Xác định các yếu tố ảnh hưởng và đề xuất giải pháp cho định giá đất trong điều kiện nền kinh tế thị trường – trường hợp nghiên cứu tại thành phố cần thơ TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING
CAN THO UNIVERSITY

SUMMARY OF DOCTORAL THESIS
Major: Land Management

Code: 62850103

PHAM THANH THAO

DETERMINATION OF INFLUENCING FACTORS
AND PROPOSAL OF SOLUTIONS FOR LAND
VALUATION IN THE CONTEXT OF THE
MARKET ECONOMY - A RESEARCH CASE IN
CAN THO CITY

Can Tho, 2021


THE THESIS WAS COMPLETED AT CAN THO
UNIVERSITY

Supervisor: Assoc. Prof. Dr. Phan Trung Hien

The thesis is defended before the university-level doctoral
thesis grading committee
Location:
………………………………..,
Can
Tho
University.

At .....................................................................................

Review 1:
Review 2:

The thesis can be found at:
Learning Resource Center, Can Tho University.
Vietnam National Library.


THESIS-RELATED PUBLICATIONS:
1. Pham Thanh Thao, Phan Trung Hien, 2020. Impact assessment
of land valuation in Can Tho City. Vietnam Journal of Soil
Science No. 61/2020. ISSN 2525-2216. Pages 148-152.
2. Pham Thanh Thao, Phan Trung Hien, 2021. Determination of
influencing factors on land prices in Can Tho city. Science
Journal of Can Tho University, Volume 57, No. 1/2021. Pages 815.
3. Pham Thanh Thao, Phan Trung Hien, 2021. Application of
multi – criteria analysis in assessment of factors affecting land
price in Can Tho city. Vietnam Journal of Soil Science No.
61/2020. ISSN 2525-2216. Pages 165-170.


Chapter 1. Introduction
1.1 Introduction
Land is a commodity with distinct characteristics: each parcel of land
has a particular location and attributes that cannot be compared to other
parcels of land, as can be performed with ordinary goods. As a result,
land market prices are highly individual, based on the market value of
the land parcel as well as subjective elements such as trader psychology.

As a result, obtaining a common price for all land parcels, similar to the
common price for common items, will be challenging (Hoang Van
Cuong, 2019). It is necessary to assess the market value of the land
parcel in order to compute the land price in terms of the market
economy. The market value of land, on the other hand, is decided by
market factors (such as profitability, location, area, shape, land use
purpose, supply and demand relationship, and government rules). In the
meantime, land valuation in our country is still administrative in nature
and lacks independence, making it impossible to prevent mistakes due
to subjectivity or lack of transparency. The issue currently is how to
make land valuation more scientific, suitable, and more accurately
reflect market realities while decreasing the gap between the stateregulated price and the market price. On that basis, the topic
“Determination of influencing factors and proposal of solutions for land
valuation in the context of the market economy - a research case in Can
Tho city” is conducted with the goal of determining the factors
influencing land prices in the market economy as a foundation for
proposing solutions to improve the efficiency of land valuation in Can
Tho city.
1.2 Research objectives
Overall objective: is to assess the current situation of land valuation,
determine the factors and extent affecting land prices, propose solutions
for land valuation in the context of the market economy – a research
case in Can Tho city
Specific objectives:
- Asset the current situation of land price and valuation in Can Tho,
Vietnam.
- Determine the factors that influence land price in Can Tho.
1

- Determine the weight of each influencing factor and its extent of
influence.
- Propose strategies for increasing the efficiency of land valuation in
market economy.
1.3 Research scope
Factors affecting the land price in the context of the market economy of
three typical areas are urban area (Ninh Kieu district), rural area (Co Do
district) and peri-urban area (Cai Rang district) in Can Tho city, serving
the purpose of state land management in land valuation.
The data were collected from June to December 2019.
1.4 New contributions of research
The difference between the influencing factors of the current land
valuation and the factors affecting the land price in the conditions of the
market economy.
The research applies a combination of two methods of Exploratory
Factor Analysis (EFA) and Multi Criteria Evaluation (MCA), Analytic
Hierarchy Process (AHP) to determine the factors affecting land prices
and determine the weights for three distinct areas, namely urban area,
peri-urban (or transitional) area and rural area in Can Tho city.
Chapter 2. Literature review
2.1 The operation of the real estate market according to the market
mechanism
Real estate is recognized as one of the assets engaging in the market
under the 2015 Civil Code through conversion, transfer, lease, sublease,
donation, mortgage, and capital contribution. Accordingly, contracts on
land use rights, ownership of houses, and other land-attached assets are
used in real estate transactions.
The real estate market is one of the economy's system of market types.
The real estate market's movement must also comply with the market
mechanism, therefore it is influenced by the laws of competition, supply

and demand, and price. The real estate market's movement according to
the market mechanism is manifested in two aspects:
- The positive aspect: (i) The real estate market governs the functions of
using high-value real estate by automatically distributing labor,
2


materials, and capital to the appropriate areas. The scarcity or
abundance of real estate goods can thus be seen; (ii) The market
mechanism acts as a lever to stimulate the development of science and
technology, production, and business, increase labor productivity, and
increase the level of specialization in production and business in the real
estate industry.
- The negative aspect: (i) Because the market mechanism is based on
profit, it has resulted in the destruction of natural resources and the
environment, despite violations of the law; (ii) As the market
mechanism is based on competition, it has resulted in social
polarization, with a widening gap between rich and poor, increasing
inequality in society (Le Hoang Chau, 2019).
2.2 Research related to the determination of factors affecting land
prices
Many research using the Hedonic model method to determine the
factors affecting land prices have been conducted around the world in
recent decades such as the research of Maddison, D., 2000, Gaoa, X.
and Asami, Y., 2007, Choumert, J. and Phélinas, P., 2015, Jin Han Park,
et al., 2017, Sheng, Y., Jackson, T. and Lawson, K., 2018, Inagaki, K.
and Sadohara, S., 2019. The majority of the research findings indicate
that location and area are the two factors that have the greatest impact
on land pricing.
According to several papers published in Vietnam by Phan Thi Thanh

Huyen, Lo Thi Hong, and Ho Thi Lam Tra in 2017, there are four
groups of factors that influence urban land prices: social factors,
economic factors, regional factors, and separate factors. According to
Bui Ngoc Tuan (2019), the following three types of factors influence
land prices in the market economy: The first is natural, economic, and
legal factors; the second is market-related factors such as supply and
demand, as well as the impact of the land supply-demand connection on
the market; and the third is state-related regulations and laws.
However, while many types of research focus on the construction of the
land price equation, none have looked into the differences between the
influencing factors of existing land valuation and those under the market
mechanism. Simultaneously, in prior researches, the identification of
3


models and factors affecting land prices is frequently done using
Classical Linear Regression Model. However, the factors impacting land
price in these researches are frequently incorporated directly in the
regression model, and the suitability of the observed variables with the
research object has not been assessed. Therefore, the research uses a
combination of two methods of Exploratory Factor Analysis (EFA) and
Multi Criteria Evaluation (MCE), Analytic Hierarchy Process (AHP), to
determine the factors influencing land prices and weights for three
distinct regions, namely urban, peri-urban (or transitional), and rural
areas, as well as to compare differences in influencing factors of current
land valuation and market mechanism to support more favorable land
valuation.
Chapter 3: Methodology
3.1 Research time and place
The thesis was carried out from June 2017 to December 2020 in Can

Tho city.
3.2 Contents and methodology
3.2.1 Contents
Content no. 1: Evaluation and analysis of secondary data gathered to
understand the real situation of land price fluctuations over time as
prescribed by the Law on Land, as well as the current situation of land
valuation in Vietnam in general and Can Tho in particulars.
Content no. 2: Building and testing the scale based on the evaluation of
documents and the results of expert consultation, exploratory factor
analysis for collected primary data sets to discover the factors affecting
land prices in Can Tho city.
Content no. 3: Conducting a hierarchical analysis to determine the
weight of the influencing factors and indicate the influence extent of
each factor.
Content 4: Based on the research results obtained in the above contents,
solutions have been proposed to improve the efficiency of land
valuation in the context of the market economy - a research case in Can
Tho city.
4


3.2.2 Methodology
3.2.2.1 Data collection method
- Secondary data is gathered from state agencies involved in the
research field, such as maps, current land use status, reports, land price
information, and so on.
- Direct interviews with experts and land users are used to get primary
data.
3.2.2.2 Data processing methods
(i) Exploratory Factor Analysis (EFA)

- Scale (factor) quality test: The scale is assessed as having good
quality when the Cronbach's Alpha coefficient of the integer is  0.6
(Nunnally and Bernstein, 1994) and the measurement variable has a
correlation coefficient of the total variable  0.3. In this step, it helps to
remove unsuitable variables from the model.
- Exploratory Factor Analysis (EFA)
In order for the EFA model to ensure reliability, attention should be paid
to:
+ The KMO value satisfies the condition 0.5 < KMO < 1.
+ Significance level of Bartlett test < 0.05.
+ The extracted variance value must be greater than 50%.
+ Factor loading > 0.5 is considered to be of practical significance (Hair
et al., 1998).
(ii) Multi Criteria Evaluation (MCE)
Expert consultation, local authorities in charge of land value, and
previous research to sort the selected criteria should be used to assess
the priority and importance of the criteria. According to Saaty (1980),
the relevance of the following factors must be classified:
Table 3.1 Factors affecting land prices in terms of market economy for
the three studied areas
First level factor

1. Nature

Urban area
1.1 Facade size
1.2 Shape
1.3 Distance to center
1.4 Position (1, 2, 3,
4)

Second level factor
Pre-urban area
2.1 Facade size
2.2 Shape
2.3 Distance to center
2.4 Position (1, 2, 3,
4)

5

Rural area
3.1 Facade size
3.2 Distance to
center
3.3 Position (1, 2,
3, 4)


First level factor

2. Economics

3.
(Technical/socia)
infrastructure

4. State legal and
regulatory
policies

Urban area
1.5 Area
1.6 Distance to main
road
1.7 Length
1.8 Profitability
1.9 Ability to attract
investment
1.10 Market
fluctuation (domestic
and international
market)
1.11 Market demand

Second level factor
Pre-urban area
2.5 Area
2.6 Distance to main
road
2.7 Length
2.8 Profitability
2.9 Ability to attract
investment
2.10 Market
fluctuation (domestic
and international
market)

domestic and

international)

1.12 Speculation
/Broker
1.13 Urbanization
(Density of
population...)
1.14 Technical
infrastructure (traffic
conditions, road
width)
1.15 Social
infrastructure
(electricity, water,
telecommunications,
internet, school,
market, hospital)

2.11 Speculation
/Broker
2.12 Urbanization
(Density of
population...)
2.13 Technical
infrastructure (traffic
conditions, road
width)
2.14 Social
infrastructure
(electricity, water,

telecommunications,
internet, school,
market, hospital)

1.16Environmental
quality, public
landscape
1.17 Feng Shui
1.18 Tax policy
(transfer tax, land use
fee)
1.19 Planning Policy
(land use planning,
construction planning)

2.15 Environmental
quality, public
landscape
2.16 Feng Shui
2.17 Tax policy
(transfer tax, land use
fee)
2.18 Planning Policy
(land use planning,
construction planning)

1.20 Policy for each
type of land use
purpose.
1.21 Legal documents

2.19 Policy for each
type of land use
purpose.
2.20 Legal documents

6

Rural area
3.4 Area
3.5 Distance to
main road
3.6 Length
3.7 Profitability
3.8 Ability to
attract investment
3.9 Market
volatility (market

3.11 Urbanization
(Density of
population...)
3.12 Technical
infrastructure
(traffic conditions,
road width)
3.13 Social
infrastructure
(electricity, water,
telecommunicatio

ns, internet,
school, market,
hospital)
3.14Environmenta
l quality, public
landscape

3.15 Planning
Policy (land use
planning,
construction
planning)
3.16 Policy for
each type of land
use purpose.
3.17 Legal


First level factor
Urban area
of the land lot

Second level factor
Pre-urban area
of the land lot

1.22 Loan/interest
policy.

2.21 Loan/interest

policy.

Rural area
documents of the
land lot
3.18 Loan/interest
policy.

Figure 3.1: The implementation process of the thesis contents
7


Chapter 4. Results and discussion
4.1 Current situation of land prices and land valuation
4.1.1 Current situation of land prices and land valuation in Vietnam
According to economic experts, Vietnam has had three land fevers in
the entire market since the Law on Land in 2003 was enacted, each
lasting roughly two or three years in the years 1992-1994, 2000-2002,
and 2006-2008.

(Source: Vietnam National Real Estate Association, 2020)

Figure 4.1 Average market price of land in Hanoi and Ho Chi Minh City
Many factors influence the real estate market, including the introduction
of legal documents, economic fluctuations, international cooperation,
the stock market, interest rates, bank loans, changes in government
regulations, or changes in people's tastes and requirements, etc. Hoang
Viet and Hoang Van Cuong (2008), “the land fever is distinct from the
fevers of other royalties like as gold and foreign money in that, once the
fever has passed, the price of land does not generally decline or decrease

slowly. After forming a new price level, the price began to rise slightly.
When compared to before the urban fever, land prices often climb 3-4
times. However, because the state-set land price is rarely modified after
each land fever, the state-set land price is frequently lower than the
market price.

8


Figure 4.2 Sequence diagram for specific land price determination
The Law on Land in 2013 gives province People's Committees the right
to set land prices (Clause 3, Article 114). This is in line with our
country's land ownership system, however it will not totally solve the
challenges and inadequacies associated with land acquisition. Because
establishing an agency with the power to recover land, assign land, lease
land, and set land prices carries a substantial risk of corruption and
lawsuits (Nguyen Quang Tuyen, 2019).
4.1.2 Actual situation of land prices and land valuation in Can Tho
city
The price of urban land on the market in Can Tho city has steadily
climbed over time.
9


Table 4.1 Difference between land prices according to State regulations
and market transaction prices in Can Tho city
Unit: VND/m2
Name of street
Ninh Kieu District
1 Huynh Cuong

2 Mac Thien Tich
3 Nam Ky Khoi Nghia
4 Street of Bun Xang Lake
Cai Rang District
1 Ly Thai To
2 Mai Chi Tho
3 Lo Dinh Nuoc Van
4 Vu Dinh Lieu
Co Do District
Resettlement area in
1
Thoi Hoa B hamlet
Nguyen Van Nhung
2
(CLN)
3 Remaining rural
residential land
4 Co Do Market

Market
land price
in 2018

Market land
price in 20192020

Decision no.
19/2019/QĐ
-UBND

45.000.000
50.000.000
85.000.000
40.000.000

55.000.000
60.000.000
87.000.000
85.000.000

17.600.000
9.000.000
35.500.000
10.000.000

3,13
6,67
2,45
8,50

40.000.000
25.000.000
5.000.000
20.000.000

58.000.000
49.000.000
8.000.000
30.000.000

5.000.000
5.000.000
2.200.000
5.000.000

11,6
9,8
3,6
6,0

4.000.000

8.000.000

1.900.000

4,2

300.000

900.000

138.600

6,5

400.000

900.000

300.000

3,0

15.000.000

20.000.000

2.450.000

8,16

Ratio
(%)

(Source: Survey data, 2020)
The average land price is 2 to 3 times higher than the land price set by
the Can Tho City People's Committee in Decision 19/2019/QD-UBND,
as shown in Table 4.1. When compared to the actual value of the land
lot, land prices in areas with infrastructure projects increase 8-9 times.
Table 4.2 Land prices regulated by the State and market land prices in
An Binh New Urban Area project
Unit: VND/m2
Land price that the
State allocates land
to Investor
2,200,000

The land
according to the

Land Price List
4,500,000

Land price
Land price offered
offered by
by secondary buyers
Investor
30,000,000
35,000,000
(Source: Survey data, 2019)

The two land price systems are clearly depicted in Table 4.2. It is
evident that the current land price method causes the state to lose a
significant amount of income, while the gains go to the investor and
secondary investors. If the existing land pricing mechanism is used,
10


project affected citizens and the state will gain no advantages from
urban projects.
4.1.3 Remaining limitations in land valuation
- The principle of land price determination stipulated in Article 112 of
the Law on Land in 2013 is: “Being consistent with the common land
price in the market...”, which is deemed infeasible and causes numerous
difficulties in land valuation because: under current conditions in
Vietnam, a database of market land prices has not been built for
management and information. Land users tend to declare at the same
land price as prescribed by the State to decrease personal income tax,
hence data on land prices on transfer contracts cannot be used.

- Regulation on land pricing authority: The Law on Land in 2013
specifies the rights of the land owner's representative, including the right
to set land prices (Clause 5, Article 13 of the Law on Land of 2013).
Because only administrative agencies and units under this agency are
susceptible to requests for valuation, it is impossible to enforce the
“principles of independence, honesty, and objectivity” in consulting to
determine land prices in Vietnam (Phan Trung Hien, 2016).
- Land prices in the land price list are not affected by market changes in
land prices: When the common land price in the market increases by
20% or more in comparison to the maximum land price or decreases by
20% or more in comparison to the minimum land price in the land price
range for a period of 180 days or more, the Government adjusts the land
price range (Clause 1, Article 9 of Decree 44/2014/NĐ-CP). However,
in light of the current situation, this adjustment is ineffective. The land
price list of the provincial People's Committee in general, and of Can
Tho city in particular, is based on the land price range; thus, localities
and the entire city of Can Tho are unable to increase land prices in line
with market prices, even when market prices exceed 20%.
- Inadequacies in current land valuation methods:
+ Direct comparison method: Due to the two-price mechanism in the
Vietnamese land market, the database on market land prices is not
updated on a regular basis. Because no two parcels of land have exactly
11


the same characteristics to compare, the appraiser adjusts for variances
based on his experience. As a result, it's difficult to avoid subjective
imposition, resulting in different prices being offered for the same piece
of land by different appraisers (Phan Trung Hien, 2018).
+ Income method: To use the income method, it is necessary to

calculate the income generated from the land, the households'
production investment expenses, and the appropriate capitalization rate.
Because there are many various types of products produced on the same
piece of land, different production seasons, and production costs involve
both outsourced labor and family work, it is difficult to determine
income and expenses in reality (Tran Thi Minh Thu, 2019).
+ Deduction method: The comparison principle is used in this
mechanism as well, thus the challenges and problems are comparable to
those of the direct comparison method.
+ Residual method: The accuracy of this method is dependent on
estimating asset value in the future. As a result, the cost of the chance of
poor accuracy is extremely significant (Phan Trung Hien, 2018).
+ The land price adjustment coefficient method: This method lacks
scientific support because it is impossible to define a specific land price
based on the results of mass land valuation, and it is not covered by
international, regional, or Vietnamese valuation technical rules (Dang
Hung Vo, 2019).
The right to private property is recognized as the most basic right in the
vast majority of countries around the world. In terms of land ownership
regime, the multi-ownership model of land ownership has been used in
developed countries. That is to both acknowledge private land
ownership and state-owned land, using market land prices and market
land pricing; Therefore, land valuation is often based on market
information that has been collected, stored and analyzed, applying an
equivalent valuation method, comparing similar cases.
Particularly in Vietnam, the land ownership regime is one in which the
entire population owns the land, the subject of land ownership is the
state, and land prices are set by provincial People's Committees. Land
12

valuation is primarily influenced by legal factors, such as the
mechanism for managing land valuation according to current
regulations; however, land pricing in a market economy must be based
on natural factors, market rules, supply and demand, the development of
the infrastructure system; input factors and real estate development
costs; market real estate prices; and state policy. Thus, it is obvious that,
in addition to market economy factors, land pricing in Vietnam today is
influenced by state management, according to the existing mechanism.
4.2 Determination of factors affecting land prices in the conditions
of market economy in Can Tho city
4.2.1 The selection of factors that fit the model
Table 4.3 Results of testing the reliability of the independent variable
scale
Symbol
TN
KT
XH
HT
PLCS
K

Evaluation criteria
Nature
Economy
Society
Infrastructure
Legislation, State policy
Particular factor

Cronbach's Alpha coefficient
0,863
0,856
0,838
0,746
0,879
0,792

The test results have 6 groups of factors and 28 observed variables that
meet the conditions, are consistent with Cronbach's Alpha coefficient in
the range [0,6-0,95] and with the total correlation coefficient (Corrected
Item-Rest Correlation) greater than 0.3. This proves that all data is
reliable.
The results of Cronbach's Alpha analysis of dependent variable group:
Cronbach's Alpha coefficient of land price (GĐ) is 0,899, which is
consistent with Cronbach's Alpha coefficient in the range [0,6-0,95] and
Corrected Item-Rest Correlation is greater than 0,3. This result proves
that the variables fit the research model, so the next exploratory factor
analysis will be conducted.
4.2.2 Exploratory factor analysis for independent variables
Table 4.4 Results of exploratory factor analysis for independent
variables
Parameter
Kaiser-Meyer-Olkin Measure of Sampling Adequacy,

13

Value
0,791

Parameter
Approx, Chi-Square
df
Sig,
Factor no. 1
Factor no.2
Factor no.3
Factor no.4
Factor no.5
Factor no. 6
Factor no. 1
Factor no.2
Factor no.3
Factor no.4
Factor no.5
Factor no. 6
Total

Bartlett's Test of Sphericity

Eigenvalue

Total Variance Explained

Value
3,837,734
351
0,000
4,872

3,257
3,043
2,401
2,096
1,667
14,788
12,614
11,382
8,701
8,554
8,171
64,21

The results of the parameters all satisfy the conditions in the exploratory
factor analysis with:
- KMO is in the range 0,5 < 0,791 < 1,0
- Bartlett's Sig. = 0,000 < 0,05
- Eigenvalue coefficients of 6 groups of factors have values > 1.
- The Total Variance Explained of 6 groups of factors is 64,21% > 50%,
which means that these 6 factors explain 64,21% of the variation of the
research data.
Factor loading > 0,5. Thus, summarizing the results of the research has
6 groups of independent variable factors with 27 suitable observed
components in the analysis.
The same, the results of the exploratory factor analysis of the dependent
variable showing that the parameters satisfy the conditions in the
exploratory factor analysis (EFA) as follows:
- KMO is in the range 0,5 < 0,841 < 1,0
- Bartlett's Sig,= 0,000 < 0,05
- Eigenvalue coefficient = 3,077 > 1.

- Total Variance Explained = 76,916% > 50%.
- Factor loading is all greater than 0,5.
14


Thus, the correlation coefficients of all variables are satisfactory, the
constitutive factor explained 76,916% of the variation in the data.
In summary, the results of the scale quality tests and the exploratory
factor analysis of the EFA model have found 27 factors that influence
land prices in Can Tho city in terms of market economy. Natural factors,
state laws and regulatory policies, the economy, and technical and social
infrastructure all influence land pricing.
4.2.3 The determination of the weight of factors affecting land
prices in Can Tho city.
4.2.3.1 Extent of influence of factors on land prices in urban areas
(Ninh Kieu district), Can Tho city
The results of the Analytic Hierarchy Process in Figure 4.3 shows the
weight of each factor in order from high to low as follows: W Legal =
0,340 > WEconomics = 0,229 > WNature = 0,227 > WInfrastructure = 0,204.

Figure 4.3 Extent of influence of key factors on land prices in urban areas

Figure 4.3 shows that the chart is more inclined to the legal and
regulatory factors of the State because it has the largest weight, this is
the factor that has the strongest influence on land prices in the context of
the market economy for the urban region.

15

Figure 4.4 Chart showing the extent of influence of factors on land
prices in urban areas

The outcome of Figure 4.4, when considering the second
level factor, demonstrates that land prices in urban areas are
greatly influenced by factors such as planning policy (land
use planning, construction planning), profitability, location,
and urbanization (population density...).
4.2.3.2 Extent of influence of factors on land prices in
peri-urban area (Cai Rang district), Can Tho city
The most important factors that have the biggest impact on land prices
are still factors of the state legal and regulatory policies. The weight
difference between factors is significantly greater in peri-urban areas
than in urban areas.
The results in Figure 4.5 demonstrate the extent of factors' influence on
land prices in peri-urban areas, from highest to lowest: WLegal = 0,420 >
WEconomics = 0,284 > WInfrastructure = 0,224 > WNature = 0,072.

16


Figure 4.5 Extent of influence of key factors on land prices in peri-urban areas

In terms of second-level factors, the chart Figure 4.6 below illustrates
that the factors of loan/interest policy, profitability, urbanization
(population density...), and distance to the center all have a significant
impact on land prices in peri-urban areas.

Figure 4.6 Chart showing the extent of influence of factors on land
prices in peri-urban areas

17


4.2.3.3 Extent of influence of factors on land prices in rural areas
(Co Do district), Can Tho city
Land prices in rural areas are influenced by state legal and regulatory
policies, just as they are in urban and peri-urban areas. However,
because of the huge weight difference between the factors, the chart
favors state legal and regulatory policies.

Figure 4.7 Extent of influence of key factors on land prices in rural areas
The results of the analysis in Figure 4.7 reveal that the following factors
have an impact on land prices in order from high to low: WLegal = 0,551
> WEconomics = 0,222 > WNature = 0,155 > Wnfrastructure = 0,072.

18


Figure 4.8 Chart showing the extent of influence of factors of secondlevel factors on land prices in rural areas
In terms of second-level factors, issues such as planning policy (land use
planning, construction planning), profitability (bringing income or
profitability to the land lot), location, and technical infrastructure (traffic
conditions, road width) have a significant impact on land prices in rural
areas.
4.2.4 Overall assessment of the influence of factors on land prices in
Can Tho city
Through the results of Analytic Hierarchy Process (AHP), the global
weights are calculated as the product of the weights of first-level factors
and weight of second-level factors.

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Figure 4.9 Chart showing the global weight of each factor to the land
price of the research areas
The comparison of the chart Figure 4.9 shows that the increase in land
prices in urban areas is primarily due to city development planning
policies. Accordingly, there are many land lots from the alley position to
the frontage that is adjacent to major roads brought by the infrastructure
project. These land lots are extremely profitable, attracting a large
number of investors. Many speculators and land brokers have taken
advantage of this to drive up the price of land many times higher than
the real value of the land plot in order to profit, causing the land market
to be affected, the people whose land has been acquired do not benefit
from the project, supply does not meet demand, and the State faces
complaints and lawsuits. Land prices in peri-urban areas rise mostly in
residential areas near the center. People have rushed to buy land for
residential developments for investment, taking advantage of the policy
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of lowering loan rates for house purchase from banks. Following several
transfers, the price of these land lots has now greatly exceeded their true
value. However, there is still a lot of unoccupied and unused land since
investors primarily buy for investment purposes, not for living. On the
other hand, the peri-urban is an area where strong urbanization is taking
place, people's housing demands are quite high. Rural land has recently
been viewed as a new market for investors. Because concentrated land is
primarily agricultural land, the land price remains low in comparison to
common ground. Land scarcity in urban areas, along with planning

policies aimed at attracting investment to develop rural areas, has
prompted investors to seek opportunities in rural areas. However, due to
the slow implementation of projects by investors, wasting land
resources, and leaving many consequences for people in the project
area, which is happening in rural areas, there is a great pressure on rural
areas to be able to choose investors with financial capacity and
seriousness in investment.
4.3 Proposal of solutions for land valuation in Can Tho city in terms
of market economy
4.3.1 Completing regulations on land valuation
- Structure land valuation experts outside the state sector, scientists to
join the Land Price Appraisal Council in order to reduce corruption risks
as well as create publicity and transparency in the State's regulations and
decisions. land price.
- Building a market land price database towards building a professional
land price management system by stipulating that people self-register
land prices every year, the State has policies to encourage non-money
use. for real estate transactions, aiming to make payment through banks
when dealing with real estate.
- Regulations on strong sanctions against provinces at the provincial
level where the land price on the Land Price List is lower than the
average land price in the market, and local regulations must also
promptly notify the Government when the Land Price Framework is set.

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land price is lower than the average land price in the market to promptly
adjust accordingly.
4.3.2 Policy reform on taxes and fees related to land

- Regulations on applying high tax rates to cases where land is available
but not vacant.
- Prescribing a highly progressive tax rate for cases where the transfer is
received and then continued in a short time.
4.3.3 Reasonable planning policy to increase land value
- Planning policy increases the value of land, so managers need to pay
attention to create effective revenue mechanisms to increase revenue
from land, as in urban areas, infrastructure development must be linked
to with land use planning adjacent to the infrastructure in order to
capture the additional land value brought by the infrastructure and
resettle the people who are acquired.
- The formulation of urban planning and land use planning must provide
a development scenario to increase land value in order to create
attractiveness to attract investors instead of reducing land prices to
attract investment. Specifics:
+ For peri-urban areas, it is proposed to build peri-urban areas to
become suburban cities with the following criteria: (i) increase the
number of local workers, (ii) be the gathering place of many
corporations and companies the center to attract knowledge workers,
(iii) increase the scale of commercial and retail space, the scale of
industrial production land is larger than that of residential land, (iv) fully
equipped with entertainment and consumer services of a city and
especially providing affordable comfortable housing with private
ownership.
+ For rural areas, it is proposed to develop rural agriculture in order to
maintain agro-ecological space around urban areas and provide fresh
food, vegetables and fruits for urban areas. In particular, it is necessary
to promote the construction of infrastructure backbones to ensure socioeconomic connectivity in all ecological regions.

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