Strengthen the management of subdivision and division of land plots

The Hanoi Department of Natural Resources and Environment requests to review and report on the subdivision and division of land plots for infrastructure construction from January 1, 2017 to the end of January 31, 2022 with land plots of more than 500 square meters. .

Before that, some hot spots like Van Don (Quang Ninh) or Phu Quoc (Kien Giang) had to stop the division of plots and parcels for a certain period of time to stabilize the market. According to experts, a more comprehensive solution is needed to prevent this phenomenon of inadequate investment. And according to experienced investors, these small parcels of land may not really have as good potential as advertised.

In the past time, the gathering of land and then dividing the parcels into subdivisions has been rampant, many land lots are only for buying and selling to make a profit without having to invest for long-term use. According to experts, this has many potential risks for planning, economic development of local.

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Association, said: “This is one of the activities that I think is the main cause of land fevers and chaos in many localities during this period. This is also one of the acts that we consider to be circumventing the law, we call it the creation of illegal goods on the market because they dodge it, it is not an official project approved by the state. and approve investment projects.”

According to Mr. Truong Anh Tuan, Head of the Legal Department of the Vietnam Real Estate Association: “The tightening of the subdivision of plots for sale of the ground is to ensure that the source of goods is brought to the market properly and legally, slowing investors down a step. that investment is satisfactory, accurate, ensuring exactly enough needs, not being faked by the inflow of money”.

Although concurring with the tightening of plots and parcels, experts also believe that the tightening should not be done in a similar way but should be done with flexibility according to the actual conditions of each area.

Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, commented: “If an area is not necessarily planned to be a large area, a large residential area to become a large field, it is not necessarily banned. However, if it happens in an area with extremely dense population density, cramped, infrastructure has not met the requirements, definitely not allowing subdivision for sale. , a more thorough evaluation”.

In addition, the tightening of plots and parcels is only a temporary solution, because the current law does not prohibit this activity. Therefore, the long-term solution is that the State needs to build a tax instrument for land speculation just to sell it but not put it into use.

Immediately after Hanoi issued a document to strengthen the management of land parcel separation and consolidation, the situation of buying and collecting agricultural land, then trying to divide it up, temporarily subsided. Even a large plot of land, with an area of ​​over 500m2, is for sale at a slight discount, from 1-2 million VND/m2.

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