Notable new points of Decree 102/2024/ND-CP

The following article briefly provides the notable new points of Decree 102/2024/ND-CP (effective from August 1, 2024) detailing some provisions of the Land Law 2024 (“Decree 102”), including the following parts: (1) Scope of regulation and subjects of application, (2) Some new points of Decree 102,  (3) Significance of the Decree.

1. Scope of regulation and subjects of application

• Scope of regulation: The decree provides detailed guidance on the implementation of certain provisions of the Land Law 2024.

• Subjects of application: State agencies exercising the rights and responsibilities to represent all land owners, performing the tasks of unified state management of land; Land users as prescribed in Article 4 Land Law 2024; Other subjects related to the land management and use.

2. Some new points of Decree 102

2.1. Auction of land use rights when the State allocates land with land use fees or leases

Decree 102 divides the regulations on land use rights auctions into two separate provisions: one for cases where the State allocates or leases land with land use fees (Article 55) and another for unused agricultural land for public purposes (Article 56). While the auction process for both types is similar, the distinction is made due to the different criteria for determining the reserve prices. In prior regulations, the basis for determining the reserve price generally applied to both cases is the reserve price of the auctioned land approved in the dossier[1]. Under the current regulations, this basis is only applied to cases where auction is required, while the reserve price for public-purpose land is determined according to the annual land price table[2].

2.2. Urban residential land classification based on the nature of the area

Decree 102 provides more specific guidance on how to identify land types in the non-agricultural land group, in which the most important issue is the determination of residential land.

Accordingly, Decree 102 determines residential land according to the nature of the area (instead of determining based on the location of the land in rural residential areas or urban residential areas as before[3]). Residential land in urban areas is defined as residential land within the boundaries of wards and townships and residential land within the boundaries of commune administrative units that have implemented new urban construction projects according to the urban and rural system plan[4]. 

With this new approach, the financial obligations regarding land use by investors may increase, as land located within a commune with a new urban development project under the plan will be classified as residential land and subject to corresponding land prices. Therefore, investors need to more cautious before implementing urban area projects at commune administrative units.​​​​​​​

2.3. Changes in the contents of land use plannings and plans

The provisions of Decree 102 supplement the stricter requirements than the provisions of Decree 43/2014/ND-CP regarding provincial-level land use planning. It requires that such planning must be comprehensive and practical while including the following contents:  Analysis and assessment of factors directly affecting local land use; forecasting land use trends during the planning period; and providing solutions and resources for implementing the land use plan.

The land use plan of the centrally-run city, newly introduced in Decree 102, differs from Decree 43/2014/ND-CP by addressing cases where provincial land use planning is not required under the Land Law 2024. Accordingly, the land use plan of the centrally-run city includes various contents such as: Analysis and assessment of the current land use status, land use fluctuations in the past 5 years, the results of the implementation of the land use plan of the centrally-run city in the previous period....​​​​​​​

2.4. Land registration office branches with independent legal status 

Previously, the Land Registration Office Branch was only a dependent accounting unit and performed the functions of the Land Registration Office[5] , but Decree 102 has "upgraded" the Land Registration Office Branch into an agency with independent legal status (having legal status, having their own seal...) as a public non-business unit. 

3. Significance of the Decree

Decree 102 regulating some provisions of the Land Law 2024 plays a crucial role in the management and regulation of the real estate market. By clarifying the regulations on land use rights, land transfers, issuance of land use right certificates, and related financial obligations, this decree allows businesses and individuals engaging in the real estate activities to better understand the procedures and legal regulations on land they must comply with. As a result, the decree reduces disputes and legal risks, while promoting transparency and efficiency in the process of land management and use. Decree 102 contributes to creating a stable and attractive real estate business environment, encouraging investment and development, thereby promoting the sustainable development of the whole industry and the national economy.

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