Farmers Concerned About Land Auction Driving Up Land Prices

Recently, land auctions in several districts near Hanoi have raised concerns among farmers, especially those with lower incomes. These families, particularly farmers, are facing the issue of land prices becoming too high, making it difficult to purchase land for building houses or to divide land for their children. During the forum "Listening to Farmers' Voices" on November 24th, Mr. Nguyen Manh Hieu, Chairman of the Farmers' Association in Phu Yen Commune (Phu Xuyen District, Hanoi), expressed these concerns. He noted that in some districts surrounding Hanoi, such as Dan Phuong, Hoai Duc, Thanh Oai, and Me Linh, land auction prices have reached up to 100 million VND per square meter.

This situation is making it impossible for low-income families, especially farmers, to afford land for housing or to divide land for their children. Mr. Hieu raised the question of whether the government has any measures to prevent land auction prices from being inflated, while still ensuring tax revenue and providing affordable land for low-income groups, including farmers.

Solutions from the Ministry of Natural Resources and Environment

In response to these concerns, Mr. Dao Trung Chinh, Director of the Land Planning and Development Department (Ministry of Natural Resources and Environment), reassured the public that there is no need to worry excessively about land auctions. According to the 2024 Land Law, citizens are not required to participate in land auctions if they have a need for residential land. People who live in communes but do not yet own land will be allocated land through a direct assignment method, rather than through auction.

Mr. Chinh explained that land allocation will be carried out according to approved planning. Local governments will need to adjust the planning to meet the land needs of people who do not yet own land.

Measures to Prevent Inflation of Land Auction Prices

The Ministry of Natural Resources and Environment has also proposed several measures to address the issue of land auction manipulation and price inflation. These include requiring local governments to strictly enforce the relevant laws on land auctions, making land planning and usage plans public, and adjusting land price tables to ensure that auction starting prices reflect actual conditions.

Minister of Natural Resources and Environment, Mr. Do Duc Duy, pointed out that the starting price for land should reflect the real value of land that has already been equipped with complete technical infrastructure. In the past, some localities used land prices from areas without infrastructure development as starting points, leading to large discrepancies between the starting price and the final auction price, creating opportunities for some individuals to profit unfairly.

Ensuring Affordable Land and Housing Supply

To ensure a reasonable and affordable supply of land and housing, Minister Duy also suggested that local governments strengthen measures to keep land prices in line with the payment abilities of the majority of citizens. One solution is to shorten the payment period for land auction winners and to publicly disclose cases where high auction prices were not followed through with payments, in order to prevent people from taking advantage of the auction system for illegal profits.

Finally, Minister Duy emphasized that the Ministry will increase inspections and supervision of land auction processes and strictly handle violations by organizations and individuals. The Ministry of Natural Resources and Environment has already recommended that the government direct localities to implement a comprehensive and firm set of measures to address this issue.

Conclusion

Currently, land prices in surrounding areas and rural regions are steadily increasing, causing difficulties for most citizens, particularly low-income families. However, with the comprehensive measures proposed by the Ministry of Natural Resources and Environment, it is hoped that the practice of inflating land auction prices will be effectively controlled, ensuring that farmers and other low-income groups can obtain land at reasonable prices.