Vietnam Land Law Amendment 2026: ACBS Flags VHM, KDH as Beneficiaries

Overview

ACBS Securities has highlighted that the draft amendment to the 2026 Land Law, currently under public consultation, could significantly expedite land clearance and compensation procedures. This regulatory change is expected to benefit financially robust real estate developers like Vinhomes (VHM) and Khang Dien House (KDH) by reducing project delays and improving cost transparency.

Key Facts

• The draft amendment revises approximately 65 articles of the 2024 Land Law.
• If approved by the National Assembly in Q4/2026, the law would take effect on March 1, 2027.
• Land use planning levels are proposed to be reduced from three (national, provincial, district) to two (provincial and commune/ward).
• Notice period for land recovery on agricultural land is cut from 90 to 60 days; for non-agricultural land, from 180 to 120 days.
• Time to implement compensation plans is shortened from 30 to 20 days after approval.
• Four new cases for land recovery are added, including projects with over 75% land area and 75% user agreement.
• Provincial People’s Committees will issue land price adjustment coefficients annually on January 1, with possible intra-year revisions.

What Happened

ACBS Securities published a report analyzing the first draft of the amended Land Law, which is being circulated by the Ministry of Agriculture and Environment. The draft focuses on streamlining regulations related to planning, land recovery, compensation, resettlement, and state management to align with the new local government model.

Notably, the draft proposes reducing the number of planning levels and shortening timelines for land recovery notices and compensation execution. It also introduces new land recovery cases, such as for projects in free trade zones or international financial centers, and allows landowners to transfer their rights to receive compensation. These changes aim to accelerate site clearance and reduce bottlenecks in real estate project implementation.

Market Context

On May 13, 2026, VHM closed at VND 152,500, down 4.81% on high volume of 11.4 million shares on HOSE. KDH closed at VND 23,300, down 1.27% on volume of 6.3 million shares on HOSE. The broader real estate sector has been under pressure from regulatory uncertainty and slow land clearance. The proposed amendments could provide a catalyst for stocks with strong balance sheets and large land banks, such as VHM and KDH.

Strategic Significance

The draft law’s emphasis on faster land clearance and more transparent compensation directly addresses a key operational risk for Vietnamese real estate developers. Companies with strong financial foundations are better positioned to navigate the upfront costs of land acquisition and benefit from reduced project timelines. For VHM, which has a massive land bank and ongoing mega-projects, faster clearance could accelerate revenue recognition. For KDH, a mid-cap developer focused on affordable housing, improved regulatory clarity could enhance project feasibility and margins.

What to Watch

• Finalization of the draft law and submission to the National Assembly in Q4/2026.
• Any changes to land price calculation methods that could affect developer input costs.
• Q2 2026 earnings reports from VHM and KDH for signs of project acceleration.
• Foreign ownership limits and investor sentiment toward Vietnamese real estate stocks.
• Implementation decrees and local-level adoption of the new planning framework.