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22 February 2025

Vietnam's New Land Law To Revolutionize Agriculture

The 2024 regulations aim to reduce waste and increase efficiency in agricultural practices across Vietnam.

The introduction of the Land Law 2024 marks a significant transformation for agricultural practices across Vietnam, emphasizing the importance of reducing land waste and enhancing productivity. Scheduled to take effect on August 1, 2024, this law promises to expand the scope of land transfer regulations, allowing greater flexibility and encouraging larger-scale agricultural production.

The updated legislation dramatically alters existing constraints by permitting individuals to transfer agricultural land use rights up to 15 times the local land allocation limits. Previously, only direct agricultural producers could receive such transfers, but under the new law, even those not engaged directly with farming operations can acquire agricultural land, thereby promoting wider participation within the agricultural sector.

According to Nguyen Dinh Tho, director of the Institute of Strategy and Policy on Natural Resources and Environment, this legislative shift not only reduces wastage from underutilized agricultural lands but also aligns with the government’s broader aims of optimizing rural agriculture. “The Land Law 2024 will help reduce waste from unused agricultural land,” Tho stated, emphasizing the need for responsible management of Vietnam’s fertile zones.

Le Van Tam, the Director of Sông Hồng Agriculture Cooperative, echoed these sentiments, describing the law as both new and positive. “This is a new and positive point of the law,” he remarked. Previously, agricultural lands assigned to non-farmers often remained idle, causing significant resource wastage. The change aims to rectify this, allowing for more dynamic utilization of agricultural resources.

With the implementation of this law, organizations and individuals engaged indirectly with agricultural production, such as those involved in agricultural processing or distribution, now have the opportunity to acquire land for operational expansion. This newfound capacity encourages both agricultural cooperatives and private enterprises to leverage land efficiently for production scaling. For example, Nguyen Van Phat, the Director of Toan Phat Cooperative, expressed hope for the future, stating, “We now have the opportunity to expand our production.”

Besides facilitating land transfers, the Land Law 2024 also includes specific regulatory guidelines for individuals receiving land usage rights exceeding set thresholds. These individuals must now establish economic organizations and formulate detailed land use plans—this is part of ensuring the land can be used productively and sustainably. The stipulation is intended to maintain checks on agricultural land use and to form agricultural zones characterized by concentrated production.

By aligning the new legislative framework with state requirements for agricultural development, the law aims to develop “large fields” and increase productivity within rural localities. These objectives reflect precedents set by existing Party resolutions from the Central Committee, which espouses the need to innovate and improve the effectiveness of land management frameworks.

The law also emphasizes modern agricultural methods, indicating shifts from traditional to more advanced farming practices. It encourages investments in higher mechanization and the adoption of technology within the agricultural production chain, opening new avenues for intensive farming and production of agricultural goods at scale. This modern approach serves to link agriculture with broader industrial contexts and supply chains.

An additional provision within the law seeks to expand classifications of agricultural lands to include livestock production areas, asserting stricter regulations for these spaces. By concentrating livestock farming within defined spaces, regulatory bodies aim to mitigate environmental impacts and bolster efficiency, benefitting both farmers and the surrounding communities.

The Land Law 2024 also introduces guidelines for land use focused on aquaculture and other agricultural sub-sectors, enabling state-led initiatives to manage land sustainably for broader economic imperatives. Farm producers will be encouraged to convert agricultural waste to energy, improving overall sustainability within Vietnam's niches of agriculture.

Local leaders have already begun observing shifts due to the lead-up to the law’s enactment. The provincial government of Ha Nam recently launched construction for a new road project, citing the law's potential to invigorate the local economy and secure agricultural stability. This project remains part of larger efforts to bolster infrastructure supporting agriculture and straightforward execution of the Land Law.

The comprehensive reforms articulated within the Land Law 2024 signal not only immediate benefits for agricultural stakeholders involved but also outline broader aspirations for Vietnam’s rural development goals. Implementing these regulations is set to establish far-reaching impacts, both economically and socially, as the country accelerates its path toward modernized, sustainable agriculture.

Overall, the Land Law 2024 emerges as not just another legislative adjustment, but as part of Vietnam’s strategic vision to maximize its agricultural potential. While the changes bring about new challenges and responsibilities, the anticipated increase in productivity and resource efficiency underlines the necessity for such regulatory evolution.