As of early January 2025, approximately 25 provinces across Việt Nam have issued new land price frameworks, effective until the end of 2025. These adjustments are part of the reforms introduced under the Land Law 2024, which aims to enhance transparency and align land prices more closely with actual market values.
The updated land price frameworks allow provincial authorities to revise land prices periodically, enabling a gradual transition towards a market-oriented valuation system, expected to be fully implemented by 2026. This approach is intended to mitigate sudden price hikes that could disrupt the interests of both land users and investors.
Despite this, the dramatic price hikes in some localities have caught both residents and businesses off guard, stirring significant concern in the real estate sector.
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In HCM City, for example, land prices have risen by up to 38 times, with some areas now valued at VNĐ687.2 million (US$27,055) per square metre. Hà Nội has also seen significant increases, ranging from two- to six-fold, with the highest price recorded at VNĐ695.3 million per square metre. These sharp adjustments have sparked concerns among real estate developers and investors about the potential for reduced affordability and investment attractiveness.
Chairman of the Vietnam Association of Construction Contractors (VACC),Nguyễn Quốc Hiệp, expressed concern about how these rising land prices could affect Việt Nam’s investment environment.
He pointed out that competitive land prices, coupled with affordable labour and efficient logistics, have traditionally been key factors in attracting foreign direct investment (FDI). With labour costs rising and now land prices escalating, Việt Nam’s competitiveness could be at risk, potentially deterring future investment.
Hiệp further highlighted the shortcomings in the current land valuation process, particularly for businesses involved in leasing or purchasing land for development. He warned that the new pricing could lead to fewer projects being initiated, ultimately affecting local government revenues and stifling economic growth.
Source: Vietnam News
