financial resources from land becomes an urgent task. Therefore, I chose the
topic "Exploiting financial resources from land in Hai Duong province" to
carry out my doctoral thesis.
2. Research objectives and tasks:
The thesis aims to clarify the theoretical and practical issues of exploiting
financial resources from land, identify factors affecting the exploitation of financial
resources from the land of Hai Duong province in the past, thereby proposing a
system of scientific and practical solutions to effectively exploit financial resources
from the land of Hai Duong province to 2025, vision to 2030.
3. Object and scope of the study:
3.1. Study object
Research object: Current situation of exploiting financial resources from
land in Hai Duong province in the period of 2000-2015 and influencing factors
3.2. Study scope
- Location: Hai Duong Province
- Time: 2000-2015
4. Approach and method of the study
4.1. Approaching method:
To achieve the research objectives and research questions, the topic will
have to go through the main stages: collecting and selecting documents directly
related to the research topic. Moreover, the approach of the topic also through
the processing of documents, data, evaluation and analysis, draw scientific
conclusions about the nature of the problem, the cause of the problem, from
which to propose policy recommendations for Hai Duong province.
In addition to the above approach, the topic also uses the following
approaches: Accessing history; System approach, interdisciplinary approach;
Access from secondary documents.
4.3. Data collection methods:
On the basis of the theory of the history of economic doctrines and related
theories and on the basis of the method of dialectics and historical materialism,
the thesis uses the following methods:
- The project will use the database mainly from Hai Duong Department
of Natural Resources and Environment, Hai Duong Department of Finance,
Tax Department, Provincial People's Committee, Hai Duong Statistical Office.
1. The urgency of the thesis topic:
Land is an important resource of each country, how to use that resource
effectively mainly depends on exploiting financial resources from the land.
However, in fact, exploiting finance resources from land is not commensurate
with the potential and legal policies promulgated. Lowering the price of land
in many localities is not close to the price of government land and is not close
to the land market in order to peculate, causing lost of financial resources from
the land. Hai Duong is in a similar situation. Since the re-establishment of the
province in 1997, the process of urbanization, industrialization and rapid
economic development have helped Hai Duong to gain more and more
financial resources from land, make contribution to the stability of budget
revenue of the province. But latent in the huge amount of money collected from
the province's land are immeasurable consequences: land is undervalued in
comparison with the government's land price frame, much lower than the market
land price ; Tax evasion and land tax frauds also occur frequently due to weak
land appraisal, land reserve fund is not much while more and more planning
projects are suspended, land is deserted ... not receiving financial income from
land. The phenomenon of investment, profiteering and corruption of the land has
become increasingly serious, causing land sources to be wasted and lost.
For many years, the financial income from land in the total budget revenue of
the province has not increased, the provincial competitiveness has been reduced.
Land resources are being wasted, being profiteered. Many land cases have been
judged. People leave their fields to migrate to urban areas to find their livelihoods.
In other words, the finance resource from land in Hai Duong province has not been
effectively exploited since the re-establishment of the province, and the "bleeding"
of this resource continues to happen when the government recently found that by
the "magic" of a group of land price appraisal council, the land lot at Ton Duc
Thang Street in Hai Duong City is valued at only 30% of the market price.
Research on exploiting land and financial resources is an important topic
for Vietnam today because in the past time we have not effectively exploited
this problem. Moreover, research on practical exploitation of land financial
resources from one locality (particularly Hai Duong province) is even more
scientific and practical. Under current conditions, effective exploitation of
These raw data will be used and developed based on the criteria and methods
of land mobilization, which were built in the theoretical basis, from which to
evaluate and make conclusions and opinions. meeting.
- Summary report on the annual budget revenue and expenditure situation
of the province.
- Annual tax report of the Tax Department.
- Vietnamese documents, policies, circulars, resolutions, laws and
People's Committee of Hai Duong province.
Inheritance: Collect, synthesize, analyze, evaluate documents from
previous studies, selectively inherit these documents.
General analysis: combine the results of qualitative and quantitative
analysis to interpret and conclude issues for research.
- Descriptive statistics and qualitative analysis: collecting and comparing
data in time series on revenues and financial expenditures from land, provincial
budget, GRDP, ... to see the fluctuations among time. Prepare a panel of
experts and use a vocabulary method to find out the factors that influence the
province's financial income from land.
- Quantitative analysis: The thesis will test the model to assess the factors
affecting financial resources from land through Granger causality test to
evaluate the causal relationship of each variable. dependent variable. At the
same time, the study uses time series analysis tools to check the stop and
co-link between data series before conducting the Vector error correction
model (VECM) to check the relationship of factors affecting the total
revenue from the land.
4.4. Data processing methods:
To solve the set objectives and tasks, the thesis uses qualitative research
method combined with quantitative research. In the qualitative research
method, the dissertation collects, analyzes and synthesizes secondary
information to study the theoretical and practical basis in Hai Duong to clarify
the nature of financial resources from land, characteristics of financial
resources from land, methods of exploiting financial resources from land,
criteria to assess the exploitation of financial resources from land and factors
affecting resource exploitation finance from land.
In the quantitative research method, based on the balance sheet of revenue
and expenditure data from the land of Hai Duong province, the thesis maps the
assessment model from the collected data sources, learns and reviews price
factors affecting financial income from land. Factors affecting revenue from
exploiting financial resources from land include: tax revenues and nonagricultural land rent, land use levies, increasing gross domestic product,
increasing sales career. Due to the unavailability of data, there is no common
price index for the locality except Hanoi, Ho Chi Minh and Da Nang.
Therefore, this limits the study to consider the price factor in affecting total
revenues that exploit financial resources from land.
The thesis will test the model to assess the factors affecting the financial
resources from the land through the model of Granger causality test to evaluate the
causal relationship of each variable to the dependent variable. At the same time,
the study uses time series analysis tools to check the stop and co-link between data
series before conducting the Vector error correction model (VECM) to check the
relationship of factors affecting the total revenue from the land.
Compared to previous studies, the research method of the thesis as
mentioned above has not been used by the author in researching and exploiting
land financial resources in Hai Duong. However, this method is considered to
be reasonable in the case of studying land finance in a particular locality.
5. Contributions of the thesis
First, the analysis clarifies the content and criteria to assess the
exploitation of financial resources from land, factors affecting the exploitation
of financial resources from land.
Second, to study the experience of exploiting financial resources from the
land of the two countries (China - which has similar development conditions
with Vietnam) and Australia (countries with a higher level of economic
development) to draw lessons for Vietnam and Hai Duong in exploiting
financial resources from land.
Third, analyzing and assessing the current situation of exploiting financial
resources from land in Hai Duong province, understanding the causes of
exploiting financial resources from the land of Hai Duong province in the past
15 years is still met. inadequate, limited, unable to promote the available
potential of the land.
Fourth, from the results of qualitative analysis (through in-depth
questionnaires, experts and officials directly involved in managing financial
income from land in Hai Duong province), and results quantitative analysis,
further clarifying the factors affecting the exploitation of financial resources
from the land of Hai Duong province over the past 15 years.
Fifth, propose solutions and forecast the results of the proposed solutions
to effectively exploit financial resources from the land of Hai Duong province
to 2025 and vision to 2030.
Sixth, the research results of the thesis will be the basis for land policy
makers and land finance revenue managers of Hai Duong province to refer to
the policy making process as well as to improve public managing and
exploiting revenue from land.
6. The layout of the thesis
Chapter 1: Overview and research gap
Chapter 2: Rationale for exploiting financial resources from land
Chapter 3: Status of exploiting financial resources from land in Hai Duong
Chapter 4: Analysis of factors affecting the exploitation of financial
resources from land in Hai Duong province
Chapter 5: Proposing solutions to effectively exploit financial resources
from land in Hai Duong.
Vietnam. These are important documents, helping the author to formulate his
research direction, providing theoretical and practical bases to help the
dissertation author understand the characteristics, nature and importance of
emblem. dynamic financial resources from land in general, in Vietnam in
particular. However, intensive research is still required to address the
objectives and tasks of the thesis, especially to unify the concepts of financial
resources, financial resources from land, and resource exploitation. finance
from land, clearly defined criteria for assessing financial resources from land,
forms of exploiting financial resources from applied land in the world,
Vietnam and the framework of criteria evaluate channels to exploit financial
resources from land to be used in the thesis. The thesis also needs to study and
evaluate the experience of exploiting financial resources from land in China
and Vietnam, thereby drawing lessons for Hai Duong. Because the events,
issues and analysis are still fragmented, with multi-dimensional assessment,
not updated on mobilizing financial resources from land in Vietnam and Hai
Duong, the task of the thesis is will have to logic these facts, problems
according to the criteria set.
More specifically, in-depth studies on the exploitation of financial
resources from land in Hai Duong province are not many. Documents directly
related to Hai Duong province only stop at the statistics, short articles reflect
the situation of financial mobilization from land for a certain period of time,
without the sequence of That problem in a long process to learn the causes and
solutions. All data and materials that NCS has just stopped at the raw part, need
to be further processed and assessed qualitatively and quantitatively.
Therefore, the task of the PhD student is to inherit the existing theoretical
frameworks, supplement the missing issues in theory, then apply to analyze
and assess the current situation of exploiting financial resources of the land.
Hai Duong province, recognizes this issue in the system of land and financial
policies of the country and assesses the effectiveness of policies from actual
data. Most of the research evaluations on the exploitation of financial resources
from land in Vietnam and Hai Duong have stopped in qualitative research, and
the author's author has not found a quantitative research on this issue. .
Therefore, this is a completely new topic, which needs to be studied in a full
and updated way to clarify the research objectives of the topic.
OVERVIEW AND RESEARCH GAP
1.1. Overview of domestic and foreign research on exploiting land
The domestic and foreign research projects related to the thesis are
generally not much and not directly related to the thesis topic. For overseas
research projects, the thesis can acquire a number of concepts related to land
taxes, property taxes, basic characteristics of land tax revenues, factors
affecting taxes. land or some solutions to more effectively manage land
income. These documents are the scientific basis for PhD students to build
theoretical frameworks and practical experience in exploiting financial
resources from land. However, the evaluation perspective and approach of the
foreign documents are very diverse, it is necessary to continue research to have
a consistent direction for the thesis.
For domestic research projects, there have been a number of works in the
form of doctoral dissertations, scientific articles, newsletters ..., but only at
studying policy issues. harnessing financial resources related to land in
1.3. Research gap
Inheriting domestic and foreign research works, the thesis continues to
study systematically, logically, updated and comprehensive about exploiting
financial resources from land in Hai Duong province during the time. There is
currently a "gap" in theory as well as assessing the reality of exploiting
financial resources from land in localities. The thesis topic will continue to
exploit research gaps in some of the following basic issues:
First, from the review of studies related to the thesis topic, the author
found that theories related to the exploitation of financial resources from land
have been formed and proven in many developed countries and have a broad
range of management science. However, these theories also need to be proved
appropriately or need to be adapted to the conditions and characteristics of
Vietnam, especially in Hai Duong, which is chosen as the research context.
The author of the thesis will focus on clarifying the theoretical basis of the
content of the research topic that previous studies have not fully implemented,
including tools to exploit financial resources from land and types of financial
revenues from land and management methods to ensure proper, full and timely
collection of financial revenues from land and valuation methods to mobilize
financial resources from land , the level of exploitation of financial revenues
from land, factors affecting financial income from land .... Research results of
the thesis can supplement the existing theoretical basis for the exploitation of
financial resources from land and will make sense for implementing
management mechanisms to exploit financial resources from land in the
Second, there have been a number of studies on exploiting financial
resources from land in Vietnam. However, those studies are old, requiring the
thesis to continue to study, supplement and update to assess new characteristics
and trends in exploiting land and financial resources in Vietnam, from which
draw lessons for Hai Duong.
Third, there is no in-depth study on the exploitation of financial resources
from land in Hai Duong and specific solutions to effectively exploit financial
resources from land. Therefore, the author's task is to understand and evaluate
the effectiveness of policies to exploit land and financial resources in Vietnam
in general and Hai Duong in particular, to understand the causes of policy
constraints in Vietnam. Hai Duong, then proposed solutions to improve the
efficiency of exploiting financial resources from the land of Hai Duong
province in the coming time.
Fourth, implementing surveys and investigation on the exploitation of
financial income from land, advantages, limitations, factors affecting the
exploitation of financial income from land in Hai Duong province to verify to
complete the research gap that the previous authors have not yet implemented.
Fifth, there are no in-depth studies on exploitation of land financial
resources in Hai Duong province, so there are no practical and scientific
proposals on effective exploitation of finance resources from the land of the
province in the coming time. This is a research gap that requires the thesis to
clarify to propose solutions in land management and financial management
from land for Hai Duong in the future.
With the issues of further research and the above theory and practice, the
topic "Exploiting financial resources from land in Hai Duong province" is a
completely new topic both in theory and reality, is urgent in practice. In the
process of researching and writing the thesis, student can refer to and inherit
some basic arguments related to the exploitation of financial resources from
the land, the conclusions drawn from the implementation of land financial
policies in the previous period, the research methods that the previous authors
have announced to use ... to improve, develop and supplement the identified
RATIONALTE FOR EXPLOITING FINANCIAL RESOURCE
2.1. Overview of land and financial resources from land
2.1.1. Overview of land: The concept of land; Characteristics of land; The
role of land in economic development; Organization of land management
2.1.2. Financial resources from land
- Concept of financial resources from land
+ Financial resources: is the amount of value expressed in monetary form,
formed during the process of creating and using monetary funds to meet the
spending requirements of the state to serve national socio-economic
development goals. Financial resources can be exploited from a variety of
resources, including land resources.
+ Financial resources from land: are the state budget revenues from land
to serve the needs of the state for the socio-economic development objectives
of a country.
- Characteristics of financial resources from land
First, the financial resources from the land and the supply of inputs are
investment capital for production and business activities for enterprises, but at
the same time adding revenue sources for the state budget to serve the
apparatus operation and implementation functions of the state.
Second, financial resources from land can only be effective if governments
use appropriate financial tools to exploit land in localities, including urban land
and agricultural land.
Third, the financial resources from land basically only promote the real
role when it is managed transparently and effectively.
Fourth, financial resources from land are tightly bound, legally comprehensive
and subject to strict state management to properly regulate this resource.
2.2. Exploiting financial resources from land
2.2.1. The concept of exploiting financial resources from land:
exploiting financial resources from land is understood as the process of using
legal forms and policy tools to obtain money from land to create development
investment capital for the state budget to serve the national socio-economic
2.2.2. Forms and tools to exploit financial resources from land:
* Form of exploiting financial resources from land: direct exploitation,
* Tools to exploit financial resources from land: Collection of land use
fees, land rent; Collect land use tax; Auction of land use rights; Collection of
fees and charges; Contributing capital in joint ventures with the value of land
use rights; Collecting income tax from activities of transferring land use rights;
Determining the value of land use rights to calculate into the value of
enterprises when equitizing
2.2.3. Criteria for assessing the level of exploitation of financial
resources from land
* Qualitative evaluation criteria: Validity criteria; Performance criteria;
* Quantitative evaluation criteria: Criteria for increasing the size of budget
revenue from land; Criteria for measuring the degree of diversity of forms of
exploitation of financial resources from land: Criteria for shifting use purposes
among land categories, Criteria for assessing expenditures from land; Criteria
for the results of budget revenue and expenditure
2.2.4. Factors affecting the exploitation of financial resources from land:
22.214.171.124 Elements of land resources: Physical characteristics of land;
Location of land distribution; The current and future profitability of the land
126.96.36.199. Economic factors: Economic growth rate of each region and
certain territories; The growth and development of enterprises in the region
and locality that the level of economic development of the locality and certain
188.8.131.52. Policy factors
184.108.40.206. Land management mechanism
2.2.5. Models and research methods
220.127.116.11. Research model on factors affecting the exploitation of land
financial resources in Hai Duong
Among the most influential factors to exploit Hai Duong's land financial
resources, four factors can be listed: 1) The province's increase in gross
domestic product (GDP). 2) An increase in the number of enterprises in the
province; 3) Land profitability; 4) Land price.
18.104.22.168. Research Methods
- Qualitative research methods:
- Quantitative research methods
2.3. Experience in exploiting financial resources from land for Hai
2.3.1. Experience in exploiting China's financial resources
2.3.2. Experience in exploiting land financial resources in Australia
2.3.3. Lessons learned for Vietnam and Hai Duong in exploiting
financial resources from land
exploiting financial resources from the land, creating favorable conditions for
investment activities on land production, increasing efficiency. land use and
encourage land to better serve socio-economic efficiency.
Second, experience in developing and promulgating policies on revenues
from land. For current land revenues policy, there are two trends in the world:
one has a separate tax policy applicable to all types of land; The second is to
include a multi-tax system, each tax targeted at a number of specific taxpayers,
whichever trend of land tax depends on the purpose of the state, conditions of
customs and operation the reality of that country.
Third, building and managing land and revenue from land. In order to
effectively manage land and manage land resources, land use plans and plans
must be at the forefront. Managing land records, building a system of land
information data in a uniform and synchronous manner, on the basis of modern
electronic information technology from the central to local levels, will help
manage land well. than.
Fourth, the experience of the countries showed that they all set tax
exemption and reduction levels depending on each case. Exemption from land
acquisition depends on land use purposes, ensuring fairness, limiting negative
causes of revenue loss. Tax exemption and reduction must also follow a unified
principle of encouraging the development and expansion of production,
protection of land resources and in accordance with socio-economic
STATUS OF EXPLOITING FINANCIAL RESOURCES FROM
LAND IN HAI DUONG
3.1. Overview of land situation in Vietnam and Hai Duong
3.1.1. Situation of land use in Vietnam
3.1.2. Land use situation in Hai Duong
+ The area in use of the province accounts for 99.66% of the natural area,
proving the province's level of land use and exploitation is very high.
+ Decreased agricultural land to settle land for other purposes and to
demand for urbanization and industrialization.
+ Non-agricultural land increased along with the process of natural
population growth and the development of transport infrastructure, irrigation,
industry and other construction works.
+ Unused land is gradually reduced due to renovation and agricultural
production and used for other specialized purposes.
3.2. Legal foundation for exploiting land’s financial resources in Hai Duong
3.2.1. Policies and laws of the state create a legal basis to exploit land
- Legal basis to exploit land financial resources from the constitution and the
Ministry of Law, Land Law 1987, 1993 (amended in 1998, 2001), 2003, 2013
3.2.2. The bases for calculating financial revenues from land: (1).
Collection of land use fees; (2) Land rental fee when leased by the state; (3).
Land use tax; (4). Income tax from land use right transfer; (5) Registration fees
and charges; (6) Money collected from sanctioning land violations
3.2.3. Government land price frame and land price list of Hai Duong
- Government land price frame
- Land price list of Hai Duong province: In the period of 2010-2015, the
land price list in Hai Duong tends to increase, but in general there is not much
change. In particular, land prices vary greatly between cities, towns and towns.
The land price of Hai Duong (like the whole country) is based on the land
price frame issued by the government, but most of the maximum price in the
land price list of Hai Duong is much lower than the general regulations. .
3.2.4. Organize land management apparatus and exploit financial
resources from land in Hai Duong
Land in Hai Duong is planned and land use plan according to 3 levels:
provincial, district and commune levels.
Regarding the apparatus for managing financial revenue from the land
of Hai Duong province: Based on the Land Law, government decrees
relating to land, planning and land use plans, circulars of the government
and the Ministry of Finance on methods of determining land prices, land
price brackets, price lists of financials related to land, and on the basis of
use purposes, land use plans and only For land use in the province, Hai
Duong has made a plan to balance land and income.
3.3. Current situation of exploiting financial resources from land in
Hai Duong province
3.3.1. Exploiting financial resources from land in Vietnam
3.3.2. Exploiting financial resources from land in Hai Duong province
22.214.171.124 General situation:
Revenue from land tends to increase rapidly in the last 15 years, especially
in recent times when the Land Law 2013 took effect. Of the total financial
revenue from land, the revenue from land use fees accounted for the highest
proportion, accounting for 71% in 2000, 91% in 2010 and 51% in 2015;
followed by revenue from land rent (accounting for 12% of the total revenue
from land in 2000, 8% in 2010 and 46% in 2015. Other revenues from nonagricultural land use tax, auction of land use rights , taxes on land, rent and
sale of state-owned houses, compensation for damages ... account for a very
small proportion, many years seem to be zero.
Since land is a limited resource, cannot be added, relying on the land price rise
and fall in the market and the government's preferential policies change, the income
from land resources in the period 2010-2015 period is not sustainable.
126.96.36.199. Exploiting revenue from land in some key areas
* Income from land use fees
Revenue from land use accounts for the largest proportion of the total
income from land in Hai Duong. The revenue from land use is one of the
significant revenues contributing to the provincial budget and is the leading
source of revenue in the field of land finance collection.
Compared to the annual plan (estimate), the land use levy has yearly
exceeded the plan, but there are years that the plan was not completed.
* Rent of land and water surface: Revenue from land and water surface
rental since 2000 has continuously increased and is the second most important
source of land for Hai Duong province.
Among the rent from land and water surface, there is an increasing
contribution of foreign invested enterprises in Hai Duong province.
Although it is the fastest growing source of revenue from land in Hai
Duong province, this source of income does not always meet the set budget.
* Non-agricultural land use tax
Income from non-agricultural land use tax in Hai Duong is relatively small
and unstable. While the area of non-agricultural land accounts for 40.3% of the
total land area in Hai Duong (in 2015), the non-agricultural land use tax
accounts for a relatively small proportion of the total financial income from
land in the province (accounting for 4.18% in 2014) shows that Hai Duong is
wasting from this resource. The explanation for the low tax on non-agricultural
land is due to the land price table and the tax rate is too low (0.03%, 0.07% and
0.15%), causing spreading land speculation problems and give up fallow real
estate, reduce revenue increase for the budget.
- Revenues from other land-related taxes: In the mode of exploiting
financial resources from land and other land-related tax revenues in Hai Duong
(including non-agricultural land use tax, auction of land use rights, land tax
fees, rent and sale of state-owned houses, compensation for losses) account for
a very small proportion. In 2000, these revenues were only VND 78 million,
in 2010 reached VND 764 million and in 2015 reached VND 5,568 million,
accounting for 0.46% of the total revenue from land in 2015.
3.3.3. Assessing the situation of exploiting land and financial resources
in Hai Duong
188.8.131.52. The results achieved
Firstly, to stabilize the scale of revenue sources in the budget of Hai Duong province
Second, more diverse in the form of exploitation
Thirdly, the management of revenue from land is better organized and
First, it has not fully exploited the financial potentials from land for socioeconomic development.
Second, the rate of outstanding debts from land is very large, causing
losses to the state budget.
Third, land is fallow, used for wrong purposes or profit.
Fourth, have not effectively exploited the form of state-owned houses and
houses for rent
Fifth, there are many weaknesses in the approval, appraisal and auction of
land in Hai Duong
Sixth, managing weak land resources makes the collection and
expenditure of the land seriously imbalanced
First, the land price in the province's land price list is lower than the land price
frame issued by the government and lower than the actual land market price.
Second, the tax rate is too low, affecting the financial income of land.
Third, the competency level of the team involved in mobilizing and using
revenue from land has not met the demand.
Fourth, lack of sufficiently strong sanctions to thoroughly handle cases of
failing to fulfill land financial obligations, or improperly using land for
organizations, households and individuals.
ANALYSIS OF FACTORS AFFECTING THE EXPLOITATION OF
FINANCIAL RESOURCES FROM LAND IN HAI DUONG PROVINCE
4.1. Qualitative analysis
The thesis has conducted in-depth interviews with 15 officials working on
land finance at the Provincial People's Committee (5 people, accounting for
33.3%), the Department of Finance (5 people, accounting for 33.3%), the
Department Hai Duong tax (5 people, accounting for 33.3%) aims to exploit
the factors affecting the land income of Hai Duong province in recent years.
The structure of interviewers is as follows: Chief of Provincial People's
Committee Secretariat (1 person, accounting for 6.7%), deputy chief of the
office (3 people, 20%), head of department (2 people, 13.3%), Deputy Head of
department (5 people, 33.3%), civil servants (2 people, 13.3%), specialists (1
person, 6.7%), technicians (1 person, 6.7%). The purpose of the survey is to
find out the factors affecting the financial income from the land of Hai Duong
province. Subjects of the study are management leaders and officials in some
functional departments of Hai Duong province related to the management of
financial income from land. With the number of research samples is 15 people,
the experience of qualitative researchers in many fields shows that the number
of samples is reasonable because it is representative, reliable enough to get
information in departments in Hai Duong province, including provincial
People's Committee, finance department, tax department. By the method of
vocabulary study, the author has statistics of the answers of the respondents,
included in the statistics table and analyzed the frequency of responses.
Through in-depth interviews with officials of the Provincial People's
Committee and the Tax Department, Hai Duong Tax Department, it can be seen
that most officials think that natural factors (physical characteristics of land,
allocation location of soil, land profitability) has the most important effect (highest
frequency of answers). Policy factors play a second important role, in which the
majority of officials respond to the most important factor of the policy group,
namely land prices, land taxes and management human resources training
(frequency highest reply rate). The group of economic factors (GDP growth rate,
per capita income, the development of enterprises) is considered to affect the
income from land but not much (low response frequency).
4.2. Quantitative analysis
Quantitative analysis is based on economic variables such as: land
profitability (through major revenues from land), the development of
enterprises in the province, increasing the gross domestic product, to reexamine the factors affecting the land's revenue. The basis of the selection of
these factors is based on, first of all, the balance sheet of local financial
revenues of chapter 3. In addition, the study also argues that the strong
economic development of a local through the increase of local gross domestic
product, may require more land use and thereby increase revenue from land
use. Finally, business is an important subject in the economy. The increase in
the number of businesses can lead to a higher demand for ground for
production and business, and thus this in turn can increase the financial income
of land use at local. In addition, changes in revenue from land use can be
influenced by other important factors such as changes in land prices. However,
due to the unavailability of data, there is not yet a common index of prices for
localities except Hanoi, Ho Chi Minh and Da Nang. Therefore, this limits the
study to consider the price factor in affecting total revenues that exploit
financial resources from land.
- Descriptive statistics and data sources
- Test of causality and check the stationary of the data series
- Estimating the relationship of variables to total revenue from exploiting
financial resources for land use
The results show that the growth rate of the local economy has a great
influence on the financial resources from the land. This can be explained by
the fact that, when economic growth, the demand for investment, employment
and expansion of production facilities is correspondingly increased. That is the
foundation for an increase in tax revenue, including revenue from land taxes.
In addition, when production facilities expand, demand for space for
production will increase. Thus, the creation of vacant land for production
development is an essential requirement for economic development. Besides,
the increase in gross domestic product can improve people's income, create a
more favorable investment environment, hence, there will be a tendency to
participate in the production market of the people. That is the basis for
increasing revenues from the State.
However, it is paradoxical that the increase in the number of enterprises
has a negative impact on the total revenue from land use. This may reflect that
the increase in the number of registered businesses does not reflect the true
development status of the enterprise because the phenomenon of virtual
registration or registered and only works perfunctorily.
As expected, the impact on land use revenues shows that this revenue also
has a positive impact on the total revenue from the exploitation of land use
financial resources. As explained in the volatility analysis, this is one of the
most important factors affecting the total revenue from land use.
Functions that respond to shocks during the study period are 10 seasons
(6 months), whereby, the changes in total revenue from land and land use have
an immediate impact on the total revenue from the exploitation of land use
capacity in the first quarter, the strongest impact is from phase 1 to stage 4.
Collecting taxes and rental income also has an immediate reaction, with the
most impacted numbers in the third stage, then fades out at the next stage of
research. However, the shock of change in the number of enterprises tends to
reduce the change in the total revenue from the exploitation of land resources.
Variance decomposition is also used to assess the importance of different
shocks when explaining the variation of each indicator. The results show that
in the first quarter, past values accounted for more than 90% of the fluctuations
in the number of enterprises, land use, especially the volatility of total revenue
was affected almost 100% from the shock created by itself. However, in
subsequent cycles, the fluctuation of other factors is also quite important to the
change in total revenue from the exploitation of financial resources for land
use. Specifically, at the end of the cycle, the change in revenue from land use
explained and the gross domestic product in turn explained over 20 percent of
the change and nearly 10 percent of the fluctuation of the total revenue from
exploit financial resources for land use.
5.1.2. Land development planning of Hai Duong province to 2020 and
vision to 2030
On November 15, 2011, Hai Duong People's Committee issued Decision
No. 3155 / QD-UBND approving the planning of Hai Duong province area to
2020 with a vision to 2030. This plan outlines the following issues: Forecasting
land use; Major axis choices and development corridors of Hai Duong
province; Developing by functional areas: Including 3 large development
spaces; Orientation for regional space development in Hai Duong province;
Industry development orientation; Agriculture and forestry development
orientation; Planning of urban system development; Development of the
system of social infrastructure works.
5.2. Proposing solutions to effectively exploit land financial resources
in Hai Duong
5.2.1. Viewpoints and principles for proposing solutions
First, the proposed solutions must ensure a rapid increase in financial
income from land but must also ensure sustainable development.
Second, the proposed solutions must ensure the rational and efficient use
of land resources and ensure to maintain the available planning.
Third, solutions to exploit financial resources from the land must ensure
that there is no bubble in the land market, affecting the socio-economic
development of the province.
5.2.2. Specific solutions
First, raise land prices to fully and accurately reflect the actual value of
land in the market in Hai Duong
- Valuation of land for tax calculation must be based on the value of land
and close to the market price, gradually reducing the gap between the price of
land and the actual price.
- Land valuation depends on many factors such as natural characteristics
of land, land position, profit value of land, land area and many other factors
such as intellectual level, population income, qualifications economic
development, business environment ...
- It is necessary to quickly develop electronic software for land and land
data systems across the province to support the analysis of land price
information in the market, support land valuation, publicize land prices for
PROPOSING SOLUTIONS TO EFFECTIVELY EXPLOIT
FINANCIAL RESOURCES FROM LAND IN HAI DUONG
5.1. Viewpoints and objectives of socio-economic development and
land planning in Hai Duong by 2020, vision to 2030
5.1.1. Views and objectives of socio-economic development by 2020,
vision to 2030
people and Management levels are known, to avoid obscure information or
conceal information about land prices as currently happening in Hai Duong.
- For urban land: In the short term, it is necessary to raise the price of land
in Hai Duong city, Chi Linh town and other towns, at least equal to 80% of the
land price frame issued by the government for the region. urban areas (depending
on each type of urban center) based on the method of mass valuation and
specialization; In the long term, aiming to raise land prices closely to market prices
(at least 70-75% of the market price according to international standards) after the
Decree 104/2014 / ND-CP is amended in the future.
- For agricultural and forestry land: in the short term, it is necessary to
raise the price of agricultural and forestry land at least equal to 70-80% with
the land price bracket issued by the government and there is no big difference
with the price of agricultural land. Industry in neighboring provinces has
similar land conditions as Hai Duong.
- Improving the capacity of valuation team, selecting plans to determine
land prices, consulting land prices, assessing land prices.
Second, expand the subject of land tax to improve financial income from land.
- Application of information technology to manage information on land
plots and taxpayers. This database is intended for tax administration, limiting
loss of tax revenue, enhancing the control role of management agencies.
- Narrow the subjects of tax exemption and reduction by closely
scrutinizing the subjects who are prioritized to reduce land tax and land rent,
avoiding cases where many subjects take advantage of the State's exemption
and reduction policies to avoid tax payable obligation.
- Expanding the tax base compared to the current one, in which flexible
basis for calculating land tax according to the value of land, land and property
positions on the land ... That is, the tax base should be based on the actual value
due to effective exploitation and use of land.
- It is necessary to narrow down the subjects that are allocated land without
collecting land use fees, gradually shifting the public autonomy and financial
autonomous units into the form of land lease. To review all projects entitled to
land use levy exemption and reduction policies and land rents throughout the
province to gradually reduce the subjects entitled to exemption from land use
levies and land rents; switch to other incentives for businesses to increase
control and improve policy effectiveness.
- Need to speed up the review, arrangement, handling of houses, land
owned by the state and public land areas that have not been put into use.
- Enforcing and taking appropriate sanctioning forms for violations and
false declarations of dossiers entitled to land tax exemption and reduction and
Third, apply a solution to regulate the added value of land by investing in
the development of infrastructure systems.
- Create a land fund on both sides of the road, also known as a method of
removing excess soil on both sides of the road, or a double clearance
- Transparency of land exchange method for infrastructure in the form of BT to
effectively implement infrastructure development projects in Hai Duong.
Fourth, improve the efficiency of financial revenue from land.
First, building a land information system: To build a unified land database
information system, it is necessary to ensure the following principles:
- Collect data, selectively record the amount of information for each parcel
of land and the number of land plots, real estate on the land and at the same
time conduct periodic update activities.
- Accurate mapping to ensure accuracy when land valuation.
- Information must follow clear criteria, standards and requirements of the
whole system, avoiding the situation of each locality setting a separate
standard, not merging with the entire information system on land belts across
the province as well as the whole country.
- The provincial land database must be elaborated, including: Database on
legal documents on land; Cadastral database; Basic land survey database;
Database of land use planning and plans; Land price database; Land statistics and
inventory database; Database of inspection, examination, dispute settlement,
complaints and denunciations about land; Other database related to land.
Second, improve the efficiency of tax collection: This reform firstly needs
to automate the preparation and delivery of land tax receipts, coordinate with
the banking system to implement the functions of collection accountant,
cashier. Tax codes need to expand to many objects to take advantage of the
revolution in technology 4.0 in information review, tax registration, tax refund
records management, tax filing and risk management in tax collection, to
encourage the expansion of subjects to pay housing taxes and better manage
the current land-related tax system.
5.2.3. Solutions on organizing the implementation of land revenues
- Strengthening organizational structure: Correcting departments and
agencies related to land management and land resource management. Organize,
arrange, restructure and improve the quality of work of the Department of
Natural Resources and Environment, Department of Finance, Tax Department,
and many other departments. Review and adjust the regulations related to the
functions and tasks of the relevant agencies to ensure consistency and effective
coordination. Completing the apparatus of managing land revenue must also be
associated with the task of improving the professional qualifications and
management capacity of the staff performing land management, especially
commune officials. The professionalism of this team needs to be improved, both
professional management and behavior, contact with people and businesses.
- Completing land collection planning: Strictly controlling land sources,
regularly inventorying, reviewing and timely grasping the number and operation
status of enterprises and business households to be able to manage good sources
of taxes, fees and charges related to land. Promote land acquisition as per planning,
create clean land fund for auction. Carrying out bidding for projects using land,
limiting land allocation and land lease by the designation method to ensure
openness, transparency and equality in access to land information for objects with
demand for land use. For public land fund, thoroughly implement the allocation and
lease of land, including cases of changing land use purposes, changing from land
lease to land allocation and vice versa. Planning work must follow the regional and
sectoral master plans of Hai Duong province until 2030, vision of 2050 to have a
basis for calculating specific resources, maps and plans to avoid misuse general data,
using wasteful resources, ineffective and unclear responsibility for each subject.
Enhance the role of forecasting revenue from land.
- Completing the organization of implementing the plan to collect land.
Clearly defining the roadmap to build a system of land prices suitable to the
market, independent of the administrative apparatus in each year in accordance
with each region; determine the fee level with exemption and reduction
policies for each specific target group, forming a transparent and fair collection
system. Revenue from land system must also follow the direction of reducing
land allocation with money collection, increasing the form of land lease from
the state, reforming the land use tax system. The non-agricultural land use tax
system focuses on the first reform of the land use area of enterprises, combined
with the reform of corporate income tax. For areas that use non-agricultural land
of households, individuals need to tax on both land and houses with increasing
rates in accordance with the increase in income, high progression for cases with
but not using or use more than the average limit in society. The feasibility of this
reform solution depends entirely on the determination of the management system.
- Strengthening inspection and examination in the process of land
management and use: Strictly dealing with violations of tax laws in the field
of land. Land inspection and monitoring in Hai Duong province in the coming
time should be emphasized on measures to inspect land allocation, lease and
change of land use purpose; inspecting the issuance of land use certificates;
inspecting the compliance with the law of financial collection from the land of
the state and the complaints and denunciations of people about negative acts,
violating the sources of land and financial revenues; inspections of land
acquisition and compensation for people; inspectors on the regulation of land
prices between adjacent areas, sensitive areas that make land users feel unjust
and disadvantaged; At the same time, the transparency of the province's land
use should be inspected in accordance with the plan and schedule.
5.2.4. Expected results
184.108.40.206. Short-term expectation results:
By implementing and organizing the implementation of the above solutions,
the expected results in the short term for Hai Duong province will be:
- Financial income from land will increase, no longer suffering from
erratic decline as in the past.
- Gradually adjust the land price adjustment coefficient in some areas of
Hai Duong province.
- Expanding tax bases, limiting those who enjoy tax exemption and
reduction regimes to increase land revenues.
- Information system on land database began to be formed as a basis for
land valuation and land resource management.
- Strengthening forms of land leasing through auction of land use rights.
- Stricter management of financial income from land, avoid loss and
waste. Enhance the work of land inspection and examination.
- Diversify financial income from land, focus on exploiting revenue
sources other than land use fees.
- The organizational apparatus for management of land financial revenues will
be completed, actively supporting the management of financial income from land.
- Strengthening administrative reform and land management.
220.127.116.11. Long-term expected results:
- Taxes will be the main source of income from land in Hai Duong province.
Tax rates will be raised in accordance with the actual socio-economic development
conditions of the country and the tax base is expanded to both land and buildings
on the land, creating a fast and sustainable revenue increase from land.
- The land price table will be adjusted to be close to the land price frame and
close to the market value, quickly increasing the financial income from land.
- Formulating a modern, detailed, complete, interconnected, strong and easily
accessible land database, in order to more strictly manage the financial income from
land, savings and reduce administrative fee related to land finance.
- Forming a center for development of one-level land fund for adequate
funding sources to recover land and create land funds for socio-economic
- Collecting taxes from the land will increase dramatically, helping the
provincial government to have more budget revenue to provide public services and
public utilities to the people, meeting the local economic development process.
- Tax exemption and reduction policies will no longer work and land
taxpayers will increase rapidly, creating an abundant source of revenue for the
- The apparatus for implementing and managing land finance is modern and
effective and suitable with the development of smart Hai Duong City model.
- Good implementation of the above solutions will arouse "wealthy
dollars" in the land of Hai Duong province. Exploiting financial resources from
land will be based on the value added from the land, becoming a sustainable
revenue source for the provincial budget.
Among other forms of exploitation of financial resources from land, Hai
Duong in particular only focuses on exploiting land use fees, land rent and land
taxes, while other forms such as auction of rights land use, tax fees relating to
land, equitization of enterprises and sale of houses / land owned by the state ...
have not been effectively exploited. Financial resources from the land in Hai
Duong in recent years have positive exploitation signals, creating bigger and
bigger revenue sources, diversifying more than exploitation forms, but its
contributions to the home budget, GDP and socio-economic development of
the province are still modest. The balance of revenues and expenditures from
the land continues to be widened, in which expenditure for land is relatively
large, making the real effect of financial resources from land in Hai Duong
province not much and unstable. There are many different causes leading to
this situation, including the causes of policy, implementation organization and
problems of capacity, corruption, human resources, and many other causes.
Over the past time, Hai Duong has a complex land market, has many longstanding complaints related to land, real estate market has continuously
increased heat ... These problems are partly due to ineffective land
management in the province, land financial resources are wasted, land prices
are not in line with market trends. Exploiting financial resources from land
effectively, openly and transparently, in line with market trends not only brings
the optimal financial and economic benefits, but also contributes to
maintaining social stability, creating equal opportunity for all people to access
land assets and business opportunities, thereby contributing to Hai Duong's
socio-economic development. Therefore, in order to ensure the effective
exploitation of financial resources from land in the coming time, Hai Duong
needs to continue to consider land as a precious resource that cannot be wasted
and needs an more effective organizational mechanism, more rigorous
inspections, to avoid insufficient revenue and improper collection and
uncultivated land is not used for the right purpose. In the current system of
policies, laws on land and financial land collection, there are still many
obstacles, it is necessary to continue to study and adjust the rationally,
especially in the issue of land prices and unit rental fee, land allocation and
collection of land use fees for foreign-invested enterprises, exploiting financial
resources from houses / land owned by the state / public.
Mobilizing financial resources from land is a large field, which has
important implications for the socio-economic development of each country
and each locality. With great potential in land, this financial resource, if
effectively exploited, will be a relatively large budget revenue source, meeting
the socio-economic objectives. However, in most developing countries,
including Vietnam, this financial resource has not been effectively exploited
because we have not assessed the great potential of the land and have not
applied well available exploitation method.