Auction of land use rights: Limitations and recommendations

Abstract

The article discusses the policy and legal basis for auctioning land use rights from a doctrinal approach. It primarily focuses on conducting a desk review of statutory rules and regulations related to the specific area of law. Through a review of the current Draft of Land Law, Decree No. 10/2023/ND-CP dated 3 April 2023 (regarding amendments and supplements to several articles of Decrees on instructions for the implementation of the Land Law), and other relevant statutory documents, the article provides recommendations for policymaking and improving the legal framework for the auction of land use rights. The main focus areas for these policy recommendations include identifying cases subject to the auction of land use rights, addressing procurement issues concerning projects with land use, and establishing requirements for auctioning land use rights. These policy recommendations aim to enhance the existing law on the auction of land use rights so that this process can serve as a source of financial revenue for the State, simultaneously ensuring a healthy competitive environment for socio-economic life. Among crucial aspects are the need for a separate decree specifically regulating the auction of land use rights; sufficient rules and regulations to determine the financial capacity and goodwill of participants when they apply to join the auction. Furthermore, careful consideration should be given to replacing the escrow requirement with a bank guarantee.