This is a very important issue in prices of real estates. - At present, the determination of land prices in projects is assigned to the People's Committee of provinces through adjustment coefficient k of the common land price.

For example, the latest in Hanoi is the decision  No 188 dated January 14, 2016 and in Ho Chi Minh City is Decision No 35 dated July 14 2015. In Decision No 188 of Hanoi, land prices in 4 urban districts are applied coefficient k ≥ 1.9 compared with the common land tariff; Thanh Xuan and Tay Ho Districts  are ≥ 1.8; In Ho Chi Minh City, according to the Decision 35, the coefficient in Districts 1,3,4,5,10,11 ... is 2; In District 6, Binh Thanh and Tan Phu Districts  is 1.8, etc. In addition, if the land use coefficient when  approval for architectural planning is 6 - 8 times, if the land use coefficient increase 5 - 10 times, the land price shall increase 15%, etc.

In Hanoi, we also consider the profitability of the project to increase the coefficient k beyond the provisions in Decision No 188. So we can see that the price of land in our real estate is very high. usually take 20-25% of the price of real estate (not included the cost of land clearance). This is one reason that house prices are rising. Not to mention the payment of land use fees in the crisis years of the real estate market (2011 2014), land use fees were paid in several installments, but these incentives have been eliminated. The land must be paid immediately, usually only 2 - 3 times to pay off. This is a burden for the real estate businesses because normally at that time houses have been not sold, but businesses have to pay amount of construction and land at the same time is too difficult.

Therefore it is recommended that related ministries coordinate with the related sectors to study and consider the removal to reduce the burden on the enterprise both in terms of land price and method of land payment.