Vietnam’s Ministry of Agriculture and Environment (MARD) has issued a warning that significant fluctuations in land prices are expected as many localities prepare to release new land price tables.

In a report sent to the Ministry of Finance ahead of the Q2/2025 Price Steering Committee meeting, MARD noted that the abolition of the state-set land price framework and the implementation of more market-aligned valuation mechanisms have led to more transparent land administration and real estate development.

However, the ministry pointed out that several localities have failed to promptly update their land price tables in line with real market dynamics. In some areas, discrepancies between starting prices and final auction results have been substantial.

Such inconsistencies, MARD warned, could be exploited for profit manipulation during land auctions and may destabilize the market if left unchecked.

The new regulations under the 2024 Land Law, along with guiding documents, have introduced improvements in price-setting through decentralization and increased local authority. However, many provinces still lack the resources, expertise, or clarity to issue timely and comprehensive detailed regulations, leading to delays in public access and administrative bottlenecks for both residents and businesses.

“Numerous localities are expected to issue new land price tables soon, which will result in major fluctuations,” the ministry stated. “The extent of these adjustments will vary by province, significantly impacting the real estate market.”

MARD emphasized that land price management in Q3 and beyond should focus on timely monitoring of market shifts and gradually building a parcel-level land price database.

Where the application of current land price tables is found to be unrealistic, provincial People’s Committees are authorized to make necessary adjustments under local conditions. These updates are to remain in effect until December 31, 2025.

Such adjustments must follow guidelines outlined in Article 17 of Decree No. 71/2024/ND-CP. MARD also indicated that these regulations may be revised further to align with practical needs.

The ministry recommended a comprehensive review of relevant laws - including the Land Law, Housing Law, and Real Estate Business Law - to assess their combined impact on land and housing prices.

“Authorities should broaden the scope and applicability of land price tables while narrowing the use cases requiring individualized land valuations,” the ministry proposed. “Responsibility for financial obligations must be clearly assigned across relevant agencies.”

MARD also recommended reviewing valuation tables issued under the 2013 Land Law to ensure alignment with current market realities and to prepare for the full implementation of the 2024 Land Law on January 1, 2026.

The adjustment process should involve thorough impact assessments, a clear timeline, and appropriate zoning based on land type and location. Stakeholder feedback must be collected to reduce public dissatisfaction and ensure social consensus.

Additionally, MARD called for strict enforcement against land auction violations and urged localities to disclose planning details, revised price tables, and defaulting participants to prevent speculation and abuse.

Other recommendations include penalizing deliberate delays in housing projects, tax evasion, inaccurate property declarations, and inefficient land use in stalled projects.

Nguyen Le