DRAFT LAND LAW 2026: 20 KEY CHANGES REAL ESTATE BUSINESSES SHOULD WATCH

Government Administration and Administrative Procedures

This group of proposed changes is expected to have the greatest influence on project approval and administrative processes.

1. Greater Decentralization of Land Administration

The draft proposes expanding the authority of local governments in carrying out certain land administration functions, with the objective of shortening administrative procedures and improving operational efficiency.

2. Business Implications

If implemented effectively, this decentralization could reduce processing times for land-related applications. However, businesses should also be prepared to adapt to different administrative practices across local jurisdictions.

3. Development of a National Land Information System

The draft continues to emphasize the establishment of a unified National Land Information System to support land management across the country.

This initiative is expected to:

• Improve transparency of land information.
• Facilitate faster access to land-related data.
• Reduce the time required for legal due diligence.

4. Improved Transparency in Land Information

The draft aims to strengthen public access to land information in accordance with applicable regulations, thereby promoting greater openness and transparency in land administration.

5. Standardization of Land Administration

The draft provides a more systematic framework for land management activities, including:

• Land planning
• Land allocation
• Land leasing
• Land valuation
• Land registration
• National land database development

Land Allocation, Land Lease, and Land Use Regimes

This group of amendments may significantly affect how real estate projects are structured and implemented.

1. Clearer Regulations on Land Lease Rights

The draft introduces more detailed provisions governing leasehold rights under land lease agreements, creating a clearer legal basis for transactions involving leased land.

2. Distinguishing Land Use Conversion from Land Use Form Conversion

The draft clearly differentiates between:

• Conversion of land use purpose; and
• Conversion of the land use regime.

This distinction is expected to provide greater legal clarity when businesses modify the way land is utilized.

3. More Flexible Land Rental Payment Options

The draft allows users, in certain cases prescribed by law, to select or convert between different land rental payment methods.

Potential benefits include:

• Better financial planning.
• Improved cash flow management.
• Greater flexibility in investment strategies.

4. Clearer Rights and Obligations Under Different Land Use Regimes

The draft further specifies the rights and obligations associated with various forms of land use, including:

• Land allocation with land use fees.
• Land allocation without land use fees.
• Land lease arrangements.

Project Transfers and M&A Transactions

With mergers and acquisitions becoming increasingly important in Vietnam's real estate market, this group of amendments deserves particular attention.

Key proposed changes include:

• Clarification of the rights of land users allocated land with land use fees.
• More detailed provisions on entities eligible to receive land use rights.
• Stricter conditions governing land use rights transfers.
• Refined regulations on real estate project transfers.
• Clearer provisions on capital contributions using land use rights.

Business Implications

If adopted, these amendments are expected to improve legal certainty, enhance transparency in M&A transactions, and provide businesses with a more comprehensive legal framework for project restructuring.

Project Development and Land Bank Strategy

The draft also introduces several provisions that could influence long-term land acquisition and project development strategies.

Key proposals include:

• Requirements relating to land use plans when acquiring agricultural land.
• The addition of a new land reserve category for future development.
• Expanded policies encouraging investment in selected sectors.

These changes could have a direct impact on how developers plan and build their land banks.

Land Finance

Land-related costs remain one of the most significant factors affecting project feasibility.

The draft further clarifies:

• The authority of provincial governments to determine land price schedules and adjustment coefficients.
• Financial obligations that land users must fulfill before conducting certain transactions.

Businesses should closely monitor the final version of these provisions and assess their potential financial impact once the law is enacted.

Foreign Investment

The draft also refines regulations applicable to foreign-invested enterprises (FDIs) and overseas Vietnamese regarding the receipt of land use rights in circumstances permitted by law.

These amendments are expected to provide greater legal clarity and strengthen investor confidence in cross-border real estate transactions.

How Should Real Estate Businesses Prepare?

Although the Draft Land Law 2026 is still under review and may continue to evolve before its official adoption, businesses should proactively assess the potential impact of the proposed changes on their investment and project development activities.

Recommended actions include:

• Reviewing internal legal procedures to prepare for a more decentralized administrative framework.
• Monitoring changes related to land allocation, land lease, and land use rights.
• Assessing the impact of the proposed regulations on financial planning and land acquisition strategies.
• Closely following the legislative process to ensure timely adjustments to investment plans when necessary.

The Draft Land Law 2026 reflects Vietnam's ongoing efforts to modernize land administration through greater transparency, stronger decentralization, and accelerated digital transformation.

If enacted, these proposed amendments could reshape multiple aspects of real estate development, from project approvals and land transactions to investment strategies and corporate governance.

By understanding the proposed changes early and preparing accordingly, real estate businesses can better manage regulatory risks while positioning themselves to seize new opportunities in Vietnam's evolving property market.