In recent years, Vietnams land policy has undergone its most significant transformation in decades: land price framework abolition, ending a mechanism the State had previously used to determine land prices on a five-year cycle. This new regulation officially took effect when Decree 226/2025/ND-CP repealed Decree 96/2019, while the 2024 Land Law requires the construction of annual land price tables, applicable from January 1, 2026. This change directly affects the real estate market, land clearance compensation, taxes and fees and even housing prices.
What is the abolition of the land price framework?
Previously, under the 2013 Land Law, the land price framework set minimum and maximum price levels issued periodically every five years by the Government for each type of land and region, serving as the basis for provincial Peoples Committees to build local land price tables. This mechanism allowed the state to "anchor" land prices within a fixed range, regardless of how strongly the market fluctuated - creating a reality where two parallel price levels existed: the State price and the market price, which often differed substantially.
However, this framework was widely criticized by experts and regulators for failing to accurately reflect market prices, leading to discrepancies in calculating land use fees, taxes, compensation for land recovery and project planning - resulting in prolonged disputes and delayed investment progress.
To address this, the 2024 Land Law officially enacted land price framework abolition, replacing it with annual land price tables built on market-based principles, actual transaction prices and in-depth valuation methods. This regulation aims to increase transparency, align more closely with actual land prices, reduce discrepancies and drive stronger socio-economic development.
Land price framework abolition timeline & key milestones
Land price framework abolition did not happen arbitrarily - it is the result of a land policy reform process driven by Resolution 18/NQ-TW (Central Executive Committee) along with the refinement of the 2024 Land Law.
Key milestones to note:
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The 2024 Land Law was passed by the National Assembly and took effect on January 1, 2025 - eliminating the land price framework from the legal system.
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Decree 226/2025/ND-CP took effect on August 15, 2025, officially repealing Decree 96/2019 on the Governments land price framework.
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Annual land price tables will be built and issued by provinces and cities starting January 1, 2026.
Compared to the old mechanism (the five-year land price framework), annual land price tables better reflect actual market fluctuations, allow for more accurate land recovery compensation calculations, increase transparency in fee and tax collection and reduce the situation of "State prices too low - market prices too high."
Land price framework abolition: will housing prices rise?
One of the questions of greatest interest to the public and investors is: "Will land price framework abolition cause housing prices to rise?" This is not merely a matter of market psychology but is directly tied to finances: land use fees, land-use conversion taxes, project construction costs and land recovery compensation.
When land price tables are built to more closely reflect market prices:
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Taxes and fees related to land use rights will be higher than under the old framework, since the new price tables are no longer constrained by minimum–maximum limits per region.
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People converting land use purposes and project developers may face higher land use fees and taxes than before, but at the same time, compensation for those whose land is recovered will also be closer to market prices, reducing prolonged complaints.
However, rising housing prices following the abolition of the price framework is not an inevitable rule - it also depends on actual supply-demand dynamics, market regulation mechanisms, taxation and global economic fluctuations. Experts believe the market will gradually "integrate" with actual prices without causing a sudden price shock, provided it is well managed.
Related legal regulations & benefits for the market
Key legal basis
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2024 Land Law: stipulates the land price framework abolition, shifting to the construction of annual land price tables; clearly defines principles, valuation methods and market reference mechanisms.
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Decree 226/2025/ND-CP: terminates the effect of Decree 96/2019/ND-CP on the land price framework, effective August 15, 2025.
Notable benefits
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Increased transparency and closer alignment with the market: The outdated "minimum–maximum price" mechanism is eliminated; land price tables now reflect actual transaction data calculated using modern valuation methods.
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Reduced disputes: When compensation and land-use conversion fees are based on price tables closely aligned with market prices, land-related complaints decrease significantly.
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Support for project development planning: Investors can determine costs more accurately, helping to shorten site clearance time and improve project timelines.
How to value land accurately in line with the market after price framework abolition?
After land price framework abolition, land valuation methods no longer depend on rigid ceiling–floor limits set by the State, but instead rely on professional appraisal methods widely applied by valuation agencies and organizations. Some common methods include:
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Direct comparison method: comparing prices of similar land transactions within the same area.
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Income method: based on the potential income stream from land use.
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Extraction method: determining land value after deducting construction costs.
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Adjustment coefficient method: using statistical data and market fluctuations to calibrate prices.
To carry this out accurately and professionally, people often turn to reputable land valuation services, with teams of experienced experts, market databases and valuation analysis tools powered by Big Data. This ensures that annual land price tables are built to accurately reflect market prices and fluctuations at each point in time.
Hoang Quan Appraisal - the accurate valuation solution in the land price frameworks abolition era
Now that the State has completed land price framework abolition, every real estate transaction, tax and fee calculation, compensation case and investment decision depends directly on land prices that closely track the actual market. Incorrect valuation increases risk. Accurate valuation optimizes benefits from the very start.
Hoang Quan Appraisal offers a real estate valuation solution that is legally compliant, market-accurate and timely - helping clients stay proactive amid every shift in new land policy.
Hoang Quan Appraisal specializes in:
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Valuing residential land, project land, factories and commercial real estate
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Determining land-use fees and land-use-purpose conversion charges
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Appraisals for compensation and land recovery
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Valuing collateral assets for banks, purchases and investments
With a team of licensed appraisers and a continuously updated real transaction database, Hoang Quan Appraisal applies modern valuation methods to ensure results that are market-accurate, transparent and accepted by authorities and banks.
During this period of land price bracket abolition, choosing a reputable valuation firm is the key that helps you:
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Avoid asset loss
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Optimize financial costs
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Make safe investment decisions
Contact Hoang Quan Appraisal today for accurate, fast and fully compliant valuation consulting under the new regulations.
Hoang Quan Appraisal Co., Ltd.
Address: Hoang Quan Appraisal System
Phone: 0934.252.707
Email: contact@sunvalue.vn
Facebook: Hoang Quan Appraisal
Website: hqa.com.vn
Conclusion
In short, land price framework abolition is a strategic move to realize market-based land pricing principles in Vietnam, ending the long-standing dual-price mechanism - State price versus market price. This new mechanism opens the door to a more transparent market, creating favorable conditions for policy-making, land compensation and effective project development. To better understand and correctly apply this change to your practical needs - from compensation and taxes to buying and selling - Hoang Quan Appraisal is always ready to provide accurate, professional and market-aligned valuation consulting.
