Some of the highlight point in Land Law 2024
On January 18, 2024, the 15th National Assembly passed the revised Land Law 2024, which will take effect on January 1, 2025. This law introduces many positive changes and has a significant impact on legal relations concerning land. In this article, TNTP’s lawyers will analyze the key highlights of the Land Law 2024 and the changes it brings to land management in Vietnam.
1. Amendments to the regulations on land users
• Clause 6 of Article 5 of the Land Law 2013 stipulates land users who can be allocated land by the state, leased land, recognized land use rights, and receive transferred land use rights, which includes Vietnamese citizens residing abroad as regulated by nationality laws.
• Clause 3 and Clause 6 of Article 4 of the Land Law 2024 not only extend the scope that land users allocated or leased land by the state, recognized for land use rights; who are using land stably and meet the conditions for being issued a Certificate of Land Use Rights, ownership of property attached to land but have not yet been issued by the state a Certificate of Land Use Rights, a Certificate of Ownership of Houses and Residential Land Use Rights, a Certificate of Land Use Rights and Ownership of Houses and Other Properties Attached to Land, a Certificate of Land Use Rights and Ownership of Property Attached to Land; receiving land use rights; subleasing land under this Law, but also extend the scope of land users, include domestic individuals, Vietnamese citizens residing abroad (referred to as individuals); and people of Vietnamese origin residing abroad.
The Land Law 2024 has clarified that land users who are Vietnamese residing abroad include both Vietnamese citizens residing abroad and people of Vietnamese origin living overseas, along with the provisions facilitating these individuals to directly participate in real estate transactions in Vietnam… This solves a former issue where Vietnamese living abroad had to rely on relatives in Vietnam to conduct land use rights transactions on their behalf, which often led to disputes arising from the management of land use rights and property transfers.
2. The land price frame is replaced by the annual land price list
• Previously, under Article 114 of Land Law 2013, the Land Price List was established for a period of five years and publicly announced on the first day of the first year in the cycle. During the validity period, if the Government adjusted the land price framework or if there were fluctuations in the market prices, the Provincial People’s Committee was responsible for adjusting the Land Price List accordingly to reflect these changes.
However, in practice, there had been very few adjustments to the land price list during its application, thus, the land price list does not accurately reflect the actual market prices.
• With Article 159 of the Land Law 2024, the Provincial People’s Committees will develop and submit to the Provincial People’s Councils for decision, the initial Land Price List to be announced and applied from January 1, 2026. This Land Price List will be developed based on areas and locations. For areas with digital cadastral maps and land price databases, the Land Price List will be developed for each land plot based on value zones and standard plots. Annually, the Provincial People’s Committees are responsible for submitting adjustments, amendments, and supplements to the Land Price List to the Provincial People’s Councils for decision, to be announced and applied from the first day of the following year.
Land Law 2024 has adjusted the development of the Land Price List in a more flexible and timely manner, better reflecting the local reality. This aims to reduce disputes and the exploitation of land prices, facilitating a fairer and more efficient market, while also promoting sustainable development in localities.
3. Regulations on compensation for land acquisition for economic and social development
The compensation for those whose land is acquired is specified in Clause 2 of Article 91 of the Land Law 2024. Compensation for land shall be made by allocating land of the same use purpose as the land being acquired. If there is no such land available, monetary compensation shall be provided based on the specific land price of the type of land being acquired, as decided by the competent People’s Committee at the time the compensation, support, and resettlement plan is approved. If the land users whose land is acquired prefer monetary compensation over receiving land or housing, they shall be compensated in cash according to their registered request when the compensation, support, and resettlement plan is formulated. Moreover, if there is a demand and local conditions allow in terms of land and housing funds, they may be considered for compensation with the land of a different use purpose than the land being acquired or with housing.
The compensation for those affected by land acquisition under the Land Law 2024 is diverse. As of now, individuals whose land is acquired can only be compensated with land of the same use purpose or in cash. With this new provision, individuals may also be compensated with land of a different use purpose, adding a form of land-for-land compensation without limitations on the use purpose.
4. New regulations for transfers to individuals not directly engaged in agriculture
As per Clause 3 of Article 91 of the Land Law 2013, households and individuals not engaged directly in agricultural production were not allowed to receive land use rights transfers or gifts for rice cultivation land. Moreover, under Point b, Clause 4 of Article 142, if land is allocated without a land use fee to households and individuals not directly engaged in agriculture, forestry, aquaculture, or salt production, it must be converted to a land lease after expiration.
However, the Land Law 2024, specifically Clause 7 of Article 45, allows individuals not directly engaged in agricultural production to receive transfers or gifts of rice cultivation land but not exceed the limit prescribed in Article 176. However, they must establish an economic organization and have a land use plan for rice cultivation including contents as regulated in Clause 6 of this Article, which must be approved by the District People’s Committee, except in cases where the recipient of the gift is an heir.
It can be seen that the Land Law 2024 marks a significant step forward in improving and restructuring the legal framework related to land management in Vietnam. The Land Law 2024 is expected to bring positive impacts to the real estate market as well as to social life in the new era.
The above is an article by TNTP’s lawyers on the topic: “Some of the highlight point in Land Law 2024.” We hope this article provides valuable insights to our readers.