Decree 71/2024/ND-CP on new land prices regime in 2024

Recently, the Government has issued Decree No. 71/2024/ND-CP, introducing new regulations on new land prices regime in 2024 in accordance with the Land Law 2024. Decree 71/2024/ND-CP on new land prices regime in 2024 provides more specific regulations on land prices, methods, and procedures for determining land prices for each method. Additionally, the Decree supplements the provisions on the operating conditions of training institutions for land valuation. This change is entirely consistent with the current dynamic land situation. Therefore, what do clients need to pay attention to regarding the new regulations on land prices in Decree 71/2024/ND-CP on new land prices regime in 2024? To help you understand the implications of these changes, Viet An Law Firm presents a comprehensive overview.

Information of Decree 71/2024/ND-CP on new land prices regime in 2024

• Issuance date: June 27, 2024.
• Effective date: August 1, 2025.
• Issuing agency: Government
• Signer: Tran Hong Ha
• Replaced document: Decree 44/2014/ND-CP, amended and supplemented by Decree 12/2024/ND-CP.
• Basic content:
  • General provisions on scope of regulation, subjects of application, and interpretation of terms;
  • Land valuation methods and procedures for determining land prices for each valuation method;
  • Provisions on land price lists;
  • Land valuation and land valuation services;
  • Implementing provisions.

Scope of regulation

This Decree details the contents of land prices in accordance with the Land Law 2024, including:

• Methods of land valuation specified in Article 158;
• Development, adjustment, modification and supplementation of land price lists specified in Article 159;
• Determination of specific land prices specified in Article 160;
• Conditions for practicing consultancy on land price determination specified at Point b Clause 3 Article 162;
• Application of land valuation methods in transitional cases specified at Point c Clause 2 Article 257 of the Land Law.

Procedures and contents of land valuation according to each land valuation method

Compared to the previous Decree 12/2024/ND-CP, Decree 71/2024/ND-CP provides more specific guidance on the procedures and content of land valuation for each valuation method through detailed regulations on formulas, calculation methods, and factors affecting land prices. These detailed regulations help ensure that land prices are determined accurately and closely reflect market prices.

Based on the four land valuation methods listed in Clause 5, Article 158 of the 2024 Land Law, Decree 71/2024/ND-CP has detailed the procedures and content of land valuation for each method. Specifically:

Step 1: Survey and collect information about the land plot to be valued and related information, depending on each valuation method

Step 2: Identify the factors used as a basis for determining the land price

• Comparison method: Determine the price of the comparable parcel:

• Income-based method: The land use right value of the land parcel to be valuated shall be determined as follows:

• Surplus-based method: Determining the price of the land plot or land parcel to be valuated

• The land price adjustment coefficient method: The land price adjustment coefficient shall be determined for each land type and location by dividing the market land price by the land price in the land price list at that land location or area.

Step 3: Determine the land price of the land parcel or land area being valued

• Comparison method

• Income-based method

• Surplus-based method

• The land price adjustment coefficient method

Decree 71/2024/ND-CP, which introduces new regulations on land prices under the Land Law 2024, has added provisions regarding the provision of information for land valuation purposes. Accordingly, agencies, organizations, and units are required to provide the necessary information within 05 working days from the date of receiving a written request from the land valuation organization. This information can be provided in written form or electronically. This provision ensures that agencies, organizations, and individuals involved in land valuation activities have access to complete and accurate information.

Land price-affecting factors

Land price-affecting factors listed in Article 8 of this Decree include:

For non-agricultural land

• Location of land plot or land parcel;
• Traffic conditions: width, pavement structure, adjacent to 01 or more pavements;
• Conditions on water supply, drainage and electricity supply;
• Area, size, shape of the land parcel or plot;
• Factors related to the construction master plan, including land use coefficient, construction density, construction boundary, limit on construction height, limit on number of basements built according to the detailed construction master plan approved by competent state agencies (if any);
• Current status of environment and security;
• Land use term;
• Other factors affecting land prices are consistent with actual conditions, cultural traditions, and local customs and practices.

For agricultural land

• Crop and livestock productivity;
• Location and characteristics of land plot or land parcel: closest distance to the place of production and consumption of products;
• Traffic conditions serving production and product consumption: width, road grade, road surface structure; terrain conditions;
• Land use term, except for agricultural land allocated by the State to households and individuals according to the agricultural land allocation limit, and agricultural land within the quotas for acquisition of agricultural land use rights, the land use term shall not be based;
• Other factors affecting land prices are consistent with reality, cultural traditions, and local customs and practices.

Additionally, this Decree stipulates that the People’s Committee of the province shall be responsible for specifying the factors affecting land prices, the maximum difference of each factor affecting land price to determine a certain level of similarity, and the adjustment method for each level of difference of each factor affecting land price.

New regulations on land price lists

The basis for developing, adjusting, amending, and supplementing land price lists

The development, adjustment, amendment, and supplementation of land price lists must be based on the land valuation methods mentioned in Article 158 of the Land Law, Articles 4, 5, 6, and 7 of this Decree, and the following factors:

• The results of synthesizing and analyzing information on market land prices
• The results of implementing the current land price list; natural, socio-economic, land management and use factors, and factors affecting land prices.

Announcement and application of land price lists

The initial land price list under the new Land Law will be announced as prescribed and will take effect from January 01, 2026. However, due to the new provisions on the early effective date of the  Land Law 2024, the regulations on land prices may be adjusted and applied earlier than the original provision.

Additionally, according to Article 16 of this Decree, adjustments, amendments, and supplements shall be made annually (instead of every five years as under the current  Land Law 2013) and shall be announced and applied from January 01 of the following year or during the year.

This annual adjustment of land prices is necessary and appropriate for the current situation. Previously, the infrequent adjustment of land price lists (every 05 years) led to a significant gap between the land prices in the list and the market prices. Meanwhile, the land price list is an important basis for compensating people for land expropriation, calculating land rent, and land use fees when the State allocates or leases land,… This not only affects the rights of people but also affects the State budget revenue.

Authority to decide on land price lists

The People’s Committee of the province shall submit the draft land price list to the People’s Council of the same level for decision, public announcement, and updating in the national land database, based on the draft land price list previously submitted to the People’s Committee by the Department of Natural Resources and Environment.

Additional requirements for land valuation training institutions

Pursuant to Clause 3, Article 36 of this Decree, a land price-related professional training and further training institution must meet the following conditions:

• Be a higher education institution, vocational education institution, training institution for cadres, civil servants, public employees, or other training organization established by the State or having its operation permitted by the State following the law;
• Have at least 03 permanent lecturers, visiting lecturers that meet the standards, professional qualifications, and skills as prescribed by law, holding a master’s or higher degree in the disciplines or specializations of management of land, cadastral work, real estate, price appraisal, economics, finance, accounting, audit, banking and have 10 years or more of working experience directly related to the teaching subject;
• Develop the land price-related professional training and further training plan and report on them to the Ministry of Natural Resources and Environment for monitoring and examination of its operation. A land price-related professional training and further training plan includes the following contents:
  • Time and form of training, in which the time of on-site and full-time learning must be at least 60% of the total training course duration;
  • Competency profiles of the expected lecturers (including permanent lecturers and visiting lecturers);
  • Expected course books and teaching materials that are formulated based on the framework of land price-related professional training and further training programs issued by the Ministry of Natural Resources and Environment;
  • Set of exam questions for completion of land price-related professional training and further training course.
• Land price-related professional training and further training institutions must evaluate the training process of learners, organize examinations for completion of land price-related professional training and further training courses, issue certificates of completion of land price-related professional training and further training courses, and store information for 10 years or more.

The addition of operating conditions for land price-related professional training and further training institutions enables competent authorities to easily inspect and manage their activities. This contributes to improving the effectiveness of land valuation education and training.

The above are the key contents of Decree 71/2024/ND-CP on new land prices regime in 2024. If you have any questions or require advice on land valuation regulations or land law, please contact Viet An Law Firm for the best support.