HCMC – Hanoi City has proposed measures to eliminate hindrances to land auctions this year, as its revenue from land auctions last year met a mere 50% of the target.
According to the Portal of the Hanoi People’s Committee, the city planned to collect VND12,450 billion from land use right auctions in 2022. However, only VND7,018 billion was obtained by December 2022, 56.37% of the full-year target.
Some 87 projects with a total area of 14.17 hectares were successfully auctioned across the city last year.
The city’s request to review infrastructure development projects, especially land for social housing, in compliance with Decree 49 of the Government and new requirements of the Investment Law on preparing dossiers for auctioned projects may lead to delays in land use right auctions, unsuccessful auctions or low revenue being collected from this activity, said the municipal authority.
Given the above situation, to expedite the land auction this year, the Hanoi People’s Committee has proposed building a centralized social housing fund while waiting for the projects to be reviewed. Thereby, Hanoi will approve a social housing mechanism and the district-level people’s committees will direct relevant organizations to allocate land for preparing investment projects and apply for an investment policy.
Hanoi City also petitioned to complete the project infrastructure in advance, such as the school, flower garden and planting of green trees to make the auction more effective and attractive to investors and enterprises.
Additionally, the city sought authorization to apply land price coefficients to determine the starting price of the land use right auction without the need to hire a consultant.