Assessing the Reasonableness of the Deposit and Registration Fees Required to Participate in the Auction

ensure close to the actual price on the market, especially not really satisfy the auction participants.

When asked whether the price step at each project was appropriate, 92.86% said that the price step was appropriate; 7.14% said that it was not appropriate because the price step was high. Thus, the price step proposed by the city is appropriate for each project, as well as each form of land use rights auction (Direct auction by raising cards; Direct voting auction; Indirect voting auction).

c. Regarding fees when participating in land use rights auctions

When asked whether or not a deposit and registration fee must be paid to participate in the auction, 100% of auction participants confirmed that they had to pay. This is clearly stated in the regulations when participating in the auction of land use rights.

Table 3.12: Assessment of the reasonableness of the deposit and registration fee payable when participating in the auction

Unit: %

Status

Project name	Number of questionnaires	Is the deposit reasonable?		Is the registration fee reasonable?		Is the amount payable reasonable?
Project name	Number of questionnaires	Have	Are not	Have	Are not	High	Medium	Short
1	Project 1	20	24.28	4.29	28.57	0.00	20.00	8.57	0.00
2	Project 2	20	24.28	4.29	28.57	0.00	15.71	12.86	0.00
3	Project 3	30	32.86	10	38.57	4.29	27.14	15.71	0.00
Total		70.00	81.44	18.58	95.71	4.29	62.86	37.14	0.00

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(Source: Compiled from survey data)

81.43% of auction participants said that the deposit was reasonable; 18.57% said that it was unreasonable because the deposit was a bit high. Thus, the deposit for each auction lot is appropriate for auction participants. In addition, when asked about the fee to be paid when registering to participate in the auction, 95.71% said that the fee to be paid was reasonable and in accordance with regulations. 4.29% questioned the fact that the fee to be paid when registering for the auction was very large, but there was no transparency in the use of this fee.

3.5.2.2. Evaluation during the auction process of the implementation of regulations and the difference in auction prices

The survey results show that during the auction process, in all 3 projects, the Auction Council was assessed to have implemented seriously, in accordance with the regulations and instructions. 65/70 auction participants answered yes, accounting for 92.86%.

Table 3.13: Evaluation of the implementation of auction regulations and auction price difference

Unit: %

STT

Project	Comply with the regulations		Price difference
Project	Have	Are not	High	Medium	Short
1	Project 1	27.14	1.43	7.14	17.14	4.29
2	Project 2	27.14	1.43	11.43	17.14	0.00
3	Project 3	38.57	4.29	30.00	10.00	2.86
Total		92.86	7.14	48.57	44.29	7.14

(Source: Compiled from survey data)

Regarding the difference between the starting price and the winning price, 48.57% considered it high and 44.29% considered it moderate, while the remaining 7.14% considered it low. Due to a firm grasp of information and implementation regulations, there were no violations during the auction process.

3.5.2.3. Evaluation after winning the auction

The results of the investigation into the auction results showed that 61/70 cases answered that the procedures and responsibilities of the auction council were appropriate, accounting for 87.14%; 66/70 cases answered that they were satisfied with the price after winning the auction, accounting for 94.29%. Thus, most of the winning prices were suitable for the financial capacity of the auction winners.

Table 3.14: Evaluation after winning the auction of land use rights

Unit: Voucher (number of households responding)

Status

Project name	Procedures and responsibilities of the Board of Directors		Satisfied with the price			Have Decision approve		Certificate issuance procedures
Project name	Fit	Not suitable	Have	Normal	Are not	Have	Are not	Have	Slow	Are not
1	Project 1	17	3	15	5	0	20	0	20	0	0
2	Project 2	17	3	14	6	0	20	0	20	0	0
3	Project 3	27	3	14	12	4	30	0	28	2	0
Total		61	9	43	23	4	70	0	68	2	0

(Source: Compiled from survey data) After winning the auction, the authorities have done their job well, 100% of the cases have had approval decisions, 97.14% of the auction winners after fulfilling their obligations to the State have been granted land use right certificates and 100% of the cases have been handed over the land after winning the auction. However, through field inspections at the auctioned land plots, the percentage of auction winners who built works on residential land

very low percentage

3.6. General assessment of land use rights auction in Son La city

3.6.1. Advantages

+ Land fund for planning and implementation of land use rights auction

Land use in Son La city is still large, convenient for choosing a suitable location for auction purposes.

+ Land use rights auction brings in large revenue for the locality to serve the investment in infrastructure construction and social welfare works for people in Son La city.

+ In the first years of implementing land use rights auctions, land use rights auction participants strongly agreed with the policy of the City Party Committee and People's Committee in land use rights auctions.

+ Land for auction is land that has been approved for planning, so it is very safe. The buyer is guaranteed by the State the legality of the land plot, and is guaranteed to use the land legally with full documents. If buying land in the free market, the buyer often has to spend a lot of time to learn about the documents or planning location of the land plot before being able to make a decision. However, for land put up for auction, these factors are all guaranteed. Land use rights auctions are conducted publicly, attracting many participants with many different bidding levels. Before the auction is conducted, the auction participants study the auction documents, conduct field surveys and conduct market research in the auction area, so they can perceive and evaluate the actual value of the land being auctioned. Therefore, when participating, they will proactively pay at the price they have determined and often offer a lower price than buying land in the usual way on the market.

No commissions (brokerage) and other fees that brokerage centers often set.

3.6.2. Difficulties

+ The approval process for starting prices of some projects auctioning land use rights is prolonged, causing loss of opportunities to bring them to market during times when real estate is booming and prices are high.

+ The investigation and determination of land use demand of the area and the establishment of floor prices in land use rights auctions are still unscientific and heavily administrative.

+ Information dissemination before auctions as well as land auction activities is still lacking. Although public, advertising for auction areas is not very effective.

+ Regarding avoiding bid collusion when conducting auctions, there are currently no regulations to prevent it and no sanctions to punish it.

+ Checking the financial capacity of auction participants has not been done yet, so there are many cases where one person participates in the auction for many plots of land, pushing up the auction land price.

+ The auction regulations are also inadequate, causing difficulties for people who need to buy land.

+ When planning land plots for land use rights auctions, districts, towns and cities have not reviewed to ensure synchronous connection of technical infrastructure, social infrastructure and efficient and economical use of land funds, leading to the need to review again, slowing down the progress of the auction work...

+ Determining the boundaries of the land auction project is difficult to be accurate because the map system from previous years when applied to reality does not match due to many fluctuations. The most difficult part is the process of determining the origin of the land, the boundaries of public land interspersed in residential areas. In addition, there are land auction projects when making detailed plans that encounter the problem of not being able to reach a consensus with the people...

+ Auction participants must have sufficient financial resources to fulfill their obligations after winning the auction.

+ Auction participants cannot visualize the development of the auction area, so the auction price is often lower than the market price; this creates a difference in land price after the auction.

+ Currently, in most land auction projects, there are cases where auction participants are land speculators, the real demand for land and housing is very low.

+ There are cases where auction participants use a lot of land around the auction area, so they bid high to raise the price level of the area, then put down a deposit.

+ The payment period after winning the auction and the construction period are both passive for the land user and cannot be renegotiated.

+ In case of re-transfer to another person, the land price for calculating transfer tax and registration tax will be calculated according to the auction price (this price is often many times higher than the regulated price).

+ For land use rights auction projects, small plots will not create infrastructure connections with surrounding areas; if planning is not done well, it will lead to urban areas being divided into plots. For land auction projects that are truly successful, a new price level will be created in the area, which will lead to local land price increases in the area where the land auction project is located.

3.7. Proposing some solutions to strengthen land use rights auction in Son La city

Based on the evaluation of land use rights auction in Son La city, and the study of 03 land use rights auction projects, I would like to propose some solutions to improve the effectiveness of land use rights auction in Son La city as follows:

- In the process of planning and land use planning in conjunction with the overall planning of the province or city, it is necessary to select suitable and effective auction plots, correctly assessing the supply and demand situation of land use in the auction area as well as outside. Based on the supply and demand of the market and the area, it is possible to design auction plots of land of different areas, and auction them in different ways to attract bidders.

- It is necessary to widely disseminate propaganda on local radio and television stations so that auction participants can grasp knowledge about the auction.

auction so that they do not hesitate to participate in the auction, to avoid land speculators having the opportunity to increase prices, forcing prices for those who need to use the land after winning the auction; publicly propagate information, starting price, ... of the land to be auctioned so that everyone knows and attracts many people to participate in the auction.

- Before organizing an auction, you should choose a suitable auction form. A secret ballot in a project can complete the auction on the same day but the auction result has not reached the highest price. The auction form by public auction of each lot will be effective. However, this factor is a bit time-consuming, requiring careful preparation to organize the auction of each lot more effectively than secret ballot, open ballot once and done, very neat but the State loses a part of the profit earned from land auction.

- Organize annual training for officials involved in land valuation to improve their professional skills. Officials involved in determining starting prices must regularly update newly issued documents and regulations, and new information on land prices in the market to promptly adjust land prices accordingly.

- Improve the effectiveness of starting price determination in land use rights auctions, especially in communes and wards with the highest difference between estimated price and winning auction price in the city. Officials participating in determining starting price must regularly update newly issued documents and regulations, new information on land prices in the market to promptly adjust land prices accordingly.

- Effectively implementing administrative reform in granting land use right certificates and strengthening management of land use right transfer transactions after auctions must be unified.

- Regarding the auction method: The auction method also has shortcomings. To avoid collusion between auction participants, participants can only register at the auction session, shorten the auction time, and set a floor price close to the market price range.

Unify the auction regulations of projects so that people do not have to waste time learning when participating in different projects.

- The procedures of the land use rights auction project need to be handled quickly, especially the planning stage because this is an important factor and a step to pave the way for project implementation. When implementing the planning, determine the land fund to be auctioned and the factors affecting land prices to implement the most favorable land auction location planning and the highest land use fee collected after the auction. The Department of Natural Resources and Environment and the City Land Fund Development Center need to advise the People's Committee of Son La City and guide the communes to quickly and synchronously implement the measurement and issuance of certificates to avoid the situation in the process of completing the land use rights auction dossier, requiring additional steps, causing time loss.

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