I) Summary of Resolution 21‑NQ/TW
Resolution 21 NQ/TW sets the goal of ensuring strict, transparent, fair, and sustainable land management, turning land into a strategic resource, competitive advantage, and driving force for national development.
1. Background and Rationale
After four years implementing Resolution 18 NQ/TW, land governance has shifted toward a socialist oriented market mechanism. However, many issues remain—complaints, waste, corruption, and vested interests—requiring a new resolution to refine land related laws and policies.
2. Foundational Principles
- Land is a special national resource, owned collectively by the people and managed by the State.
- No privatization of land; foreigners are not allowed to acquire land use rights (except overseas Vietnamese under legal provisions).
- Land use rights are a special asset, but not ownership.
- The State shifts from “compensation for assets” to “restoring livelihoods” when land is taken back.
3. Specific Targets
- By 2026: Complete digital databases for all land plots with collected information.
- By 2027: Finish cadastral mapping and data for remaining areas.
- By 2030: Build a unified, transparent, efficient legal system for land management.
4. Key Tasks and Solutions
4.1 Improve land management institutions and policies
- Unified land use planning aligned with national, regional, and local planning.
- Land allocation and leasing mainly through auctions or bidding.
- Clear rules for when auctions, bidding, or private negotiation apply.
- Limit subdivision and sale of plots in urban areas; set apartment lifespan based on building durability.
- Incentives for developing affordable rental housing.
- Clear criteria for land recovery; separate resettlement projects for better implementation.
- State determined land prices based on national frameworks; local authorities set specific price tables.
- Higher taxes on idle land to curb speculation; mechanisms to capture land value increases.
4.2 Digital transformation and administrative reform
- Build a national land database connected across all levels.
- No retroactive invalidation of legally issued land use certificates.
- Strong decentralization and streamlined procedures.
4.3 Strengthen inspection, supervision, and dispute resolution
- Digital systems for real time monitoring and detecting violations.
- Enhance the role of grassroots authorities in resolving land disputes.
4.4 Address long standing land issues
- Resolve land problems related to agricultural/forestry enterprises, surplus public land, post equitization land, and stalled projects.
- Pilot State purchase of abandoned commercial housing projects to create public housing stock.
5. Implementation
The Government is preparing an action program to revise the Land Law and related laws, aiming for submission to the National Assembly in August 2026 and approval in October 2026.
II) Impact on Foreign Investors’ Investment Decisions
1. Positive Impacts (Increasing Investment Attractiveness)
1.1 Greater Transparency in the Land Market
- Auctions and bidding become the primary methods for land allocation → reducing “ask–give” mechanisms and lowering informal costs.
- A nationwide digital land database enables investors to easily access information and assess legal risks.
1.2 Reduced Legal Risks
- Clear regulations on land recovery and no retroactive application to legally issued land-use certificates → enhancing stability.
- Digital monitoring systems help limit corruption and vested interests
1.3 Improved Policy Predictability
- A clear roadmap for 2026–2030 allows investors to plan long-term strategies.
- Land price frameworks based on unified criteria help reduce volatility and disputes.
1.4 New Opportunities in Emerging Areas
- The State’s pilot program to acquire “idle” commercial housing projects creates opportunities for PPP cooperation and M&A activities.
- Incentive policies for rental housing development attract investors in industrial real estate, logistics, and worker housing.
2. Negative Impacts or Challenges
2.1 Restrictions on Land Ownership for Foreign Investors
- Foreigners are not allowed to receive land-use rights transfers → investors must rely on:
- leasing land from the State,
- forming joint ventures with Vietnamese partners,
- subleasing land in industrial parks.
→ This may reduce attractiveness for investors seeking long-term land ownership.
2.2 Potential Increase in Land-Related Costs
- Mandatory auctions and bidding may lead to higher land prices compared to previous negotiated mechanisms.
- High taxes on idle land increase holding costs.
2.3 Higher Compliance Requirements
Digitalized land data enables stricter government oversight → investors must ensure greater transparency in land use and project progress.
2.4 Policy Transition Risks During 2026–2030
The period of legal reform may create temporary “policy gaps,” making investors more cautious.