Advantages of amending Law on Land

Although land is owned by citizens, the state has given people the right to use land which is considered and protected as property rights and civil rights. The focus of the current problem is the market price and the valuation at the same time with the granting of business autonomy to enterprises, based on benefit sharing with the state or paying taxes.

Advantages of amending Law on Land
Le Net and Tran Thai Binh, lawyers at LNT & Partners

When identifying and addressing this problem, we rely on the theoretical basis of the legal system as well as put it in the context of the economy to analyze the benefits of applying regulations and legislation, to see if the application of legal provisions leads to policy abuse , or causes damage or loss to the interests of the state rights of land users or not. As it is concluded that the benefits of amendments and supplements are greater than the costs, some amendments to the law can be offered.

According to current regulation, there are the following forms of land use: allocation of land with/without land use levy; lease of land with one-off rental payment for the entire lease period; and lease of land with annual rental payment.

At first glance, the current regulation brings the benefit of encouraging land users to pay land use fees or one-off rental payment fees to have full land use rights, avoiding the situation of not paying enough land use levy but having transferred the rights to another persons.

However, such a provision has two important drawbacks. First, the one-off or annual rental payment is such that the owner does not indicate who pays more or benefits more in the case of whichever is higher. Secondly, a one-off rental payment instead of an annual rental payment leads to inherent unfairness,

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