Concerns about the "Land Boom" in Expanding Commercial Residential Land Pilot

The pilot program to expand agricultural and non-agricultural land for commercial residential development has drawn deep concerns from National Assembly deputies, particularly regarding the potential "wave" of widespread land price increases and the serious risks it could pose to enterprises that need land for production and business purposes. Deputies are worried that without appropriate control measures, such expansion could lead to chaos in the land market, causing unreasonable increases in land prices, and bring about unpredictable consequences for long-term economic development planning.

Deputy Ha Sy Dong from Quang Tri Province expressed support for the proposal to expand land resources for commercial residential use but emphasized the importance of carefully evaluating the current land resource utilization efficiency. He argued that strict supervision of land use is essential to ensure transparency and to prevent policy abuse for profiteering, while also minimizing land speculation, which could lead to uncontrollable real estate price increases, disrupt market supply and demand balance, and create instability.

Deputy Ha Sy Dong also suggested that the pilot should be implemented in areas with urgent needs for commercial residential land and where there are difficulties in advancing projects under existing regulations, rather than being applied uniformly. This approach would not only ensure fairness among different regions but also help the government collect practical data as a basis for assessing and adjusting policies, thereby minimizing the risks of unsustainable real estate development.

The Risk of Rising Land Prices

Deputy Nguyen Phuong Thuy from Hanoi, Deputy Chairwoman of the National Assembly’s Legal Committee, echoed similar views, warning that expanding commercial residential land could spark a wave of land speculation, leading to uncontrolled price increases. In the current context of rapidly soaring land prices without effective control measures, Deputy Thuy expressed concerns that the pilot for expanding land for commercial purposes could create a real estate bubble. If this bubble bursts, the negative impacts would not only affect the real estate market but also ripple through other economic sectors, causing significant damage to the economy.

She emphasized that if not approached cautiously during implementation, the "land boom" could become a major barrier for businesses needing land for production and operations. Many investors focusing on buying land with the intention of converting it into commercial residential use will push land prices higher, making it difficult for enterprises to access land, and challenging for the state to manage this valuable resource. This not only harms businesses but also creates instability in sustainable economic development strategies, as land resources are not being used optimally or rationally.

Therefore, Deputy Thuy proposed that the pilot should be limited to a few areas with specific demands for commercial residential development, so that the impact of the policy could be accurately and concretely monitored and evaluated. Implementing the pilot widely could lead to a lack of control and difficulties in taking remedial measures to address unfavorable developments.

Ministry of Natural Resources and Environment Clarifies the Pilot's Objectives

Responding to the deputies' concerns, Minister of Natural Resources and Environment Do Duc Duy emphasized that the objective of the pilot is to supplement the approaches to accessing land resources for commercial residential development, while avoiding overlap with the existing provisions of the Land Law. Minister Duy stated that projects regulated under the 2024 Land Law would not fall within the scope of this pilot resolution. The goal of the policy is to meet the growing demand for residential development, particularly in large urban areas where land resources are increasingly scarce.

The draft pilot resolution also stipulates that the area of additional residential land during the planning period must not exceed 30% to maintain a balance between development needs and the current capacity of land resources. Minister Duy also stressed that most land will be allocated and leased through land use rights auctions or project bidding processes to ensure transparency and limit land speculation. Land auctions and bidding not only generate revenue for the national budget but also ensure that land resources are used for the correct purposes, maximizing the benefits for society.

Additionally, the Minister explained that the pilot's approach to acquiring land use rights or converting the current use of land would help diversify the means of accessing land resources, thereby accelerating the development of commercial residential projects. This is particularly important for areas facing difficulties in attracting real estate investment due to limited land resources.

Careful Consideration Needed for Types of Land in the Pilot

Although the draft resolution allows commercial residential projects to be carried out on agricultural land, non-agricultural land, or residential land, the National Assembly's Economic Committee remains cautious and expressed numerous concerns. In particular, expanding the pilot to agricultural land, forestry land, as well as land used for national defense, security, or religious purposes requires careful consideration to protect natural resources and ensure national food security. Furthermore, the use of forestry land must be thoroughly evaluated to ensure forest coverage, protect the ecological environment, and achieve the government's sustainable development goals.

The National Assembly's Economic Committee emphasized that adjustments and use of these types of land must ensure that agricultural land area and forest coverage are not reduced, as these are crucial for ensuring food security and preserving natural resources. Using other types of land for commercial purposes requires strict oversight mechanisms to prevent policy abuse for speculative purposes or improper land use, thus safeguarding the common interests of society as a whole.

The diverse views from National Assembly deputies underscore the necessity for caution in adjusting and expanding land for commercial residential use. Careful consideration of all relevant factors will help avoid unnecessary negative impacts and ensure that policies truly meet the development needs of different regions. Close cooperation between ministries, sectors, and localities is essential to provide the best solutions, ensuring that expanding commercial residential land will benefit society as a whole, promoting economic development, protecting natural resources, and ensuring sustainable social security.