Why should people get their land use rights certificates (red books) in 2025?
Currently, Vietnam’s land market operates with a dual-price mechanism. There is an official land price framework set by the state, which serves as the basis for calculating taxes or land compensation for site clearance. The second price is referred to as the market price, often several times higher than the state-regulated price.
However, from August 1, 2024, the Land Law of 2024 abolished the land price framework and introduced an annual land price list. This list will be formulated based on zones and locations, taking into account regional values and standard land lots (Article 159 of the 2024 Land Law).
Consequently, starting January 1, 2026, each province and centrally-run city will issue and apply a new land price list and make adjustments, amendments, and supplements annually instead of the current five-year review cycle.
This move will bring the land prices closer to market rates, potentially leading to a significant increase in land prices compared to the current land price list.
It is important to note that the fees for obtaining a land use rights certificate for the first time are calculated based on the land prices from this list, including:
– Land use fees;
– Land rent (if any);
– Registration fees.
Among these, land use fees typically account for a significant portion of the cost of obtaining a land use rights certificate and can amount to several hundred million VND.
Therefore, with the introduction of specific valuation methods and the annual land price list to adjust prices closer to market rates, there will likely be an increase in land use fees in the future.
Consequently, the cost of obtaining a land use rights certificate for the first time will also increase significantly from January 1, 2026.
Two significant changes regarding the procedure for obtaining a land use rights certificate for the first time from August 1, 2024
Change in the time frame for obtaining the certificate for the first time
Previously, according to Clause 40, Article 2 of Decree No. 01/2017/ND-CP, the time limit for obtaining a land use rights certificate for the first time was no later than 30 days from the date of receipt of a valid dossier.
However, from August 1, 2024, the time required to obtain the certificate will be shortened. Specifically, the time for initial land and asset registration is no longer than 20 days, and the time for issuing the certificate is no longer than 3 working days according to Article 22 of Decree 101/2024/ND-CP.
Thus, the total time from submitting the application to receiving the certificate will not exceed 23 working days. However, this timeframe applies to complete applications without any issues regarding paperwork or disputes.
Change in the submission point for the first-time certificate application
Based on Point a, Clause 1, Article 21 of Decree 101/2024/ND-CP, the submission point for first-time land use rights certificate applications is the One-Stop Service Unit as stipulated by the People’s Committee (PC) of the province, or the Office or branch of the Land Registration Office where the land is located.
Therefore, from August 1, 2024, in localities without a Land Registration Office or its branch, people applying for the certificate for the first time will submit their applications at the One-Stop Service Unit of the provincial People’s Committee instead of the People’s Committee or One-Stop Service Unit at the district level as before.
New name for the land use rights certificate (red book) from 2025
From August 1, 2024, when the 2024 Land Law takes effect, the land use rights certificate (red book) will have a new name: “Certificate of Land Use Rights and Ownership of Assets Attached to Land” according to the law.
However, according to Point a, Clause 2, Article 43 of Circular No. 10/2024/TT-BTNMT, the old certificate template will still be used until December 31, 2024.
The new certificate template with the official name “Certificate of Land Use Rights and Ownership of Assets Attached to Land” will be officially applied from January 1, 2025.
