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

April 11, 2023

Vietnam: New Decree Addresses Existing Land-Related Problems Pending Issuance of New Land Law

Subscribe to Updates

On April 3, 2023, the government of Vietnam issued Decree No. 10/2023/ND-CP (“Decree 10”) to resolve a number of existing land-related problems pending the expected promulgation of a new Land Law later this year. The changes under Decree 10, which will take effect on May 20, 2023, include the following:

New Regulations on Land Use Right Bidding

Decree 10 outlines the conditions for organizations and individuals to participate in the bidding process for land use rights, as well as the conditions that must be met for the land site to be eligible for bidding. Specifically, in addition to the conditions already stated in Article 58.3 of the Land Law 2013 and Articles 14.2 and 14.3 of Decree No. 43/2014/ND-CP, organizations seeking to participate in the land use rights bidding process must ensure that no more than one company with cross-ownership participates in the bidding. Furthermore, they must also submit a 20% deposit of the total value of the land site, which is the starting price for the bidding. After the announcement of the auction results, the down-payment and any interest earned will be converted into a security deposit to ensure the bidder’s financial obligations are met. If the winning bidder fails to pay the full amount for the land use rights, the security deposit will be forfeited.

In addition, a land site put up for bidding must satisfy certain conditions, such as having a starting price of bidding determined by the state authority and having an approved 1/500 detailed plan for the land used for investment and construction of residential buildings. The auction must be conducted on a plot-by-plot basis.

Certifying Ownership of Real Estate for Tourism Accommodation

Ownership of buildings on commercial and service land that are used for tourism accommodation purposes (such as condotels or other types of resort real estate) can now be granted in accordance with regulations applicable to other types of buildings constructed on commercial and service land. Decree 10 provides for the land use term and conditions to be satisfied in this case.

Conversion of Land Use Purpose to Implement Investment Project

Decree 10 allows land used for rice farming, protective forest, or special-use forest to be converted to land for other usage purposes upon satisfaction of certain conditions, such as having an investment project granted an in-principle investment approval or an investment registration certificate; complying with the district land-use plan and annual land-use plan which has been approved; providing a forest replacement plan or paying for forest planting as required by forestry laws (or having a plan to use the surface land and paying for land protection and development as required by the cultivation law); and conducting preliminary environmental impact assessments.

Other Changes

Decree 10 provides for the first time the land reclamation procedures in case of termination of investment projects. It also regulates certain critical matters such as the procedures for registering and issuing the certificate of land use rights and ownership of houses and other assets attached to land for the recipients of land use rights transfer and the purchasers of houses or buildings in residential development projects and non-residential real estate business projects. Procedures for land allocation or land lease in cases where investors are approved in accordance with Article 29.3 of the 2020 Investment Law are also provided.

Outlook

Decree 10 has effectively addressed certain longstanding issues related to land, which had been unclear and caused difficulties for real estate developers and investors involved in projects that require land usage. For example, owners of condotels or other types of resort real estate whose ownership had been unresolved for an extended period of time will now be granted ownership rights similar to those of other types of buildings on commercial and service land.

It is anticipated that Decree 10 will serve as a driving force for the real estate industry, particularly in light of the challenging economic fluctuations that have negatively impacted global recovery and growth, as well as the domestic economy.

Related Professionals

Practices

Real Estate

Location

RELATED INSIGHTS​ 

July 14, 2025
Specialists from Tilleke & Gibbins in Vientiane have contributed an updated Laos entry to Multilaw’s Real Estate Guide, a concise online resource designed to give investors insight into some fundamental issues they may face in managing real estate transactions and ownership. The guide now features contributions from Multilaw member firms in 68 jurisdictions worldwide. It outlines key legal requirements in each jurisdiction, focusing especially on the restrictions and taxes applicable in each country, and the legal methods available for registering and identifying real estate and property ownership. Tilleke & Gibbins is a proud member of Multilaw, a leading network of carefully selected, independent law firms in more than 150 commercial centers, able to provide expert legal advice in complex environments around the globe. The Laos entry in the Real Estate Guide is available on the Multilaw website.
Read More
May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
Read More
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
April 24, 2025
On April 8, 2025, Thailand passed a resolution to reduce the government fees for registering the sale and mortgage of immovable property. These reductions are outlined in two notifications issued by the Ministry of Interior and published in the Government Gazette on April 22, 2025. The measures are part of the government’s ongoing efforts to support the real estate sector and promote property ownership. The reduced fees apply to sale and mortgage registrations for certain types of properties—detached houses, semidetached houses, row houses, commercial buildings, accompanying land, and condominium units—with a sale price, official assessed value, or mortgage amount not exceeding THB 7 million. The reduced fees apply only when the buyer is an individual with Thai nationality. The reduced rates for registration fees are as follows: Sale: 0.01% of the officially assessed value (reduced from the normal rate of 2%) Mortgage: 0.01% of the mortgage amount (reduced from the normal rate of 1%) when registered at the same time as the sale of the property. These reduced rates are in effect from April 22, 2025, to June 30, 2026.
Read More