On 6 January 2026, the Government issued Resolution No. 66.11/2026/NĐ-CP regulating the handling of difficulties and obstacles in the auction of land use rights in cases of allocation of residential land in accordance with land law (“Resolution 66.11”).
In essence, Resolution 66.11 was promulgated to remedy and limit negative practices, thereby enhancing transparency in the land market.
1. Increasing the maximum deposit level for individuals participating in residential land auctions to fifty percent of the starting price
Decree No. 102/2024/NĐ-CP guiding the 2024 Land Law provides that organizations participating in auctions of land use rights must pay a deposit equal to 20% of the total value of the land parcel or land area calculated based on the starting price; however, it does not prescribe a deposit requirement for individual participants. Meanwhile, the Law on Auction of Assets 2016 (as amended and supplemented in 2024) stipulates that the deposit for participating in auctions of land use rights shall be agreed upon between the auction-practicing organization and the asset owner, but must range from a minimum of five percent to a maximum of twenty percent of the starting price of the auctioned asset.
In principle, under the above regulations, individuals are only required to pay a deposit of 5–20% of the starting price in order to participate in auctions of residential land use rights. This has been identified as one of the causes of the phenomena of “price inflation” and “deposit forfeiture.”
To address this situation, Resolution 66.11 provides that in cases where auctions are conducted to allocate residential land use rights to individuals, individual participants must pay a deposit of no less than ten percent and no more than fifty percent of the starting price.
However, the introduction of such a wide range may result in inconsistent application among localities, with practical implementation largely dependent on the “views of the person in charge.” If, for safety reasons, the maximum rate of 50% of the starting price is uniformly applied, the deposit amount may become a barrier for citizens and could reduce the attractiveness or success rate of auctions, particularly where the starting price of land parcels is already very high. In our view, based on Resolution 66.11, competent authorities may issue further guidance on applying deposit rates according to the value of the starting price, in order to ensure that the deposit amount remains at a prudent level while still being consistent with the socio-economic conditions of each locality.
2. Auction winners who forfeit their deposits may be prohibited from participating in auctions for up to five years
Currently, Decree No. 172/2024/NĐ-CP guiding the Law on Auction of Assets 2016 provides that auction winners of land use rights in cases of land allocation or land lease for investment projects, or mineral exploitation rights, who violate payment obligations resulting in the annulment of the decision recognizing the auction results, shall be subject to sanctions. However, there have been no specific provisions addressing individuals who win auctions of residential land use rights but violate payment obligations.
Accordingly, Resolution 66.11 supplements regulations to the effect that auction winners of residential land use rights who violate payment obligations shall be subject to sanctions similar to other violation cases, specifically:
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A prohibition from participating in auctions for a period of two to five years in cases where the auction winner fails to pay the auction winning amount;
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A prohibition from participating in auctions for a period of six months to three years in cases where the auction winner fails to pay the full auction winning amount.
Decisions on auction bans shall be publicly disclosed on the National Asset Auction Portal.
Resolution 66.11 takes effect from 6 January 2026 until 28 February 2027.
Comment: