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On March 26, 2024, the Prime Minister of Vietnam issued Official Letter No. 202/TTg-NN regarding the deployment of the implementation of Land Law No. 31/2024/QH15, urgently sending it to the Deputy Prime Minister, Ministers of various Ministries, Chairpersons of People’s Councils, People’s Committees of centrally-run provinces and cities.
The Land Law of 2024 has undergone significant changes, notably including:
• Enhancing the rights of Vietnamese residing abroad, in that Vietnamese nationals residing abroad shall have full rights related to land as Vietnamese citizens residing domestically.
• Adding the option of annual land rental payments or lump-sum payments for the entire rental period; specifying the conditions for the exercise of rights of economic organizations leased land by the state to pay annual land rental fees.
• Individuals who are exempted or have reduced land use fees or land rental fees shall have rights and obligations similar to cases where they are not exempted or have not had land use fees or land rental fees reduced.
• Adding provisions for individuals not directly engaged in agricultural production to receive the transfer of land use rights for rice cultivation within the allocated land quota; in cases exceeding the quota, they must establish economic organizations, have plans for rice cultivation, and be approved by the district-level People’s Committees.
• Abolishing land price frames and determining land prices based on market principles. This change reduces the disparity between actual land prices and existing land price frames, thereby reducing tax losses as well as risks in real estate.
• Expanding the scope of issuing land use right certificates for land without documents, thereby providing assurance for citizens and assisting the state in monitoring the land market.
On March 26, 2023, the Prime Minister of Vietnam requested the Ministry of Natural Resources and Environment, along with other relevant ministries and agencies, to promptly submit to the Government detailed guiding decrees for the implementation of the Land Law and circulars. This is the basis for the Government to propose to the National Assembly to allow this law to take effect from July 1, 2024, instead of early 2025 as initially planned.
Specifically, Section 8 of Official Letter No. 202 directs that before March 31, 2024, the Ministry of Natural Resources and Environment shall lead and coordinate with the Ministry of Justice and relevant agencies to submit to the Government the draft resolution (along with the draft resolution of the National Assembly) for the National Assembly to allow Land Law No. 31/2024/QH15 to take effect from July 1, 2024.
The early implementation of the Land Law 2024 six months ahead will provide a solid legal framework for real estate activities and businesses related to land in Vietnam, especially amidst the real estate market still recovering slowly from the freeze in 2022.
However, early implementation needs to ensure coherence and system accuracy so that competent authorities, individuals, and businesses do not encounter obstacles when implementing and applying overlapping or ambiguous provisions that are ineffective in reality.
To best protect their interests, businesses engaging in this matter should contact a Vietnam Real estate law firm to receive legal advice suitable with their specific circumstance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
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