A recent report on land management revealed a number of problems in defining land price frames in Hanoi and HCM City.

 Low official prices in Hanoi's most desirable areas

The Government's report on land use management from 2011 to early 2012 concluded that the price gap is too large, making it difficult to control prices.

According to the report, "Land prices of the Government's frame are not keeping up with market prices in cities. They are  only 30%-60% of that of market prices. The Government's price frames need to be updated."

Hanoi and HCM City have kept the official price of VND81 million (USD3,881) per square metre from previous the year. Industrial land prices have been listed at only 55-80% of that of residential areas.

Only 6 out of 63 localities hired consultants to adjust official land prices. Nearly 6,000 organisations that own a total of 74,000 hectares have been found to violate land use regulations as of June 8.

Management agencies have ordered these organisations to adhere to regulations, under the threat of withdrawal of their land use rights. So far they have been fined a total of VND96 billion (USD4.6 million).

Last year the Prime Minister requested the Ministry of Natural Resources and Environment to review and deal with any violations in Bac Giang, Bac Ninh, Hung Yen, Vinh Phuc and Phu Tho provinces.

In the last six months of 2012, the Government will inspect the management of industrial areas, tighten control over land use and deal with citizen complaints.