Many loopholes in land auctions

On the afternoon of March 16, the National Assembly Standing Committee held a session to question a group of issues in the field of natural resources and environment. The content that many members of the Standing Committee of the National Assembly and members of the National Assembly are most interested in are: land auction.

Minister of Natural Resources and Environment Tran Hong Ha confirmed that in recent times, there have been not only “blowing” prices, but also real estate prices, there are “green troops, red troops” auctioning land, causing a lot of frustration, seriously affecting the real estate market, causing loss of state assets.

Many delegates said that it is necessary to adjust the deposit amount to participate in the land auction, because the current regulation level is not reasonable.

“The regulation on the deposit of 20% for auction participation is low, there is no sanctions to limit and prevent businesses from paying high prices to put down deposits”, said Mr. Nguyen Huu Thong, Member of the National Assembly. Binh Thuan province, give comments.

Minister of Natural Resources and Environment Tran Hong Ha answered questions. (Photo: Doan Tan – VNA)

“Blow up the price, push the price up to raise the value of bonds, stocks or falsify property values ​​to take advantage of a bank loan, then clean up your financial sheet. If there are signs here, it’s like they are. We think there are signs of manipulation, there is a conspiracy to deceive and cheat to increase the value of the land, why can’t we take criminal action?”, Mr. Ta Van Ha, Member of the National Assembly of Quang Nam Province, emphasize.

Before comments from the National Assembly deputies, the Minister of Natural Resources and Environment and the Minister of Finance proposed specific solutions to limit the inadequacies in the current land auction.

“It is not possible to appraise the price documents for only 15 days, it is necessary to go before the auction step to appraise, we have to do very basic steps, through the bank, through the land record, through the resume of the owner. Auctioneers. When it is raised 10 times, where is the commitment that money is already there,” said Minister of Natural Resources and Environment Tran Hong Ha.

“We have to tighten the land auction issue to ensure a tighter auction. For example, about the investor’s capacity, it is definitely necessary to determine the investor’s capacity. Second, the deposit. We have to raise the deposit. We put the deposit too low,” said Finance Minister Ho Duc Phuc.

Minister Ho Duc Phuc also pointed out that it is time to amend Decree 44 and Circular 36, because the determined land price is no longer accurate and consistent. If these two documents are not corrected, the inspection teams will still come to different conclusions.

Proposal to amend regulations on land auction

At the end of 2021, when the real estate market was still shocked by the record-high winning result, it was calculated that each m2 of land was priced at about VND 2.45 billion in Thu Thiem urban area, Ho Chi Minh City. The market saw two businesses winning the auction here “put down a deposit”.

In some other provinces, auctioned land with the advantage of clean ground and clear legality, has become a lucrative “goods” of land speculators. These people only “hunt” land at auction and then buy and resell, not for the purpose of putting the land into use. Therefore, besides the opinions of the National Assembly deputies, the market’s records show that many loopholes in the auction are becoming more and more obvious.

Many land plots, after being successfully auctioned, are still just growing lawns, because in fact, many people only consider land auctions as a type of transaction, but have no intention of buying to live in. Many experts think it’s time to rethink the real purpose of land auctions.

The Vietnam Real Estate Brokers Association once stated that in some localities, land auctions take place too often, massively, causing an oversupply. After that, how the land is used has not been strictly managed.

Land lots are auctioned in Thu Thiem new urban area. (Photo: employees)

“Land becomes a commodity for traders. This has distorted the market. Therefore, we must improve the land use purpose, forcing auction winners to place bets and deposit…”, he said. Ngo Hong Tuan, an investor, said.

“The number of projects and the number of auctioned products, the supply is exceeding the demand. Many land auction projects in the localities are finished and left, the whole area is green,” said Chairman of the Real Estate Brokers Association. Vietnam Nguyen Van Dinh said.

Previously, the Ministry of Justice’s report said that there were still some problems related to the inconsistency between the provisions of the land law and tax administration on the deadline for paying the winning money at the auction of the right to use the land. soil.

According to Ms. Hanh, a unit specializing in organizing auctions, there has been a case where a business won a land auction and did not pay money in 90 days. The locality issued a written cancellation of the results. However, after that, the enterprise saw that the land price had increased, and again because of other regulations, returned to pay both principal and interest, threatening to sue the document to cancel the results of the locality.

Decree 162 stipulates the time limit for payment, not to mention the issue of whether after 90 days will pay a fine or confiscate, or will lose that benefit, but only say if after 90 days of non-implementation, interest will be charged. People rely on Decree 62 and are late to pay. People try to sell, when they sell, they fulfill their obligations. This prevents the land from being built or put into use. yes,” said Ms. Do Thi Hong Hanh, General Director of Lac Viet Auction Partnership.

Transparent land auctions bring a large amount of budget revenue to localities, but the recent hot development has clearly shown many loopholes.

Many opinions also believe that it is time to have criteria to evaluate the capacity of businesses and investors participating in land auctions. Those who have a history of “depositing” need to have their auction rights restricted, additional sanctions, economic and financial blows to limit abnormality in the auction.

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