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Resolution 254 on Certain Policies and Mechanisms to Address Obstacles in the Implementation of the Land Law (Vietnam)

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April 2026

Resolution 254 on Certain Policies and Mechanisms to Address Obstacles in the Implementation of the Land Law (Vietnam)

Author: Hoai Tran

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Asia Legal Review No.115 (April, 2026)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Introduction

In December 2025, the National Assembly of Vietnam passed Resolution No. 254/2025/QH15 (“Resolution 254”), which took effect on 1 January 2026.

Resolution 254 introduces a number of specific policies and mechanisms aimed at addressing bottlenecks in the implementation of the Land Law 2024 (the “Land Law”), which took effect on 1 August 2024. These policies are designed to be applied alongside the Land Law and will prevail in the event of any inconsistency with the Land Law. In substance, Resolution 254 may be regarded as a partial amendment to the Land Law. Accordingly, the Government has issued Decree 49/2026/ND-CP and Decree 50/2026/ND-CP, both dated 31 January 2026, providing detailed regulations on implementation of Resolution 254 and amendments to a number of decrees implementing the Land Law.

Notably, Resolution 254 introduces several new measures to accelerate land clearance, land acquisition, and licensing procedures for development projects.

Previously, the National Assembly of Vietnam also passed Resolution No. 171/2024/QH15 providing special policies and mechanisms to unlock the restrictions on the use of non-residential land for housing projects.

Below, we highlight some of the key changes introduced by Resolution 254 that are particularly relevant to the business community, especially foreign investors, in comparison with the Land Law.

Accelerated Land Clearance by the State

In addition to the 32 categories of cases eligible for the State to recover land under the Land Law (i.e., land recovery for socio-economic development in the national or public interest)※1, Resolution 254 introduces three additional categories:

Development of free trade zones or international financial centers;
Development of projects where the investor is permitted to acquire land through direct agreements with existing land users but has already acquired (i) more than 75% of the project land area and (ii) such acquired portion is owned by more than 75% of the affected land users; and
Establishment of a land bank to facilitate payment under build-transfer (“BT”) contracts.

Regarding procedures, Resolution 254 shortens the timeline for notifying affected land users. Specifically, it reduces notice to 60 days for agricultural land (instead of 90 days) and 120 days for non-agricultural land (instead of 180 days).

During this notification period, the competent authority must publicly post the draft compensation and resettlement plan at the local government’s headquarters and collect feedback from affected land users. The posting and feedback periods are also reduced to 10 days and 30 days, respectively (compared to 30 days and 60 days under the Land Law).

Following this process, the authority will approve the compensation and resettlement plan and issue the land recovery decision, which must be complied with by the affected land users.

These changes are expected to significantly expedite land acquisition, particularly by addressing situations where projects are delayed due to a small number of remaining land users who have not agreed to transfer their land.

Expanded Cases Exempt from Land Auction or Tender

Under the Land Law, projects involving land subject to State recovery are generally required to undergo auction or tender procedures unless they are implemented under a public investment scheme or a public-private partnership (“PPP”) model. Under Resolution 254, where a project is eligible for State recovery, not funded by State capital and has obtained both investment policy approval (“IPA”) and investor approval (“IA”), the investor may be allocated land use rights without the need for a land auction or tender.

This approach aligns with provisions under the Investment Law 2025, which allows licensing authorities to grant IPA and IA in certain cases even before the investor has secured land use rights, and emphasizes that the three additional categories eligible for the State to recover land introduced by Resolution 254 as mentioned above may apply to projects which are not implemented under public investment schemes.

Additionally, Resolution 254 permits payment for BT contracts in the form of land without auction or tender, and removes the requirement for detailed master plans (1/500 or 1/2000) for organizing land auctions or tenders for new urban or housing projects. Instead, only a general zoning or master plan is required.

Simplified Land Price Determination

To expedite land acquisition for the investors, Resolution 254 streamlines the land valuation process by emphasizing the use of the land price adjustment coefficient method for determining land prices in various contexts, including (i) calculation of land use fees or land rent payable to the State; and (ii) compensation for affected land users.

Under the Land Law, four valuation methods are available: comparative, income, surplus, and land price adjustment coefficient methods. The new approach prioritizes the latter, which relies primarily on (i) officially issued land price tables and (ii) annual adjustment coefficients.

Resolution 254 also introduces greater flexibility in the use of the land price tables. Instead of being updated annually, these tables may remain in effect for multiple years and be adjusted through annual coefficients. This is expected to accelerate the pricing process and improve predictability.

Furthermore, developers may deduct infrastructure development costs when calculating land use fees; and in certain cases, individuals and households may only be required to pay 30% (instead of 100%) of the land price table value.

These measures appear to respond to concerns regarding high land prices under the market-based pricing framework of the Land Law.

Expanded Options for Land Users

Resolution 254 reinstates flexibility for land users leasing land from the State, allowing them to choose between annual rent payment or lump-sum payment.

This reverses the more restrictive approach under the Land Law, which limited lump-sum payments to specific sectors such as industrial zones, high-tech zones, tourism, office use, social housing for lease, and certain agricultural activities.

Importantly, Resolution 254 also allows investors to apply for the extension of land use terms in cases where (i) the original investor has been dissolved or declared bankrupt; or (ii) the project has been transferred to a new investor.

In such cases, the new investor may apply for an extension by paying additional land rent. This provides greater certainty for investors involved in project transfers or distressed assets. Under the Land Law, the investors were only allowed to apply for extension within the last year of the land use terms or otherwise upon obtaining approval from the competent authority for amendment of the operational duration of their investment project. As such, it was unclear whether applying for an extension was allowed in such cases as mentioned in (i) and (ii) above. Resolution 254 clarifies the position.

Eased Conditions for Sale of Assets Attached to Land

Resolution 254 relaxes the conditions for transferring assets attached to land leased from the State with annual rent payments.

Specifically, land users may transfer such assets provided that (i) a construction permit has been obtained (where required) and construction has been completed; and (ii) the land is used in accordance with its designated purpose.

This represents a step of simplification compared to the Land Law, which requires such assets to be formally registered and recorded in the certificate of land use rights and ownership of assets attached to land (“LURC”).

Mortgage Registration No Longer Recorded in LURC

Under Resolution 254, mortgages over land use rights or assets attached to land will no longer be recorded in the LURC. Instead, such information will be maintained in the land database system.

However, there remains a lack of clear guidance on how a person can access this information in practice. Based on our experience, obtaining land-related data from competent authorities can be challenging.

Pursuant to Decree No. 357/2025/ND-CP on the construction and management of information systems and databases for the housing and real estate market (“Decree 357”), mortgage and release of mortgage information will be included in the national database managed by the Ministry of Construction.

Nevertheless, if the system is not fully operational by the effective date of Decree 357 (i.e., 1 March 2026), organizations and individuals may continue to request such information under the previous regime by submitting written requests to the relevant authorities.

Conclusion

Resolution 254 represents a significant and pragmatic reform to address implementation challenges under the Land Law. By streamlining procedures, expanding investor access to land, and introducing more flexible pricing and transaction mechanisms, the Resolution is expected to facilitate project implementation and improve the investment climate in Vietnam.

However, the effectiveness of these reforms will depend on consistent implementation at the local level and the operational readiness of supporting administrative systems, particularly land pricing, land clearance and land databases.

Endnotes

*1
The Land Law also provides for other categories of cases where the State recovers land for national defense and security purposes, as well as in cases of legal violations, expiry of land use terms, or voluntary return of land.

April 28, 2026

This newsletter is given as general information for reference purposes only and therefore does not constitute our firm’s legal advice. Any opinion stated in this newsletter is a personal view of the author(s) and not our firm’s official view. Given the nature of this newsletter as general information, statutory provisions and source citations may have been intentionally omitted. For any specific matter or legal issue, please do not rely on this newsletter but make sure to consult a legal adviser. We would be delighted to answer your questions, if any.

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Lawyers

Hoai Tran

Associate

Ho Chi Minh City

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