A 50-year land lease is the most common term framework for foreign-invested projects in Vietnam. But “50 years” does not mean “50 worry-free years”: how land rent is calculated, how extension works, whether one-off or annual payment is better — each decision directly affects project economics. Under the Land Law 31/2024/QH15, investors should note the following five points.
1. Lease term: maximum 50 years
The land lease term for foreign investors’ projects is capped at 50 years. For large-scale projects or projects in areas with difficult socio-economic conditions, a longer term may be considered under the law.
- The specific term is stated in the land lease decision / land lease contract — the only legal basis for determining “how many years remain”;
- The lease term should match the project lifecycle and the IRC term;
- When taking over/subleasing from a park developer, verify the actual remaining term — do not assume “every park is 50 years”.
2. Land rent: consult the consolidated text, not the original decree alone
Land rent is governed by Decree 103/2024/ND-CP — but this decree has been amended three times (Decrees 261/2025/ND-CP, 291/2025/ND-CP and 50/2026/ND-CP). Investors must therefore consult Consolidated Text 07/VBHN-BTC dated 16/4/2026 (consolidating Decree 103/2024 and its three amendments) when researching or citing land-rent rules.
Warning: citing the original Decree 103/2024 alone without accounting for the three amendments may lead to misapplying calculation methods or exemption subjects. All internal documents, contracts and financial models citing Decree 103/2024 should be re-checked against Consolidated Text 07.
Note: this article states no absolute monetary amounts, unit prices or exemption rates — such figures must be determined under 07/VBHN-BTC and the competent authority’s specific decision for each parcel and locality.
3. Extension: apply within the final year, 6 months before expiry — late means losing the right
This is the point with the harshest consequences if missed. Under Clause 3, Article 172 of the Land Law 31/2024/QH15, at lease expiry, a land user wishing to continue must apply for extension within the final year of the term and 6 months before the expiry date.
- Missing the deadline means losing the extension right, and the State may recover the land;
- Companies should put the “final year + 6 months before” milestone into an internal compliance calendar, not rely on memory;
- Prepare the extension dossier early: land-use status, financial obligations, planning conformity.
4. One-off or annual land rent payment?
Investors may choose one-off payment for the entire lease term or annual payment. Each has pros and cons:
- One-off: long-term cost certainty, no exposure to unit-price adjustments during the term; but heavy upfront capital lock-up;
- Annual: lighter initial cash-flow pressure; but exposed to land-price policy adjustments each cycle;
- Switching between the two forms must meet statutory conditions — it is not available on demand; check the specific conditions at the time of application.
The choice should rest on the project’s financial model, cash-flow planning and policy-risk assessment — there is no one-size-fits-all answer.
5. Land-rent exemption and reduction incentives
Land-rent exemption and reduction policy sits within the Investment Law 143/2025/QH15 framework, guided by Decree 96/2026/ND-CP (effective 31/3/2026). Investors should note:
- Determine whether the project falls within the eligible subjects and areas;
- Clarify the rates, duration and procedures — incentives do not apply automatically;
- Land-rent incentives are separate from corporate income tax incentives — do not confuse the two;
- Monitor incentive application throughout the lease: changes in land-use purpose or project transfer may affect incentives being enjoyed.
Frequently asked questions
What is the maximum land lease term for FDI projects?
50 years maximum; large projects or those in difficult areas may be considered for longer under the law.
Which text governs land rent?
Consolidated Text 07/VBHN-BTC dated 16/4/2026 (consolidating Decree 103/2024 and its three amendments: Decrees 261/2025, 291/2025, 50/2026). Do not cite the original Decree 103/2024 alone.
How to extend a land lease?
Apply within the final year and 6 months before expiry (Clause 3, Article 172 of the 2024 Land Law). Late application risks land recovery.
Can payment switch from annual to one-off?
Switching must meet statutory conditions — check the specific conditions at the time of application; it is not automatic.
Sources
- Land Law 31/2024/QH15 — in force: Articles 33, 34; Clause 3, Article 172 (lease extension: apply in the final year, 6 months before expiry);
- Consolidated Text 07/VBHN-BTC dated 16/4/2026 — consolidating Decree 103/2024/ND-CP and three amendments (Decrees 261/2025/ND-CP, 291/2025/ND-CP, 50/2026/ND-CP) on land rent;
- Investment Law 143/2025/QH15 — effective 1/3/2026 (investment incentive framework);
- Decree 96/2026/ND-CP — effective 31/3/2026 (investment incentive guidance).
For reference only; not legal advice. This article was drafted by AI and quality-checked by the AI Legal Council of FLAT Law Firm; it has not been reviewed or approved by a human lawyer. Regulations may change; please check the current legal texts before applying.
Related articles
- Adjusting an Investment Registration Certificate (IRC)
- Changing Objectives of a Foreign Investment Project in Vietnam
Does your FDI project need advice on land lease, extension or rent incentives? Contact FLAT Law Firm.
