The document discusses issues with Vietnam's current land valuation system and potential solutions. It notes that the biggest problems are an inconsistent regulatory framework and valuation methods, leading to non-standardized valuations. A new government dispatch aims to address difficulties, but amended regulations are still needed. Removing fixed price brackets could increase transparency but also introduce more volatility. Singapore's robust, transparent system that regularly updates prices based on market conditions is held up as a good model. Developing a new, suitable land pricing system in Vietnam using comprehensive data and transparent, market-based valuations with regular updates is recommended.

1. VIETNAM - REAL ESTATE - LAND - ISSUES AND SOLUTIONS - VTV
interviewing Dr. Oliver Massmann
1/ In your opinion, what are the biggest problems in the current process for valuing land
prices?
[DMVN] The biggest problem is that the regulatory framework for valuing land prices is
inconsistent. The process of valuation may involve various subjective factors, leading to
inconsistent and non-standardized valuations. The hierarchical system also leads to
complicated legal procedures and inconsistent national cadastral maps. In addition, proper
classification of land use is essential for accurate valuation, but land use regulations are
inconsistent, which leads to uncertainties in valuation.
2/ The Government has just issued Official Dispatch 634 on removing difficulties in valuing
land prices. The dispatch emphasises adjustment of land price list, specific land valuation
and consultancy on land price determination. What do you think about this new Dispatch?
Has the Dispatch been effective in removing current difficulties in land valuation?
[DMVN] The new Dispatch directs the competent state agencies to remove difficulties and
obstacles in land valuation under their authorities. I think the Dispatch has been really effective
in urging to solve local problems in terms of authority, order and procedures, leading to very
slow land valuation, which affects the implementation progress of investment projects.
However, we will have to wait for the amended regulations to further assess the effectiveness
of this Dispatch.
3/ How will the abolition of the land price bracket affect the development of the real estate
market?
[DMVN] Removing the land price bracket system can lead to greater transparency in land
valuation. Instead of being confined to predetermined price ranges, land values can be assessed
based on current market conditions, demand, and actual characteristics of the property. This
increased transparency can improve market efficiency and attract more investors. The
elimination of fixed price brackets might introduce more volatility and fluctuations in land
prices, as valuations become more sensitive to market changes and demand-supply dynamics.
This could impact the behavior of speculators in the market.
4/ In your opinion, which country in the world is doing well in valuing land prices? What
can Vietnam learn from this country's practices?
[DMVN] In my opinion, Singapore is doing well in valuing land prices since it is often regarded
as having a robust and transparent land valuation system. The government of Singapore
regularly reviews and updates land prices based on market conditions, development plans, and
other relevant factors.
Some practices that Vietnam can learn from Singapore are (i) establishing a comprehensive
land registry with transparent access to transaction data, (ii) regularly updating land prices
based on market conditions and development plans and (iii) involving independent valuation
experts to enhance objectivity and credibility.
5/ Currently, the draft regulation on land valuation is being consulted by the Ministry of
Natural Resources and Environment. It is expected that there are only 3 methods of land

2. valuation: Comparative method, income method and land price adjustment coefficient
method. What are your thoughts on these methods?
[DMVN] This amendment is expected to change the land valuation from using the out-of-date
price bracket to another method in accordance with market principles. The change is especially
important as it will help attract investors and develop the real estate market and the economy.
6/ In Vietnam, when the budget for infrastructure development as well as many key projects
cannot be allocated due to problems in site clearance. There are legal precedents for fair
market compensation to ensure a timely process of site clearance. What do you think about
the importance of applying market prices in compensation for site clearance?
[DMVN] Applying market prices in compensation for site clearance is a critical step in
safeguarding property rights, maintaining social harmony, and supporting sustainable
development. It demonstrates a commitment to the principles of fairness, transparency, and
respect for individuals’ rights during times of significant urban and infrastructure changes.
Using market prices ensures that affected landowners receive fair compensation for their land,
which aligns with the principles of fairness and equity. It can also help minimize disputes and
conflicts between landowners and the authorities, reduce opportunities for corruption and
bribery.
7/ In the amended draft Land Law, an important content is to remove the regulations on the
land price bracket and applying market-based approach in valuing land price. What do you
think about this change?
[DMVN] The change is expected to significantly help the development of the real estate market
and the economy. The removal of the land price framework would be a breakthrough to bring
the price back to its real value and prevent land corruption. In addition, owners of acquired real
estate will receive a more reasonable compensation value and closer to market price, which
will help speed up the land compensation and allocation process to build new projects.
8/ Should Vietnam develop a new suitable and persuasive land price system? What policies
are needed to build a standard pricing framework that is suitable for market fluctuations?
[DMVN] Vietnam may benefit from developing a new and suitable land price system that is
transparent, persuasive, and able to accommodate market fluctuations. Creating a standard
pricing framework can contribute to more accurate land valuations, reduce disputes, and foster
a conducive environment for investment and economic development.
Some policies needed to build a standard pricing framework are:
• Comprehensive Land Data Collection and Management: Establish a comprehensive
and updated land registry that records all land transactions and relevant
information. Accurate and accessible data are essential for determining market
trends and setting appropriate land prices.
• Transparent Market-Based Valuation: Base land valuations on objective market data
and apply well-accepted valuation methods. Utilize a combination of approaches
(e.g., sales comparison, income capitalization, cost approach) to cross-validate
results and ensure more accurate valuations.
• Regular Land Price Updates: Establish a schedule for regular land price updates to
reflect changes in market conditions and land demand. Land prices should be
reviewed periodically to maintain their relevance and accuracy.

3. • Anti-Corruption Measures: Implement measures to combat corruption in the valuation
process. This could include strict enforcement of laws, transparent auditing, and
public reporting of valuations.
• Consistent Land Use Classification: Establish clear and consistent land use
classification to avoid ambiguity and uncertainties in the valuation process.
• Economic and Social Considerations: Take into account the economic and social
impacts of land valuation decisions. Strive for a balance between economic
development and social welfare to minimize negative consequences on vulnerable
populations.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if
you have any questions or want to know more details on the above. Dr. Oliver Massmann is
the General Director of Duane Morris Vietnam LLC.