Destroying land — stripping cultivated topsoil, dumping waste that alters farmland surfaces, causing erosion or degradation that eliminates usability — is penalised under its own bracket in Decree 123/2024. For FDI enterprises leasing land, the risk does not only come from their own acts: tenants can be held liable when contractors or partners pollute or destroy the leased area.
What counts as destroying land?
Article 14 of Decree 123/2024/ND-CP (effective 04/10/2024, replacing Decree 91/2019/ND-CP; amended by Decree 281/2026/ND-CP) lists acts degrading land quality: removing or thinning the cultivated soil layer; altering farmland surfaces with materials, waste, or sand, gravel, rock-mixed or otherwise compositionally different soil; causing bleaching, erosion or washout of farmland that eliminates or reduces its established usability. Common FDI-project forms: site levelling that strips fertile topsoil, dumping construction waste on temporarily leased farmland, discharges that pollute land beyond cultivability.
Fine levels and remedial measures
Article 14 sets area-based fines: from VND 2 million (under 0.05 ha) to VND 100 million (01 ha and above), across tiers 0.05–under 0.1 ha; 0.1–under 0.5 ha; 0.5–under 01 ha. Under Clause 2, Article 5, organisations pay double — FDI enterprises face VND 4–200 million. Remedial measures apply: mandatory restoration of the land’s pre-violation state — for destroyed land, usually the costliest duty (importing topsoil, remediating pollution, rehabilitating land), potentially dozens of times the fine. Beyond administrative penalties, polluters may face criminal liability for environmental pollution or property destruction in serious cases, plus civil damages.
Responsibilities of FDI lessees
Tenants owe a duty to protect land from destruction during the lease — independent of who directly committed the act. Therefore: first, insert land-protection clauses in contractor agreements (banning indiscriminate dumping, designating material stockpile areas, penalty clauses); second, monitor and periodically record land condition to identify when and by whom destruction occurred; third, upon discovering destruction (by oneself or third parties), proactively report to the land authority and remediate immediately — voluntary remediation is a key mitigating factor; fourth, at lease end, hand back land without quality degradation versus handover, or face the lessor’s contractual damages claim.
Frequently asked questions
1. What fines apply for destroying land (pollution, erosion)?
Under Article 14 of Decree 123/2024 (amended by Decree 281/2026): VND 2–100 million by area (individuals); organisations pay double, i.e. VND 4–200 million — plus mandatory restoration of the land’s original state.
2. What are a tenant enterprise’s duties when land is destroyed?
Tenants must protect leased land: insert land-protection clauses in contractor contracts, monitor condition periodically, proactively report and remediate upon discovery, and return land without quality degradation at lease end.
3. Can land pollution trigger criminal liability?
Yes, in serious cases (environmental pollution or property destruction under the Penal Code), alongside administrative penalties and civil compensation duties.
4. How much does remediation cost, and who pays?
Restoration (topsoil import, pollution treatment, rehabilitation) often costs dozens of times the fine. The perpetrator bears the cost; if the tenant’s contractor caused it, the tenant answers to the law and recovers from the contractor under contract.
Key takeaways for investors
- Article 14, Decree 123/2024: land destruction draws VND 2–100 million (individuals), double for organisations; mandatory restoration.
- Common FDI forms: topsoil stripping, construction waste dumping, polluting discharges.
- Tenants owe an independent protection duty — contract clauses with builders plus periodic monitoring.
- Restoration often costs dozens of times the fine; serious cases may face criminal prosecution.
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.
