Under the proposal, land-use fees and land rents would be calculated based on provincial land price tables and land price adjustment coefficients (K coefficients), replacing the current project-by-project valuation mechanism. The approach, already outlined in National Assembly Resolution No. 254/2025, would be incorporated into the revised law.
Authorities say that the existing valuation process has delayed many projects by slowing the determination of financial obligations, particularly in cases involving land allocated under the 1993 and 2003 Land Laws.
Dao Quang Duong, Head of the Land Economics Division under the Ho Chi Minh City Department of Agriculture and Environment, said many projects have been delayed because historical market data required for project-specific land valuation is no longer available decades after land allocation.
He noted that Ho Chi Minh City had previously proposed using the land price table in effect at the time of land allocation, combined with a provincial K coefficient, to resolve the issue. If adopted, the new mechanism could provide a legal basis for dozens of long-delayed projects in the city to fulfill their financial obligations and resume development.
Real estate businesses have expressed support for the proposal, saying it would reduce procedural burdens, enhance transparency and improve the predictability of project costs during the investment preparation stage.
Vo Van Thuong, Director of Gia Phat Real Estate Company Limited, said that the current land valuation process requires multiple layers of appraisal and approval, often delaying projects for months or even years.
He said replacing project-specific valuations with land price tables and K coefficients, supported by a comprehensive national land database, would improve transparency, increase cost predictability and reduce discretionary decision-making.
Le Viet Lien, General Director of Ba Ria–Vung Tau Housing Development Joint Stock Company, said that the greatest challenge facing developers has not been land availability but the inability to complete financial obligations because project-specific land prices have not been determined.
Legal experts said the proposal represents a shift in valuation methodology rather than a relaxation of state oversight. Nguyen Canh, Director of Nguyen Canh Law Company Limited, said that the effectiveness of the new mechanism will depend on whether land price tables and adjustment coefficients accurately reflect market conditions and are built on transparent, comprehensive data.
Pham Viet Thuan, Director of the Ho Chi Minh City Institute of Natural Resources and Environmental Economics, said that the new mechanism could help local authorities eliminate delays in approving land prices while enabling businesses to better plan investments. However, he stressed that authorities would bear greater responsibility for regularly updating land price tables and ensuring a transparent, fair process for the State, businesses and the public.
