---
title: Hodeco Clears Legal Hurdles for The Light City Phase One
description: Hodeco secures land conversion approval for 4.097,30 m2 and clears VND 149.3 billion in compensation deductions at The Light City phase one in 2026.
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datePublished: 2026-11-01T00:00:00+07:00
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---

# Hodeco Clears Legal Hurdles for The Light City Phase One

> Hodeco secures land conversion approval for 4.097,30 m2 and clears VND 149.3 billion in compensation deductions at The Light City phase one in 2026.

Gini · Companies & sectors · 2026-11-01 · https://ginity.vn/en/blog/hodeco-clears-legal-hurdles-for-the-light-city-phase-one

_Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_

## Key takeaways

- The People's Committee of Ba Ria - Vung Tau Province issued Decision 6818/QD-UBND on 15/10/2026, approving the land conversion of 4.097,30 m² at The Light City.
- The project completed compensation and resettlement deductions of over VND 149.3 billion against land use levies payable for phase one.
- Phase one spans over 27 hectares with completed infrastructure, preparing to launch around 100 townhouses and villas in 2026.
- Provincial land authorities are expediting specific land valuation across 2.7 hectares to finalize financial obligations ahead of the third sales launch.

The Vietnamese residential property sector in 2026 reflects determined operational efforts by listed housing developers to resolve administrative and land entitlement bottlenecks. For Ba Ria - Vung Tau House Development Joint Stock Company (Hodeco, stock ticker HDC), clearing procedural barriers and finalizing land-related financial liabilities at its core urban township project, Hai Dang Housing Complex - The Light City, represents an important catalyst for advancing inventory toward market commercialization.

These administrative advancements coincide with the practical enforcement of new land administration codes, which directly influence local statutory project approvals and municipal valuation timeframes. Investors tracking corporate cash flow cycles and balance sheet recoveries across property developers can reference broader [real estate market dynamics in Q3 2026](/en/blog/vietnam-real-estate-q3-2026-supply-prices) to monitor the ongoing dispersion in housing supply pipelines and liquidity conditions among publicly traded builders.

## Regulatory Clearance for The Light City Phase One

According to formal regulatory disclosures published by [Hodeco](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/) on October 27, 2026, the local municipal administration issued Decision No. 6818/QD-UBND on October 15, 2026. This administrative ruling formally authorizes the developer to convert the statutory land use purpose for an area totaling 4.097,30 m² of land. The approved parcel supports the continued construction and development of the Hai Dang Housing Complex - The Light City project located within the administrative boundaries of Vung Tau City. This official approval resolves lingering land zoning ambiguities that previously delayed construction phases across the initial development segment.

Prior to the issuance of this land use conversion decision, the municipal government issued an official directive on August 24, 2026, granting Hodeco a one-time administrative extension to finalize private voluntary agreements regarding the transfer, capital contribution, and leasing of agricultural land parcels. Under this directive, the permissible extension period runs until September 12, 2028. Upon the conclusion of this designated extension timeline, competent state authorities will carry out formal land recovery measures in full accordance with statutory land legislation to allow the developer to execute the master plan.

## Project Scope and Commercial Launch Schedule

Master plan documentation released on the corporate portal of [Hodeco](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/) on October 27, 2026 confirms that the entire The Light City project covers an aggregate planned footprint of approximately 49 hectares. The township occupies an established position along the Chi Lang arterial thoroughfare within Vung Tau City. Within this overall master layout, phase one of the development encompasses more than 27 hectares, focusing specifically on low-rise residential product formats comprising landed townhouses and private villas.

Physical site inspections indicate that primary technical infrastructure systems across the phase one zone are fundamentally complete, including paved internal asphalt roads, stormwater drainage, subterranean power distribution, and street lighting networks. Structural construction across several residential blocks is advancing steadily to satisfy handover commitments. To expand community utility and support resident lifestyle needs, the developer formally inaugurated a dedicated pickleball sports court cluster on October 17, 2026, supplementing existing operational recreational assets that include standard tennis courts, Olympus Park, and landscaped swimming facilities.

According to operational reports published by [Vietnam Investment Review](https://www.tinnhanhchungkhoan.vn/hodeco-hdc-hoan-thien-phap-ly-chuan-bi-mo-ban-100-san-pham-the-light-city-post400352.html) on October 28, 2026 indicates that Hodeco is completing requisite pre-sale conditions to prepare for its upcoming commercial offering, representing the third official sales launch, scheduled to occur during 2026. This marketing campaign aims to release approximately 100 landed townhouse and villa units to prospective homebuyers, with the total gross sales value of the offered inventory estimated at approximately VND 1.000 billion. The commercial release is positioned to replenish operating inflows and validate market pricing resilience for master-planned coastal residential offerings.

## Financial Mechanics of Land Levy Deductions

A central challenge historically impeding residential project execution in Vietnam has been the determination of statutory land use levies and the formal netting of developer-funded site clearance outlays. Corporate disclosures published by [Hodeco](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/) on October 27, 2026 confirm that phase one of The Light City has successfully obtained statutory clearance determining deductions of over VND 149.3 billion. This figure represents recognized capital expenditures incurred for land compensation, resettlement support, and preliminary site clearance, which are legally credited against the gross land use levy owed to the provincial state budget.

Beyond the acreage covered under finalized approvals, municipal natural resources and land management authorities are actively expediting specific land valuation assessments for an additional parcel spanning roughly 2.7 hectares that has already received formal land use conversion clearance. Establishing this definitive unit valuation is an indispensable prerequisite for Hodeco to calculate its remaining financial obligations and secure full legal eligibility for commercializing remaining phase one inventory.

The statutory fiscal framework governing commercial urban development stipulates that the net land use levy payable by a property developer into the public treasury is calculated by subtracting verified compensation and resettlement expenses from the gross assessed land valuation:

$$\text{Net Land Use Fee Payable} = \text{Assessed Land Valuation} - \text{Deductible Compensation Costs}$$

According to financial disclosures published by [Hodeco](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/), applying this deduction mechanism during 2026 with the verified credit of over VND 149.3 billion substantially mitigates immediate treasury cash outflows for the company. Upon the formal promulgation of specific land prices for the 2.7 hectares of residential land by provincial authorities, Hodeco will only need to disburse the remaining net financial balance, thereby reducing debt financing pressure and preserving internal operational capital.

Statutory provisions establishing land allocation, land leasing, and municipal land recovery mechanisms for urban housing developments are unified under the primary framework of the [Land Law 2024](https://xaydungchinhsach.chinhphu.vn/toan-van-luat-dat-dai-119240221224513596.htm) passed on February 21, 2024. Detailed administrative guidelines defining specific land valuation methodologies and compensation deduction procedures are established under executive decrees issued via the [Government News Portal](https://baochinhphu.vn/chinh-phu-ban-hanh-nghi-dinh-quy-dinh-chi-tiet-thi-hanh-luat-dat-dai-102240731190009252.htm) on July 31, 2024.

> Chart: Project Scale and Land Processing at The Light City. Area, ha. Total master plan: 49,0; Phase one area: 27,0; Pending valuation: 2,7.

## Timeline of Regulatory Decisions and Milestones

To deliver an organized summary of project execution milestones at The Light City as of late October 2026, the following reference table details the relevant administrative decisions, spatial allocations, and operational targets:

| Operational Category | Project Specifics and Entitlements | Statutory Milestone Date |
| :--- | :--- | :--- |
| Land conversion approval | Decision 6818/QD-UBND approving conversion of 4.097,30 m² | 15/10/2026 |
| Land levy deduction | Verified credit of over VND 149.3 billion for site clearance | October 2026 |
| Agricultural land extension | Granted single extension valid through 12/9/2028 | 24/8/2026 |
| Phase one development area | Footprint exceeding 27 hectares with completed infrastructure | Year 2026 |
| Recreational facilities | Official launch of dedicated pickleball court cluster | 17/10/2026 |
| Third commercial pre-sale | Planned market launch of approximately 100 residential units | Year 2026 |
| Additional valuation area | Specific pricing assessment underway across 2.7 hectares | October 2026 |

Source: Compiled from disclosures published by [Hodeco](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/) (27/10/2026) and [Vietnam Investment Review](https://www.tinnhanhchungkhoan.vn/hodeco-hdc-hoan-thien-phap-ly-chuan-bi-mo-ban-100-san-pham-the-light-city-post400352.html) (28/10/2026).

## Strategic Implications for Listed Developers

Finalizing land use conversions and securing statutory compensation deductions at The Light City underscores an administrative trend where provincial governments actively dismantle bureaucratic delays for real estate developments meeting statutory criteria under refreshed legal codes. To assess how regulatory reforms influence sector supply elasticities over multi-year horizons, investors can study dedicated research examining the [impact of the Land Law on commercial housing pipelines](/en/blog/land-law-and-commercial-real-estate-supply-2026).

For publicly traded corporations, maintaining rigorous transparency and timeliness in publishing project entitlement milestones represents a core statutory requirement established under [Circular 96/2020/TT-BTC](https://vanban.chinhphu.vn/?docid=201902) enacted by the Ministry of Finance on November 16, 2020. The ongoing recognition of work-in-progress capital, capitalized borrowing expenses, and revenue recognition from milestone-based unit handovers necessitates careful analysis of balance sheet inventory lines. Fundamental techniques for scrutinizing corporate liquidity and capitalization can be explored in the practical guide on [analyzing balance sheet structures](/en/blog/reading-balance-sheet-vietnam).

*Disclaimer: Information presented in this article is compiled solely for research and analytical reference, and does not constitute investment advice or trading recommendations. Please review our full [Disclaimer](/en/legal/disclaimer) for additional details.*

## Sources

- Hodeco: [The Light City progresses legal procedures, infrastructure and amenities for third sales launch](https://hodeco.vn/the-light-city-tung-buoc-hoan-thien-phap-ly-ha-tang-va-tien-ich-san-sang-cho-dot-mo-ban-thu-3/) (27/10/2026).
- Vietnam Investment Review: [Hodeco completes legal procedures preparing to launch 100 products at The Light City](https://www.tinnhanhchungkhoan.vn/hodeco-hdc-hoan-thien-phap-ly-chuan-bi-mo-ban-100-san-pham-the-light-city-post400352.html) (28/10/2026).
- Government Policy Portal: [Full text of the Land Law 2024](https://xaydungchinhsach.chinhphu.vn/toan-van-luat-dat-dai-119240221224513596.htm) (21/02/2024).
- Government News Portal: [Decree detailing implementation of the Land Law](https://baochinhphu.vn/chinh-phu-ban-hanh-nghi-dinh-quy-dinh-chi-tiet-thi-hanh-luat-dat-dai-102240731190009252.htm) (31/07/2024).
- Government Regulatory Database: [Circular 96/2020/TT-BTC guiding information disclosure on the stock market](https://vanban.chinhphu.vn/?docid=201902) (16/11/2020).

## Frequently asked questions

### What does Decision 6818/QD-UBND approve for The Light City?

The local authority issued Decision 6818/QD-UBND on 15/10/2026, permitting the land conversion of 4.097,30 m² for the Hai Dang - The Light City project.

### How are phase one land use levies settled for The Light City?

The project cleared deductions of over VND 149.3 billion in site clearance compensation against land levies, while specific valuation continues for 2.7 hectares.

### How many residential units will Hodeco offer in the next sales launch in 2026?

Hodeco plans to release approximately 100 low-rise townhouses and villas in 2026 across the 27-hectare phase one development.

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_Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._

_Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._