THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 123/2007/ND-CP
Hanoi, July 27, 2007
 
DECREE
ON ENDMENTS TO DECREE 188/2004/ND-CP OF THE GOVERNMENT DATED 16 NOVEMBER 2004 ON PRICE DETERMINATION METHODS AND PRICE FRAMEWORKS FOR ALL TYPES OF LAND
THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated 25 December 2001; Pursuant to the Law on Land dated 26 November 2003;
Pursuant to the Ordinance on Prices dated 26 April 2002; Having considered the proposal of the Minister of Finance;
DECREES:
Article 1. To amend a number of articles of Decree 188/2004/ND-CP of the Government dated 16 November 2004 on price determination methods and price frameworks for all types of land (hereinafter referred to as Decree 188) as follows:
1. To amend article 2.1(dd) as follows:
"(dd) Calculation of the value of land use rights for collection of registration fees in accordance with law."
2. To amend article 3.2 as follows:
"2. Actual market price for assignment of land use rights in normal conditions at any one specified time means the amount of Vietnamese dong for a land area unit depending on its particular legal use purpose, formed from the results of actual completed transactions in the nature of common transactions between assignors and assignees in normal commercial conditions, without any effect of elements suddenly and inappropriately increasing or decreasing the price such as speculation, natural calamity, enemy destruction, financial or economic crisis, change in zoning, a forced assignment, a blood relationship assignment, an assignment with incentives or an assignment in other cases as stipulated by the Ministry of Finance."
3. To add clauses 3 and 4 to article 4 as follows:
"3. Deduction method is a method of determining the land price of a parcel of land with assets attached, by deducting the value of the assets attached to the land from the aggregate value of the real estate (comprising the value of the land and the value of the assets attached to the land).
4. Surplus method is a method of determining the land price of a vacant parcel of land with potential for development pursuant to zoning or permission to convert its use purpose for use in the best way, by deducting the estimated development costs from the aggregate value of the real estate assuming it to have been developed as proposed."
4. To amend and add to article 5 as follows:
(a) To add new clauses 3 and 4 after clause 2 as follows:
"3. The deduction method shall be applied to determine the land price of a parcel of land with assets attached when there is insufficient data on the market price of similar vacant land so as to apply the direct comparison method, and where it is possible to collate data on the market price of parcels of land with assets attached similar to the parcel of land being valued.
4. The surplus method shall be applied to determine the land price of a vacant parcel of land with potential for development pursuant to a change in zoning or conversion of use purpose, where there are no similar market prices of assignment of land use right so as to apply the direct comparison method."
(b) Clause 3 shall be amended to become clause 5 as follows:
"5. The provincial people's committee shall, on the basis of the specific market status and collected data, select an appropriate method from the price determination methods stipulated in Decree 188 and in this Decree in order to value local land. Where necessary, different price determination methods may be combined in order to determine specific land price levels."
(c) Clause 4 shall be repealed.
5. To amend article 6 as follows:
"Article 6 Price frameworks of all types of land
1. Land price frameworks issued with this Decree shall apply to all types of land classified in article 6 of Decree 181/2004/ND-CP of the Government dated 29 October 2004 implementing the Law on Land (hereinafter referred to as Decree 181) as follows:
(a) With respect to the agricultural land category:
- Price framework of land for planting annual crops (Table 1);
- Price framework of land for planting perennial crops (Table 2);
- Price framework of forest land for production (Table 3);
- Price framework of land for cultivation of aquacultural products (Table 4);
- Price framework of land for salt production (Table 5);
- With respect to protective forest land and specialized use forest land, the provincial people's committee shall, on the basis of prices of forest land for production as already decided and the price determination method for forest land stipulated in article 10.1 of this Decree, determine the specific land price level;
- With respect to the other agricultural land stipulated in article 6.4(d) of Decree 181, the provincial people's committee shall, on the basis of prices of adjoining agricultural land as already decided and the price determination method for types of adjoining agricultural land stipulated in article 10.1 of this Decree, determine the specific land price level.
(b) With respect to non-agricultural land category:
- Price framework of residential land in rural areas (Table 6);
- Price framework of residential land in urban areas (Table 7);
- Price framework of non-agricultural land used for production or business purposes in rural areas (Table 8);
- Price framework of non-agricultural land used for production or business purposes in urban areas (Table 9);
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