Easier Land Use Conversion Under New Law

Understanding the types of land eligible for easier land use conversion is a key interest for households, individuals, and organizations seeking to change land use for residential, production, or business needs. Aligning land use conversion with planning directives not only optimizes land value but also opens up opportunities for more effective utilization. This article provides a general analysis of the land types that are easier to convert in practice and the factors influencing this process.

Agricultural Land in Residential Areas or on a Parcel with Residential Land

The land use conversion of agricultural land within residential areas has become more favorable under the new Land Law 2024 and its guiding documents.

According to Clause 5, Article 116 of the Land Law 2024, the basis for approving the land use conversion of agricultural land in residential areas or on the same parcel as existing residential land to residential land is the local land use master plan, the general urban plan, or the zoning plan. This applies to households and individuals.

This regulation removes the mandatory condition of being listed in the annual district-level land use plan. This creates a more stable and convenient path for individuals needing to formalize residential status on adjacent agricultural land.

The planning period is set for 10 years with a 20-year vision under Article 62 of the Land Law 2024. This stable timeframe allows people to easily look up planning information and determine the future legality of their land parcels.

Furthermore, Point m, Clause 1, Article 5 of Decree 151/2025/NĐ-CP delegates authority to the Commune-level People’s Committee (Commune PC) to process applications where the conversion area is 0.5 hectares or less. This allows for faster, localized processing, significantly shortening the procedure.

According to Article 4 of Decree 102/2024/NĐ-CP, agricultural land types eligible for conversion to residential land include:

• Land for annual crops.
• Land for perennial crops.
• Forestry land (production forest, protection forest, special-use forest).
• Land for aquaculture.
• Other agricultural land (salt production, unused agricultural land).

Rice-growing land is classified separately:

• Land dedicated to rice (two or more crops per year).
• Other rice-growing land.

Note:

1. Legal Origin and No Disputes: The land user must have legal land use rights. This means the parcel must have a Land Use Rights Certificate (Red Book) or be eligible for one under Article 45 of the Land Law 2024. At the time of application, the land must be free of disputes, not subject to seizure for judgment enforcement, and not slated for acquisition by the state.
2. Not in a Restricted or Prohibited Area: Under Clause 1, Article 122 of the Land Law 2024, areas with special characteristics such as rice land, special-use forests, protection forests, production forests, and land within infrastructure protection corridors or related to national security are restricted or prohibited from land use conversion. Special cases require a resolution from the Provincial People’s Council and must meet all relevant specialized conditions (e.g., conditions for rice land conversion under the Law on Cultivation, or for forest land under the Law on Forestry).

Non-Agricultural, Non-Residential Land to Residential Land

According to Clause 1, Article 121 of the Land Law 2024, converting non-agricultural, non-residential land to residential land requires a permit. However, new regulations have relaxed some conditions, making the conversion process easier.

Specifically, Clause 5, Article 116 of the Land Law 2024 now only requires that the conversion be consistent with the land use master plan. It is no longer constrained by the land’s usage term or the local annual land use plan.

Types of non-agricultural, non-residential land eligible for conversion to residential land include:

• Commercial and service land.
• Non-agricultural production and business land.
• Land for public works (disused schools, medical stations, hospitals, training centers).

This new rule is a significant step in administrative reform. Previously, converting commercial or business land to residential use was often stalled by short land use terms or exclusion from the annual plan. Now, if the parcel aligns with the approved land use master plan, the application can proceed without waiting for plan adjustments.

Notably, the new regulation also removes the limitation on the remaining usage term for public works land. This means properties like unused schools or medical facilities can be converted to residential land for redevelopment, improving the efficiency of land resources.

However, for a successful land use conversion, land users must note the following:

• The land must be located in an area zoned for residential use in the approved land use master plan.
• It must not be in a prohibited or restricted zone (e.g., conservation areas, safety corridors).
• It must ensure access to technical infrastructure (transport, electricity, water, drainage).

Land Originally for Residential Use Reverting to Residential Use

According to Clause 3, Article 121 of the Land Law 2024, land users are exempt from paying the land use fee if the parcel was originally residential land or long-term stable non-agricultural land, was previously converted to another purpose, and is now being converted back to residential land in line with the current land use master plan.

Based on Article 18 of Decree 103/2024/NĐ-CP, cases eligible for this exemption include:

• A parcel that was originally residential but was converted to production, business, or public works land, now converting back to residential.
• A parcel that was originally long-term non-agricultural land (not residential), used stably over time, now being converted to residential.

This policy protects the rights of people who previously held legal residential land. It also reduces the financial burden on land users and encourages the efficient use of the urban land fund. While the process is a reversion, individuals must still follow the standard land use conversion procedure outlined in Article 227 of the Land Law 2024. The primary advantage is the exemption from the land use fee; users only pay minor administrative and cadastral update fees.

Key Recommendations to Note

Long Phan Consulting Company offers the following recommendations regarding land use conversion after July 1, 2025.

Authority for Land Use Conversion After July 1, 2025

From this date, the authority to permit the land use conversion of agricultural land to non-agricultural land (including residential) for households and individuals is transferred from the District-level People’s Committee to the Commune-level People’s Committee.

This is specified in Article 121 of the Land Law 2024 and detailed in Point m, Clause 1, Article 5 of Decree 151/2025/NĐ-CP. The Chairperson of the Commune PC will have the authority to handle these cases.

This transfer of authority offers significant benefits:

• Convenience: Users do not have to travel far to complete procedures.
• Speed: Processing times are shorter as the commune level has better local knowledge.
• Cost Savings: The process is simpler and less expensive for citizens.
• Efficiency: Land management is improved through practical decentralization.

New Land Price List and Its Impact on Conversion Fees

A new land price list will be applied from January 1, 2026, with prices set close to market rates. This will significantly impact the cost of land use conversion. Article 159 of the Land Law 2024 stipulates that this price list is the basis for calculating land use fees.

According to Article 13 of Decree 71/2024/NĐ-CP, Provincial People’s Committees are responsible for issuing the first new land price list for uniform application from January 1, 2026.

Unlike the current averaged price list, the new list will be determined by specific areas and locations. For localities with digital cadastral maps and land price databases, the price list will be established down to the individual parcel level. This ensures prices more accurately reflect real market values.

The direct impact is a substantial increase in land use conversion costs from 2026. Individuals and households planning a land use conversion should consider completing the procedure in 2025 to take advantage of the current, lower price list.

Checking the Master Plan and Special Cases

Verifying the land’s status in the land use master plan or zoning plan is a critical first step. According to Article 76 of the Land Law 2024, even if a parcel is included in a master plan but not yet in an annual land use plan, the user can still proceed with a land use conversion.

However, if the land is slated for acquisition in an annual plan, the user’s rights are limited:

• No new construction of houses or structures.
• No planting of new perennial trees.
• Only renovation and repair of existing structures are permitted.

Always check the planning status of your parcel at the local Commune PC to get the most accurate information before starting any procedure.

Advisory Services at Long Phan Consulting Company

With regulations changing rapidly, understanding which land types are prioritized for land use conversion is essential. Long Phan Consulting Company offers a comprehensive land use conversion advisory service. Our key consulting areas include:

• Identifying land types eligible for land use conversion.
• Analyzing priority land types for conversion.
• Assessing conversion conditions for specific cases.
• Guiding the preparation and completion of application dossiers.
• Representing or assisting clients in working with state agencies.
• Advising on financial obligations, including fees and exemptions.
• Consulting on handling arising issues like disputes or discrepancies.

With the motto “Trust for Solutions,” Long Phan Consulting Company is committed to supporting you through the entire land use conversion process under the new laws.

Frequently Asked Questions on Land Use Conversion

What is the practical difference between a “land use master plan” and an “annual land use plan”?

A “land use master plan” is a long-term strategic orientation (e.g., for 10 years) for allocating land for various purposes. An “annual land use plan” specifies which areas within that master plan are approved for conversion or acquisition in a specific year. The new policy’s removal of the annual plan requirement makes the process more flexible.

Besides the land use fee, what other specific fees and costs do I need to pay?

In addition to the land use fee (if not exempt), you will typically need to pay a registration fee (usually 0.5% of the land value), a fee for issuing the new Land Use Rights Certificate, and an application appraisal fee, as per Decree 10/2022/NĐ-CP.

How can citizens look up the land use plan for their parcel?

You can check planning information directly at the Land Registration Office or the Commune PC where the land is located. Many localities also offer online portals or mobile apps for convenient online lookup.

What is a “residential land allocation quota” and how does it affect my conversion request?

This is the maximum area of residential land that a province is allowed to develop during a planning period. Your conversion request must fit within this quota; the locality must have an unallocated quota remaining to approve your application.

Before January 1, 2026, how is the land price for calculating the conversion fee for individuals determined?

Currently, the land use fee for households and individuals is calculated based on the Land Price List issued by the Provincial People’s Committee for a 5-year period. This price is generally lower than the actual market transaction price.

For non-agricultural land, what does “stable long-term use” mean to qualify for conversion to residential land?

“Stable long-term use” refers to the continuous use of land for a specific purpose from the time of initial use until a certificate is issued or a state decision is made. This is typically verified through land use right documents or confirmation from the Commune PC.

Conclusion

Clients need to clearly understand which types of land are easier for use conversion from July 1, 2025, to take full advantage of the new regulations in the Land Law 2024. Long Phan Consulting, with its team of professional experts, is ready to support you in carrying out the use conversion procedure quickly and effectively. Do not miss the opportunity for financial obligation exemptions or reductions and shortened processing times. Contact the hotline 1900636389 for a detailed consultation and procedural support today.