Prioritize on-site resettlement when urban embellishment
According to the Law on Urban Development, investment in construction, renovation, embellishment, urban reconstruction and housing development must be in accordance with planning, ensuring synchronous technical infrastructure and social infrastructure, while harmonizing the interests of people, the State and businesses.
Notably, the Law stipulates prioritizing on-site resettlement, improving urban amenities, improving the living environment and livelihoods of people in the area undergoing renovation and embellishment. The Law also encourages and supports organizations and communities to self-propose and self-implement urban renovation, embellishment, and reconstruction projects.
For people with houses and land in the area included in the renovation and reconstruction project, specific rights will depend on the planning, project and plan approved by competent authorities. In case houses and residential land are recovered, the Law allows the city to stipulate the arrangement of resettlement by social housing; after the resettler pays enough money to buy a house according to regulations, full ownership of that house may be recognized as commercial housing.
What should people pay attention to?
Another noteworthy content is urban development in the direction of public transport (TOD). In TOD areas, the city government can use the budget to implement compensation, support, resettlement, land acquisition, urban embellishment and development according to regulations.
The Law also grants Ho Chi Minh City the authority to regulate the contribution of land use rights, adjust land to renovate, rebuild or build new urban and rural areas according to the city's plan. This is the content that people with houses and land in urban development areas need to pay special attention to.
However, the effectiveness of the Urban Development Law does not mean that all houses and land in urban areas will be recovered or people will have to relocate. Only cases where houses and land are within the scope of projects with land recovery and meet the conditions according to legal regulations will implement the recovery, compensation, support and resettlement.
Therefore, when the area where they are living has information about a project to renovate, rebuild or develop the city, people should specifically check the planning, project scope and compensation, support, and resettlement plans; it is not advisable to just base on the fact that the land area is located in the urban area to assume that land use rights or house ownership rights will be changed.
Urban Development Law No. 18/2026/QH16 was passed by the National Assembly on August 24, 2026 and takes effect from October 1, 2026.
