Industrial parks are springing up in many places across the country in recent times. However, not every investor can get a part of land in the industrial park. So about the matter “Determining land rent in industrial parks in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
- Decree 46/2014/ND-CP
- Decree 135/2016/ND-CP
Determining land rent in industrial parks in Vietnam
For land lease pay annual land rent
According to the provisions of Clause 1, Article 12 of Decree No. 46/2014/ND-CP, the method of calculating land rent for land rental with annual rental payment is determined as follows: Payable land rent = Payable area rent x Land rental unit price
Land rental unit price in each specific case:
– Land lease without auction:
• Annual land rental unit price = 1% x Land price for calculation of land rental.
• Land price for calculating land rent is the specific land price.
The percentage to calculate the land rental unit price can range from 0.5 to 3.0% depending on the area, each type of land for rent and the actual conditions of the locality according to the decision of the Provincial People’s Committee.
– Rent land through auction
According to Clause 3, Article 4 of Decree 46/2014/ND-CP (amended by Article 3 of Decree 135/2016/ND-CP), the land rent is calculated as follows:
• Land rental unit price is the winning bid for one year.
• The auction winning unit price is stable for 10 years, after the stabilization period expires, the adjustment must not exceed 30% of the winning land rental price or the land rental unit price of the previous stable period. .
– Renting land to build underground works
• The State leases to the construction of underground works but not the underground part of the above-ground construction.
• The land rental unit price must not exceed 30% of the surface land rent in the form of paid land lease or annual land lease with the same use purpose. This land rental unit price is stable for 5 years.
– Renting land with water surface:
The unit rent of land with water surface is determined in two parts:
• For the land area without water surface: The land rental unit price with annual land rental is determined as in case 1 – No land lease auction mentioned above.
• For the land area with water surface: The annual land rental unit price is not lower than 50% of the annual land rental unit price of the type of land with adjacent locations with the same use purpose.
For land rental with one-time payment
Pursuant to Point b, Clause 2, Article 12 of Decree No. 46/2014/ND-CP, in case of land lease with one-off payment for the entire lease period, the way to calculate the land rental price is determined as follows:
– Land lease without water surface: Payable rent = Area to pay rent x Unit price of land to be paid once for the whole lease period
Land rental unit price in each specific case:
• Not through auction: The land rental unit price collected once for the entire lease period is the specific land price determined by each type of land.
• Land lease through auction: Land rental unit price is the auction winning unit price of the land lease term.
• Land for construction of underground works
The land rental unit price paid once for the whole lease period must not exceed 30% of the surface land rent in the form of land lease with one-off rental payment for the entire lease period with the same use purpose and term of use. soil.
– Land lease with water surface: Land rent payable = Area to pay rent x Unit price of land with water surface collected once for the whole lease period
• The land rental unit price with one-off rental payment for the whole lease period is not lower than 50% of the annual land rental price of the type of land with adjacent locations with the same use purpose.
• The fee level is decided by the Provincial People’s Committee after the Department of Finance coordinates with relevant agencies to develop and submit it.
Regulations when leasing industrial land
When wishing to lease and use industrial land, enterprises and investors should understand the general provisions in Article 149 of the Land Law 2013 as follows:
• The use of land for construction of industrial parks, export processing zones, industrial clusters and craft villages must conform to master plans, plans on land use, detailed construction planning already approved by competent State agencies. Browser.
• When planning and establishing industrial parks and export processing zones, they must concurrently plan and build residential areas and public works located outside the industrial parks and export processing zones to serve the lives of workers working in the area. industrial parks and export processing zones.
• The State leases land to economic organizations, overseas Vietnamese and foreign-invested enterprises to invest in the construction and business of infrastructure in industrial parks, industrial clusters, and zones. produce. For the land leased area with annual land rental payment, the person to whom the land is leased by the State has the right to sublease the land in the form of annual land rental payment; for the land leased area with one-off payment of land rental for the entire lease period, the person to whom the land is leased by the State has the right to sub-lease the land in the form of one-off payment of land rent for the entire lease period or payment of rent. land every year.
What documents should be prepared when renting industrial land?
• Application for leasing industrial land (provided by the Industrial Park Management Board).
• Certificate/Document of investment approval and written assessment of industrial land use demand (copy).
• An explanation, a brief outline of the industrial park land investment project.
• Extract the map / Extract the cadastral measurement of the industrial zone land plot.
After fully preparing the industrial park land lease dossier, the enterprise shall send it to the competent authority for consideration and settlement.
What is the process and procedures for renting industrial land?
When renting land in industrial zones, enterprises and investors must follow the prescribed order. As follows:
• Enterprises and investors search, research and select to find the right industrial park for their needs.
• Then contact the industrial park land leasing unit to discuss and agree on a number of important issues such as: area, location, infrastructure, accompanying utilities, price as well as method. pay.
• After the policy of leasing industrial land is approved, the lessor and the representative of the enterprise and the investor will sign a contract and hand over the land to put it into use.
Give some remedial solutions
Firstly, to improve the rights and obligations of land users in industrial zones:
– For the Industrial Park Management Board: It is necessary to clearly define the function of the Industrial Park Management Board, which is only the state management agency in the IP, or the state representative to perform the management in the IP, as well as the industrial technical infrastructure. At the same time, consolidating infrastructure, machinery and equipment for the management, inspection, examination and detection of violations of land use rights in the IZ, as well as training professional and professional officials land service.
– For investors in the construction and business of technical infrastructure of industrial zones: When signing land lease or land sublease contracts, the land use schedule must be specified in accordance with the project implementation schedule and measures to be taken. handling measures if the land lessee or sublessee fails to put the land into use, or the land use progress is slow compared with the allocated land use schedule; Take responsibility before the State and the law for the management and use of land in the IZ; To inspect, monitor and urge the lessee or sub-lessee to put the land into use according to the schedule agreed upon in the contract.
– For investors engaged in production and business activities in industrial zones: Use the land for the right purposes and ensure the planning; Determine the rights and obligations to avoid the case of land expropriation when the land is not put into use, or the land use schedule is delayed. The handling of related rights and obligations between the industrial park infrastructure investor and the land lessee or sublease shall comply with the civil law.
Second, improve the enterprises’ sense of self-discipline to comply with the law on land use rights in industrial zones: To raise investors’ sense of self-consciousness about the observance of the law on land use rights in industrial zones, The State needs to have mechanisms to ensure the interests of investors. This is the most important content for each investor in general and investors in the IP in particular.
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Frequently asked questions
Industrial zone land includes land for construction of industrial clusters, industrial parks, export processing zones and other concentrated production and business zones with the same land use regime.
The use of land for construction of industrial parks must conform to detailed land use master plans, detailed land use plans and detailed industrial park construction master plans already approved by competent state agencies. . When making detailed planning on construction of industrial parks, it must be synchronized with the planning of houses and public works to serve the lives of workers working in the industrial park.
– The land use term in the industrial park is calculated according to the term of the investment project.
– In case the term of the investment project is longer than the remaining land use term of the industrial park, the enterprise investing in the construction and business of the infrastructure of the industrial park must obtain permission from the competent state agency for permission. permit to adjust the land use term accordingly, but the total land use term must not exceed 70 years and must pay land use levy or land rent for the extended land area.
Therefore, industrial park land can only be leased by the State with a land use term of no more than 70 years.
Conclusion: So the above is Determining land rent in industrial parks in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
