For foreign direct investment (FDI) enterprises leasing land in Vietnam — or negotiating land leases for new projects — the land price table applicable from 01/01/2026 is a factor directly determining land rental costs in the coming years. Under the Land Law 31/2024/QH15, the land price table is built annually (instead of every five years as under the 2013 Land Law) and tracks market prices more closely — meaning land rentals tend to rise. This article analyzes how the new land price table affects land rentals of FDI projects: the calculation method, the 5-year stabilization cycle, the adjustment coefficient and what businesses should do now.
Legal framework: the land price table as the basis for land rental calculation
The legal framework governing the land price table and land rentals includes:
- Land Law 31/2024/QH15 — Article 159 (land price table), Article 160 (specific land prices);
- Resolution 254/2025/QH15 — Article 7 provides that the land price table is the basis for calculating land rentals; the table is decided by the provincial People Council and applies from 01/01/2026;
- Decree 49/2026/ND-CP — Article 8 on the land price adjustment coefficient;
- Decree 50/2026/ND-CP — six bases for calculating land rentals; amending Article 26 of Decree 103/2024/ND-CP on land rental unit prices;
- Decree 103/2024/ND-CP (as amended by Decree 291/2025/ND-CP) — on land use fees and land rentals.
How land rentals are calculated under the new table
The core formula FDI businesses need to grasp: land rental = land price table × land price adjustment coefficient (coefficient K), where:
- The land price table is issued annually by the provincial People Council, applicable from 01/01/2026, reflecting actual market land prices more closely;
- The land price adjustment coefficient (K) reflects market fluctuations, land use planning and other factors under Decree 49/2026/ND-CP.
Because the new land price table tracks market prices more closely than the previous 5-year table, the resulting land rental level tends to rise in many localities — especially in areas where market land prices have risen sharply in recent years.
The 5-year stabilization cycle: a temporary shield for ongoing projects
An important reassuring point for FDI projects currently within the 5-year land rental stabilization cycle: the annual rental is kept stable throughout the 5-year cycle; it is recalculated under the land price table of the redetermination year only when the cycle ends. This means:
- Projects within the 5-year cycle → not immediately affected by the 2026 land price table;
- Projects with new leases, extensions or entering a new 5-year cycle from 2026 → the 2026 land price table applies, and land rental costs may rise significantly compared with the previous cycle;
- The increase upon cycle transition is capped at a ratio prescribed by the Government — businesses should compare the original text for the specific ratio applicable to their case.
One-off land rental payment: input costs rise with the new table
For lump-sum land rental payment for the entire lease term, the rental is calculated on the new land price table — so the project total input cost rises in line with the table increase. FDI businesses should factor this into financial models when planning new projects or negotiating extensions or conversions of land lease forms in 2026.
Land rental exemption and reduction: review needed as base rentals change
FDI businesses eligible for land rental exemption or reduction (by incentivized sector or area) should review their position as base rentals change under the new table. Exemption and reduction amounts are usually calculated on the payable land rental — when the base rental rises, the exempted or reduced amount in absolute terms also changes, affecting the project actual cash flow. The review should be done together with the land rental redetermination.
Comparison across localities: no national uniform level
Because the land price table is issued by each province and city, there is no national uniform level — the land rental increase of an FDI project depends entirely on the table of the locality where the project sits. Businesses with projects in multiple provinces should review each locality separately, based on the official land price table resolution of each provincial People Council (not draft or unofficial figures).
Frequently asked questions
When does the new land price table apply?
The new land price table decided by the provincial People Council applies from 01/01/2026 under Resolution 254/2025/QH15, and is built annually under the Land Law 31/2024/QH15.
Will FDI projects currently leasing land face higher rentals immediately in 2026?
Not yet, if the project is within the 5-year rental stabilization cycle. Rentals are recalculated under the new table only for new leases, extensions or new 5-year cycles.
How is land rental calculated?
By the formula: land rental = land price table × land price adjustment coefficient (K), with six calculation bases under Decree 50/2026/ND-CP.
Which Land Law is currently in force?
The Land Law 31/2024/QH15 — businesses should note the exact number when citing it.
Recommendations for FDI businesses
FDI businesses should: (1) identify which year of the 5-year stabilization cycle their project is in; (2) compare the official 2026 land price table of the project locality; (3) remodel land rental costs for the next cycle in financial planning; (4) review land rental exemption and reduction eligibility; (5) compare the full text of the Land Law 31/2024/QH15 and guiding decrees before applying them to specific cases.
Note: This article is for general information only and does not constitute legal advice for any specific case. You should consult a lawyer before making decisions.
Transparency note: This content was drafted by AI under the FLAW SEO Autopilot process — reviewed by the QA Council (AI Legal Council) and approved by the owner. It is not a lawyer opinion and is not recorded as lawyer-approved.
Do you need advice on land rentals and the new land price table for FDI projects? Contact FLAT Law Firm for support.