Key changes under the Draft Land Law 2026
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Vietnam’s Draft Land Law 2026 proposes significant changes to the country’s land administration and investment framework.
In our latest legal update, DN Legal highlights 11 key areas for businesses and investors, including:
* the removal of express notarisation requirements for certain land-use-right transactions;
* revised land administration powers under the two-tier local government model;
* expanded land-use-right acquisition options for foreign-invested economic organisations;
* the 75% negotiated land acquisition mechanism;
* stricter treatment of investment projects that fail to put land into use;
* mandatory one-off land rent payments for specified infrastructure and tourism real estate projects;
* changes to land valuation, compensation and BT payment mechanisms; and
* proposed revisions to land use terms and extension procedures.
Potential impact
If adopted in its current form, the Draft Land Law could simplify certain land procedures and provide greater flexibility for corporate reorganisations involving foreign-invested enterprises.
The proposed requirement for one-off land rent payments may have mixed implications. Some market participants may welcome the greater long-term cost certainty and reduced exposure to future adjustments in annual land rent. This may also assist long-term project planning and, depending on the applicable legal framework and financing arrangements, enhance the bankability of certain projects.
For other investors, however, the upfront payment requirement could increase initial capital needs and place greater pressure on project cash flow—particularly for large-scale industrial infrastructure and tourism real estate developments. Its impact will therefore depend significantly on the project structure, investment horizon and financing model.
Investors may also face greater enforcement risk for delayed or unused projects. Changes to land valuation rules and the removal of certain express statutory procedures could create uncertainty until implementing regulations are issued. Businesses should review existing and proposed projects, land payment arrangements, transaction documentation and development timelines to assess potential exposure.
The Draft Land Law is currently non-binding and remains subject to revision during the Government and National Assembly review process. If adopted in its present form, it is proposed to take effect on 1 March 2027.
DN Legal will continue to monitor the legislative process and provide updates on subsequent drafts and material developments.
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