Land Procedures ‘Unshackled’: What Should Investors Note?

The Government has submitted to the National Assembly Draft Resolution No. 958/TTr-CP, which is expected to bring significant changes to the real estate market. To gain deeper insights into these potential impacts, a reporter from the Giáo dục & Thời đại Newspaper spoke with Lawyer Hồ Vương Quốc Sử – Managing Director of LS Law Firm and member of the Ho Chi Minh City Bar Association.

Question: Sir, how do you assess the Government’s new proposal in Submission No. 958/TTr-CP regarding land procedures?

Answer: Submission No. 958/TTr-CP, presented by the Government to the National Assembly on October 19, 2025, can be seen as an important step toward resolving the existing legal bottlenecks. For real estate enterprises, procedures related to land allocation, land leasing, and land-use conversion are crucial. In practice, many projects have been “frozen” due to complex and overlapping regulations. This submission introduces several proposals aimed at removing obstacles and expanding opportunities for investors in these key stages.

Question: Could you highlight the most notable and important new points concerning the mechanisms for land allocation and land leasing in this draft?

Answer: One of the most significant points lies in Subsection 3.3.2, Chapter IV of the submission. Specifically, the draft proposes that for projects with phased implementation schedules (either in terms of investment or land clearance and compensation), the competent state authority may decide to allocate or lease land in line with the project’s progress.

– Sir, how do you assess the Government’s new proposal in Submission No. 958/TTr-CP regarding land-related administrative procedures?

Submission No. 958/TTr-CP, presented by the Government to the National Assembly on October 19, 2025, represents an important step toward removing existing legal bottlenecks. For real estate enterprises, procedures for land allocation, land leasing, and land-use conversion are critical. In reality, many projects have been “frozen” due to complex and overlapping procedures. This proposal introduces several reforms designed to ease difficulties and create new opportunities for investors at these key stages.

– Besides phased land allocation, are there any other notable reforms in the submission aimed at reducing administrative burdens?

Another significant proposal is to eliminate the requirement for a provincial People’s Council resolution before decisions on land allocation, land leasing, or conversion of land-use purposes involving rice land or forest land (protective, special-use, or production). This is a breakthrough in cutting administrative procedures and will considerably shorten the time for enterprises to access land.

In addition, the draft adds several cases in which land allocation or leasing may be done without auction or bidding, such as land used to settle BT (Build–Transfer) contracts or projects where the State has already decided to recover land. This simplifies investor selection procedures for projects with clear investment policies.

– One major problem in the market involves “suspended” projects due to the former investor’s financial difficulties. Does Submission No. 958 propose any solutions for this issue?

Yes, this is one of the most practical points in the draft. For projects that change investors (due to dissolution, bankruptcy, or transfer), the Government proposes allowing adjustment of the land-use term for the new investor.

This mechanism helps effectively address “suspended” projects, facilitating the restart of stalled developments. As a result, it enhances market attractiveness, encourages investment flows, and prevents land resource waste.

– With these new opportunities, do you have any advice or cautions for investors looking to “ride the wave”?

These proposals will undoubtedly enable many projects to move forward sooner. However, investors must pay close attention to the accompanying legal obligations.

First, the adjustment of the land-use term is not a “free incentive.” New investors must pay additional land-use fees or land rent as required by law, ensuring fairness in financial obligations.

Second, other obligations regarding environmental protection, construction, and planning must still be fully complied with.

Therefore, when acquiring a project, enterprises should thoroughly review all land-related legal documents and verify any outstanding financial obligations of the former investor. Most importantly, they should seek professional legal advice to ensure the transaction is lawful, transparent, and safe—thus minimizing future risks.

– For a metropolis like Ho Chi Minh City, where land management has long been complicated, what specific significance does the “phased land allocation” proposal hold?

This is a key reform for Ho Chi Minh City. In reality, many major projects and urban renewal plans have been “stuck” for decades simply because of partial land clearance issues. Allowing land allocation in phases—meaning cleared areas can be handed over for project implementation while unresolved portions continue the clearance process—will “unshackle” these projects.

It enables investors to obtain clean land for construction sooner, reduces capital costs tied up in delays, and helps deliver housing and infrastructure to residents faster—instead of leaving fragmented “leopard-skin” plots idle in the city center.

– Ho Chi Minh City also faces many stalled BT (Build–Transfer) projects due to pending land settlements, as well as numerous suspended developments from financially troubled investors. How does Submission No. 958 address these challenges?

Submission No. 958/TTr-CP directly tackles both of these long-standing bottlenecks in Ho Chi Minh City.

First, regarding BT projects, the proposal to allow land allocation without auction for BT contract settlements provides a clear legal framework for completion. This enables both the State and investors to finalize settlements, unlocking infrastructure projects that have been completed but not yet paid for.

Second, for suspended projects due to the previous investor’s failure (such as bankruptcy or lack of financial capacity), the mechanism allowing adjustment of the land-use term for new investors serves as the key solution. It allows capable investors to lawfully take over and revive abandoned structures—revitalizing the market and reducing massive land resource waste across the city.

For further reading:

• Báo mới: https://baomoi.com/coi-troi-thu-tuc-dat-dai-nha-dau-tu-can-luu-y-gi-de-nam-bat-co-hoi-c53601387.epi
• Báo Giáo dục và Thời đại: https://giaoducthoidai.vn/coi-troi-thu-tuc-dat-dai-nha-dau-tu-can-luu-y-gi-de-nam-bat-co-hoi-post754223.html
• Tạp chí Phát triển nông thôn: https://nongthonvaphattrien.vn/de-xuat-moi-thao-go-diem-nghen-giao-dat-mo-co-hoi-cho-nha-dau-tu-bat-dong-san-a38890.html