On June 29, 2024, the National Assembly voted to pass the Law amending and supplementing several articles of Land Law No. 31/2024/QH15, Law on Housing No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15, among others. The Land, Housing, and Real Estate Business Law took effect on August 1, 2024, five months earlier than planned. Several guiding decrees for these laws also came into force on August 1, 2024. This edition of our Legal Update highlights the critical changes in Vietnam’s land laws that impact foreign investors.
1. 2024 Land Law Impacting Foreign Investors
(a) Classifies companies with a foreign shareholding of 50% or less as “domestic organizations,” granting them the same land use rights as purely domestic companies.
(b) Permits parties to resolve disputes arising from land-related commercial activities through arbitration or Vietnamese courts.
(c) Restricts the option of one-time land lease payments to specific types of developments, including agricultural projects, industrial parks, building social housing for rent, and specific commercial uses.
(d) Introduces the Decision on Investment Policy (DIP) as an alternative land allocation or leasing basis.
2. Decree No. 71/2024/ND-CP provides comprehensive guidelines on land valuation, including methods, procedures, and factors influencing the land price.
3. Decree No. 88/2024/ND-CP provides instruction for preparing compensation, support, and resettlement planning when the State expropriates land, specific cases, and
applicable compensation and resettlement.
4. Decree No. 101/2024/ND-CP provides detailed timelines, procedures, and dossiers for several land-related registration procedures.
5. Decree No. 102/2024/ND-CP provides procedures for amending land allocation, leasing, or use conversion decisions.
6. Decree No. 103/2024/ND-CP provides regulations on land use fees and land rental.
7. Decree No. 95/2024 provides detailed guidance on the 2023 Housing Law.
8. Decree No. 98/2024/ND-CP provides guidelines for renovating and reconstructing condominiums.
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If you need more information or help navigating these changes, please do not hesitate to contact us.
• Diep Hoang +84 28 7300 0864 (ext 120) Diep.hoang@dilinh.com
• Michael Lee +84 28 7300 0864 (ext 130) Michael.lee@dilinh.com