The government plans to impose large fees on people who build on agricultural land, in a bid to preserve land for farming, according to a senior policy maker.
Land Management Authority President Kham-ouan Boupha made the announcement yesterday in response to concerns voiced by Lao National Assembly members over dwindling areas of farmland, which is threatening food security and the supply of agricultural raw materials.
As land prices increase, fuelled by growing demand for real estate development, many farmers in major cities are selling their rice fields to businesses and others who want to build property for commercial use.
Mr Kham-ouan said the government has been forced to introduce high charges for the change in use of land after failing to convince people to maintain farmland and help the country grow more crops for consumption and supply to processing plants.
“We have told farmers to keep their land for agricultural purposes but they haven't listened, so we need new economic measures. If they still want to change the use of their land, they will have to pay,” he said.
It will now cost about 300 million kip to rezone one hectare of agricultural land as a residential area, Mr Kham-ouan said, adding that the fees will differ with location due to varying economic and business growth scenarios.
He said people who build houses or other property in areas classified as agricultural land without gaining permission will face fines and possible legal charges.
Mr Kham-ouan said the authority is currently conducting surveys to classify land areas, which will enable it to issue the correct type of land title to land owners. He said the survey work should be complete by year end.
“We have asked the National Assembly to approve a budget to carry out land surveys nationwide.”
At present, there are no clearly defined land classifications, making it impossible for officials to identify which land areas are suitable for residential, industrial or farming uses. This also creates difficulties for officials trying to control the reallocation of farming land, he said.
Mr Kham-ouan said the land survey project would help the government to identify suitable development zones in the country and ensure sustainable development.
The government plans to promote investment in food processing plants over the next five years in a move to take advantage of the country's large areas of fertile land suitable for agriculture. However, a major challenge is to ensure that large swathes of farmland are not converted into residential or industrial areas, particularly in Vientiane.
Laos hopes to become a member of the World Trade Organisation in the near future, which would help the government in its efforts to boost foreign investment in the food processing sector.
By Ekaphone Phouthonesy
(Latest Update June 17, 2010)
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Topic: New fees to deter farmland development (Read 510 times)
