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Official Gazette

Wednesday, July 8, 2020

Plan to tap financial resources from land

Updated: 10:41’ - 27/04/2012

A plan to maximize land use, rearrange state-owned land and houses at state agencies and businesses and effectively use transport infrastructure is being compiled by the Ministry of Finance (MOF) with a view to mobilizing financial resources from land and state property for social and economic development.

In its draft plan entitled “Mobilizing Financial Resources from Land and State Property during 2011-2020”, the MOF puts forward several solutions for increasing economic benefits from land use, of which the establishment of a market-based land pricing mechanism would play the most decisive role.

To this end, the MOF proposes abolishing the current Government-prescribed land price bracket while empowering local authorities to set land prices based on local realities. This means that the Government would simply provide methods to evaluate land prices while assigning provincial-level People’s Committees to set specific prices based on those guidelines.

The method of auction would be widely applied even to land areas for which ground clearance is not yet completed, while bidding would be required for all land-occupying projects, so as to assure publicity, transparency and fairness in land allocation or lease. Moreover, current land incentives would be scrutinized and adjusted toward reducing the number of entities eligible for land use levy or land rent exemption or reduction.

The draft plan also says that state-owned land and houses currently managed by state groups and corporations would be inventoried and then re-allocated in the line of relocating production establishments in concentrated production areas to reserve land for more profitable uses. 

To raise funds for transport infrastructure development, the MOF recommends that, along with luring investment from the private sector, financial resources from existing facilities should be further tapped by selling or leasing the right to commercially exploiting transport infrastructure facilities, transferring such facilities for a given period or maximizing the use of roadside land.- 


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