Key Highlights of the New Land Law for Enterprises & Property Owners

Impact of the New Land Law on Real Estate Markets and Property Rights

Land Law No. 31/2024/QH15 introduces historic milestones in the administration and utilization of land in Vietnam. Below is an expert breakdown by SaigonLex property attorneys regarding crucial statutory changes.

1. Abolishing the Statutory Land Price Framework – Transitioning to Annual Market-Based Price Lists

The most consequential reform is the abolition of the 5-year statutory land price framework. Instead, provincial People's Committees will formulate and issue Annual Land Price Tables (effective from January 1, 2026). Pricing land closer to actual market values significantly enhances fairness in compensation and resettlement for expropriated landholders, while concurrently increasing annual land rental and land use fee obligations for commercial real estate development projects.

2. Relaxation of Conditions for Land Use Rights Certificates (Red Books) on Undocumented Land

Households and individuals using land prior to July 1, 2014 without paper title deeds—confirmed by commune-level People's Committees as free of disputes and conforming to land-use planning—will be considered for Land Use Rights Certificates under specific statutory quotas and fee schedules under Article 138 of Land Law 2024.

3. Transparent Land Allocation and Leasing Mechanisms via Auctions and Bidding

The new law strictly delineates land allocations through auctions of land use rights, competitive bidding for investor selection in land-using projects, and statutory fee exemption/reduction categories. This curtails discretionary approvals and fosters healthy competition among project developers.

4. Strategic Recommendations from SaigonLex Attorneys

Enterprises and landowners should systematically audit the legal status of all land parcels under management, and proactively execute certificate renewal or tenure extension procedures following the latest regulations to secure lawful property interests.