Discovering your leased plot sits inside road planning is not uncommon — especially for land outside industrial parks along developing transport corridors. The key is understanding: road planning does not mean immediate loss of land, and the enterprise enjoys legally protected rights.
How may it be used while waiting?
Under the 2024 Land Law, land under published planning may continue to be used as-is but with restrictions: no new construction, no change of land-use purpose. For a leasing FDI enterprise: existing factories continue operating normally; but expansion plans or new workshops will not be approved. The wise strategy is to stop sinking fixed capital into this site and redirect investment elsewhere.
Upon State recovery for the road: what rights?
When planning is implemented and the State recovers the land, the enterprise enjoys full rights under the compensation, support and resettlement plan: compensation for attached assets (factories, structures — at remaining value), remaining land investment costs (including prepaid rent for unused time), and production stabilisation and relocation support. For one-off-payment leases, land compensation also applies under Article 95 of the 2024 Land Law. Details follow Decree 88/2024/ND-CP.
Practical conduct
One, obtain written confirmation of the implementation roadmap from the competent authority — knowing “when the road comes” enables proactive relocation planning. Two, negotiate with the lessor (for subleases): add rent reduction or unilateral termination clauses upon recovery into a contract appendix. Three, prepare a backup site plan — every enterprise should have one, especially with planned land.
Frequently asked questions
1. Is land in road planning recovered immediately?
No. Planning is only a future land-use orientation; recovery occurs only upon a State recovery decision for a specific project. While waiting, the enterprise continues as-is use.
2. May we build additional workshops on road-planned land?
No. Land under published planning is restricted: no new construction, no purpose change under the 2024 Land Law.
3. What compensation applies upon road recovery?
Attached-asset compensation (remaining value), remaining land investment costs (including prepaid rent for unused time), production stabilisation and relocation support; one-off leases also get land compensation.
4. Should we keep investing in this site?
Do not sink more fixed capital (new building, expansion). Maintain current operations while preparing a backup site and tracking the planning roadmap.
Key takeaways for investors
- Road planning does not mean immediate land loss — as-is use continues.
- Restrictions: no new construction, no purpose change.
- On recovery: asset compensation, remaining investment costs, relocation support.
- Stop fixed-capital investment; prepare a backup site.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.
