Vietnam’s new Law on Land, will remove land price brackets set by the state which should see land values increase, which should lead to less complaints from landowners when their land is acquired, which should make site clearance much easier, Luat Vietnam is reporting.
In the past, the national government would set a price bracket for land prices once every five years. Local governments would then determine local land prices within said bracket. This often led to land being valued well below what it might get on a free market. Subsequently, for big infrastructure projects, for example the Hanoi or Ho Chi Minh City metro lines, land owners would refuse to give up their land delaying projects for sometimes years and costing the city governments millions in fines. By removing these price brackets, theoretically land prices should rise and with adequate compensation landowners should be less reluctant to give up there land.
Also of note, land prices will be set annually rather than every five years under the new law.