With the rapid development of science and technology, the world is entering the golden age of the “digital era.” In this era, humanity is witnessing, and will continue to witness, tremendous transformations in all aspects of social and economic life, all taking place on a digital foundation. New concepts are now being defined, such as digital economy, digital society, digital government, and digital citizens…

Speaking at the High-Level Forum and International Exhibition on 4.0 Technology held in mid-June, Prime Minister Nguyen Minh Chinh affirmed: “The adaptation and development of each country in the digital era and globalization today is a major issue, both urgent and long-term. For Vietnam, being fully aware of the opportunities and requirements, the government has proactively adapted and innovated for development.”

The early establishment of the National Digital Transformation Program clearly demonstrates the government’s determination. The “National Digital Transformation Program until 2025, with a vision to 2030” sets the goal that by 2023, a digital government will be developed with specific milestones, including completing the goal of 100% of national databases to create a foundation for the development of e-government. This includes national databases on population, land, business registration, demographics, finance, and insurance, which will be completed and interconnected for nationwide sharing; gradually opening up data from government agencies to provide public services in a timely manner, with a one-time declaration, serving citizens and fostering socio-economic development; and 50% of the inspection activities of state management agencies will be carried out through the digital environment and information systems of management agencies.

Among these, the national land database is one of the six national databases that the Prime Minister has ordered to prioritize implementation to create a foundation for e-government development. It plays a crucial role in state management, while also contributing to administrative reform, heading towards a digital government, digital economy, and digital society.

The national land database is also entrusted with high expectations for its potential to help the real estate market develop healthily, transparently, and sustainably. However, it is the only database that has not yet been fully established.

The reasons have been clearly pointed out: difficulties in resources, human resources, and the information infrastructure system, which is lacking, weak, and not yet integrated or unified…

To clarify this issue, Reatimes had an interview with Dr. Han Minh Cuong, Chairman of S-Group Vietnam, who has many years of experience researching and working directly in the field of building databases related to planning, land use, land prices, etc.

Reporter: Sir, the 5th session of the 15th National Assembly is discussing the Draft Law on Land (amended), and one of the most discussed issues is the construction of the annual land price table. Unlike the previous land price framework, the annual land price table is now more updated, and many opinions hope that when the amended law is enacted, land prices will reflect market prices more closely. However, some have added that the land price table can only be more accurate if it is based on a land database. Do you think this is feasible?

Dr. Han Minh Cuong: No matter how comprehensive a land database is, it cannot, by itself, change or determine land prices at their true value, because land pricing depends on many factors. A land price database will only help to make the information more transparent and support government agencies in issuing regulatory policies. In other words, the database is a tool to help make decisions that are more aligned with the real market, contributing to bringing land prices closer to their true value.

Regarding the issue of land pricing that has been discussed extensively in recent times, I believe it will be very difficult to establish a land pricing method if we rely solely on administrative decisions or traditional survey techniques. To determine land prices as accurately as possible, technology must be applied. Of course, it will not be absolutely accurate, but it will be as close as possible to the real value of land.

Reporter: Could you elaborate on that, please?

Dr. Han Minh Cuong: I understand that many people believe that with a land database, it will be easier to build a land price table. This is true, but we are talking about data. Data alone does not have meaning unless it is analyzed, and in this regard, machines will perform better than humans.

If we have a large enough dataset, for example, collecting all notarized property transactions in a specific period in a certain area and all sale listings in the same period, we can compare the success rate of transactions and the differences between listed prices and actual transaction prices on contracts. Computers will also analyze related data such as consumer price indexes, inflation rates, and even policy changes and the impact of new infrastructure… to see how these factors affect land prices.

When the data is large enough and recorded over a long enough period, we will clearly see land price fluctuations in the reference area and neighboring areas. Land prices will move in line with market dynamics and will immediately show whether prices are rising or falling with the overall trend. At that point, there would be no way that while the market is rising and land prices are increasing, plot A would be sold at a price far below the market or below previous transactions for that same plot.

Thus, data analysis technology partly determines land prices in the study area, minimizing the issue of “two prices,” which is very common in land transactions today. It will reduce tax revenue loss and provide clean data about land transaction prices.

Therefore, it must be emphasized that technology plays an important role in supporting the cleansing of input data for the land database and bringing land prices closer to their true value.

Reporter: Your example of using technology for data analysis is ideal. If these measures are implemented, the real estate market will certainly develop more healthily and sustainably.

However, you also mentioned that the results of the analysis will be more accurate when we have a large dataset over a long period of time. How long is this, specifically? The longer we delay building the national land database and lack this tool, the longer it will take for the real estate market to truly become “healthy,” especially in the current context of mounting difficulties?

Dr. Han Minh Cuong: Building a land database must be done step by step. It is impossible to immediately have a complete, ideal database. The process must be aligned with the realities of resources, human capacity, technology, systems, and policy frameworks. At the same time, once the initial land database is established, it must continue to be “alive,” meaning it needs to be continuously updated, collected, and analyzed. It is not a one-time effort and then left alone. There is no specific milestone for when it will be complete; data will continuously be added and updated.

Reporter: But it seems we have already delayed the initial construction process. The land database is the only one among the six national databases that has not been fully developed so far. What is the reason for this delay?

Dr. Han Minh Cuong: Objectively speaking, building a national-level database is very difficult. It’s not just the land data, but also the five other databases related to population, business registration, demographics, finance, and insurance, which are all complex, challenging, and encounter many obstacles during construction. Building the land database is no different; the process faces many barriers, from leadership and policy issues to implementation procedures, technical tasks, and even technology and human resources…

We keep saying that there was a basic foundation for the database before, but in reality, that was just data—disconnected information. Now, we need to collect, filter, and aggregate data to gradually form a complete and accurate database. Not to mention the many other difficulties in digital transformation, including technology, techniques, and sometimes the capacity of personnel in charge… Analyzing this, we can see that there are many challenges in building and completing the national land database.

Reporter: With such numerous obstacles, what is the most labor-intensive and time-consuming part of this process, sir?

Dr. Hán Minh Cường: My colleagues and I have many years of experience in building databases related to urban planning and land use planning. From our experience, the greatest difficulty when constructing land-related databases is the collection, compilation, and processing of input data to ensure its accuracy, completeness, and systemization.

Currently, there is a lot of fragmented data that is not centrally managed, and there is a situation of “data fragmentation” in various localities and sectors. This means that the information is not publicly shared, and if you want to collect it, you need to gather bits and pieces from different places, which prevents the data from being unified. Moreover, a lot of time is needed to verify the accuracy of the input data because it is controlled and managed by various parties.

Alongside our practical work, we have also participated in many forums and heard similar opinions. Many other units also face this issue, and although it has been raised several times, it is very difficult to resolve. Requesting data is often not allowed, and purchasing it is not possible due to the lack of specific financial regulations. Therefore, acquiring complete, accurate, and legitimate input data is very challenging.

Reporter: How about technology, sir? While it plays a crucial role, it seems our technological infrastructure isn’t yet strong enough?

Dr. Hán Minh Cường: There are many concerns that we are weak in terms of technology, but from our experience, technology is not the biggest obstacle at this moment. Since we are catching up, there are many lessons to be learned from the experiences of other countries such as Singapore, South Korea, and Canada. These countries have open databases related to planning, land management, and other fields in the economy and society, so we can learn from their approach, both in terms of data construction and technology systems.

Vietnam’s technological capabilities are not as weak as many people might think. We have companies that are among the top in the world, capable of solving many complex problems. Therefore, technology is not the greatest barrier; what we need is to apply technology effectively in constructing and utilizing land databases. This will help us address many of the issues I’ve mentioned earlier.

Reporter: You just mentioned that the data must be “alive.” But before it can be “alive,” the national land database must ensure its accuracy, completeness, and transparency. Saying it is one thing, but actually doing it is certainly not an easy task, is it?

Dr. Hán Minh Cường: The input data must be accurate, complete, transparent, or in other words, it must be “clean” and “alive.”

Regarding the “clean” aspect, we currently don’t have many systematic datasets that have been collected over a long period of time (such datasets are very valuable for analysis and decision-making). This leads to a situation where data is insufficient, outdated, not updated, and sometimes even manipulated or “beautified” when provided.

In terms of transparency, we have seen a widespread issue in the real estate market recently: the “two-price” transaction, where people transact at one price but declare a different price for notarization. This situation has lasted for many years, which means that much of the historical data on land transaction prices is inaccurate, and of course, this will affect the data we are currently collecting to build the national land database. This is just one small but very typical example of the obstacles in building a complete land database.

Regarding the “alive” aspect, the land database can only be “alive” if we can use it, if it is applied in real life, and if we continue to maintain and update it over time. It’s not enough to just create a database and leave it there without updating or using it.

For example, when building the annual land price table, if we want to calculate the land price of a locality in 2024, it must be based on the land price data of that locality over a certain reference period, then analyzed to produce results that are close to reality. If the initial input data on land prices is not collected correctly and completely, and if the analysis methods are not accurate, how can the land price be calculated correctly and in line with reality? Can it be applied?

From the perspective of a citizen, if I want to check the information about my land parcel in order to prepare it for sale, I should be able to access the national land database and receive information about the area, location, coordinates, land plot map, extracts, and usage purposes. If this information is incorrect, outdated, or not updated, how can I sell it?

There have been many lessons from the past, where the initial intention was good, but after construction, the data was unusable and did not meet the needs of individuals or organizations. There are many reasons for this, including the data content not aligning with the needs of the “target customers,” not being practical, or the system being inaccessible to those who need it, as well as issues in both technology and human resources.

Therefore, before building the land database, all questions must be addressed, from policy issues to the execution team, from system construction to operation, and even data sharing after completion. If the database cannot ensure all these factors, it will be very difficult for it to be “alive.”

Reporter: Sir, there is an opinion that as we enter the golden era of the digital age, the world will witness the emergence of a new religion called “dataism.” In this view, data is considered the only valuable source of information, and the world will revolve around it. Data is also seen as a form of “means of production.” So, after being implemented into real life, what opportunities will the national land database bring to businesses participating in the real estate market?

Dr. Hán Minh Cường: It’s not by chance that people say data is a resource, a means of production. I agree with this viewpoint, as intangible as it may be, data in general and land data in particular is indeed a resource for development, just as important as any other tangible resource. That’s why we must complete the national land database as soon as possible.

This data has far-reaching influence and relates to many sectors of economic and social life. Land is a means of production, directly tied to the livelihoods of people and businesses, and many administrative management decisions are related to land. Without complete, transparent, and accurate information about land, all other activities in the economy will be impacted. It is not an exaggeration to say that if we fail to build a comprehensive land database, it will hinder development progress.

From the perspective of businesses operating in the real estate market, I believe that in the digital age, having access to data will help increase the competitiveness of businesses and greatly assist in formulating business strategies and investment decisions.

Before investing in any project, businesses need to consider data regarding land use purpose, planning, land use zoning… The land database must provide this information accurately, so that businesses can access it transparently and publicly. This will then enable them to make decisions about whether to invest or not, and how to invest.

The land database will only bring opportunities for businesses when it addresses their needs accurately, and in turn, businesses must be quick to seize the opportunity to utilize the national land database to gain an edge in investment and business.

Reporter: What about the local authorities, sir? Besides serving the state management work, can the national land database increase development opportunities for provinces and cities?

Dr. Hán Minh Cường: A transparent and public land database contributes significantly to the development of localities. In the Provincial Competitiveness Index (PCI), there are very specific indicators related to land access, land stability, transparency, time costs, and fair competition… When a locality completes and publicly discloses its land database, investors will find that the information here is transparent, accurate, and land access is convenient and easy. This will definitely encourage them to invest more than in areas where information is unclear, and land access is difficult.

Lack of transparency in information has also led to a very troubling situation in many areas recently, where land prices are inflated unrealistically. This makes businesses hesitant to invest, because once land prices are artificially inflated, it is very difficult for any tool to bring them back to their real value.

Therefore, if localities recognize this early on and provide their land databases for businesses and people to access, they will have an easier time attracting investment, while also increasing competitiveness between localities.

– Thank you very much, sir!

*According to Reatimes.