Following the introduction of the 2024 Land Law, which took effect on August 1, Vietnam is expected to experience a surge in new investments, particularly in the real estate sector. The law brings about notable changes to expand land use rights, decentralize power, and improve land resource management. These changes are anticipated to have significant impacts on property buyers and owners in Vietnam.
New 2024 Land Law to boost investment
The 2024 Land Law is expected to boost investment in various sectors, particularly real estate. Experts at a recent conference in Ho Chi Minh City emphasized the potential of the law to attract more investors through the introduction of several new provisions. Cao Thị Phi Vân, Vice Director of the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), pointed out that the law includes important updates on citizens’ rights and obligations regarding land, land classification, and land use planning. This comprehensive legal framework aims to create a more favorable environment for both domestic and foreign investors.
Expanded land use and transfer rights
The 2024 Land Law includes expanded regulations on land use and transfer rights. The law increases the limits on the transfer of agricultural land use rights for individuals and introduces new guidelines for developing, managing, and utilizing land funds. These changes are expected to make it easier for investors to acquire and develop land for various purposes, boosting the real estate market. Additionally, the new law allows for the combined use of land for multiple purposes, enabling investors to build auxiliary structures such as warehouses and worker accommodations on agricultural land. This flexibility is likely to drive investments in large-scale agriculture and eco-agriculture projects.
The law places a strong emphasis on decentralization and giving power to local authorities. This is meant to reduce bureaucratic hurdles and make land resource management more efficient, which will in turn make development processes smoother. By giving more power to local governments, the law aims to tackle challenges specific to different regions and speed up national development efforts. Châu Việt Bắc, Deputy General Secretary of the Vietnam International Arbitration Centre (VIAC), highlighted the importance of businesses getting acquainted with the new legal framework to ensure effective operations under the updated regulations.
Impact on various industries
The 2024 Land Law is anticipated to have a significant impact on various industries, including real estate, finance, construction, and services. Phan Đức Hiếu, a member of the National Assembly Economic Committee, emphasized that the law’s integration with other regulations related to housing and real estate business will create a more cohesive investment environment. The new rules that allow overseas Vietnamese to own houses and land use rights are particularly noteworthy, as they are expected to encourage long-term investment activities from this community.
The new law includes a provision for combined land use, which aims to encourage substantial investments in different sectors. In terms of industrial real estate, investors will have more choices, such as the option to lease land with annual or one-time land use fees, depending on their specific requirements. This flexibility is intended to attract a wider range of investors and promote the development of industrial parks and high-tech zones. These measures are expected to address long-standing issues and improve economic efficiency in the sector.
