specific land valuation at the local level before January 15 each year.

Article 33. Determining specific land prices according to the land price adjustment coefficient method for cases prescribed in Point b Clause 2 Article 18 of Decree No. 44/2014/NĐ-CP.

1. The investigation and compilation of information on land parcels and market land prices shall be carried out using Forms 01 to 05 of Appendix 5 issued together with this Circular; collecting information on economic and social conditions at the local level.

2. Based on the collected information, apply the land price adjustment coefficient method prescribed in Clause 5 Article 4 of Decree No. 44/2014/NĐ-CP and Article 7 of this Circular to establish the land price adjustment coefficient.

3. Develop a plan for the land price adjustment coefficient accompanied by a report explaining the establishment of the land price adjustment coefficient, including the following main contents:

a) The purpose of land valuation and information about the land parcel to be valued;

b) Evaluation of the situation and results of the investigation and compilation of information on market land prices; economic and social conditions affecting land prices in the locality;

c) Application of the land price adjustment coefficient method;

d) Results of establishing the land price adjustment coefficient and proposals for plans of the land price adjustment coefficient;

đ) Assessment of the economic and social impacts of plans for the land price adjustment coefficient.

4. The Department of Natural Resources and Environment shall inspect and evaluate the results of establishing the land price adjustment coefficient and plans for the land price adjustment coefficient; prepare a proposal regarding the decision on the land price adjustment coefficient.

5. The review of the draft plan for the land price adjustment coefficient; completion of the draft plan for the land price adjustment coefficient and submission to the provincial People's Committee for a decision on the land price adjustment coefficient shall be carried out in accordance with the provisions of Articles 31 and 32 of this Circular.

6. The provincial People's Committee shall base its decision on the application of the land price adjustment coefficient prescribed in this Article on the provisions of Point b Clause 2 Article 18 of Decree No. 44/2014/NĐ-CP and the actual situation in the locality.

Article 34. Selection of organizations with the function of consulting to determine land prices

1. Based on the plan for determining specific land prices and the file of land parcels requiring valuation, the Department of Natural Resources and Environment shall carry out the selection of organizations with the function of consulting to determine land prices in accordance with the laws on bidding.

2. In the case of applying open bidding, the Department of Natural Resources and Environment shall carry out the following:

a) Establish a bidding advisory team and develop criteria and methods for evaluating bidding documents;

b) Announce the content and tender invitation documents publicly through mass media in accordance with the laws on open bidding;

c) The evaluation of bidding documents shall be conducted objectively and honestly based on specific evaluation criteria stipulated in the tender invitation documents;

d) Decide on the selection of organizations with the function of consulting to determine land prices to conduct specific land valuations.

3. For cases applying selective bidding as prescribed by the laws on bidding, the Department of Natural Resources and Environment shall assess the capacity and decide on the selection of organizations with the function of consulting to determine land prices to conduct specific land valuations.

Article 35. Signing contracts to hire organizations with the function of consulting to determine land prices

1. Based on the decision on the selection of organizations with the function of consulting to determine land prices, the Department of Natural Resources and Environment shall sign a contract to hire organizations with the function of consulting to determine land prices.

2. The contract to hire organizations with the function of consulting to determine land prices includes the following main contents:

a) Name and address of the Department of Natural Resources and Environment; organization with the function of consulting to determine land prices;

b) Purpose of land valuation;

c) Information about the land parcel to be valued: location, area, type of land, and duration of use of the land parcel to be valued;

d) Timeframe for conducting the land valuation;

đ) Valuation results including: Market price information collection form; summary of market land prices; Land valuation certificate and report explaining the development of land price plans and land price adjustment coefficients;

e) Costs of land valuation and payment methods;

g) Rights and obligations of the parties in the performance of the contract.

Article 36. Procedures for Issuing Land Valuation Certificates

1. The person applying for a Land Valuation Certificate shall submit the application file for the Land Valuation Certificate to the General Department of Land Administration. The file includes:

a) An application form for a Land Valuation Certificate (according to Model No. 22 of Appendix No. 05 issued together with this Circular);

b) A copy of the certificate confirming completion of land valuation training courses as prescribed by the Ministry of Natural Resources and Environment;

c) A copy of the bachelor's or postgraduate degree diploma, and a confirmation letter from the applicant’s workplace regarding the working period as stipulated in Points c and d of Clause 2, Article 20 of Decree No. 44/2014/NĐ-CP;

d) A copy of the applicant's national identity card or passport.

2. The General Department of Land Administration shall be responsible for receiving, examining the file, and issuing the Land Valuation Certificate within fifteen days from the date of receipt of all valid documents.

Chapter V

IMPLEMENTING PROVISIONS

Article 37. Effective Date

1. This Circular takes effect from August 13, 2014.

2. This Circular replaces Circular No. 145/2007/TT-BTC dated December 6, 2007, issued by the Minister of Finance guiding the implementation of 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 articles of Decree No. 188/2004/NĐ-CP; Joint Circular No. 02/2010/TTLT-BTNMT-BTC dated January 8, 2010, issued by the Ministers of Natural Resources and Environment and Finance guiding the establishment, examination, issuance, and adjustment of land price lists within the jurisdiction of provincial People's Committees and municipal People's Committees directly under the Central Government.

Article 38. Responsibility for Implementation

1. Ministries, ministerial-level agencies, agencies under the Government; People's Committees of provinces and centrally-administered cities shall be responsible for directing the implementation of this Circular.

2. The General Department of Land Administration shall be responsible for monitoring and urging the implementation of this Circular.

3. The Department of Natural Resources and Environment shall assist the provincial People's Committee and municipal People's Committee directly under the Central Government in organizing the implementation of this Circular at the local level.

During the implementation process, if there are difficulties or obstacles, relevant agencies, organizations, and individuals should promptly report them to the Ministry of Natural Resources and Environment for consideration and resolution./.