Common problems
- The mechanism for creating auction land exists, but nobody has quantified how much it brings in, or when.
- Auction proceeds arrive later; site clearance has to be paid for first. That gap is rarely modelled.
- The financial plan for the line and the land exploitation plan are drawn up by two different departments, and the numbers do not reconcile.
- Assumed land prices are optimistic. By the time the real auction falls short, the project has already committed to a schedule.
Legal basis
The wording below is our reading of each provision, not an official translation. Only the Vietnamese text is authoritative — you can open every document in the Document lookup section.
Law on Railways (consolidated text 75/VBHN-VPQH) — Article 25.2The provincial People’s Council may decide to use the local budget for a separate public investment project carrying out compensation, support and resettlement under the TOD area plan, in order to create land for auction.
Law on Railways — Article 25.3Proceeds from exploiting land in a TOD area: for national railways, after deducting compensation and related costs, the province keeps 50% and remits 50% to the central budget. For local railways, the province keeps 100%.
Law on Railways — Article 3.6 and 3.7Definitions of a TOD area and of a local railway project following the TOD model. Classifying the project correctly is what decides which share applies.
What we do
- Establish the project type and the retained shareNational railway or local railway decides whether the share is 50% or 100%. This is the first question, because it changes every figure that follows.
- Build the land schedule for each TOD areaArea, current status, planning indicators after adjustment, and the expected date each parcel becomes eligible for auction.
- Model the cash flow in both directionsOutflow: compensation, support, resettlement and the cost of carrying them out. Inflow: auction proceeds by tranche. The gap between the two is what the local budget must carry in the meantime.
- Run the sensitivitiesLand price down 10–30%, auction schedule slipping one to three years, a lower share of parcels selling. The result shows how much the plan can absorb.
- Write the explanatory statementIn the language of a submission file, citing the provisions precisely, so the appraiser can verify every figure.
What you receive
- A TOD land schedule by area, with expected dates
- A land cash-flow model you can open and edit — not a black box
- Sensitivity tables for land price and timing
- An explanatory statement on capital recovery with full citations
When to call us
When preparing the pre-feasibility or feasibility study for a line with a TOD component; when the provincial People’s Council is about to resolve on using the local budget to create auction land; or when an existing financial plan has been sent back because the recovery side is not convincing.
Two conditions, stated before anything else. First, this is a service under Clause 2, Article 40 of the Law on Independent Audit — an audit firm must register it with the Ministry of Finance before providing it. Second, if we audit your organisation, or expect to, this engagement must pass an independence check under Article 30 of the same law before signing. We run that check first, and if it fails we say so plainly and decline.
Next step
Describe your situation on the Request advice page, or call 0825092007. We read it, classify it and reply within 24 working hours — including when the answer is that the work falls outside what we are permitted to do.
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