CHANGES IN LAND LAW: A “GOLDEN TICKET” FOR INNOVATION AND BUSINESS DEVELOPMENT

In the coming period, several new land-related decrees will officially take effect, marking an important adjustment in land management and land-use policies. These changes are designed to align with infrastructure development strategies, support science and technology, and promote innovation. Understanding these new regulations will help businesses and individuals proactively fulfill financial obligations, seize opportunities, and minimize legal risks. This article summarizes the key new points, analyzes their impacts, and offers practical recommendations.

Key New Developments

1. Additional cases eligible for exemption or reduction of land use fees / land rental fees

Pursuant to Clause 4, Article 71 of the Law on Science, Technology and Innovation 2025 (effective from 01 October 2025), a new case of exemption/reduction is added after Point l, Clause 1, Article 157 of the 2024 Land Law.

Specifically, this applies to land used for the construction of:

• Laboratories;
• Technology incubation facilities (and science & technology enterprises);
• Experimental facilities;
• Pilot production facilities;
• Shared facilities and infrastructure supporting scientific research, technological development, and innovation of organizations such as science and technology enterprises, R&D centers, national- or provincial-level innovation centers, and startup support centers.

2. Decree No. 230/2025/NĐ-CP – Land rental reduction policy for businesses

Issued on 19 August 2025, this Decree supplements regulations under Clause 2, Article 157 of the 2024 Land Law. A notable point for businesses is:

• Organizations and individuals leasing land with annual rental payments are entitled to a 30% reduction in land rent for 2025, including cases where legal documentation has not yet been fully completed but financial obligations still arise in that year.

This is considered a short-term financial support measure, helping businesses reduce land rental costs—especially in a context where many entities need capital for reinvestment and recovery of production and business activities.

3. Related policies supporting science, technology, and innovation

The above land-use fee and land-rent exemption/reduction policies form part of a broader package of measures aimed at encouraging:

• R&D (Research and Development);
• Technology testing and experimentation;
• Startup incubation;
• Development of innovation centers.

These are accompanied by a new Decree on attracting experts in science and technology, innovation, and digital transformation, with clearer benefits and selection criteria.

4. Timeline and effectiveness

• The Law on Science, Technology and Innovation 2025 takes effect from 01 October 2025.
• Decree No. 230/2025/NĐ-CP takes effect immediately from the date of issuance (19 August 2025).

Advantages and Positive Impacts

• Reduces initial costs for research organizations, science and technology enterprises, and startups when investing in experimental and innovation facilities.
• Stimulates investment in R&D and technology experimentation, promoting the development of innovation centers and enhancing enterprises’ internal capabilities in knowledge and technology.
• Creates more favorable conditions for individuals and organizations with scientific and technological initiatives to establish experimental and pilot production facilities.
• Eases financial burdens for areas affected by natural disasters or disadvantaged regions through land-related exemptions and reductions (e.g., flood-prone areas, resettlement land allocations).

Challenges

• Eligibility for exemption/reduction requires complete and proper documentation; insufficient evidence or unclear land-use purposes may result in rejection.
• Land-use planning and construction planning must be compatible; if local plans have not yet been adjusted or approved, disputes or disagreements may arise.
• Practical implementation and interpretation may vary by locality; businesses and individuals should consult local authorities or land management agencies for verification.
• Potential impacts on state budget revenues if exemptions and reductions are widely applied, requiring the State to adjust budget estimates and balances.

Conclusion

New land policies are opening up clear opportunities for organizations and businesses operating in science and technology, innovation, pilot production, and incubation centers. Land-use fee and land-rent exemptions or reductions can significantly lower initial investment costs and help projects become feasible sooner.

However, to fully benefit from these policies, proactive efforts are required in understanding regulations, preparing documentation, and coordinating with state authorities. Individuals and businesses should view this as a strategic opportunity—not only to save costs, but also to build long-term competitiveness and innovative capacity.

Celigal Law Firm is one of the legal service providers ready to accompany businesses and individuals in fulfilling land-related financial obligations and staying up to date with the latest legal policy developments.