14-08-26 MTParners
Decree 281/2026/ND-CP, amending Decree 123/2024/ND-CP, sharply expands sanctioning authority for land violations and adds a series of new remedial measures — individuals and businesses using land should review their compliance before the effective date.
On 13 July 2026, the Government issued Decree 281/2026/ND-CP amending and supplementing Decree 123/2024/ND-CP on administrative penalties in the land sector, officially taking effect from 31 August 2026. The most notable change: the fining authority of commune-level People’s Committee Chairpersons rises from VND 5 million to VND 250 million — a 50-fold increase. The Decree also introduces new remedial measures, a new method for offsetting illegal gains, and expanded authority for the police force. Anyone using land for the wrong purpose, encroaching on land, or with incomplete land procedures should pay close attention.
Under Decree 281/2026/ND-CP, commune-level People’s Committee Chairpersons may issue warnings, impose fines of up to VND 250 million, suspend land consultancy services for three months, and apply the remedial measures set out in Clause 3, Article 4 of Decree 123/2024/ND-CP. Previously, this position could only fine up to VND 5 million and apply two limited remedial measures. The new Decree also abolishes the sanctioning authority of district-level Chairpersons entirely, in line with the two-tier local government model now being rolled out. The fine levels above apply to individuals; for organizations, the fine is double that applicable to individuals.
The Decree also sets separate penalty levels for special administrative units (dac khu): the ward-level penalty rate applies where the unit is recognized as urban and performs functions equivalent to a ward government, while the commune-level rate applies in other cases.
Another notable change is Clause 2, Article 3a (newly added to Decree 123/2024/ND-CP), which provides that where a husband and wife jointly hold land use rights, administrative penalties are applied as for a single individual, rather than being imposed separately on each spouse or at the higher rate applicable to organizations. This prevents a single violation on jointly-titled land from being penalized twice merely because the land is registered in both spouses’ names.
Decree 281/2026/ND-CP adds four remedial measures to Decree 123/2024/ND-CP:
For acts of erasing or altering land documents, or using forged documents, the competent authority — in addition to requiring the procedure to be redone — will now also annul the results of the administrative procedure already granted and require surrender of the violating documents, rather than merely confiscating them as under the previous rule. The Decree also adds an offsetting principle: where a violator has already paid amounts into the state budget arising from the violating land use, the illegal gain payable is reduced by the amount already paid; where multiple organizations or individuals jointly commit a violation on the same land plot, the illegal gain payable is divided equally among them.
Under the new rules, officers of the People’s Public Security force are granted expanded sanctioning authority covering a wider range of acts: using land for the wrong purpose, encroaching on or occupying land, obstructing another person’s use of land, using forged documents, and violations relating to the provision of land information — instead of being limited to handling forged-document offenses as before. At the same time, the fining authority of heads of specialized land inspection teams and Directors of Departments of Agriculture and Environment is raised from VND 50 million to as much as VND 400 million.
The Decree also includes a transitional rule that benefits land users: for failure to register land changes when receiving land use rights to implement an investment project under Article 127 of the Land Law, if a record was made before 31 August 2026 but no penalty decision has yet been issued, no penalty will be imposed; if a penalty decision was issued between 31 January 2026 and before 31 August 2026 but has not yet been enforced, enforcement will not continue.
Granting fining authority of up to VND 250 million to the commune level allows land violations to be handled faster and closer to the local area, in line with the policy of streamlining the two-tier government apparatus. But it also creates significant risk for individuals, households, and businesses: violations that were previously only lightly penalized or merely noted at the commune level — such as wrong-purpose land use, delayed registration of land changes, or boundary encroachment — can now be sanctioned at a high level directly at the local level, without needing escalation to the district or provincial level as before. Businesses with land-related investment projects, particularly those receiving land transfers, leasing land, or converting land use purpose, should pay close attention, as the fine for organizations is double that for individuals.
For individuals and households: review the legal status of the land currently in use, particularly the permitted land use purpose, boundaries, boundary markers, and the status of change registration; never erase or alter land documents in any form; if currently subject to a pending violation case, check whether the beneficial transitional provisions may apply.
For businesses and project investors: conduct land legal due diligence before 31 August 2026, especially for projects receiving land use rights through agreements under Article 127 of the Land Law; prepare complete change-registration documentation to avoid delays that could trigger penalties under the new authority levels; consult legal counsel to assess risk and develop a timely response plan for any outstanding violations.
MT & Partners Law Firm, with a team of experienced lawyers in land, investment, and corporate advisory, is ready to assist with legal due diligence, risk assessment, and representation on matters relating to administrative land violations. Contact hotline 0987140772 or email info@mtpartners.vn for advice.
(*) This article is for reference only and does not replace specific legal advice.
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