THE GOVERNMENT

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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 44/2014/ND-CP

Hanoi, May 15, 2014

 
 
DECREE
Decree No. 44/2014/ND-CP dated May 15, 2014 of the Government on land prices
Pursuant to Law on Government Organization dated December 25, 2001;
Pursuant to Land Law dated November 29, 2013;
At the request of Minister of Natural Resources and Environment
The Government promulgates Decree on land prices
Chapter 1
GENERAL PROVISIONS
Article 1. Scope of adjustment

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This Decree prescribes the methods for land pricing, adjustment to land price brackets and land price lists, specific land pricing and provision of consultancy on land pricing.
Article 2. Subject of application
1. The competent authorities in charge of land management; the authorities in charge of formulating, adjusting and verifying land price brackets, land prices and determining specific land prices. 
2. Organizations and individuals licensed to provide land pricing consultancy services.
3. Other relevant organizations and individuals.
Article 3. Interpretation of terms
In this Circular, the following terms shall be construed as follows:
1. Unoccupied plot of plan is the plot where no houses or other assets attached to land are located at the time of land pricing 
2. Net income is an entity's total income minus total cost.
3. The common market price of land is the most frequent price in the among successful transactions on the market, successful bids for land use rights, land prices derived from costs, income of the plots of land with the same purpose in a region and in a certain period.

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Article 4. Methods of land price’s evaluation
Direct comparison method is a land pricing method meant to compare and determine the price for a particular plot of land by analyzing prices for unoccupied plots of land with similar purposes, locations, profitability, infrastructure, area, shape, legitimacy that have been sold on the market or at auction (hereinafter referred to as comparable plots of land).
The subtraction method is a land pricing method applied to the land with property attached to land by subtracting value of the property attached to land from total value of real estate (including land value and value of the property attached to land)
3. The income-based  method is a method used to determine land price by dividing the average annual net income from a land unit by average annual interest rate of 12-month term deposit on the pricing date at a state-owned commercial bank of which the deposit interest rate is highest in that province.
4. The surplus-based method is a method used to determine the price of the land with development potential as a result of changes of zoning or purposes by subtracting estimated total cost from estimated total revenue of the real estate.
5. The method using land price coefficient (hereinafter referred to as the coefficient method) is the method used to determine land price by multiplying the land price coefficient by the land price in the land price lists promulgated by the People's Committees of provinces and centrally run cities (hereinafter referred to as provinces).

 

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