LAND PRICE ADJUSTMENT COEFFICIENTS

Pursuant to Resolution No. 254/2025/QH15 dated 11 December 2025 and Decree No. 49/2026/ND-CP dated 31 January 2026

In order to resolve difficulties and obstacles arising during the implementation of the Land Law, the National Assembly issued Resolution No. 254/2025/QH15 and the Government issued Decree No. 49/2026/ND-CP detailing the application of land price tables and land price adjustment coefficients.

1. WHAT IS A LAND PRICE ADJUSTMENT COEFFICIENT?

The Land Price Adjustment Coefficient (LPAC) is the rate of increase or decrease in land prices for each type of land corresponding to areas and locations specified in the land price table. Provincial People’s Committees are responsible for promulgating the LPAC applicable from 01 January each year and revising or supplementing it when necessary.

2. THE LPAC IS AN IMPORTANT TOOL FOR DETERMINING:

• Land use fees
• Land rental fees
• Compensation for land recovery by the State
• Starting prices for land use right auctions
• Other financial obligations related to land

3. BASIS FOR DEVELOPING THE LPAC

• Results of market land price analysis
• Land valuation methods
• Construction investment costs
• Urban, rural, and construction planning

4. THE LPAC STRUCTURE INCLUDES 03 GROUPS

A. Market fluctuation adjustment coefficient

Determined based on comparisons between:

• Market land prices
• Land prices in the current land price table

B. Planning adjustment coefficient

Determined according to:

• Land use coefficients
• Construction planning
• Overall project site planning

C. Adjustment coefficient based on other factors

• Infrastructure
• Profitability
• Actual exploitation conditions
• Local-specific factors

5. PROCEDURES FOR DEVELOPING THE LPAC

For provincial land management authorities:

• Prepare project proposals
• Submit for approval
• Order or organize bidding for consultancy selection
• Sign implementation contracts

For consultancy units:

• Collect information
• Conduct surveys and investigations
• Develop the LPAC
• Coordinate with land management authorities to gather opinions from relevant agencies
• Coordinate with land management authorities to finalize dossiers for submission to the appraisal council, incorporate feedback, complete draft documents, and submit them to competent authorities for approval.

6. IMPORTANT DEADLINE – 01/07/2026

One of the key provisions of Resolution No. 254 is stipulated in Clause 5, Article 7:

“Competent authorities and persons must fully issue the basis for calculating land use fees, land rental fees, and land compensation in accordance with this Resolution no later than 01 July 2026.”

Accordingly, local authorities must complete the 2026 LPAC before 01 July 2026 to ensure sufficient grounds for determining land-related financial obligations under the new mechanism.

7. PRACTICAL SIGNIFICANCE

For the State:

• Improve the efficiency of land price management
• Accelerate the determination of financial obligations
• Reduce backlog of administrative dossiers

For businesses and citizens:

• Increase transparency in land-related costs
• Shorten dossier processing time
• Support the implementation of investment projects

Resolution No. 254/2025/QH15 and Decree No. 49/2026/ND-CP have created a significant shift in Vietnam’s land pricing mechanism, particularly through the application of land price tables and land price adjustment coefficients in place of the specific land pricing mechanism in many cases.

📖 Reference Sources: Resolution No. 254/2025/QH15 dated 11 December 2025 and Decree No. 49/2026/ND-CP dated 31 January 2026