HCMC Eases Subdivision Requirements for Residential Land Interspersed with Agricultural Land: Land Users May Choose Which Portion to Subdivide

1. Addressing difficulties involving parcels comprising both residential and agricultural land

On September 22, 2026, the HCMC Department of Agriculture and Environment issued guidance clarifying the application of regulations on land subdivision in cases involving mixed-use land parcels comprising both residential and agricultural land.
(Source: VnExpress)

The issue arose during the implementation of Decision No. 67/2026/QD-UBND dated August 28, 2026 of the HCMC People's Committee, which provides regulations on the conditions for subdivision and consolidation of land parcels and the minimum areas eligible for subdivision within the city.
(Source: Thư Viện Pháp Luật)

Under Decision No. 67/2026/QD-UBND, the minimum area eligible for subdivision of agricultural land is 1,000 square meters for land used for perennial crops and 500 square meters for land used for annual crops.

In practice, many land parcels in existing residential areas comprise both residential and agricultural land. The agricultural portions interspersed within such parcels are often only several dozen to several hundred square meters in area. If the minimum-area requirement were applied to the entire agricultural portion associated with the parcel, land users could face difficulties when seeking to subdivide only the residential portion.

2. Land users may choose the portion of land to be subdivided

Under the guidance, for a mixed-use land parcel comprising both residential and agricultural land, the land user may choose the portion of land they wish to have subdivided. Where the land user proposes to subdivide both the residential and agricultural portions, the minimum-area requirements will be considered separately for each type of land in accordance with the applicable regulations.

Specifically, a land user may request subdivision of:

• the residential portion;

• the agricultural portion; or

• both the residential and agricultural portions, provided that the relevant requirements are satisfied.

The key point is that the competent authority will assess the minimum-area requirement only in respect of the portion of land proposed for subdivision and the formation of a new land parcel.

For the remaining portion of land that the land user does not propose to subdivide, the competent authority will not apply the minimum-area requirement applicable to land subdivision to that portion.

Accordingly, where a land parcel comprises a residential portion and an accompanying agricultural portion, but the land user only wishes to subdivide the residential portion, the agricultural portion remaining in the original parcel is not automatically required to satisfy the minimum area prescribed for agricultural land subdivision.

3. When must the minimum-area requirements be satisfied for both types of land?

The situation is different where the land user wishes to subdivide both the residential and agricultural portions simultaneously.

In such a case, the competent authority will assess the subdivision conditions and minimum-area requirements separately for each type of land in accordance with the applicable regulations.

In simple terms:

This guidance helps clearly distinguish between the portion of land proposed for subdivision and the portion of land that the land user intends to retain without subdivision.

4. Why is the new guidance significant for land users?

Before this clarification was issued, one of the issues reported in the processing of subdivision applications involving mixed-use land parcels was that the subdivision requirements could, in some cases, be considered in relation not only to the agricultural portion included in the proposed subdivision but also to the remaining portion of the parcel.

Such an approach could create difficulties for land parcels containing small agricultural portions interspersed with residential land, particularly where those agricultural portions did not meet the minimum area prescribed for agricultural land subdivision.

In certain cases, in order to satisfy the applicable area requirements, land users might have had to consider applying for a change of land-use purpose for the agricultural portion to residential land, which could give rise to associated financial obligations.

The new guidance from the HCMC Department of Agriculture and Environment clarifies that not every agricultural portion within the same land parcel is required to satisfy the minimum-area requirement for subdivision if the land user does not propose to subdivide that portion.

This is particularly important for households and individuals who are seeking to divide assets, make gifts, transfer part of a land parcel, or carry out other transactions involving only a portion of the land.

5. What should land users take into account when carrying out land subdivision procedures?

Although the regulations have now been clarified, the subdivision of land must still be assessed on a case-by-case basis.

Land users should carefully check all relevant factors, including:

• the land type recorded in the Certificate of Land Use Rights and Ownership of Assets Attached to Land;

• the area and boundaries of the portion proposed for subdivision;

• applicable land-use planning and land-use purposes;

• the applicable minimum-area requirements;

• requirements concerning dimensions, access roads, and other relevant conditions under applicable regulations;

• financial obligations and other land-related procedures arising from the subdivision.

Therefore, accurately identifying which portion of the land is proposed for subdivision and which portion will remain in the original parcel is an important step in preparing the subdivision application.

Conclusion

The guidance issued by the HCMC Department of Agriculture and Environment clarifies the application of subdivision requirements to mixed-use land parcels, particularly parcels comprising residential land interspersed with agricultural land.

Accordingly, land users may choose the portion of land they wish to propose for subdivision. The minimum-area requirement will be assessed with respect to the portion proposed for subdivision and the formation of a new land parcel. For the remaining portion that is not proposed for subdivision, the minimum-area requirement for land subdivision will not be applied. Where both the residential and agricultural portions are proposed for subdivision, the minimum-area requirement will be assessed separately for each type of land in accordance with the applicable regulations.

This is an important point for households and individuals holding land parcels comprising multiple land types and wishing to subdivide part of the land for purposes such as asset division, gifting, or transfer.

Note: The above guidance specifically clarifies the application of the minimum-area requirement to mixed-use land parcels. In practice, a subdivision must still satisfy other applicable legal requirements and will depend on the specific application, the actual land-use status, applicable planning, the type of land involved, and other relevant conditions in each individual case.