New Land Law “a positive step for investment” according to new Head of Knight Frank Valuation and Advisory

July 30, 2024
vi-lang Xem Tiếng Việt

Speaking at an event co-hosted by Knight Frank Vietnam and KPMG, Ms. Tuyen Huynh, the newly appointed Head of Valuation and Advisory for the independent property consultancy proclaimed the nation’s new Land Law as a net positive for transparency, investment and a market-oriented approach to land-valuations.

Ratified during the Fifth Extraordinary Session of the 15th National Assembly (NA) in January this year, the 2024 version of Vietnam’s Land Law comes into effect on 1 August. 

The new law will see the abolition of the five-year issuance of land prices, which had been unable to keep pace with the dynamic shifts of the market value of land over time.  It replaces this with an annual pricelist that is better able to align land prices with market conditions. 

Adjustments to land pricing will be made annually based on amendments proposed at the provisional level based on prevailing conditions in the immediate region. All amendments are to be based upon a more robust system of valuation with clearly defined surrounding Market, Cost, Income and Residual approaches.

Tuyen, who joined Knight Frank in June, brings a 15-year history working in valuation roles in some of the world’s largest property firms expects to see a significant positive impact on the property investment climate for the entire country.

“Investors are looking for sustainable growth in their investments and a stable economic environment – all of which are promoted by the incoming Land Law. The new valuation standards are more standardized, transparent, and market oriented,” Tuyen stated.

Regarding the impact on property values, Tuyen remarked: “It is hard to predict whether, over time, this will see values increase or decrease, as this will be determined by a multitude of factors.  However, it will certainly narrow gaps between stipulated prices and market expectations, and the more frequent revision of these valuations ensure that pricing is current and up to date with market realities.”

“The new system will be considerably more efficient than the legal framework it supersedes, and so while it may not bring about direct immediate adjustments, it will provide a platform for more sustainable growth and a better trading environment for investors looking at Vietnam.”