FLASH NEWS 04/04/2023 – Decree No.10/2023/ND-CP amended some articles in decrees guiding the implementation of the Land Law

The government issued Decree No.10/2023/ND-CP on 3/4/2023 which amends some articles in decrees guiding the implementation of the Land Law. This Decree will be applied from 20/5/2023. Some highlights are summarized as below:

• Force majeure is not included in the 24-month extension for project development period.
• A developer can use the land area within 24 months after a project started to be stopped developing. After 24 months, if the developer does not transfer land use right or sell properties attached to the land, the government will recall the land without reimbursement, except for force majeure.
• Issue land use right certificates for non-residential landed properties. 
• Allocate land area upon successful bidding or upon rightful approval.
• Calculation of land use fee in case of clear extension purpose.
• Force provinces to approve land use fee within 90 days.
• Allow to change land use right of forest area and other types of land if satisfy other laws.

Comment: This Decree is expected to have positive effects on market sentiment, especially the hospitality real estate segment given issuance of land use right certificates for beach villas and other landed properties. It also reduces project approval time and land use fee calculation time which helps the real estate sector to overcome this challenging period upon waiting for the Land Law (Amended) expected to be approved in October of this year.