Vietnam’s real estate sector has undergone rapid expansion, prompting legislative and regulatory changes to optimize land use and attract investment. In response, the National Assembly enacted Resolution 171/2024/QH15 (“Resolution 171”) on November 30, 2024, introducing a pilot program that allows commercial housing projects to proceed through negotiated land use agreements as an alternative to traditional state-led land allocation methods.

To operationalize this initiative, the Government issued Decree 75/2025/NĐ-CP (“Decree 75”), effective from April 1, 2025, to March 31, 2030. This decree provides the procedural and regulatory framework for implementing the pilot program. This article examines the key provisions and implications of Resolution 171 and Decree 75 for real estate stakeholders.

Policy Shift towards Market-Oriented Land Use

Resolution 171 marks a fundamental shift in Vietnam’s land management strategy, moving towards market-driven mechanisms and reducing reliance on state-led processes. By legitimizing direct negotiations between developers and land users, the resolution aims to enhance land use efficiency, particularly in high-demand urban areas where land acquisition has historically been complex and time-consuming.

A key objective of Resolution 171 is to attract greater domestic and international investment in commercial housing by facilitating market-driven land use agreements. Empowering developers to negotiate directly with landholders fosters a more dynamic real estate environment, mitigating investment risks associated with state-imposed land recovery, administrative delays, and valuation disputes. This approach is expected to create a more predictable and attractive investment climate.

Moreover, the resolution seeks to streamline administrative procedures by shifting certain responsibilities from state agencies to market participants. By reducing bureaucratic bottlenecks and accelerating project timelines, it aims to minimize costs and uncertainties for developers. The overarching goal is to enhance legal certainty, transparency, and predictability for all stakeholders, including developers, investors, and existing land users.

Implementation Framework under Decree 75

While Resolution 171 sets strategic objectives, Decree 75 establishes the legal and procedural foundation for its implementation. The decree provides a structured regulatory framework for executing pilot projects, ensuring compliance and consistency across different developments. Key aspects include:

1. Establishing Legal Infrastructure: Decree 75 formalizes the legal foundation for negotiated land use agreements, ensuring regulatory clarity and enforceability.

2. Defining Clear Procedures: It sets out standardized steps for land use negotiations, minimizing ambiguities and potential disputes.

3. Enhancing Transparency: By introducing explicit rules, the decree fosters investor confidence and reduces regulatory uncertainty.

4. Promoting Sustainable Development: It aligns commercial housing projects with national urban development goals, emphasizing economic viability and social responsibility.

Procedural Framework under Decree 75

Decree 75 outlines a structured three-stage process for commercial housing projects:

1. Notification and Registration:

Provincial land management agencies announce the registration period, deadlines, and required documentation on official portals.

Investors submit a dossier, including a completed registration form, proof of land use rights (if applicable), and a cadastral map or project site location diagram.

Submissions can be made in person, by post, or online through national or provincial public service portals.

2. Project Site Compilation and Approval:

Within 15 days of the registration deadline, the provincial land management agency evaluates submissions against Resolution 171 criteria.

The agency compiles a list of proposed project sites and submits it to the Provincial People’s Committee.

The list is then presented to the Provincial People’s Council for formal approval through a resolution, in alignment with Article 72, Clause 5 of the Land Law.

3. Public Disclosure and Project Implementation:

Once approved, the Provincial People’s Committee publishes the final list on its official website and that of the provincial land management agency.

Authorized developers may commence commercial housing projects in compliance with investment, construction, real estate, and land regulations.

Implications and Future Outlook

Resolution 171 and Decree 75 collectively represent a significant shift towards a market-oriented land use policy, fostering investment, improving efficiency, and promoting sustainable urban development. By introducing a clear regulatory framework, these reforms aim to enhance transparency, reduce administrative burdens, and create a more stable investment climate.

As the pilot program runs until March 31, 2030, real estate stakeholders must closely monitor its implementation and assess its impact. The program’s outcomes could shape future legislative reforms, influencing Vietnam’s broader land and housing policies. Understanding and complying with these regulations will be critical for developers, investors, and policymakers navigating Vietnam’s evolving real estate landscape.

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