Decree 281/2026/ND-CP: Land Administrative Sanctions from 31 August 2026 – Commune Chairpersons May Fine up to VND 250 Million

The Government has issued Decree No. 281/2026/ND-CP amending and supplementing a number of articles of Decree No. 123/2024/ND-CP dated 04 October 2024 on administrative sanctions in the field of land. Decree 281/2026/ND-CP takes effect on 31 August 2026. The most striking change is the increase of the fining authority of the Chairperson of the commune-level People’s Committee from VND 5 million to VND 250 million, together with a new method for determining illicit gains and several new remedial measures.

Mục 01New principles for identifying land-related administrative violations

Decree 281/2026/ND-CP inserts Article 3a after Article 3 of Decree 123/2024/ND-CP, setting out two principles:

• Special administrative units (special zones): where a special zone is recognised as an urban area under law and performs the tasks and powers corresponding to local government at ward level, the sanction levels applicable to wards apply; where it performs tasks and powers corresponding to local government at commune level, the sanction levels applicable to communes apply.
• Spouses holding joint land use rights: administrative sanctions apply as to one individual. This ends the practical dispute over whether each spouse should be sanctioned separately and prevents the fine being doubled on the same land parcel.

Mục 02Four additional remedial measures

The Decree amends point b of clause 2 and adds points p, q, r and s after point o of clause 3 of Article 4 of Decree 123/2024/ND-CP, adding the following remedial measures:

• Compulsory restoration of the land to its original condition prior to the violation;
• Compulsory restoration of administrative boundary markers to their original condition;
• Compulsory re-performance of land-related administrative procedures;
• Compulsory return of documents that have been erased, altered, falsified in content, or forged documents that were used.

For real estate developers and investors, the measure requiring restoration of the land to its original condition may cost far more than the fine itself: levelling, backfilling and demolition of works already built on the affected land. This exposure should be quantified during legal due diligence.

Mục 03Determining illicit gains: three points to note

Decree 281/2026/ND-CP amends clause 1 of Article 6 of Decree 123/2024/ND-CP on determining illicit gains obtained from a violation:

1. Definition: illicit gains are the monetary benefit obtained by an organisation or individual, from the use of land after the violation, and must be paid into the State budget.
2. Multiple violators: where the violation is committed by several organisations or individuals on one land parcel, the illicit gains payable are divided equally among them.
3. Deduction: this is an important new provision — where the violator has already paid amounts into the State budget arising from the use of the land in violation, those amounts are deducted from the illicit gains payable.

The deduction rule prevents double payment: land rent, land use levy and taxes already paid are set off against the illicit gains calculated on the same land exploitation. Enterprises should retain complete State budget payment records as the basis for this deduction.

Mục 04Failure to register land changes: fine level and exemption

Decree 281/2026/ND-CP amends clause 2 of Article 16 of Decree 123/2024/ND-CP by adding a non-sanctioned case. Specifically: a fine of VND 2,000,000 to VND 3,000,000 applies to failure to register land changes under points a, b, i, k, l, m and q of clause 1 of Article 133 of the Land Law; except where land use rights are acquired to implement an investment project through agreement on the acquisition of land use rights under Article 127 of the Land Law.

This exemption is significant for developers assembling land banks by agreement: such negotiations often take a long time and registration of changes for each parcel cannot be completed immediately. However, it is only an exemption from the sanction for late registration — it does not waive the registration obligation under the Land Law.

Mục 05Substantially increased sanctioning authority

Chairperson of the commune-level People’s Committee

Under the new Article 30, the Chairperson of the commune-level People’s Committee may: issue warnings; impose fines of up to VND 250,000,000; suspend consultancy service operations for 03 months; and apply the remedial measures under clause 3 of Article 4 of Decree 123/2024/ND-CP. Previously the Chairperson could only fine up to VND 5,000,000.

This is the change with the greatest practical impact: most land violations are detected at grassroots level and may now be resolved definitively at commune level without escalation. Enterprises should pay close attention to the speed of handling and to the deadlines for exercising rights of explanation and complaint.

Specialised inspection bodies

• The head of a specialised land inspection team established by the Director of the Land Management Department; the head of an inspection team established by the head of an organisation under the Ministry of Agriculture and Environment assigned to inspect; and the Director of the Department of Agriculture and Environment may impose fines of up to VND 400,000,000 (previously VND 50,000,000); confiscate documents that have been erased, altered, falsified or forged and used in land use; and suspend consultancy service operations for 03 months.
• The head of a specialised land inspection team established by the Minister of Agriculture and Environment, the Director of the Land Management Department, and heads of organisations under the Ministry assigned to inspect may impose fines of up to VND 500,000,000, together with the above measures.

Authority of the People’s Public Security force

Decree 281/2026/ND-CP provides that inspection titles within the People’s Public Security force specified in Article 7 of Decree No. 189/2025/ND-CP dated 01 July 2025 have authority to sanction administrative violations in the use of security land under this Decree. Public security titles specified in Article 8 of Decree 189/2025/ND-CP may sanction violations in the use of security land under clauses 1 and 5 of Article 12; clauses 1, 4 and 6 of Article 13; Article 15; clause 3 of Article 27; and Article 28 of Decree 123/2024/ND-CP, within their authority.

Mục 06What should enterprises do before 31 August 2026?

1. Review the actual land use status of all projects: compare the land use purpose stated on the certificate against actual exploitation; identify areas at risk of being treated as improper land use, encroachment or appropriation.
2. Complete outstanding registrations of land changes: review cases falling under points a, b, i, k, l, m and q of clause 1 of Article 133 of the Land Law and complete the procedures before the Decree takes effect.
3. Compile State budget payment records: land use levy, land rent, taxes and other amounts paid — as the basis for deduction when illicit gains are determined.
4. Check boundary markers and parcel boundaries: particularly for projects adjoining administrative boundaries, given the new measure on restoring boundary markers.
5. Establish an inspection response procedure: assign a focal point, prepare project legal files, and map out the explanation process and the deadlines for complaining against sanction decisions.
6. Review contracts with consultants: the 03-month suspension of consultancy services may affect project schedules.

Mục 07Frequently asked questions

When does Decree 281/2026/ND-CP take effect?

It takes effect on 31 August 2026.

Does it replace Decree 123/2024/ND-CP?

No. Decree 281/2026/ND-CP amends and supplements a number of articles of Decree 123/2024/ND-CP, which remains in force for provisions that are not amended.

What is the maximum fine a commune-level Chairperson may impose?

Up to VND 250,000,000, together with the power to suspend consultancy service operations for 03 months and to apply the remedial measures under clause 3 of Article 4 of Decree 123/2024/ND-CP.

How are spouses holding joint land use rights sanctioned?

Spouses holding joint land use rights are sanctioned as one individual.

What is the fine for late registration of land changes?

VND 2,000,000 to VND 3,000,000 for failure to register land changes under points a, b, i, k, l, m and q of clause 1 of Article 133 of the Land Law, except where land use rights are acquired to implement an investment project by agreement under Article 127 of the Land Law.

Mục 08How HTIC can support you

HTIC Law Firm assists enterprises and investors with land law compliance reviews: verifying actual land use status and legal files, completing registration of land changes, assessing exposure to sanctions and remedial measures, and preparing explanations and complaints against administrative sanction decisions in the land field.

If your company holds land-use projects in Ho Chi Minh City or elsewhere in Vietnam, contact HTIC for a review before Decree 281/2026/ND-CP takes effect.

Mục 09Legal basis and references

• Decree No. 281/2026/ND-CP amending and supplementing a number of articles of Decree No. 123/2024/ND-CP (effective 31 August 2026).
• Decree No. 123/2024/ND-CP dated 04 October 2024 on administrative sanctions in the field of land.
• Decree No. 189/2025/ND-CP dated 01 July 2025 detailing the Law on Handling of Administrative Violations regarding sanctioning authority.
• Land Law 2024 (Articles 127 and 133).
• Vietnam Government Portal (baochinhphu.vn), Amendments and supplements to regulations on administrative sanctions in the field of land, 14 July 2026.

This article provides general legal information and does not replace legal advice for a specific matter.