Land Allocation, Lease, Reclamation and Change of Land Use Purpose

The content of land management activities of the State management agency needs to bring:

(i) the authenticity of the Law for profound changes in people's behaviors; (ii) ensuring the implementation of land rights in accordance with people's practical needs; (iii) authenticity from approval, permission, administrative procedures are the target criteria of the policy; (iv) authenticity in State financial management and building institutional capacity to implement the law; (v) authenticity in people's ability to use land, paying attention to the interests of the poor [80].

1.2.1. Management of planning and land use plans

Along with the process of industrialization and modernization is the process of increasing urban population, creating a driving force for development, at the same time with the risk of urban imbalance. However, it is difficult to prevent the increase in urban population, but only socio-economic development and urban development to meet the increasing demand, which is the leading measure to maintain urban growth in stability and sustainability [13, p. 31].

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Urban land has a great impact on the transformation of urban economic structure and is an organic entity with a certain proportional relationship. An unbalanced ratio will cause a mismatch between urban functions, hindering the development of the urban economy. When urban land is used properly, it creates harmony between the parts like a living body, creates unity between the entities and improves the economic efficiency of the city.

According to Associate Professor, Dr. Pham Ngoc Con: " Land used for industry, if arranged reasonably, can save 10-20% of urban land use; land used for transportation, if arranged reasonably, can shorten 20-40%" [12, p. 269]. Therefore, the State management of land of the competent authority needs to have a land use plan that is researched with high quality, synthesized, systematically assesses land potential, changes in land use and socio-economic conditions to select and implement the goals.

The best land use criteria. Planning must optimize urban infrastructure such as: traffic, roads, water supply and drainage, airports, ports, factories, industry... activities for the city and residential areas, ensure reasonable distribution of production and business areas in the urban area, resolve the spatial and location relationships between areas, create conditions to increase production, business and service capacity. Urban land use planning ensures good organization of all daily activities of urban residents, increasingly satisfying the needs of accommodation, employment, expenses, entertainment, sports, study, medical treatment, and all other needs of the people. On the other hand, urban land use planning also ensures that land is used effectively, economically, protecting the environment, landscape, relics and long-term resources that are increasingly scarce. In the planning, there must be predictions about socio-economic development, and taking into account the results of zoning and land use. Land use planning is a comprehensive problem that considers all socio-economic issues to harmonize immediate and long-term benefits, individual-community, local-territorial. Land use planning is often carried out by the Government or local authorities to improve the lives of the community. The central level plans and land use plans based on analysis of problems and trends in management, periodic monitoring, considering many aspects such as traffic, environment and society. Local level plans need to reflect the wishes of the community, based on extensive consultation and debate. The relationship between levels of government in planning needs to be based on comprehensive partnerships and create creativity for local authorities, local communities, businesses, producers, organizations and other interest groups. The content of land use planning includes: investigation, research and synthesis of natural conditions, socio-economic conditions and land use conditions. Determine land use orientation, land types for national security and defense needs, for projects. Orientation of measures to protect the landscape and environment, and solutions to organize and implement the planning.

Land use planning includes drawings that specify areas for different types of land, average building density, land types and different uses such as housing, commercial buildings, industrial buildings, transportation, water supply and drainage, trees... as well as regulations on principles and standards used when preserving or developing in the area. The content of urban land use planning must reflect the main indicators such as:

+ Determine the boundaries of the planning project;

+ Population size in the planning project;

+ Functional zoning (land use purpose planning); determining traffic system and technical corridors;

+ Determine maximum construction density;

+ Land use coefficient;

+ Leveling foundation;

+ Architectural requirements;

+ Environmental requirements;

+ Infrastructure system, in which: maximum construction density is the percentage of total construction area on total land area ; land use coefficient is the percentage of total construction floor area on total land area.

The CQQ is the presiding agency, the planning is carried out by the city's specialized agency. Based on the approved planning, the CQQ establishes the land use plan for each year of use, which is an important tool for managers to implement and inspect. The land use plan includes analysis and evaluation of the results of the previous land use period, the expected recovery of land types to serve the needs of urban and residential development, as well as specifying the annual plan and implementation solutions.

1.2.2. Land allocation, lease, recovery and change of land use purpose

District level is authorized to allocate land to land users: households, individuals, and residential communities. Land allocation is divided into two types: land allocation without fee and land allocation without fee.

Land use fees and land allocation with land use fee collection. This distinction is mainly based on the criteria of agricultural land or non-agricultural land; land within the land use limit or land outside the land use limit; land used for public interests or personal interests, business. The district level also has the responsibility of leasing land, changing land use purposes, and reclaiming land in cases of land use for purposes other than those prescribed in the Land Law by households and individuals. Regarding land use by enterprises and organizations, the district has the responsibility of agreeing in the application for land lease or allocation to be submitted to the city for approval. The competent authority is responsible for implementing land acquisition when there are decisions to reclaim land by the city and the State. This is considered the most difficult task in the State management of land in the district.

In general, the land fund of the city's districts has been allocated since previous years, so in reality, the allocation and leasing of land by the authorities is almost gone. To have land allocated, it is necessary to consider adjusting the subjects that are being managed, but are using it inefficiently or wastefully. This task, in reality, only focuses on changing the purpose of land use, recovering land for site clearance according to the city's decision and allocating land when there is a source.

1.2.3. Registering land use rights, establishing and managing cadastral records, and issuing land use right certificates

Land use right (LUR) registration is the exercise of one of the basic rights of land users and is divided into two types: (i) initial land registration (LUR) is performed for those who are using land but have not yet declared LUR registration and have not been granted a LURC or a certificate of house ownership and residential LURC; (ii) land change registration is performed for land users who have been granted a LURC or a certificate of house ownership and residential LURC in urban areas when there is one of the following changes in the purpose of use, type of land used, area of land used, etc. The current system of land and real estate registration in Vietnam is still lacking.

The uniformity in both procedures and land records forms, some localities even prescribe their own forms. The registration system still places too much importance on the establishment of land registers and land registers, and does not pay due attention to the establishment and management of documents and certificates of the registration process (including registration applications, transfer contracts, documents on confirmation and approval by competent State agencies during the registration process, these documents are considered as original land records), these documents still have many legal and technical problems, the management is very scattered, and many places are still lost. In the past 10 years up to 2003, the focus of the Vietnamese land system is the issuance of land use right certificates. This task has not been completed nationwide, except for agricultural land, which has almost completed the issuance of certificates.

However, the current focus is shifting to the registration of land use right transactions. If this focus is not successful, there will be difficulties for both managers and land users. This is an important legal basis for establishing the relationship between land users and the State, creating conditions for them to conduct land transactions in the real estate market as well as to exercise rights associated with land use rights such as: conversion, transfer, donation, inheritance, mortgage. The change in the focus of State management of land is reflected in the 2003 Land Law, which focuses on the establishment of land use right registration offices at the provincial and district levels as well as regulations on land use right registration at these offices. For the district level, this is a new task, and the competent authorities need to pay due attention to effectively implement it.

Indeed, the World Bank, in its study of the role of land use right registration in economic development through the case of Thailand, demonstrated that: “Land use right registration plays an important role in promoting the development of financial markets and is a prerequisite for economic development, especially in transitional economies” [81, p. 24]. The CQQ is also responsible for managing cadastral records,

Issuing land use right certificates to households and individuals using land. This is one of the important tasks in the State management of land of the competent authority.

However, for this certificate to become a transaction document in the real estate market, it must ensure 5 principles [68]:

a. Each plot of land has only one owner (individual, collective, state agency). This owner has the capacity to exercise land ownership rights (or land use rights) according to the provisions of law.

b. Ownership (or land use rights) must be continuous over time. This

ensure the continuous commodity nature of land.

c. The term of granting ownership rights (or usage rights) should be as long as possible. This ensures stability and sustainability in investment when exploiting land, creating attractive conditions to attract investment. For FDI, the common term for land lease to investors in the world is from 75 to 99 years (LDĐ 2003 is no more than 50 years, in special cases no more than 70 years; for residential land of households and workers, the State grants long-term use).

d. The boundaries of land plots are determined in three-dimensional space from the center of the earth. Many countries, including ours, only grant rights to the surface and space above the land, but do not grant ownership of underground minerals, including soil.

d. The form of the certificate (or deed) must be unified according to national standards. Because of the connection between land or real estate in general and currency, the certificate must be unique and difficult to forge. It is impossible to allow a piece of land to be mortgaged in many places or sold to many people.

The information on the certificate follows the principles of the Robert Torrens real estate registration system established in Australia since 1958, known as the Torrens system, which is being applied by many countries and has 4 characteristics:

(i) quick, simple, low cost, and in line with community demands, (ii) the mirror principle (ensuring that the registration authority makes sure that the registration paper fully reflects the legitimate interests and obligations on the land plot); (iii) the veil principle (after registration, there is no need to look "behind the registration sheet" to determine previous interests in the land); (iv) the principle that information on the registration sheet is guaranteed by the State [14, p.67].

1.2.4. Land financial management

In the current task of urban management and development, financial issues are always decisive, financial resources for development are often limited. The task of the authority is to implement land revenue and expenditure according to State regulations. Ensure that assigned financial resources are used for the right purposes and effectively. In the current trend of decentralization of state management, the authority needs to proactively create an environment to attract the diversification of capital sources and expand capital sources, mobilize financial sources from enterprises, people and domestic and foreign investors, capital sources from land such as: infrastructure investment to increase the value of the land fund under management and conduct bidding for organizations and private individuals to lease land. Through investment and land leasing, it will create the effect of increasing land revenue, as well as taxes from business activities, creating investment capital for socio-economic development, solving employment as well as other social issues of the district.

However, in capital mobilization, there is also a need to be proactive in avoiding dependence, especially on foreign capital sources. One of the seven lessons drawn for transitional economies and applicable to land finance is:

Promoting private sector activity can also increase savings rates and broaden the tax base—two important factors for increasing sustainable investment rates. Avoiding dependence on foreign savings is

considered an important aspect of maintaining financial sustainability [28, p.9].

For many districts today, this work is mainly to implement the revenue according to the provisions of the Land Law and retained for the district budget, spending according to the approved plan to serve the socio-economic goals of the district and the financial management regime. Specific regulations of the State on current land finance include [02]:

 Land price: The State regulates the method of determining land price, price framework for land types and guidance on pricing specific land types as the basis for calculating land use tax and land use right transfer tax; calculating land use fee and land rent when allocating land, calculating land use right transfer registration fee, calculating compensation when the State reclaims land. Every year, the city issues a decision approving land prices in the area so that enterprises, individuals and management agencies have a basis for implementation.

 Land use fee: is regulated when the State allocates land with land use fee collection; issues land use right certificates to subjects that must pay land use fee; and builds high-tech zones, industrial zones, and economic zones.

 Land rent: regulations for domestic entities leased land by the State and foreign investment forms in Vietnam. The land rent frame for domestic organizations leased land by the State is a certain percentage applied to two main industries: production and trade-services, based on the land price issued by the People's Committee of the province or centrally-run city.

 Compensation for damages: The State only recovers and compensates for land used for security, national defense, national and public interests, construction of industrial parks, export processing zones, economic development zones and large investment projects. For appropriate production and business projects

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