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Sunday, May 10, 2026

Vietnam introduces special mechanism to resolve stalled property projects

The Saigon Times

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HCMC – The Government has issued Decree No. 147/2026/ND-CP establishing a special legal framework to address long-delayed projects and handle land law violations that occurred before the 2024 Land Law took effect.

The decree provides detailed guidance for Resolution No. 29/2026/QH16 recently passed by the National Assembly. It is expected to unlock land resources frozen for years while allowing local authorities greater flexibility in resolving historical violations arising before January 1, 2025, when the new Land Law officially came into force.

A key focus of the decree is the handling of projects granted land use right certificates, commonly known as “red books,” in violation of regulations. Under the new rules, provincial Departments of Construction will review whether projects comply with urban and rural planning schemes. Based on the findings, provincial governments may approve adjustments to land-use purposes or land-use terms directly on existing certificates without requiring land allocation or lease procedures to restart.

Financial obligations will be recalculated based on land prices at the time adjustment decisions are issued, ensuring the State fully collects additional land-use fees arising from conversions to residential land.

The decree also provides guidance on continuing land allocation for projects that violated investor selection rules and handling projects on State-recovered land that had been reclaimed without proper authority. It further clarifies the responsibilities of land registration offices in disclosing information and issuing or revising certificates.

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