Land-Use Purpose Conversion for Investment Projects in 2026: New Rules

What is new in 2026 for land-use purpose conversion for investment projects? The question is “hot” because of a new land-use levy relief policy — but that relief is only for households and individuals, not for organizational projects. Lumping the two together is today’s most common mistake, and it can throw an investor’s levy estimate off by tens of billions of dong.

1. When must an investment project seek conversion permission?

Under Article 121 of the Land Law 31/2024/QH15 (effective 1 August 2024), conversions requiring state permission include agricultural-to-non-agricultural land conversion and certain conversions within non-agricultural land.

Citation trap to avoid: Law 24/2026/QH16 amends the Investment Law, not the Land Law — any reference to “Law 24/2026 amending the Land Law” is wrong.

2. Authority: the provincial People’s Committee chair

For organizations implementing investment projects, conversion permission rests with the chair of the provincial People’s Committee, under the two-tier local government decentralization (Decree 151/2025/ND-CP, effective 1 July 2025). The threshold condition: conversion must conform to the approved land-use master plan and plan.

3. The five-step procedure (Article 227 + Official Letter 1153/2026)

Under Article 227 of the Land Law 31/2024 and Appendix II of Official Letter 1153/BNNMT-QLDD of 2026, the procedure has five steps:

File the application for land-use purpose conversion;
Dossier check and field inspection of the proposed land;
Submission to the competent authority for the conversion decision;
Pay the land-use levy per the tax authority’s notice;
Re-issuance of the Certificate recording the new land-use purpose.

Processing time for each step follows the administrative procedures published by each province (updated from 1 July 2026 under the two-tier model) — there is no single nationwide day-count.

4. Land-use levy: organizations pay in full

Under Decree 103/2024/ND-CP, organizations permitted to convert land for investment projects must pay the land-use levy in full based on the land price at the time conversion is permitted. This is the largest cost in the entire procedure and must be estimated accurately from the project planning stage.

5. The 2026 update to distinguish: Resolution 254/2025 relief

Resolution 254/2025/QH15 introduces levy relief from 2026: households and individuals converting garden, pond or agricultural land within the same parcel containing residential land to residential land pay only:

30% of the difference (within the residential land quota);
50% of the difference (the portion exceeding the quota but not more than 1x the quota);
100% of the portion exceeding 1x the quota.

This policy does NOT apply to organizational investment projects. Many articles trumpet “30–50% off land conversion in 2026” without distinguishing subjects — a project investor applying it by mistake will under-budget the levy and break the financial plan.

Criterion	Households/individuals (Res. 254/2025)	Organizational projects
Land-use levy	30% / 50% / 100% relief by quota	Full payment under Decree 103/2024
Permitting authority	Competent level per delegation	Provincial People’s Committee chair
Planning condition	Conformity with land-use plans	Conformity with land-use plans + synchronization with the investment project

6. Common risks and recommendations

Skipping the planning check: signing land leases/purchases and planning the project before discovering the land cannot be converted under the plan — the costliest and hardest-to-fix mistake;
Misestimated levy: wrongly applying household relief to an organizational project, or using an outdated land price table;
Land–investment desynchronization: land procedures and investment procedures (policy approval, building permits) must be scheduled in parallel to avoid “land done, project not” or vice versa.

Recommendation: before launching, always check the land-use master plan and plan for the intended parcel; estimate the levy at current land prices as an organization; and build a synchronized timeline for both land and investment procedure tracks.

7. Frequently asked questions

Does project land conversion require auction?

It depends: where the State allocates or leases land through land-use-right auctions, the auction procedure applies; where allocation/lease without auction is permitted, the conversion permission procedure above applies.

Does the 30%/50% relief under Resolution 254/2025 apply to companies?

No. The relief is for households and individuals only. Organizations implementing investment projects pay the levy in full under Decree 103/2024.

How long does dossier processing take?

Per the administrative procedures published by each province (updated from 1 July 2026). Check the provincial procedure set where the land is located for specific figures.

8. Conclusion

Land-use conversion for investment projects in 2026: permission from the provincial People’s Committee chair, a five-step procedure, full levy payment under Decree 103/2024 — and no confusion between household relief under Resolution 254/2025 and organizational obligations. Check planning first, estimate correctly, synchronize with the project timeline: those three determine success or failure.

If your business is implementing a project requiring land-use conversion, contact FLAT Law Firm for advice.

This article has been reviewed by the QA Council.

Transparency note: this article was prepared by the FLAW AI Legal Council based on legislation in force at the time of writing (14 October 2026). It is for general information only, is not an official legal text, and does not replace legal advice for your specific case. Processing times follow provincially published procedures; levies follow local land price tables.