8 Key Highlights of the Amended Land Law

Table of Contents

What Are Changes in Land Law?

Land law serves as a fundamental pillar in the socio-economic structure of any nation, and Vietnam is no exception. As Vietnam continues to experience rapid industrialization and urbanization, the importance of a robust and adaptive Land Law becomes increasingly paramount.

On the morning of January 18, at the closing session of the 5th extraordinary meeting of the 15th National Assembly, with 432 out of 477 delegates approving, the National Assembly passed the amended Land Law, which will come into effect from January 1, 2025.

According to the Ministry of Natural Resources and Environment, the amended Land Law includes 16 chapters with 260 articles, amending and supplementing 180 out of 212 articles of the 2013 Land Law and adding 78 new articles.

The amended Land Law has institutionalized the Party’s guidelines, resolving difficulties and problems identified during the summary of the implementation of the Land Law. The new contents include:

Land Policies for Ethnic Minorities According to the Ministry of Natural Resources and Environment, the amended Land Law has specified regulations to institutionalize the Party’s policies on land for ethnic minorities.

Accordingly, the law has stipulated policies to ensure communal living land; allocation and leasing of land for ethnic minorities lacking residential and production land; responsibilities of state agencies in developing and implementing land support policies for ethnic minorities.

The amended Land Law also prescribed resources to implement policies; ensure land funds to carry out land policies for ethnic minorities; and set restrictions on some rights of land users in cases where land is allocated, leased, or changed in use purpose under land support policies for ethnic minorities…

The amended Land Law specifically regulates policies to support residential land, agricultural production land, and non-agricultural business land for individuals who are ethnic minorities living in poverty or near-poverty in ethnic minority and mountainous areas.

Forms of land allocation include: allocation of residential land within the limit; allowing the change of land use purpose to residential land within the land limit for land originating from state allocation, lease, recognition, or acquired through inheritance, donation, transfer of land use rights as prescribed by law; allocation of agricultural land within the limit; leasing of non-agricultural land that is not residential for business purposes.

For those who have been allocated or leased land for the first time but now have no land or lack land, they are to be further allocated residential land within the limit, allowed to change the use purpose to residential land within the limit; further allocation of agricultural land within the limit or leasing of non-agricultural land that is not residential for business purposes.

The law also stipulates that ethnic minorities who are beneficiaries of policies shall be allocated land by the state without charge for land use.

On Planning and Land Use Planning According to the Ministry of Natural Resources and Environment, the amended Land Law has perfected the regulations on planning and land use planning, ensuring this is the foundation of the state management of land.

Specifically, the law has supplemented and completed the principles of land use planning to ensure the consistency of the planning system. Land use planning and plans are developed at three levels: national, provincial, and district.

Higher-level land use planning ensures the land use needs of the lower levels; lower-level land use planning must conform to the higher-level land use planning.

The development of land use planning and plans at all levels must ensure the participation of political-social organizations, communities, and individuals; ensure openness and transparency. Land use planning at all levels is developed simultaneously; higher-level land use planning must be decided and approved before lower-level planning.

The amended Land Law continues to regulate the development of annual district-level land use plans, but the provisions are simplified, not requiring the annual district-level land use plan to include the demand for change of land use purpose associated with residential land of households and individuals.

Furthermore, the law supplements the list of projects for compensation, support, and resettlement separated from investment projects as prescribed by public investment law in the content of annual district-level land use plans.

The law also enhances the openness, transparency, and public participation in land use planning by organizing consultations; supplementing and completing regulations on the implementation of land users’ rights in planning areas. Accordingly, if land use planning has been announced but the annual district-level land use plan is not yet available, land users can continue to use and exercise their rights.

The law also provides that the land area determined in the annual district-level land use plan that has been approved by the competent authority for project implementation or for change of land use purpose, if after two consecutive years has not been decided upon for land recovery or not permitted to change land use purpose, the competent authority that approved the plan must review, evaluate, adjust, cancel, and must announce the adjustment, cancellation for the public knowledge.

If there is no adjustment, cancellation, or there is an adjustment, cancellation but it is not publicly announced, the land users are not restricted in their rights to use the land as prescribed by law.

Regarding land allocation, leasing, and conversion of land use purposes

The amended Land Law has added many bases for land allocation, leasing, and permission to change land use purposes. For cases where the state allocates land without collecting land use fees, the law specifies the subjects who are allocated land by the state without land use fees for constructing state agency headquarters. Additionally, three cases have been added, including: allocating land for agencies, organizations to implement public housing projects; allocating land to ethnic minorities who are beneficiaries of policies; and allocating land for religious purposes as compensation for cases where the state recovers religious land.

For cases where the state allocates land with land use fees, the law also adds three instances, including: economic organizations allocated land to implement commercial housing projects, social housing, housing for the armed forces; investment projects for renovation and reconstruction of apartment buildings; constructing facilities for storing ashes.

The second case is for overseas Vietnamese and foreign-invested economic organizations allocated land to implement commercial housing projects as per the housing law; using land received through the transfer of real estate projects as per the real estate business law for cases where the state allocates land with land use fees.

The third case is for households, individuals, overseas Vietnamese allocated land as land compensation when the state recovers land.

Regarding cases where the state leases land, the law also specifies the instances where the state collects a one-time land lease fee for the entire lease period. At the same time, it specifies cases of land allocation and leasing that must go through bidding or auction and cases where land allocation and leasing do not require going through these processes.

Regarding the conversion of land use purposes, the Ministry of Natural Resources and Environment indicates that it has been controlled by the amended Land Law from the planning and land use planning stages, with provisions that the content of district-level land use planning must specifically determine the area of land allowed for conversion of use.

The conversion of land use purposes is also controlled from the step where competent authorities organize investment policy decisions, land use rights auctions, and investor selection for projects through regulations on decisions to allow the conversion of land use purposes based on investment policy decisions, auction results of land use rights, and results of investor selection for project implementation.

The amended Land Law also specifically regulates cases of land use for commercial housing projects through the mechanism where the state recovers land to organize auctions of land use rights, tendering for investor selection for the project, conversion of land use purposes for those currently having land use rights for residential land, and other types of land.

The amended Land Law also provides for the amendment of some articles of the Forestry Law to centralize the entire authority to approve the conversion of forest use purposes to the Provincial People’s Councils.

Why Land Law is Important in Vietnam?

The Land Law in Vietnam governs the allocation, use, and management of land, which is a critical resource for agricultural productivity, industrial development, and urban expansion. It establishes the framework for land ownership rights, usage regulations, and the responsibilities of land users. Given that all land in Vietnam is owned collectively by the people and managed by the state, the Land Law provides the necessary legal guidelines for the state to regulate land use effectively.

An updated and well-structured Land Law is vital for several reasons. Firstly, it underpins economic development. With clear land use regulations, investors and businesses have the confidence to invest, knowing their land rights are protected. This attraction of investment is crucial for the growth of Vietnam’s economy, providing job opportunities, enhancing productivity, and contributing to national revenue.

Secondly, the Land Law plays a significant role in agricultural reform. It enables the restructuring of land for agricultural efficiency, allowing for larger farming plots and more effective cultivation, which can lead to increased agricultural output and better food security for the nation.

Thirdly, it is critical for urban planning and sustainable development. As cities expand, the need for planned urban growth becomes essential to avoid haphazard development and ensure the sustainable use of land resources. The Land Law facilitates this by setting out the planning requirements and ensuring that land is used in a way that is beneficial for social and economic progression while preserving the environment.

Fourthly, the Land Law in Vietnam ensures social equity and stability. By providing a legal framework for land allocation and use, it helps prevent land disputes which can arise from unclear land regulations. This is particularly important in Vietnam, where land-related issues are among the most common causes of disputes and protests.

Finally, the Land Law addresses environmental concerns by incorporating land use strategies that contribute to environmental protection and sustainable land management. It is pivotal in regulating the exploitation of natural resources, conserving biodiversity, and mitigating the impacts of climate change through proper land use planning and management.

In conclusion, the Land Law in Vietnam is not merely a set of rules governing land transactions; it is a strategic instrument that shapes the country’s development trajectory. It ensures that land resources are used efficiently and responsibly, aligning with the broader goals of economic growth, social justice, and environmental sustainability. As Vietnam moves forward, the ongoing evolution of its Land Law will continue to be a key driver in its journey towards a prosperous and equitable society.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.