[ad_1]
The land price on Cach Mang Thang Tam Street increased many times after the ground clearance for the No. 2 subway project – Photo: QUANG DINH
The measures to address the increase in land value in infrastructure development projects is to reclaim the land adjacent to the infrastructure for resettlement and auction.
That is one of the contents of the Land Management project and the direction of effective land use in the city that has just been approved by the HCMC Popular Committee.
Under this scheme, the people whose lands are acquired in the infrastructure project and the additional lands acquired will be relocated to the site with a smaller land area, inversely proportional to the increase in land prices caused by the infrastructure.
The redundant land area after resettlement will be re-planned and auctioned to finance the project itself.
According to the plan, the plan for the acquisition of additional land and resettlement will be discussed with the affected community. If the majority of people agree (about 2/3), the plan will be approved.
A minority of people do not agree to choose: accept the plan or that the State take back the land.
In reality, when the state invests in infrastructure works (generally by opening new roads or widening old roads), the prices of land on both sides of the road increase many times compared to before.
People whose land is acquired for road construction often do not benefit from this opening of roads. On the contrary, those who do not clear their land suddenly reap a large profit from rising land prices without having to pay taxes or fees.
Meanwhile, the state spent money to build roads and invest in infrastructure, but there was no mechanism to recoup this huge difference.
Previously, Ho Chi Minh City applied this model in the project to open Nguyen Huu Tho Street from District 7 to Nha Be. Subsequently, there are many projects proposed to apply this model, such as the Nguyen Van Troi street expansion project – Nam Ky Khoi Nghia street or the subway line 2 project along the Cach Mang Thang Tam highway but they have not been approved.
