Presenting the draft report, Doan Thi Thanh My, Deputy Director General of the Land Management Department under the Ministry of Natural Resources and Environment, stated that the amendments aim to institutionalize the Party and State’s viewpoints and policies on land, while removing critical legal bottlenecks and addressing emerging challenges in land governance. The ultimate goal is to support Vietnam’s socioeconomic development.

The amended law also seeks to improve land use efficiency and effectiveness, providing a legal framework to help Vietnam become a high-income developed country, aligned with modern governance needs.

Key proposal could rescue thousands of stalled investment projects

The draft adds three new cases under Article 79 allowing the State to reclaim land for socioeconomic development serving national and public interests.

A noteworthy provision involves projects where investors have negotiated to acquire at least 75% of the land area and reached agreement with at least 75% of land users. If they are unable to reach consensus for the remaining portion within the agreed or extended timeline, the State would intervene to reclaim the remaining land and allocate or lease it to the investor.

According to Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, this provision would resolve long-standing issues that have left thousands of projects stuck in compensation limbo due to fragmented or stalled negotiations.

Chau noted that many developers have managed to acquire more than 75% - even 95% - of required land, yet are unable to proceed because of a small portion of landowners who refuse to settle. As a result, projects remain frozen, capital is trapped, and valuable land lies idle.

The draft also adds provisions allowing the State to reclaim land for emergency public investment projects, political or diplomatic needs, projects in free trade zones or international financial centers, logistics hubs, mixed-use developments (residential, tourism, commercial, cultural, or sports), cultural industry projects, and other key economic initiatives as decided by provincial People’s Councils based on local conditions.

A representative of the Vietnam Chamber of Commerce and Industry (VCCI) welcomed many of these changes but urged careful consideration of the clause allowing local People’s Councils to independently decide on "other economic projects." According to the representative, under the Constitution, land can only be reclaimed in truly necessary cases defined by law. They also called for clarification on how land prices will be determined in such cases - whether based on the government’s land price framework or negotiated between enterprises and land users - to avoid future disputes.

Concluding the meeting, Deputy Minister Nguyen Thanh Tu, who chairs the Appraisal Council, emphasized the need to continue reviewing and refining the law to ensure alignment with the Party’s directions. He urged the drafting committee to identify and address all remaining legal gaps and economic challenges, while ensuring that the revised law does not create new complications or legal uncertainties.

T. Nhung