The full implementation of the 2024 Land Law, consolidating its operational maturity in the 2025-2026 biennium, marks a structural transformation in Vietnam’s business environment by establishing new benchmarks for transparency and legal certainty for foreign capital. The legislation replaces previous bureaucratic models with market-value-based pricing mechanisms, facilitating the expansion of industrial parks and logistics infrastructure in strategic provinces. For Brazilian businesses, the new legal framework reduces long-term planning uncertainties, especially for companies seeking to establish permanent manufacturing bases in Southeast Asia.
The core of the reform is the abolition of the old “Land Price Frame,” which was updated by the central government every five years and often lagged behind economic realities. In its place, provinces now have autonomy to publish annually updated “Land Price Lists,” reflecting real market value. According to data from Vietnam’s Ministry of Natural Resources and Environment (MONRE), this change reduced the average land clearance time for industrial projects by approximately 30% in 2026, eliminating historical bottlenecks in compensation and resettlement negotiations.
According to the official portal VietnamPlus, the new legislation has also significantly expanded the rights of Foreign Invested Enterprises (FIEs). International investors now have greater flexibility in choosing between annual land lease payments or a single upfront payment, in addition to gaining greater clarity on the right to mortgage land-related assets with banks operating in Vietnam. This measure is seen by industry analysts as a decisive step towards equating the rights of foreign investors with those of domestic ones, fostering an environment of equitable competition.
For the manufacturing and logistics sectors, land tenure security is the pillar supporting Vietnam’s Gross Domestic Product (GDP) growth, which maintains expansion projections above 6.5% annually. The modernization of the law occurs at a time when the country is consolidating its position as the primary industrial diversification hub in Asia, attracting global supply chains that demand large tracts of land in special economic zones. The digitalization of land registries, stipulated in the new law, allows investors to remotely and transparently consult the legal status of land parcels, mitigating litigation risks.
Comparatively, Vietnam is adopting a land governance strategy that echoes successful reforms in other economies of the Association of Southeast Asian Nations (ASEAN), but with a competitive edge: direct integration between land use planning and sustainability goals (Net Zero 2050). Projects focused on the green economy and high-tech industries are prioritized in land allocation, a trend that benefits Brazilian agritech and renewable energy companies with expertise in low environmental impact operations.
Victor Key, President of the Brazil Vietnam Chamber of Commerce and Industry (BVC), highlights that regulatory clarity was the missing factor to convert the exploratory interest of Brazilian companies into concrete direct investments. “The new Land Law removes the opacity that previously surrounded the costs of physical setup in Vietnam. For Brazilian exporters wishing to process animal protein in the country or for the machinery industry planning a regional distribution center, costs are now predictable, and usage rights are protected by a more robust legal system,” states Key.
The outlook for the end of 2026 points to an increase in the flow of Foreign Direct Investment (FDI) from Brazil, driven by the ease of leasing in industrial zones in provinces like Binh Duong and Bac Ninh. The BVC projects that transparency in land bidding processes will attract not only large conglomerates but also medium-sized Brazilian companies that make up the global supply chain.
Ultimately, Vietnam’s corporate land reform signals a long-term commitment to institutional stability. By aligning land prices with the market and digitalizing land management, the Asian country offers Brazilian investors a low operational risk scenario. The connection between the two economies, therefore, shifts from being merely commercial to structural, based on fixed assets and local operations that use Vietnam as a preferential access platform to the Asia-Pacific markets.
