You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 25, 2025

Vietnam Addresses Land Law Implementation Challenges

Subscribe to Updates

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.

Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

March 4, 2025
On February 20, 2025, the National Assembly of Vietnam made public the executed Resolution 170/2024/QH15, which outlines special mechanisms and policies to address difficulties and obstacles related to notable real estate projects and land issues in Da Nang, Ho Chi Minh City, and Khanh Hoa Province. This resolution, with an effective date of April 1, 2025, aims to resolve issues identified in inspection conclusions, audits, and court judgments, including 1,313 cases of land-use term violations in Da Nang. Solutions Resolution 170 provides a variety of mechanisms and policies to clear the way for projects to proceed with implementation. These may include, depending on the specific location, the following solutions. For issued Land Use Rights Certificates (LURC) that violate the land-use term for business production land in Da Nang: For projects that have already been invested in and utilized, the land-use terms in the LURC may be adjusted to 50 years from the date of the decision on land allocation, land lease, conversion of land use purpose, or actual land handover. For continued use of land, determining land prices, and calculating land use fees and land rental fees applicable to a list of projects in Da Nang, Ho Chi Minh City, and Khanh Hoa Province: The city/provincial People’s Committees will review and complete, within their authority, the procedures related to land, investment, construction, environment, and forestry of such projects in accordance with the current laws. Projects that meet legal and regulatory requirements after thorough review and compliance checks will be allowed to continue, provided they are aligned with urban planning, environmental standards, and national security requirements. In addition, investors must fulfill applicable financial obligations, including land use fees and land rental payments, which will be reassessed and collected based on the land price tables applicable in Da Nang, Ho Chi
Read More
February 21, 2025
As Vietnam continues its government restructuring, including the merging of several key ministries, the country is signaling that mergers of provinces could be next. Conclusion 126-KL/TW of the Politburo and Secretariat, issued on February 14, 2025, sets out several tasks for continuing to streamline the political system in 2025, notably including, among others, the following: Elimination of intermediate administrative levels, and mergers of provincial units: The Government Party Committee is tasked with researching and planning for the elimination of intermediate administrative levels (district levels); reorganizing the commune level with structures, functions, duties, powers, and responsibilities aligned with the new organizational model; and proposing the merging of some provincial administrative units. A report to the Politburo is required by Q3 2025. Reorganization of police structure: The Central Public Security Party Committee is tasked with leading and coordinating the implementation of a three-tier police organization, eliminating the district-level police. Judicial system reforms: The Central Party Committees of the Supreme People’s Court and the Supreme People’s Procuracy are tasked with researching and advising on the organizational model for courts and procuracies, and proposing amendments and supplements to relevant party mechanisms and state laws, with the aim of eliminating the district level. A report to the Politburo is required by Q2 2025. Implications of Merging Provinces The merging of provinces could bring positive impacts as well as new challenges. The expected benefits include: Administrative efficiency and cost saving: Reducing the number of administrative units could lead to more efficient governance and decision-making processes, as well as lower administrative costs due to fewer government offices and personnel. Economic development: Larger administrative areas can benefit from better allocation of resources and infrastructure development. Larger provinces may also attract more investment due to increased economic potential and market size. Improved service delivery: Public services could improve
Read More
January 16, 2025
On January 13, 2025, Thailand’s cabinet approved in principle the draft Entertainment Complex Act, as proposed by the Ministry of Finance. This landmark legislative proposal, which would allow casinos as part of larger “entertainment complexes,” will now proceed through further parliamentary review and approval. Key provisions of the draft act are described below. Corporate structure: Entertainment complexes must be operated by Thai-registered limited companies or public limited companies with a minimum paid-up capital of THB 10 billion. Directors of the licensed entity must be individuals and have the qualifications and none of the prohibited characteristics specified in the draft act. The draft act does not impose restrictions on foreign-majority ownership structures; however, it is worth monitoring whether any amendments addressing this matter are introduced during the legislative process. Operating conditions: Each entertainment complex must be located in an area designated under a royal decree. It must also include at least four types of entertainment businesses listed in the annex to the draft act (e.g., shopping mall, hotel, sports stadium, amusement park), along with a casino. The allocation of casino space must comply with regulations to be specified at a later date. Licensing conditions: Licenses will be valid for 30 years, renewable in increments of up to 10 years. The license issuance fee is THB 5 billion, the annual fee is THB 1 billion, and the renewal fee is THB 5 billion. The Entertainment Complex Policy Committee, chaired by the prime minister, will review and approve applications. Online gambling restrictions: Licensees are prohibited from offering gambling through internet-connected systems or electronic devices that allow access from outside the casino premises. Labor requirements: Thai and foreign employee ratios must adhere to prescribed regulations. Land privileges: Lease agreements for land use are limited to 50 years. Renewal is permitted for up to
Read More
January 8, 2025
Thailand’s Board of Investment (BOI) has issued regulations revising its criteria for certain foreign companies that receive promotional privileges to own land under limited circumstances. The revised allowance is detailed in the Notification of the Board of Investment No. 16/2567 Re: Criteria for Permitting Foreign Juristic Persons Receiving Investment Promotion to Hold Land Ownership for Office and Residence, which was published in the Government Gazette on December 9, 2024, after having been officially issued on November 1, 2024. The notification was made in conjunction with the subordinate Notification of the Office of the Board of Investment No. Por. 8/2567 Re: Criteria and Conditions for Permitting Foreign Juristic Persons Receiving Investment Promotion to Own Land for Office and Residence for Operational-Level Workers to Operate Business Granted Investment Promotion, dated November 4, 2024. Under the new BOI notification and subordinate notification, foreign juristic persons that receive promotional privileges from the BOI, with paid-up registered capital of at least THB 50 million, are eligible to own land for office use or residential purposes, subject to certain criteria and conditions: Office use. Land used for this purpose must be for an office of the relevant BOI-promoted business, with an area limit of 5 rai (8,000 square meters). Residential use. Land used for this purpose must be for the residences of operational-level workers (i.e., unskilled laborers), with an area limit of 20 rai (32,000 square meters). In addition, there must be common facilities (e.g., parking, first-aid room, kitchen, and other amenities, as approved by the BOI). The land must be located within 10 kilometers of the place of business operation, and the number of rooms must be consistent with the number of workers. For more information on this notification, or on any aspect of property law in Thailand, please contact Chaiwat Keratisuthisathorn at  [email protected],
Read More