Improving the legal framework on land reclamation in Vietnam

IMPROVING THE LEGAL FRAMEWORK FOR LAND RECLAMATION IN VIETNAM

Abstract: Land reclamation from the sea has emerged as a significant solution for expanding land resources and fostering socio-economic development in coastal areas. This article examines the current legal framework governing land reclamation in Vietnam, with particular attention to the 2024 Land Law and related instruments concerning land-use planning, environmental protection, and post-reclamation land management. Based on this analysis, the article proposes legal reforms aimed at enhancing regulatory coherence, ensuring sustainable land resource governance, and safeguarding public interests.

Keywords: Reclaimed land; Land reclamation; Land Law; Land management.

Introduction

Land reclamation is increasingly adopted by many countries as an essential strategy for expanding land availability and meeting development demands. In Vietnam, the number of land reclamation projects has risen sharply in recent years, contributing to the growth of coastal urban areas, industrial zones, and tourism infrastructure. However, this activity also raises a host of legal challenges, particularly concerning land use rights, environmental protection, and marine resource governance. The 2024 Land Law has introduced significant provisions on land reclamation, yet the regulatory framework remains fragmented, especially in terms of harmonisation between land, marine, and environmental legislation. Such legal inconsistencies may lead to enforcement difficulties and jeopardise the long-term sustainability of reclamation projects.Therefore, a comprehensive legal analysis is warranted to assess the current framework, identify existing gaps, and propose measures to improve regulatory coherence and effectiveness. The aim is to move towards a more transparent, efficient, and legally robust regime for managing land reclamation in Vietnam.

 1. Overview of Land Reclamation and Reclaimed Land

Land reclamation refers to the process of expanding terrestrial land by occupying marine areas through artificial means. According to the Vietnamese Dictionary, the word “reclamation” (lấn) signifies an act of encroachment or territorial expansion[2]. Hence, land reclamation from the sea (lấn biển) can be understood as the conversion of a portion of the sea into terrestrial land. This process typically involves technical interventions such as filling the sea with soil, sand, or other artificial materials to physically transform part of the marine area into land. Engineering structures such as breakwaters and drainage systems are often constructed to control sea intrusion and support the creation of new land reserves for purposes such as urban development, industrial expansion, or coastal tourism.

The term reclaimed land (đất lấn biển) refers to newly created land areas formed from the sea or coastal waters as a result of the application of modern engineering techniques. These reclaimed areas serve various purposes, including the development of urban infrastructure, industrial zones, and coastal tourism complexes. Reclaimed land typically exhibits the following key characteristics:

(i) Artificially created: Reclaimed land originates from deliberate human intervention, involving activities such as landfilling, construction of embankments, and wave barriers, with the objective of converting marine space into usable terrestrial land.

(ii) Distinct geographical location: Reclaimed land is usually found in coastal regions, where the boundary between land and sea is defined by the average lowest tidal waterline over many years.

(iii) Designated for socio-economic development: The primary use of reclaimed land is for urban, industrial, tourism, and critical infrastructure projects, particularly in contexts where inland land resources are increasingly scarce.

From a legal perspective, the concept of “reclaimed land” has not yet been formally defined under any specific Vietnamese legal instrument. However, the 2024 Land Law defines land reclamation as “the expansion of land area from the average lowest tidal waterline over many years seaward within the Vietnamese maritime zone.”[3]. Based on this definition, reclaimed land may be interpreted as land formed through reclamation activities, which, by law, falls under state ownership. The State has the authority to manage and allocate such land to organizations and individuals through mechanisms such as land allocation, land lease, or transfer of land use rights, in accordance with legal provisions.

It is important to distinguish reclaimed land from alluvial coastal land (đất bãi bồi ven biển). While the latter is naturally formed through the sedimentation of silt due to river flows and tidal action, reclaimed land is the result of artificial engineering processes. This distinction has legal implications: alluvial land is subject to regulations on natural land and environmental protection, whereas reclaimed land is governed by the Land Law and relevant regulations on land development derived from the sea. Current Vietnamese law provides separate provisions for the management and use of naturally formed alluvial land along rivers and coastal areas.

2. Current Legal Framework on Land Reclamation in Vietnam

2.1. Legal Definition of “Land Reclamation” and “Reclaimed Land”

The legal definition of “land reclamation” is provided in Clause 30, Article 3 of the 2024 Land Law. It reflects the technical process of expanding terrestrial land area seaward. However, this definition focuses solely on the act of reclaiming land, without offering a specific legal concept for “reclaimed land” – i.e., the land newly formed as a result of reclamation activities. The absence of a clear legal definition for reclaimed land can pose practical challenges for implementation and governance, particularly in the classification of land types and the determination of land use rights arising from reclamation projects.

A comparative analysis with Clause 3, Article 23 of the 2015 Law on Marine and Island Resources and Environment reveals a significant regulatory divergence. The latter defines the width of the coastal protection corridor as measured from the average highest tidal waterline over many years landward or inland on islands. It also places legal restrictions on land reclamation activities within this protected corridor.

This divergence in the demarcation criteria – the average lowest tidal waterline (under the 2024 Land Law) versus the average highest tidal waterline (under the 2015 Marine Law) – may give rise to legal inconsistencies in practice. Specifically, if a reclamation area overlaps with the coastal protection corridor, conflicts could emerge regarding land use rights and permissible activities.

Such inconsistencies highlight the need for greater harmonisation between the Land Law and the Law on Marine and Island Resources and Environment. A unified and coherent legal approach is essential to avoid overlap, legal ambiguity, and jurisdictional disputes in the management and allocation of reclaimed coastal zones.

2.2. Regulations on Land Use Planning and Designation of Reclamation Areas

The 2024 Land Law and Decree No. 102/2024/ND-CP provide clear and detailed regulations on land use planning and the identification of reclamation zones, with the objective of ensuring consistency in the governance of both land and marine resources. Under these instruments, provincial and district-level land use plans are required to incorporate the delineation of specific boundaries, surface areas, and locations of land reclamation zones. This requirement enhances the transparency and scientific integrity of reclamation planning and helps prevent conflicts with other overlapping planning schemes, such as those related to construction, transportation, and urban development.

Articles 65 and 66 of the 2024 Land Law stipulate that land use plans must clearly identify the area and location of reclamation zones for both agricultural and non-agricultural purposes. Moreover, reclaimed areas must conform to local master plans to ensure integrated and consistent socio-economic and infrastructure development. This provision ensures that land reclamation projects are not planned in isolation, but are aligned with broader, long-term development strategies. It also helps avoid inefficient resource allocation and land use conflicts.

Additionally, Decree No. 102/2024/ND-CP elaborates on the technical requirements for planning and land use mapping in reclaimed areas. These activities must be conducted with precision, using modern legal and technical tools such as geospatial mapping systems and geographic coordinate frameworks. Land reclamation projects are also required to be incorporated into comprehensive provincial and district-level master plans, including land use, construction, and transportation plans. This integration aims to promote coordinated infrastructure development and to reduce conflicts that may arise from overlapping planning regimes.

Compared to the provisions of the 2013 Land Law, the 2024 Land Law and its implementing decree introduce more robust and detailed planning requirements. These include mandatory reliance on the principles of sustainable development, environmental protection, and balanced stakeholder interests – encompassing investors, local communities, and the State. This regulatory advancement marks a significant step forward in aligning land reclamation with integrated, long-term territorial development.

2.3. Approval of Investment Policy and Implementation of Land Reclamation Projects

The 2024 Land Law and Decree No. 102/2024/ND-CP have established a comprehensive legal framework governing the approval of investment policy and the implementation of land reclamation projects. This framework ensures that such projects must adhere to core principles including national defense, security, environmental protection, and sustainable development. According to Article 190 of the 2024 Land Law, land reclamation activities may only be undertaken upon receiving an official investment policy approval from the National Assembly or the Prime Minister – particularly in sensitive zones such as nature reserves, military areas, or sites of cultural and historical significance.

Under this legal regime, land reclamation must either constitute an independent investment project or form part of a larger investment scheme in accordance with prevailing laws. Investors are required to satisfy stringent conditions, including environmental impact assessments, alignment with master planning, and marine resource protection obligations. Decree No. 102/2024/ND-CP elaborates on the procedural steps necessary for project execution, which include the preparation of a feasibility study report, appraisal and approval of construction designs, construction works, and final inspection and acceptance of completed reclamation structures. Each of these steps must conform to the relevant laws on construction and environmental resource management.

Notably, the regulation introduces a coordinated approach whereby both the allocation of marine areas and the grant of land use rights are to be processed simultaneously. This is intended to ensure procedural consistency, reduce administrative delays, and streamline project implementation. Furthermore, the regulations underscore the importance of the final inspection and official acceptance of the reclamation works as a prerequisite for issuing a land use rights certificate and for proceeding with land exploitation and use. This requirement enhances oversight and promotes orderly and lawful post-reclamation land management.

2.4. Regulations on Land Recovery, Land Allocation, Land Lease, and the Grant of Marine Areas for Reclamation Projects

The 2024 Land Law and Decree No. 102/2024/ND-CP set out clear and detailed provisions on the recovery of land, allocation and lease of land, and the granting of marine areas for the purpose of land reclamation. These provisions establish a legal framework intended to facilitate land reclamation projects that contribute to national socio-economic development. Pursuant to Clause 24, Article 79 of the 2024 Land Law, the State may recover land for land reclamation projects that serve public or national interests, with the aim of optimizing land and infrastructure resources and implementing policies on environmental protection and social welfare.

The processes of allocating land, leasing land, and granting marine areas must comply with stringent legal conditions, including alignment with an approved land reclamation plan. Decree No. 102/2024/ND-CP sets out specific rules on the duration for which marine areas may be granted to organizations or individuals, based on the approved investment project’s reclamation timeline. Once the reclamation activity has been completed, the reclaimed land may continue to be used by the project proponent in accordance with land law regulations.

A key regulatory development is the simultaneous conduct of land and marine area allocation procedures. This approach ensures coherence and continuity in the management of coastal land resources. Clause 6, Article 190 of the 2024 Land Law affirms that reclaimed land shall be allocated or leased only after the reclamation works have been inspected and accepted, and all relevant financial obligations have been fulfilled. This helps ensure that post-reclamation land use is properly regulated and consistent with approved land-use planning.

Compared to the 2013 Land Law, the 2024 legal framework introduces significant improvements by detailing the procedures for granting marine areas in parallel with land allocation for reclamation projects. The lack of such provisions in the previous law had resulted in administrative fragmentation among competent authorities, contributing to project delays and regulatory uncertainty. The new legislative framework remedies these shortcomings by enhancing transparency and procedural efficiency.

Nonetheless, certain implementation challenges remain, particularly regarding the time and cost associated with administrative procedures. The concurrent handling of both land and marine area approvals can increase procedural complexity and potentially delay project execution, thereby affecting overall investment effectiveness.

2.5. Financial Obligations and Determination of Land Use Fees After Reclamation

The implementation of land reclamation projects in Vietnam requires not only compliance with technical, environmental, and legal regulations, but also close adherence to financial obligations imposed on land users following reclamation. The 2024 Land Law and Decree No. 102/2024/ND-CP set out specific provisions regarding revenues from land-related public services and fees, aiming to ensure transparent and efficient management, exploitation, and use of reclaimed land..

Clause 1, Article 153 of the 2024 Land Law enumerates various financial revenues associated with land, including land use fees, administrative fines, compensation for damages, land use taxes, income tax on land use rights transfers, and service charges and fees related to land administration. Notably, Article 154 of the Law introduces a consolidated list of public services related to land management, such as land information provision, cadastral surveying, and the issuance of land use right certificates. This marks a significant improvement over the 2013 Land Law, where financial and public service provisions remained fragmented and lacked transparency.

A major innovation under Decree No. 102/2024/ND-CP is the introduction of the residual method for determining the value of reclaimed land. Clause 1, Article 75 requires that land valuation reflect the total development costs, including the approved reclamation expenses. This approach ensures a fair and realistic valuation of reclaimed land, grounded in actual project costs. Moreover, Clause 3 of the same article addresses how to reconcile discrepancies between the approved reclamation costs and the actual settled costs. If the final reclamation costs exceed the initial estimates used in calculating the total development cost, the surplus is to be included in the project’s cost base. This facilitates financial clarity and flexibility in project cost management.

Compared to the 2013 Land Law, the updated legal instruments provide more comprehensive solutions to long-standing challenges regarding financial obligations and the valuation of reclaimed land. The adoption of concrete land pricing methods and cost reconciliation mechanisms not only enhances administrative transparency but also reduces the likelihood of legal disputes between the State and private investors.

2.6. Issuance of Land Use Right Certificates and Post-Reclamation Land Management

The current regulations on the issuance of Land Use Right Certificates (LURCs) for reclaimed land, as provided in Decree No. 102/2024/ND-CP, establish a clear legal framework for the management and legal recognition of land formed through reclamation activities. According to this framework, the issuance of LURCs is contingent upon two primary conditions: (1) the full completion of financial obligations and (2) the official acceptance of completed reclamation works. While this procedure applies to both inland and reclaimed land, a key distinction is that LURCs for reclaimed land are only granted once the competent technical authorities have certified the satisfactory completion of the reclamation project.

Under current law, the reclamation acceptance process must involve specialized agencies under the authority of the provincial People’s Committee. Once the investor has fulfilled all relevant financial duties and submitted the official notice of acceptance, the Department of Natural Resources and Environment shall submit the dossier to the competent authority for LURC issuance. The framework allows for two procedural options for issuing LURCs, depending on the stage of completion of the reclamation project as aligned with the approved land-use plan.

Compared to the previous regime under the 2013 Land Law, the 2024 Land Law and Decree No. 102/2024/ND-CP represent a significant legal advancement. Earlier regulations lacked specific provisions governing the inspection and acceptance of reclaimed land and the issuance of LURCs for such areas. This regulatory gap led to inefficiencies in land management and project timelines. The updated legal framework addresses these deficiencies by introducing a comprehensive mechanism for post-reclamation inspection and certificate issuance, thereby enhancing procedural transparency and administrative control.

Nevertheless, practical challenges remain. Complexities in calculating financial obligations and the protracted timeline of the acceptance process may delay the issuance of LURCs, particularly for large-scale projects. Moreover, the intricacies involved in determining reclamation-related costs and associated fees may create legal uncertainty for investors in identifying their financial responsibilities with precision.

3. Recommendations for Improving the Legal Framework on Land Reclamation in Vietnam

3.1. Introducing a Definition and Clarifying the Legal Scope of Reclaimed Land

One of the key areas requiring legal improvement is the introduction of an official definition of “reclaimed land” in the Land Law. As it stands, the 2024 Land Law provides a definition for “land reclamation”, but does not define the resulting land formed through this process. This lack of legal clarity may create challenges in land management and the determination of land use rights. Therefore, a specific and legally recognized definition should be established – clearly distinguishing reclaimed land, formed through artificial interventions, from naturally accreted coastal land, which arises from sediment deposition through natural hydrological processes.

This distinction would support the development of tailored regulatory regimes and prevent inconsistent or conflicting applications of the law in practice. It would also serve as a foundation for defining separate land allocation, ownership, and environmental protection policies.

In parallel, the scope of permissible reclamation zones should be explicitly delineated within the Land Law. This would help clarify which areas of the sea may be subject to reclamation and under what conditions. Such provisions must also be harmonized with the Law on Marine and Island Resources and Environment to avoid regulatory overlaps and ensure effective coordination in the governance of marine space and reclaimed land

3.2. Enhancing the Effectiveness of Planning and Oversight for Reclaimed Land Use

One of the most critical solutions for improving the management of reclaimed land is the development of both national-level master plans and detailed local plans. Land use planning for reclaimed areas must be fully integrated with urban planning, transportation infrastructure, environmental protection, and coastal economic development strategies to ensure coherence and to prevent overlapping or conflicting planning instruments.

While the 2024 Land Law includes provisions on planning content specific to land reclamation, it remains necessary to elaborate further on the procedural aspects—namely, the steps for preparing, appraising, and approving such plans. Strengthening the legal framework in this regard would significantly enhance the feasibility and enforceability of reclamation-related plans.

In addition, there should be a clear mechanism for public disclosure of reclamation plans and community consultation before project approval. These processes are essential to ensure transparency, build public consensus, and minimize conflicts of interest between investors and local communities. Public participation not only increases the legitimacy of planning decisions but also supports equitable and sustainable coastal development.

3.3. Simplifying Legal Procedures and Promoting Administrative Reform

At present, the approval process for investment policies related to land reclamation projects remains complex and often protracted, particularly because it requires ratification by the National Assembly or the Prime Minister – especially in the case of large-scale projects. This centralized mechanism reduces procedural flexibility and frequently causes delays in project implementation, thereby hindering potential investment opportunities.

To address this issue, it is necessary to delegate approval authority based on project scale. Under such a reform, provincial People’s Committees could be empowered to approve smaller-scale projects, while larger projects would be subject to review by a central-level appraisal council, rather than awaiting direct decisions from the National Assembly or the Prime Minister. This tiered approach would streamline the investment process and enhance responsiveness to regional development needs.

In addition, the procedures for allocating land and granting marine areas should be integrated into a unified administrative process, thereby eliminating redundant steps and accelerating project implementation. Furthermore, simplification of the procedures for issuing Land Use Right Certificates (LURCs) after reclamation is essential. One option could be the introduction of a temporary certificate mechanism, which would allow investors to proceed with certain activities while awaiting final inspection and acceptance of the reclamation works.

4.4. Improving Financial Regulations and Post-Reclamation Land Governance

One notable gap in the 2024 Land Law lies in the lack of a comprehensive mechanism for determining the value of reclaimed land and calculating the corresponding financial obligations after project completion. While the residual method is currently applied to land valuation, the law still contains several legal ambiguities, particularly in relation to: (i) How to reconcile differences between actual and projected reclamation costs in the determination of land value; (ii) Whether and how to apply exemptions or reductions in land use fees for projects serving public interest purposes; (iii) The delineation of financial responsibilities between the State and private investors in land reclamation projects conducted under public-private partnership (PPP) models.

In addition to clarifying these issues, there is a pressing need to strengthen inspection and oversight mechanisms over reclaimed land once it has been allocated or leased. The State should adopt stricter control policies to prevent land speculation, misuse, or abandonment of reclaimed areas – practices that not only waste valuable resources but also undermine sustainable coastal development.

4. Conclusion

Land reclamation has emerged as a strategic solution to expand spatial capacity for urbanization, industrial development, and coastal tourism in Vietnam. However, to ensure the long-term viability and legal certainty of such activities, it is essential to establish a coherent and comprehensive legal framework that addresses both the technical and institutional dimensions of land reclamation governance. The current legal instruments – most notably the 2024 Land Law and Decree No. 102/2024/ND-CP – have made significant progress in regulating reclamation-related activities. Nonetheless, several shortcomings remain, particularly in the legal definition of reclaimed land, the procedural integration of land and marine management, and the mechanisms for financial accountability and administrative efficiency.

This article argues that legal reform should focus on: (i) introducing a clear and differentiated definition of reclaimed land; (ii) aligning land reclamation planning with broader spatial development strategies; (iii) decentralizing approval authority and simplifying licensing procedures; and (iv) enhancing fiscal transparency and post-reclamation oversight mechanisms. In the context of growing environmental pressures and climate change, legal certainty and institutional coordination in land reclamation are no longer optional – they are prerequisites for sustainable coastal development. Strengthening Vietnam’s legal framework in this field will not only optimize the use of newly created land resources but also ensure that development objectives are pursued in balance with ecological preservation and public interest.

References

1. Land Law No. 31/2024/QH15, adopted on 18 January 2024 by the National Assembly of the Socialist Republic of Vietnam
2. Land Law No. 45/2013/QH13, adopted on 29 November 2013 by the National Assembly of the Socialist Republic of Vietnam
3. aw on Marine and Island Resources and Environment 2015, issued by the National Assembly of the Socialist Republic of Vietnam
4. Decree No. 102/2024/ND-CP, dated 30 July 2024, detailing the implementation of several articles of the 2024 Land Law
5. Hoàng Phê (ed), Vietnamese Dictionary (Hồng Đức Publishing House, 2021)

[2] Hoàng Phê (ed), Vietnamese Dictionary (Hồng Đức Publishing House, 2021), p. 699

[3] Clause 30 Article 3 Land Law 2024