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December 25, 2025

Vietnam Addresses Land Law Implementation Challenges

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On December 11, 2025, Vietnam’s National Assembly issued Resolution No. 254/2025/QH15 (Resolution No. 254) to address practical difficulties encountered in implementing the Law on Land 2024. The resolution provides specific mechanisms and policies to resolve issues related to land allocation, land leasing, and conversion of land-use purposes, while also addressing land valuation principles, timing of information collection, and land valuation methods. The resolution takes effect on January 1, 2026.

Key provisions affecting investors are discussed below.

Land Use Terms for Transferred Investment Projects

The National Assembly has addressed situations where the remaining term of a transferred investment project is insufficient for the transferee’s business or financial plans. Resolution No. 254, along with the Law on Investment 2025, introduces aligned regulatory solutions.

Under the Law on Investment 2025 (4th version submitted to the National Assembly for promulgation), if an investment project implemented prior to March 1, 2026, has been transferred and the transferor holds a Land Use Rights Certificate, has fulfilled all land-related financial obligations, and is not subject to termination, the competent authority may determine a new operating term if the remaining operating term does not meet the transferee investor’s financial or business plan. This adjustment occurs when approving or adjusting the investment policy or issuing or amending the investment registration certificate. The revised operating term is calculated from the date of the approval or issuance and must not exceed the statutory maximum of 70 years for projects in economic zones and 50 years for projects outside economic zones.

Resolution No. 254 also permits adjustment of the land use term for transferred investment projects involving land, provided that the transferee investor pays additional land rent in accordance with applicable law, thereby ensuring consistency with the Law on Investment 2025.

Land Rent Payment Options

Resolution No. 254 generally expands the right to choose the form of land lease beyond the three specific cases in the Law on Land 2024 that allow a one-time payment of land rent for the entire lease term. Land users may now opt for either a one-time payment of land rent for the entire lease term or an annual payment of land rent, except where (1) public service units allocated land by the state without land use fee collection seek to use part or all of the allocated land area for production, business, or service provision, or (2) investments use land managed by state organizations.

Additional Circumstances for State Land Recovery

The Law on Land 2024 provides for 31 cases in which the state may recover land for socioeconomic development in the national or public interest. However, practice has revealed additional circumstances where land recovery mechanisms for such purposes are necessary to expedite investment implementation. Accordingly, Resolution No. 254 provides three additional cases in which the state may recover land for socioeconomic development in the national or public interest:

  • Projects in free trade zones and international financial centers. The development of free trade zones and international financial centers is a key national priority, yet the Law on Land 2024 lacks provisions on land recovery for projects in these areas, creating practical implementation challenges. Accordingly, permitting land recovery for such projects is necessary to institutionalize state policies and provide a coherent legal basis for their effective implementation.
  • Land compensation and clearance. Where land is used for project implementation through agreements on land use rights transfers, if the deadline for reaching an agreement has expired and agreements have been reached for more than 75% of the total land area and more than 75% of the land users, the provincial-level People’s Council may consider and approve the recovery of the remaining land area for allocation or lease to an investor. In practice, projects are often stalled when investors have secured most, but not all, required land through agreements. Accordingly, Resolution No. 254 provides a mechanism to support site clearance and ensure timely project implementation when the majority of land users have consented.
  • Land funds for build-transfer contracts. Resolution No. 254 allows for the creation of land funds to pay for projects implemented under build-transfer contracts, and for leasing land to continue production and business activities in cases where organizations are using land that is recovered by the state. This provision is necessary to complete the legal framework and facilitate infrastructure development under public-private partnerships.

Application of Land Price Lists

Under the Law on Land 2024, the land price list is primarily used to determine land-related financial obligations of households and individuals, while specific land prices are applied to determine land-related financial obligations of enterprises implementing investment projects when the state allocates land with a land use fee or leases land with a one-time rental payment for the entire lease term. However, Resolution No. 254 provides for broader application of the land price list, making it the basis for determining land-related financial obligations of all entities (individuals and enterprises) when the state grants land use rights and in other cases where land-related financial obligations arise, except for some limited cases.

Applying the land price list in lieu of specific land prices enhances transparency, simplifies calculation, and addresses valuation bottlenecks where comparable data, planning clarity, or technical information is lacking.

Outlook

Resolution No. 254 introduces measures that aim to address difficulties and bottlenecks encountered by investors in the implementation of the Law on Land 2024, while creating momentum for national development and supporting the business activities of enterprises and individuals. Investors and private sector entities should proactively review their land acquisition strategies and ensure compliance with the updated regulatory framework to mitigate risks and capitalize on new avenues for project development.

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