What Happened: Strengthened Land Valuation in Vietnam
In mid-2026, new legislative acts came into force in Vietnam, significantly tightening and clarifying the land valuation process. This decision, reported by VnEconomy EN, marks a crucial step in reforming the country's land relations, aiming to ensure greater transparency and market adequacy in this economic sector. The strengthening of the land valuation process is directly linked to its critical role in calculating numerous subsequent financial indicators – from taxes and fees to compensation for land expropriation and determining collateral value.
These changes are based on the new Land Law 2024, which officially took effect on January 1, 2025. This law introduces improved valuation methodologies designed by legislators to bring the state-determined valuation closer to actual market prices. The previously existing gap between administrative and market values often led to distortions in transactions, unfair compensation, and insufficient budget revenues.
For businesses, this means that the cost of owning or leasing land assets will now react more dynamically to real economic conditions. Regular revaluation, conducted under the updated rules, will eliminate artificial under- or overvaluation, which, on one hand, will create a more predictable and fair investment environment, but on the other, may lead to a significant revision of current costs for companies operating in Vietnam.
What This Means for Russian E-commerce: Rising Costs and Strategic Adjustments
For Russian e-commerce companies actively utilizing Vietnam as a key logistics hub for operations in Southeast Asia and for transit of goods to Russia, the strengthened land valuation holds direct and significant implications. Thanks to its strategic location, developing infrastructure, and relatively low labor costs, Vietnam has become an attractive destination for warehouses, sorting centers, and consolidation points.
First and foremost, the new rules will impact the cost of leasing and acquiring warehousing and logistics complexes. As the state's land valuation approaches real market prices, an increase in rental rates and land purchase prices for commercial properties can be anticipated. This is particularly relevant for high-quality Class A and B warehouses situated in strategically important industrial parks, near major ports (such as Hai Phong, Ho Chi Minh City), and key transportation arteries.
This increase will directly raise companies' operating costs. In the highly competitive e-commerce market, where margins are often thin, even a small increase in logistics expenses can significantly impact profitability. This pertains not only to goods storage costs but also to the overall cost of building and maintaining efficient supply chains. Rising land and lease costs may also lead to a re-evaluation of other expenditure items related to localized operations.
Consequently, Russian players will need to re-evaluate their financial models and potentially adjust product pricing to maintain competitiveness. Companies that fail to account for these changes promptly risk facing unexpected cost increases, which could undermine their market position or slow down expansion plans. Furthermore, the rising value of land assets will impact investment appeal: investments in building new logistics centers or expanding existing ones will require greater capital expenditure, which could alter long-term development plans.
VietSmart Expert Commentary: Preventive Measures and Long-Term Planning
As experts in the Southeast Asian market, we at VietSmart strongly advise Russian e-commerce entrepreneurs not to overlook these changes. This is not merely an administrative reform but a fundamental shift in the economics of land relations, which will have a cascading effect on numerous business processes. The new rules, which came into effect in 2025 and are actively being implemented in 2026, signal the end of an era of artificially low land prices in certain regions.
The primary task is to conduct a comprehensive audit of current and planned logistics operations in Vietnam. It is essential to assess how the potential rise in land and lease costs will impact financial stability and competitiveness. This includes analyzing existing lease agreements, their terms, and revision conditions, as well as re-evaluating investment projects. It's crucial to understand that while increased transparency and market adequacy in land relations ultimately foster a healthier investment climate, the transition period demands particular vigilance and flexibility from market participants.
Conclusions and What to Do: Practical Steps to Mitigate Risks
- Conduct an urgent audit of logistics costs: Recalculate all expenses related to leasing or owning warehouse premises and land in Vietnam, based on the new valuation approach. Assess the impact of potential cost increases on product cost and overall profitability, projecting scenarios for 2027-2028.
- Review existing contracts: Carefully examine the conditions for revising rental rates in current lease agreements. Consider the possibility of long-term agreements with fixed rates or transparent indexing mechanisms that account for the new realities while limiting sudden surges.
- Explore alternative locations and formats: It may be time to consider less prestigious but promising industrial zones in developing provinces of Vietnam, where land costs have not yet peaked. It is also worth evaluating shared warehousing models (co-location) or investments in automation to reduce the need for large spaces.
- Strengthen engagement with local experts: Work closely with Vietnamese legal and consulting firms specializing in real estate and land law to obtain the most up-to-date information and adapt strategies to the constantly evolving regulatory environment. Regular monitoring of legislative changes for 2026-2027 will be critical.
- Evaluate the feasibility of accelerated investments: If there are plans to acquire land or construct facilities, it might be worth considering accelerating these processes to lock in costs before the full effect of the new valuation rules materializes, provided it is economically justifiable and aligns with long-term development strategy.
Source: VnEconomy EN — Business, July 21, 2026