Ownership of residential land for enterprises in Vietnam
Depending on the business field, the law has different provisions on the duration, duration, form of ownership, rights and obligations for enterprises. So about the matter “Ownership of residential land for enterprises in Vietnam” Let’s find out with LSX in the article below.
Legal grounds
- Land Law 2013
What is land ownership?
Land is an area of land with a specific area, clearly divided boundaries and relatively stable properties. Or if there is a change it will be cyclical and predictable. The use of land affects other factors such as socio-economic, natural factors such as soil, climate, hydrology, resident animals, etc. as well as other human activities.
In Article 4 on ownership of the 2013 Land Law, it is specified as follows:
“Land is owned by the entire people and is managed by the State on behalf of the owner and unified management. The State grants land use rights to land users in accordance with this Law.”
Land plays an important role for the territory of Vietnam, has existed and developed along with the history of nation building and defense of our nation. This is the result of the nation-building career of the whole nation in a long process. Therefore, no individual or organization can monopolize ownership, but the land must be under the common ownership of the entire nation. Owning land helps people to create wealth, improve people’s lives as well as develop socio-economic in general.
Ownership of residential land for enterprises in Vietnam
Can enterprises receive the transfer of residential land use rights of individuals to use for the purpose of headquarters?
Article 168 of the 2013 Land Law stipulates that land users can exercise the rights to transfer land use rights upon obtaining a Certificate. In this case, the enterprise can receive the transfer of residential land use rights of households and individuals through a legal civil contract.
However, in order to transfer the land use right, the organization exercising the transfer right must ensure the following conditions:
• Having a Certificate, except for the case specified in Clause 3, Article 186 and the case of inheritance specified in Clause 1, Article 168 of the 2013 Land Law;
• Undisputed land;
• Land use rights are not distrained to secure judgment enforcement;
• During the land use period.
To exercise the right to transfer land use rights, your business and the land user make a transfer contract.
According to the provisions of Article 167 of the Land Law 2013 and the Civil Code of 2015, the land use right transfer contract must be made in writing and notarized or authenticated.
After the transfer, the transferee shall carry out procedures for transferring the land name at a competent state agency.
Regarding the issue of whether or not that land can be used for the purpose of operating the enterprise’s headquarters?
According to Article 57 of the 2013 Land Law:
Article 57. Change of land use purpose
“1. Cases of change of land use purpose that must be permitted by a competent state agency include:
a) Change the land for rice cultivation to land for growing perennial crops, land for afforestation, land for aquaculture, land for salt production;
b) Converting land for planting other annual crops to land for saltwater aquaculture, salt production, aquaculture land in the form of ponds, lakes or lagoons;
c) Transfer of special-use forest land, protection forest land, production forest land to use for other purposes in the group of agricultural land;
d) Converting agricultural land to non-agricultural land;
dd) Converting non-agricultural land allocated by the State without land use levy to non-agricultural land allocated by the State with collection of land use levy or leased land;
e) Converting non-agricultural land which is not residential land to residential land;
g) Transfer of land for construction of non-business works, land used for public purposes for business purposes, land for non-agricultural production and business that is not commercial or service land to commercial or service land ; converting commercial, service, and non-business construction land to land for non-agricultural production establishments.
2. When changing the land use purpose as prescribed in Clause 1 of this Article, the land user must fulfill financial obligations as prescribed by law; land use regime, rights and obligations of land users shall be applied according to the type of land after the use purpose is changed”.
According to the above regulations, in case of changing the land use purpose of your business, you do not have to change the land use purpose, so, after transferring the land use right, your business can build the head office. occupation on that land.
Can foreign enterprises own land in Vietnam?
Clause 7, Article 5 of the 2013 Land Law stipulates:
Land users who are allocated or leased land by the State, have land use rights recognized, or receive land use rights transfer in accordance with this Law, include:
7. Foreign-invested enterprises include enterprises with 100% foreign investment capital, joint-venture enterprises, and Vietnamese enterprises in which foreign investors purchase shares, merge or repurchase according to the provisions of law.
However, Clause 1, Article 169 of the 2013 Land Law stipulates:
1. Recipients of land use rights are prescribed as follows:
a) Households and individuals may receive the transfer of agricultural land use rights through the conversion of land use rights specified at Point b, Clause 1, Article 179 of this Law;
b) Economic organizations, households and individuals may receive the transfer of land use rights through the transfer of land use rights, except for the case specified in Article 191 of this Law; overseas Vietnamese may receive land use right transfer through receipt of land use right transfer in industrial parks, industrial clusters, export processing zones, hi-tech parks, and economic zones. Foreign-invested enterprises may receive the transfer of investment capital which is the value of land use rights according to the Government’s regulations;
c) Organizations, households, individuals and communities may receive land use right transfer through donation of land use rights as prescribed at Point c, Clause 2, Article 174 and Point e, Clause 1, Article 179 of this Decree. this Law, except for the case specified in Article 191 of this Law;
d) Organizations, households, individuals and communities may receive land use right transfer through inheritance of land use rights;
dd) Overseas Vietnamese who are eligible to own houses in Vietnam in accordance with the law on housing may receive the transfer of residential land use rights through the form of purchase, lease-purchase, inheritance. receive and donate houses attached to residential land use rights or receive residential land use rights in housing development projects;
e) Economic organizations, joint-venture enterprises receive land use right transfer by receiving capital contribution in the form of land use rights;
g) Organizations, households, individuals, residential communities, religious establishments, overseas Vietnamese may receive land use rights through land allocation by the State; foreign-invested enterprises receive land use rights through the State’s allocation of land for the implementation of investment projects to build houses for sale or for sale in combination with lease;
h) Economic organizations, self-financed public non-business organizations, households, individuals, overseas Vietnamese, foreign-invested enterprises, foreign organizations with the following functions: Diplomats are entitled to receive land use rights through land lease by the State;
i) Organizations, households, individuals, residential communities and religious establishments may receive land use rights through the State’s recognition of land use rights for land that is being used stably;
k) Organizations, households, individuals, overseas Vietnamese, foreign-invested enterprises may receive land use rights according to the results of successful conciliation on land disputes approved by the People’s Committee of Vietnam. recognized by competent people; agreement in the mortgage contract for debt settlement; decisions of competent state agencies on settlement of land disputes, complaints and denunciations about land, decisions or judgments of people’s courts, judgment enforcement decisions of judgment enforcement agencies be enforced; written recognition of the auction results of land use rights in accordance with the law; documents on the division of land use rights in accordance with law for households or groups of people with common land use rights;
l) The residential community, religious establishment, is entitled to receive the land use right according to the successful conciliation result of the land dispute recognized by the competent People’s Committee; decisions of competent state agencies on settlement of land disputes, complaints and denunciations about land, decisions or judgments of people’s courts, judgment enforcement decisions of judgment enforcement agencies be enforced;
m) Organization is a new legal entity formed through separation or merger under a decision of a competent agency or organization or a document on the separation or merger of an economic organization in accordance with law. are entitled to receive land use rights from organizations that are legal entities that are split or merged.
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Please see more
- Policies on management and use of public property of enterprises in Vietnam
- Limit of residential land under Vietnam law
- Compensation for residential land planning under Vietnam law
Frequently asked questions
Foreign enterprises are not eligible to buy land in Vietnam, according to which foreign enterprises may use land in the following forms:
• Receive the transfer of land use rights by receiving capital contribution in the form of land use rights for joint venture enterprises;
• Receive land use rights through the State’s allocation of land to implement investment projects to build houses for sale or for sale and lease;
• Receive land use rights through land lease by the State;
• Receive land use rights according to the results of successful conciliation of land disputes recognized by competent People’s Committees; agreement in the mortgage contract for debt settlement; decisions of competent state agencies on settlement of land disputes, complaints and denunciations about land, decisions or judgments of people’s courts, judgment enforcement decisions of judgment enforcement agencies be enforced; written recognition of the auction results of land use rights in accordance with the law; documents on the division of land use rights in accordance with law for households or groups of people with common land use rights;
Foreign-invested enterprises conduct real estate business in Vietnam through investment in building houses for sale, lease or lease-purchase.
In case an enterprise invests in building a house under a project:
After completing the construction according to the project, the investor is entitled to sell this house to subjects eligible to own houses in Vietnam according to the provisions of the Law on Housing and the Law on Real Estate Business.
Buyers of business houses will be granted certificates of land use rights and ownership of houses and other assets attached to the land by a competent authority. The investor is responsible for carrying out procedures for requesting a competent state agency to issue a certificate of house ownership to the buyer within 50 days from the date of handing over the house to the home buyer, except for the following cases: Homebuyers voluntarily carry out the procedures.
For an enterprise that is not engaged in real estate business, when there is a need for housing for the people who are working at that enterprise, the enterprise is entitled to buy and own one or several apartment buildings in the project. develop commercial housing and are not in areas where foreigners are restricted or prohibited from residing and traveling in Vietnam.
Enterprises may only use houses for residential purposes, not for lease, offices or other purposes.
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