IMPACT OF THE 2024 LAW ON LAND 2024 AND SOME RECOMMENDATIONS FOR POLICY IMPLEMENTATION
IMPACT OF THE 2024 LAW ON LAND 2024 AND SOME RECOMMENDATIONS FOR POLICY IMPLEMENTATION
Nguyen Quoc Huy
People’s Security Academy
Abstract: On June 29, 2024, the XV National Assembly passed the 2024 Law on Amendments to the Law on Land, effective from August 1, 2024, to institutionalize the Party’s guidelines and state policies; codify land regulations to support and promote the development of the real estate market, maximize the potential and most efficient use of land resources.
At the same time, it aims to address difficulties in accessing land for production, business, and investment attraction, contributing to achieving the socio-economic development goals set out, social stability, and practical benefits for the people. However, there are still many issues that the 2024 Law on Land cannot resolve upon its implementation, requiring further studies, analyses, evaluations, and recommendations for improvement in the future.
Keywords: Land Law; impact; implementation; policy; recommendations.
Introduction
Land law is considered a fundamental legal field, strongly influencing and contributing to the promotion of Vietnam’s socio-economic potential. Over the years, with the orientation of renewing legal perceptions and perspectives, land law has positively impacted socio-economic development through policies that liberalize land resources, expand land use rights, and diversify infrastructure investment methods.
However, some regulations remain inadequate, and the legal framework is not broad enough, hindering socio-economic development potential. These issues include compensation policies, resettlement upon land acquisition; land price framework, land valuation methods; the limit on transferring agricultural land use rights for individuals; the scope and method of determining state land recovery; and land allocation and leasing through land use rights auctions.
Therefore, the 2024 Law on Land, along with the Law on Housing and the Law on Real Estate Business passed at the 6th session of the XV National Assembly, is expected to come into effect simultaneously from August 1, 2025, and is anticipated to promote Vietnam’s socio-economic development potential for the following reasons:
- Land resources will be exploited, used economically, sustainably, and effectively.
- Promote industrialization, modernization, fairness, and social stability.
- Provide mechanisms and policies to create development resources from land.
I. Impact of Land Law on the Socio-Economic Development of Vietnam
- Some Issues of the 2013 Law on Land
– Firstly, the regulation on granting land use rights certificates for land without documents before July 1, 2004, while land used before July 1, 2014, without documents must meet strict legal conditions.
This regulation does not consider historical factors, leading to current legal issues, lack of evidence on land use origin, etc. Therefore, it has limited the rights of land users, negatively affecting socio-economic development potential in recent times.
– Secondly, the regulation on areas of land not recognized for land use rights. Over time, the land areas of users, although existing before planning (road boundaries, public works, etc.), are not recognized for land use rights when issuing certificates.
This is unreasonable, inconsistent with legal science and international practices, and infringes on the rights of land users for the following reasons:
+ The land area was legally established, with clear origins (not in cases of illegal encroachment, acquisition, etc.);
+ The area existed before planning, so recognizing land use rights is entirely appropriate;
+ Land users still have the right to use the land, although they must comply with the planning;
+ The state does not recognize land use rights, so when clearing for public works, it does not compensate for the value of land use rights but only provides partial support, which is inappropriate.
– Thirdly, agricultural land lacks a broad enough legal framework (as detailed below), which has reduced the value of land use rights, failed to maximize agricultural land potential, and negatively impacted socio-economic development, specifically:
+ Barriers to the limit on agricultural land transfer. The limit on agricultural land transfer for households and individuals is not more than 10 times the agricultural land allocation limit (Article 130 of the 2013 Law on Land). This regulation leads to small-scale production, low added value, and does not unlock the potential of rural land. Consequently, Vietnamese agriculture has not developed commensurately with its potential, lagging in market economy integration and international integration.
+ Incorrect valuation of agricultural land, leading to consequences such as: overly low compensation prices, rapid reduction in land area, weak and insufficient mechanisms to protect agricultural land, and inadequate measures to prevent negative issues in state management of this sector.
+ Lack of clear regulations on the conversion of land use purposes for areas approved by local authorities for specialized rice cultivation. Therefore, practical issues arise with cumbersome procedures and negative occurrences, such as having land use certificates indicating rice cultivation purposes but no rice has been grown for many years and not being in areas approved for specialized rice cultivation. Whether this case can convert land use purposes or change structure has not been clearly defined in land law.
– Fourthly, compensation, clearance, and resettlement policies for land acquisition; land price framework, and land valuation methods in some places are inappropriate, causing damage to people’s assets and affecting social security and order. In practice, these policies have many unscientific points, do not ensure practical values, and directly negatively impact socio-economic development potential, specifically:
+ The regulation that specific land prices used for compensation calculation when the state recovers land will be decided by the provincial People’s Committee at the time of the recovery decision (Clause 2, Article 74, Point d, Clause 4, Article 114 of the 2013 Law on Land). Compensation land price framework (various types) = Recovered land area x Compensation price (as stipulated in the land price table). The land price table does not follow market prices but is set within a framework and is usually lower than actual prices. This creates price inequality, causing significant damage to land users and affecting socio-economic development.
+ The land price framework is issued every 5 years and serves as a basis for provincial People’s Committees to develop local land price tables. However, currently, only one land price table is applied for both compensation when the state recovers land and for fulfilling financial obligations when using land, which is inappropriate because these two categories differ in nature (one involves tax obligations while still retaining land use rights, and the other involves equitable compensation value when losing land use rights).
+ Compensation for land is implemented in two forms: allocating land with the same use purpose as the recovered land or monetary compensation (in cases where there is no land for compensation). However, there are only regulations on compensation and resettlement but not on support measures when land is acquired, leading to actual losses for land users regarding land use rights value and related values.
– Fifthly, for economic organizations currently using land. The following cases are not yet regulated:
+ The rights of economic organizations using land (which previously had legal land use rights for long-term stable production and business, with land use fees paid at rates for residential land allocation).
+ Land acquisition for areas that enterprises have transferred or compensated for to implement projects (under the public works land planning that enterprises must complete and hand over to state management agencies). Therefore, in recent times, the land area in these two cases has become “public” land when enterprises hand over public works to state management agencies.
– Sixthly, there are no specific regulations for cases where public works are above ground, and underground works are used for business exploitation. Currently, large cities in Vietnam are facing difficulties in determining the land use regime for such projects, leading to obstacles in determining financial obligations related to land.
– Seventhly, families and individuals not directly engaged in agricultural production are not allowed to transfer or receive gifts of land use rights for rice cultivation. This regulation follows the “if you can’t manage it, ban it” approach, managing based on land users rather than land use purposes. This is impractical, deprives land users of their rights, and negatively impacts Vietnam’s socio-economic potential in recent times.
– Eighthly, the regulation of land use rights is not consistent with the ownership regime, which includes three rights: possession, use, and disposition. According to the 2013 Constitution, land belongs to all the people, which is appropriate in the current national context. However, in terms of ensuring the legal value of the ownership regime, it is not suitable and does not fully protect land users’ rights.
For example, landholders do not possess all three rights, so the certificate only named “Land Use Rights Certificate” does not encompass and protect the related rights, negatively impacting socio-economic development from land users’ rights.
- Positive Impacts on Vietnam’s Socio-Economic Development from the New Points of the 2024 Law on Land
After four discussions, considerations, and ensuring practical values, on January 18, 2024, the XV National Assembly officially passed the 2024 Law on Land with the following fundamental new points:
– Firstly, the abolition of the land price framework, determining land prices based on market principles.
This regulation allows provincial authorities to independently decide the land price table without relying on minimum and maximum land prices from the land price framework, and land valuation must ensure market principles (Point a, Clause 1, Article 158 of the 2024 Law on Land).
The land price table is developed based on area and location, published, and applied from January 1, 2026, and adjusted annually, with necessary adjustments within the year to align with market prices (Article 159). When the state recovers land, compensation will be calculated based on the specific land price determined by the provincial People’s Committee at the time of approving the compensation, support, and resettlement plan.
These regulations ensure that land users with real needs can access land and housing at the true value of land use rights. The abolition of the land price framework is expected to positively impact Vietnam’s socio-economic development in the coming period.
– Secondly, the regulation of more cases eligible for land use fee exemptions and reductions from 2025, especially for transportation infrastructure or urban public works (Article 157). This regulation is a key point for national socio-economic development potential, focusing on critical infrastructure such as transportation and public works closely related to the exploitation of land use rights value.
– Thirdly, the requirement to hand over resettlement housing before land recovery. One of the conditions for land recovery stipulated in Clause 3, Article 80 of the 2024 Law on Land is the completion of the approval of the compensation, support, and resettlement plan, and the arrangement of resettlement.
Accordingly, the approval of the compensation, support, and resettlement plan, and the arrangement and handover of resettlement housing must be completed before the land recovery decision is made (Clause 3, Article 80).
– Fourthly, land without documents used before July 1, 2014, will be granted land use rights certificates.
The 2024 Law on Land specifically stipulates the issuance of certificates for households and individuals using land based on the period of land use: before December 18, 1980; from December 18, 1980, to before October 15, 1993; from October 15, 1993, to before July 1, 2014.
This regulation has gained public approval, as having certificates will enhance the value of land use rights, increase investments in infrastructure related to land, and intensive technical investments, thereby positively impacting socio-economic development, especially in rural areas.
– Fifthly, simplifying conditions for converting agricultural land use purposes. From 2025, households and individuals converting agricultural land use purposes within residential areas, within the same plot, or converting non-residential agricultural land to residential land need only comply with the approved district-level land use planning (instead of meeting the annual land use plan requirements).
– Sixthly, diversifying compensation forms for those whose land is recovered. Clause 2, Article 9 of the 2024 Law on Land expands the forms of land compensation, such as allocating land with the same use purpose as the recovered land, or monetary compensation if there is no land available for compensation and there is a demand; or by allocating land with a different use purpose than the recovered land or housing. Monetary compensation is prioritized if there is a demand (registered when developing the compensation, support, and resettlement plan).
– Seventhly, land users whose agricultural land is recovered are compensated with residential land or housing. If agricultural land or non-residential agricultural land is recovered and qualifies for land compensation under Article 95 of the 2024 Law on Land, and there is a demand for compensation with residential land or housing, and the locality has conditions regarding land and housing funds, they will be compensated by allocating residential land or resettlement housing if they meet the following:
+ Qualify for land compensation as stipulated;
+ Have a demand for compensation with residential land/housing;
+ The locality has conditions regarding residential land and housing funds (Clause 6, Article 11 of the 2024 Law on Land).
– Eighthly, individuals not directly engaged in agricultural production are allowed to transfer rice cultivation land. From January 1, 2025, individuals not directly engaged in agricultural production can transfer or receive gifts of rice cultivation land.
– Ninthly, additional support measures for individuals whose land is recovered include:
+ Support for stabilizing life and production; training, career change, and job search support for households and individuals directly engaged in agricultural production whose agricultural land is recovered.
+ Support for individuals renting non-state-owned housing (Article 108 of the 2024 Law on Land).
– Tenthly, increasing the limit on agricultural land transfer. Clause 1, Article 177 of the 2024 Law on Land stipulates that the limit on agricultural land transfer for individuals is not more than 15 times the agricultural land allocation limit for each type of land.
This regulation allows land users to accumulate agricultural land, develop large-scale agriculture, invest in agricultural production technology, serve modern agricultural production, and increase income.
II. Recommendations
With a series of guiding documents from the central to local levels issued according to prescribed authority, the 2024 Law on Land has been practically integrated into daily life, creating positive changes in land management and use.
Localities are expecting the 2024 Law on Land to improve the efficiency of land resource management, address practical issues in each locality, meet socio-economic development needs, and foster deeper international integration, gradually realizing the goals set by the industrialization and modernization revolution.
– Firstly, there is still no regulation to address the issue of land areas not recognized for land use rights. This negatively impacts socio-economic development potential due to the adverse effects on land use value.
Therefore, further research is needed to effectively address this issue, ensuring that land use rights are implicitly recognized by the state in the certificate (must be compensated when the state recovers the land). Land use planning for transportation and urban projects is a management method of the government, and land users must comply with state administrative commands (noted in the certificate).
– Secondly, further research and improvements in the land legal system are necessary for the following reasons:
+ Agricultural land must be defined as the most special type of land (precious, rare, to be strictly preserved), with the highest economic value and clearly stipulated by law for its highest use value. The reasons are that agricultural products have unique values for sustaining human life (rice, potatoes, cassava, etc.), and industrial products must originate from or cannot replace direct agricultural products.
+ Agricultural land cannot regain its natural value once converted to urban or industrial land. Consideration should be given to the fact that the value of land use rights has the highest and most expensive price, limiting changes and misuse of converting agricultural land to urban land.
+ Agricultural land is closely linked to agriculture and farmers, who are essential subjects of developing countries (Vietnam, Laos, Cambodia, etc.). The legal value of land use rights must be carefully calculated to limit challenges related to farmers, such as land loss, deprivation of production tools, and lack of land-related rights.
– Thirdly, the 2024 Law on Land still does not reflect the “real value” when granting certificates, failing to ensure land users’ rights related to the three civil law rights (as previously mentioned). Therefore, there must be a naming method for certificates that benefits the landholder regarding disposition and possession within the certificate’s value scope (the extent, degree of authority, etc.).
Additionally, further research is needed on documenting individual and organizational land rights (the current “Land Use Rights Certificate” naming is inappropriate; previous methods such as land mortgage certificates or land use contracts can be considered). Moreover, consideration should be given to adding usufruct rights as stipulated in the 2015 Civil Code.
– Fourthly, the 2024 Law on Land only stipulates some cases for exemptions and reductions in land use fees for transportation infrastructure and public works; it does not regulate the issuance of land use rights certificates and underground construction ownership rights in cases where both aboveground and underground spaces are used with binding conditions on the aboveground space.
Therefore, it is necessary to research and issue documents institutionalizing this issue, contributing to socio-economic development in special urban areas such as Ho Chi Minh City, Hanoi, and Da Nang.
– Fifthly, while the 2024 Law on Land has abolished the land price framework, it lacks regulations on the basis for determining specific land prices and combined valuation methods.
Therefore, when the 2024 Law on Land takes effect, it is necessary to simultaneously issue sub-law documents that specifically regulate the combined valuation methods to be applied for cross-referencing and comparison with the selected valuation method.
III. Conclusion
Improving the institutional and legal framework for land is a critical mission, reflecting the vision and wisdom of the people and institutions within the national political system. With the new points added, the 2024 Law on Land represents modern, democratic, and rule-of-law legislative thinking and perspectives.
Consequently, it establishes a sufficiently broad legal corridor with clear policies and mechanisms in the land laws to promote the development of socio-economic potentials.
In the future, it is hoped that the newly supplemented issues (new points) will have appropriate solutions to ensure practical implementation; other issues (as mentioned in the evaluation and recommendations section) need additional regulations in sub-law documents.
References
- – Central Committee of the Party (XIII term) (2022). Resolution No. 18-NQ/TW dated June 16, 2022, on continuing to innovate, improve institutions, policies, enhance the effectiveness and efficiency of land management and use, creating momentum for our country to become a high-income developed nation.
- – National Assembly (2013). 2013 Constitution.
- – National Assembly (2013). 2013 Law on Land.
- – National Assembly (2014). 2014 Law on Housing.
- – National Assembly (2023). 2023 Law on Real Estate Business.
- – Quỳnh Dung (2022). “Currently, the whole country has only 19,667 agricultural farms with high economic efficiency.”https://hanoimoi.vn/ca-nuoc-co-19-667-trang-trai-nong-nghiep-cho-hieu-qua-kinh-te-cao-462533.html, February 9, 2022.
- – Mai Vân (2023). “Regulations on the land compensation framework for various types of land in 2023.”https://kinhtedothi.vn/quy-dinh-ve-khung-gia-den-bu-cac-loai-dat-nam-2023.html, April 13, 2023.
- – Lê Văn Viên (2024). “New points and some recommendations and proposals for effective implementation of the 2024 Law on Land.” https://tapchimoitruong.vn/Gi/dien-dan–trao-doi-21/nhung-diem-moi-va-mot-so-kien-nghi-de-xuat-nham-thuc-thi-hieu-qua-luat-dat-dai-nam-2024-29829, September 6, 2024.
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