National Assembly resolution takes effect on May 1 to resolve land violations

The decree aims to stabilize the real estate market and ensure fair treatment of projects nationwide.

Effective from May 1, National Assembly Resolution No. 29/2026/QH16 (regarding the handling of land law violations arising before the 2024 Land Law took effect) serves as a breakthrough policy.

It establishes specific mechanisms for the Government to create a synchronized legal framework to definitively address projects issued with non-compliant certificates. Simultaneously, the resolution mandates the full fulfillment of financial obligations to the State, restores market transparency and stability, and protects the legitimate rights of involved parties.

A typical bottleneck resolved by the resolution is the mechanism to grant certificates for projects using "residential land without forming a residential unit", commonly referred to as condotels and officetels. This real estate model has caused legal complications for nearly a decade in tourism hubs such as Khanh Hoa and Da Nang. Under Resolution No. 29/2026/QH16, based on a planning review, if a project aligns with residential zoning, the provincial People's Committee will permit a change of land use purpose to residential land.

Nevertheless, developers are required to completely fulfill all financial obligations that arise, which include land use fees or rentals calculated at the time of adjustment. In instances where projects do not conform to residential zoning, certificates will be modified to accurately represent their true classification as commercial and service land. The duration of land use will be redefined (generally 50 years), commencing from the time of construction or transfer. Any remaining financial obligations from the initial certificate issuance must also be resolved.

In order to facilitate the implementation of this resolution, on April 29, the Ministry of Justice released the appraisal dossier for the draft decree that guides the execution of the resolution. After the appraisal, the Ministry of Agriculture and Environment is in the process of refining the draft, which is anticipated to be promulgated in the near future. As per the draft decree, project groups that are in violation will be classified for appropriate action.

The Department of Finance will lead the review of individual project conditions, and provincial People's Committees will issue decisions to allow project continuation within five working days of receiving complete dossiers. Based on these decisions, the Department of Agriculture and Environment will provide counsel on procedures for land allocation, leasing, and land use purpose conversion. If a project fails to meet the criteria for continuation, it will be handled through land recovery procedures due to land law violations, ensuring legal consistency and discipline.

The issuance of Resolution No. 29/2026/QH16 and the urgent drafting of guiding decrees are highly significant. As of March 30, 2025, the country recorded nearly 4,500 land-related projects facing difficulties and bottlenecks, spanning approximately 198,430 hectares with a total investment exceeding VND3.3 quadrillion. Resolving these issues will boost supply and meet the actual housing needs of the population.

However, the implementation of these specific mechanisms requires caution. The Government has maintained a consistent directive: all remedial measures must be coupled with the accountability of relevant individuals and organizations; policies must strictly not be exploited to legalize wrongdoings or facilitate new violations. The remaining challenge is ensuring transparency and consistency in execution. While the legal framework is in place, final effectiveness depends on local organization. Without transparent and uniform planning reviews, financial obligation assessments, and certificate adjustments, the risk of litigation remains high.

In other words, the requirement is not only to act swiftly but also correctly and fairly. Only then can the goals of unlocking land resources, stabilizing the market, and bolstering investor confidence be achieved, contributing to the target of double-digit economic growth in 2026 and creating solid momentum for the 2026–2030 term.

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