Vietnam Removes Obstacles to Key Real Estate Projects

On February 20, 2025, the National Assembly of Vietnam made public the executed Resolution 170/2024/QH15, which outlines special mechanisms and policies to address difficulties and obstacles related to notable real estate projects and land issues in Da Nang, Ho Chi Minh City, and Khanh Hoa Province. This resolution, with an effective date of April 1, 2025, aims to resolve issues identified in inspection conclusions, audits, and court judgments, including 1,313 cases of land-use term violations in Da Nang.

Solutions

Resolution 170 provides a variety of mechanisms and policies to clear the way for projects to proceed with implementation. These may include, depending on the specific location, the following solutions.

For issued Land Use Rights Certificates (LURC) that violate the land-use term for business production land in Da Nang: For projects that have already been invested in and utilized, the land-use terms in the LURC may be adjusted to 50 years from the date of the decision on land allocation, land lease, conversion of land use purpose, or actual land handover.

For continued use of land, determining land prices, and calculating land use fees and land rental fees applicable to a list of projects in Da Nang, Ho Chi Minh City, and Khanh Hoa Province: The city/provincial People’s Committees will review and complete, within their authority, the procedures related to land, investment, construction, environment, and forestry of such projects in accordance with the current laws.

Projects that meet legal and regulatory requirements after thorough review and compliance checks will be allowed to continue, provided they are aligned with urban planning, environmental standards, and national security requirements. In addition, investors must fulfill applicable financial obligations, including land use fees and land rental payments, which will be reassessed and collected based on the land price tables applicable in Da Nang, Ho Chi Minh City, and Khanh Hoa Province at the time of the land allocation or land lease decision. If the land price at the time of the decision does not reflect the actual market value, the provincial People’s Committees will determine a specific land price.

Projects that do not meet the conditions will have their land revoked.

Outlook

Resolution 170 represents a significant effort by the National Assembly to address longstanding issues in project and land management. Stakeholders are advised to review the resolution in detail and ensure compliance with the outlined solutions to avoid legal and financial repercussions.

By Tilleke & Gibbins, Vietnam, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact vietnam@transatlanticlaw.com

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