In a significant move to streamline the execution of the Land Law 2024, the National Assembly of Vietnam recently passed Resolution 254/2025 on specific policies and mechanism to resolve obstacles in implementation of the Land Law 2024. Effective from 1 January 2026, Resolution 254/2025 is intended to apply alongside the Land Law 2024 and prevails in case of conflict. In essence, Resolution 254/2025 could be considered as an amendment to the Land Law 2024.

In this post, we will summarize the key changes introduced under Resolution 254/2025.

1. Expanded Scope for Land Recovery

Resolution 254/2025 introduces three additional scenarios under which the State may recover land to promote socio-economic development. Specifically, it now includes:

Land recovery for implementing project in Free trade zones (FTZs) and International financial centers (IFCs). This underscores Vietnam’s ambition to attract high-quality FDI into strategic economic hubs;
Land recovery for creating land funds dedicated to paying for Build-Transfer (BT) contracts and creating land funds to support businesses whose previous land was recovered by the State; and
For projects where investors have successfully negotiated for at least 75% of the land area and 75% of land users, but cannot reach an agreement with the remainder, the Provincial People’s Council may approve the State’s recovery of the remaining 25%.

2. Flexible Procedures for Compensation and Resettlement

To accelerate site clearance, Resolution 254/2025 introduces specific scenarios where land recovery for socio-economic development may proceed without the prior approval of a compensation and resettlement plan or the completion of resettlement. Specifically:

Land may be recovered for projects of national importance or urgent public investment once the compensation and resettlement plan has been publicly disclosed, even if not yet approved. With respect to other project, land recovery is permitted if more than 75% of land users consent to the recovery prior to the formal approval of the compensation and resettlement plan.
Land recovery prior to the completion of resettlement arrangements in cases of urgent public investment projects involving on-site resettlement, and projects where resettlement is arranged along the linear alignment of the main construction route.

Resolution 254/2025 also allows the competent authority to decide on the land recovery plan pursuant to project schedule or compensation and resettlement schedule.

3. Changes to Regulations on Land Allocation and Land Lease

Stage-based land lease/allocation: Land can now be allocated or leased according to the progress of the project or the site clearance schedule, rather than requiring the entire plot to be ready at once.
Payment Options: Except for special cases where land is managed by the State agencies, land users now generally have the right to choose between lump-sum (one-time) or annual rental payments. This marks a significant shift from Article 120 of the Land Law 2024, which limits lump-sum payments to some restricted cases.

This regulation also has retroactive effect, extending to investment projects that were granted land leases before Resolution 254/2025 became effective.

Conversion of land use purpose: Competent authorities now may decide on land allocation, land lease, and permit the conversion of rice-growing land, special-use forest land, protection forest land, and production forest land to other purposes without requiring the approval of the Provincial People's Council.
Exemptions from Auction/Tender: The following projects now may be exempted from the requirement to hold a land-use right auction or tender for investor selection:

- Project using land allocated/leased via BT contract settlement;

- Projects subject to State land recovery that do not utilize State capital, for which the investment policy approval and the investor selection or approval decisions have already been issued; and

- energy projects, or tourism-commercial projects in areas with extremely difficult socio-economic conditions.

4. Reducing Prerequisites for Organization of Land Auction and Project Tender

Regarding housing projects, urban area, and rural residential area, Resolution 254/2025 now only requires sub-zone plan (quy hoạch phân khu) (or general master plan (quy hoạch chung) in cases where a sub-zone plan is not required), or detailed plan (quy hoạch chi tiết). This significantly streamlines the prerequisites for organizing land auctions and project tenders compared to the more stringent requirements of the Land Law 2024.

5. Adjustment of Land Use Term Following a Change of Investor

Resolution 254/2025 now explicitly permits the adjustment of land use terms for new investors replacing those that have been dissolved or declared bankrupt, as well as for investors acquiring investment projects involving land use. The new investor must pay supplementary land rental fees in accordance with the provisions of law.

6. Expanding scope of application for land price table

Resolution 254/2025 now expands the scope of application for land price table (bảng giá đất). Particularly, in addition to the existing cases provided under the Land Law 2024, the land price table will serve as the basis to, among others:

calculate compensation amounts upon land recovery by the State; and
calculate land rental and land use fees in all cases of land allocation, land lease, and change of land use purpose.

This regulation indirectly removes the application of specific land price (giá đất cụ thể) as currently stipulated under the current Land Law 2024.

The uniform application of land price tables may accelerate land allocation and leasing procedures. However, this new regulation may result in state budget losses or inadequate compensation for those whose land is recovered, as the prices in the land price table may not accurately reflect the market value of the land.

7. Reducing conditions for selling assets attached to land under annual rental payments

Under the current Land Law 2024, land users may only sell assets attached to land with annual rental payments if they have already registered and obtained ownership certificate for such assets. Resolution 254/2024 now abolishes this requirement. Accordingly, the sale of assets attached to land under annual rental payments only needs to satisfy the following conditions:

Compliance with regulations on construction permits; and
The assets must have completed construction in accordance with the detailed planning and approved project.

This post is written by Nguyen Hoang Duong.

Vietnam Business Law