Resolution 29/2026/QH16: Special Mechanism Unblocks Thousands of Stalled Land Projects from 1 May 2026

03-05-26 Việt Quang

The National Assembly opens the way to resolve bottlenecks and exempt criminal liability for pre-2024 land violations that meet statutory conditions.

Effective from 1 May 2026, Resolution 29/2026/QH16 — adopted by the 16th National Assembly on 24 April 2026 — establishes a special mechanism to handle land law violations that arose before 1 August 2024, the date Vietnam’s Land Law 2024 (Law No. 31/2024/QH15) took effect. The Resolution is expected to “unfreeze” thousands of long-stalled projects and open the door to exempting or reducing criminal and disciplinary liability for organisations and individuals that meet the prescribed conditions.

Why Resolution 29 is seen as a “lifeline” for the market

According to reports submitted to the National Assembly, the country currently has approximately 4,489 land-related projects facing legal difficulties, covering more than 198,428.1 ha and representing total investment capital of around VND 3.3 quadrillion (USD ~130 billion). For years, this enormous resource has remained largely “frozen” due to the absence of a clear legal framework for resolving violations dating back to the Land Law 2013 era and earlier specialised legislation.

Resolution 29/2026/QH16 was issued precisely to unlock these resources. It applies to land law violations by organisations and individuals that occurred before 1 August 2024 — the effective date of the Land Law 2024 — as well as to long-pending projects with land-related legal obstacles. By taking a “special mechanism” approach, the National Assembly authorises flexible solutions not currently provided for in existing legislation, balancing legal discipline with the imperative of socio-economic development.

Four “golden” conditions for exemption from criminal prosecution

One of the most closely watched provisions is Article 5 of the Resolution, which provides that organisations and individuals who committed land law violations before 1 August 2024 will not be criminally prosecuted if they simultaneously meet four core conditions:

First, the violation must not involve any element of corruption or personal gain.
Second, it must have been committed for socio-economic development purposes or to ensure national defence and security.
Third, the project or works must have been completed and have brought tangible socio-economic benefits to the locality and the country.
Fourth, no complaints or denunciations have arisen, or any complaints/denunciations filed have been definitively resolved by the competent authorities.

Where state assets have been wasted but no corruption is involved, the Resolution allows criminal prosecution to be suspended for up to two years to enable the parties to remedy the consequences. This mechanism gives organisations and individuals the opportunity to return assets and complete legal formalities, thereby avoiding mechanical criminal handling.

Disciplinary exemption for officials and treatment of unlawful constructions: flexible but conditional

For cadres, civil servants, public employees and members of the armed forces who committed land law violations without any element of corruption — and where the conduct was driven by socio-economic development or national defence and security purposes — the Resolution permits exemption from disciplinary action. The conditions are that the project has been completed, has produced socio-economic benefits, and is free of complaints or has had complaints definitively resolved.

Regarding constructions, the Resolution provides that buildings on land subject to violations are not required to be demolished where they are consistent with approved land-use and construction master plans, and the original state of the land does not need to be restored. Where a project violated land-use purposes but remains consistent with the master plan, competent authorities may adjust the project’s objectives and allow it to continue. This is a highly significant practical change that helps avoid wasting investments worth thousands of billions of VND.

Land use right certificates and investor selection: two major issues resolved

Resolution 29/2026/QH16 also sets out specific policies for projects that received Land Use Right Certificates or Certificates of Land Use Rights and Ownership of Houses and Other Land-Attached Assets in breach of regulations before 1 August 2024. At the same time, the Resolution introduces a mechanism for continued land allocation and lease for projects with violations in investor selection procedures — one of the most common bottlenecks at the local level during 2014-2024.

Practical impact

For real estate developers, Resolution 29 opens the door to restarting many projects “frozen” by land law obstacles, freeing up capital flows and accelerating asset turnover. For homebuyers — particularly those who paid deposits for stalled projects — this is a positive signal that they may finally receive their products and have their land use rights formalised.

For individuals and households who previously violated land-use purposes, boundaries, or who hold improperly issued certificates, the Resolution creates a pathway to legalise their files based on specified conditions, rather than facing land recovery or criminal liability. For local officials who participated in approving projects with procedural defects but did not act for personal gain, this is also a significant mechanism to clarify accountability and reduce disciplinary pressure.

Recommendations

For enterprises:

Review the entire legal file of any project with potential issues arising before 1 August 2024 and catalogue the violations and their materiality.
Prepare evidence demonstrating socio-economic effectiveness, including investment, employment, budget contributions, and community impact.
Engage proactively with provincial People’s Committees and specialised departments to obtain guidance on applying Resolution 29; consult counsel on conditions for criminal and administrative exemption.

For individuals and households:

Compile documents proving the origin and history of land use, together with all correspondence with competent authorities.
Closely monitor forthcoming guidance from the Government and provincial People’s Committees, and cooperate with local authorities during reviews.
Engage counsel to assess the applicability of Resolution 29 to each specific situation before negotiating or filing on your own.

MT & Partners Law Firm, with experienced lawyers across land, property dispute, corporate and criminal litigation practice areas, is ready to assist enterprises and individuals in assessing files, determining the applicability of Resolution 29/2026/QH16, and developing appropriate legal strategies. Please contact our hotline +84 987 140 772 or email info@mtpartners.vn for consultation.

(*) This article is for reference only and does not substitute for specific legal advice.

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