Vietnam’s 15th National Assembly Passes Amended Land Law and Law on Credit Institutions

Hanoi, Vietnam – The Office of the President announced on Monday the successful passage of two crucial laws by the 15th National Assembly of Vietnam: the amended Land Law and the amended Law on Credit Institutions.

Amended Law on Credit Institutions

The Amended Law on Credit Institutions, comprising 15 chapters and 210 articles, is scheduled to come into effect on July 1, 2024. This comprehensive legislation addresses various aspects, including the establishment, organization, operation, early intervention, special control, reorganization, dissolution, and bankruptcy of credit institutions. It also outlines protocols for handling bad debts and collateral assets.

The development of this law is aimed at enhancing legal regulations governing the organization and operation of credit institutions, fostering the adoption of advanced technologies within the banking sector, strengthening internal governance, promoting transparency, and establishing a robust legal framework for managing credit institutions facing liquidity risks.

Amended Land Law

The Amended Land Law, comprising 16 chapters and 260 articles, is set to take effect on January 1, 2025, with certain provisions taking immediate effect. A key change in this legislation is the elimination of regulations pertaining to the Government’s land price framework, replacing it with principles, bases, and methodologies for land valuation.

Under the amended Land Law, the annual formulation of land price lists becomes mandatory, initially published and applied from January 1, 2026, and subsequently revised and supplemented each year thereafter. The construction of these lists will leverage digital cadastral maps and a comprehensive land price database.

Specific timelines are stipulated for determining land prices, calculating land use fees, and determining land rent across various scenarios. The law introduces stable annual land rent, maintaining stability for a five-year period from the date of land lease by the State. It empowers the Chairperson of the district People’s Committee to determine specific land prices, delineating four land valuation methods and conditions for their application.

In cases where land prices from the list are used to calculate land use fees and rent, transparency and consistency in land management processes are ensured. The law empowers the Government to introduce additional land valuation methods upon approval from the National Assembly Standing Committee.

The passage of these laws reflects Vietnam’s commitment to refining legal frameworks, promoting transparency, and fostering sustainable development across various sectors, including banking and land management. The legislation introduces measures to address contemporary challenges and align with international best practices, contributing to the nation’s continued progress.