Vietnamese
Decree No. 226/2025/ND-CP takes effect on August 15, 2025, with many new provisions related to land. Details are as follows.
1. Provincial-level People’s Councils decide to increase/decrease land prices according to actual conditions
Accordingly, Clause 11 Article 1 of Decree No. 226/2025/ND-CP amends and supplements Clause 2 Article 20 of Decree No. 71/2024/ND-CP as follows:
Based on Clause 1 Article 20 of Decree No. 71/2024 on the determination of land location in formulating land price lists and the actual situation in the localities, provincial-level People’s Councils shall prescribe specific criteria for determining the location for each type of land and the number of land locations in their land price lists concurrently at the time of deciding the land price lists.
For land parcels and land areas with favorable or unfavorable factors in land use, provincial-level People’s Councils shall, based on the actual situation in the localities, prescribe the increase or decrease of land price levels in the following cases:
Land for commercial and service activities, land for non-agricultural production and business activities other than land for commercial and service activities having high profitability and advantages in being used as ground for production, business, commerce and services; agricultural land in residential areas or within the administrative boundaries of wards; agricultural land lying in the same parcels with houses;
Residential land parcels with more or less favorable factors affecting the land prices compared to residential land parcels at the same land location in the land price lists.
Thus, from August 15, 2025, in addition to relying on land location determination in formulating land price lists, provincial-level People’s Councils must also base themselves on actual local conditions to prescribe specific criteria for determining the location for each type of land and the number of land locations in the land price lists concurrently with deciding such land price lists.
Previously, provincial-level People’s Councils were allowed to increase or decrease land prices only based on land location determination in formulating land price lists.
In addition, the new regulation supplements “agricultural land lying in the same parcels with houses” into the group of land types subject to price increase/decrease.
2. Addition of regulations on compensation for crops and livestock upon land recovery by the State
Decree No. 226/2025/ND-CP adds Article 14a after Article 14 of Decree No. 88/2024/ND-CP on compensation, support and resettlement upon land recovery by the State as follows:
- For multiple-harvest perennial crops defined in Clause 2 Article 103 of the Land Law, if the output of the unharvested crop corresponding to the number of the remaining years in the harvest cycle cannot be determined, the compensation level shall be calculated according to actual damage value.
- When considering for promulgation of the unit price for compensation for damage to crops and livestock defined in Clause 6 Article 103 of the Land Law, if a competent authority has not promulgated crops and livestock production processes, provincial-level People’s Committees shall be based on the actual situation in the localities to issue such unit price.
Previously, Decree No. 88/2024/ND-CP did not provide regulations on compensation for crops and livestock upon land recovery by the State, but only provided compensation for:
- Houses and other construction works specified at Point b Clause 2 Article 102 of the Land Law;
- Cases of houses, other construction works, technical infrastructure works, social infrastructure works, and other assets that are public property.
3. Official abolishment of regulations on land price brackets under Decree No. 96/2019/ND-CP
Pursuant to Article 9 of Decree No. 226/2025/ND-CP, specific provisions are as follows:
Decree No. 226/2025/ND-CP shall take effect on August 15, 2025.
The following regulations shall cease to be effective from the effective date of this Decree:
Decree No. 96/2019/ND-CP on land price brackets;
Decree No. 26/2021/ND-CP detailing a number of articles of Resolution No. 132/2020/QH14 on piloting a number of policies to remove obstacles and backlogs in the management and use of land for national defense and security purposes in combination with production, construction and economic development activities.
Thus, from August 15, 2025, Decree No. 96/2019/ND-CP on land price brackets shall cease to be effective, officially abolishing the Government’s regulations on land price brackets.
4. Amendment of 4 land valuation methods from August 15, 2025
Decree No. 226/2025/ND-CP has amended and supplemented the land valuation methods provided in Decree No. 71/2024/ND-CP, including:
- Comparison method (Article 4): Amending the provisions on how to determine the price of comparable land parcels.
- Income method (Article 5): Amending factors in the method to be more consistent with market realities.
- Residual method (Article 6): Amending provisions to align with new regulations relating to real estate project development costs.
- Land price adjustment coefficient method (Article 7): Amending and supplementing factors affecting land prices to suit actual conditions.
5. Commune-level People’s Committees are authorized to formulate land price lists
Previously, Clause 4 Article 13 of Decree No. 71/2024/ND-CP provided that provincial-level People’s Committees shall direct provincial departments, district-level People’s Committees, and management boards of hi-tech parks and economic zones (if any) to formulate land price lists.
As the country has completed the reorganization of the two-level local government system, this provision has been revised, replacing district-level People’s Committees with commune-level People’s Committees under Clause 1 Article 7 of Decree No. 226/2025/ND-CP.
Accordingly, the responsibility for formulating land price lists previously assigned to district-level People’s Committees shall now be carried out by commune-level People’s Committees.
6. Public land prices may be determined based on commercial land prices
Previously, Point d Clause 2 Article 12 of Decree No. 71/2024/ND-CP provided as follows:
For land for construction of working offices, land for construction of non-business facilities; land used for public purposes without business purposes, land for religious activities, land for belief activities, land for cemeteries, funeral homes and cremation facilities, land for columbaria, land price levels shall be determined based on prices of land for the same use purposes in the surrounding area. In case the land price list does not stipulate the price for the type of land for the same use purpose, the land price level shall be determined based on the price of the residential land in the surrounding area.
Clause 7 Article 1 of Decree No. 226/2025/ND-CP amends and supplements this provision as follows:
For land for construction of working offices; land for construction of non-business facilities; land used for public purposes without business purposes, land for religious activities, land for belief activities; land for cemeteries, funeral homes and cremation facilities; land for columbaria, land price levels shall be determined based on prices of land for the same use purposes in the surrounding area.
In case the land price list does not stipulate the price for the type of land for the same use purpose, the land price level shall be determined based on the price of the residential land or the price of commercial and service land in the surrounding area.
For land for construction of non-business facilities, if the land price list does not stipulate the price for the type of land for the same use purpose, the land price level shall be determined based on the price of commercial and service land or non-agricultural production establishment land in the surrounding area to suit the actual local conditions.
Accordingly, for types of public land without business purposes, in cases where the land price list does not stipulate the price for the type of land for the same use purpose, Decree No. 226/2025/ND-CP allows the determination of land price levels based also on the price of commercial and service land in the surrounding area.
At the same time, an additional provision has been introduced, under which for non-business facilities, if the land price list does not contain the price of land for the same use purpose, the land price level shall be determined based on the cost of commercial and service land or non-agricultural production establishment land in the surrounding area to suit the actual local conditions.
7. Agricultural land lying in the same parcels as houses may have price levels increased or decreased
Clause 11 Article 1 of Decree No. 226/2025/ND-CP amends and supplements Clause 2 Article 20 of Decree No. 71/2024/ND-CP as follows:
Based on the actual situation in the localities, provincial-level People's Councils shall prescribe specific criteria for determining the location for each type of land and the number of land locations in their land price lists concurrently at the time of deciding the land price lists.
Provincial-level People's Councils shall, based on the actual situation in the localities, increase or decrease the price levels of land parcels and land areas with favorable or unfavorable factors in land use, for the following cases:
- Land for commercial and service activities, land for non-agricultural production and business activities other than land for commercial and service activities having high profitability and advantages in being used as ground for production, business, commerce and services; agricultural land in residential areas or within the administrative boundaries of wards; agricultural land lying in the same parcels with houses;
- Residential land parcels with more or less favorable factors affecting the land prices compared to residential land parcels at the same land location in the land price lists.”
The new regulation has added agricultural land located in the same parcels as houses to the cases eligible for price increases or decreases.
8. Chairperson of the commune-level People’s Committee to approve the plan on land use rights auction
Clause 4 Article 55 of Decree No. 102/2024/ND-CP on appraisal and approval of a plan on land use rights auction is amended under Decree No. 226/2025/ND-CP as follows:
For a land use rights auction in which the Chairperson of the commune-level People’s Committee is competent to allocate or lease land, the commune-level agency with land management function shall check and complete the dossier and submit it to the Chairperson of the commune-level People’s Committee for approval of the plan on land use rights auction.
For a land use rights auction in which the Chairperson of the provincial-level People’s Committee is competent to allocate or lease land, the provincial-level agency with land management function shall check and complete the dossier and submit it to the Chairperson of the provincial-level People’s Committee for approval of the plan on land use rights auction.
Thus, the new regulation has removed the competence of the district-level People’s Committees and supplemented the competence of the Chairperson of the commune-level People’s Committee in approving the plan on land use rights auction.
