“Hello Lawyer X. My family has a piece of land that has been identified as industrial land by a competent State agency. Now, due to the need, I want to convert this land to residential land, but I don’t know the law on this issue? Can industrial land in Vietnam be converted into residential land? What is the order of permitting the change of land use purpose and the implementation time? Looking forward to the lawyer’s answer, I sincerely thank you!“. Thank you for trusting and sending questions to Lawyer X. In the article below “Can industrial land in Vietnam be converted into residential land?”, we will answer your questions. Hope this article brings many useful things to readers.
Legal grounds
Decree 43/2014/ND-CP
Land Law 2013
What is industrial land?
Industrial land, also known as industrial park land, is land reserved for the construction of industrial clusters, export processing zones, and concentrated production and business zones.
Due to its special nature, industrial land is strictly managed by the state. Therefore, when intending to invest here, investors need to understand the regulations and sanctions for this type of land.
Usually industrial land has a large area and is planned to be located far from residential areas. It is a place where many factories and workers come from all over the world. Therefore, investing in real estate in the vicinity is also not a bad choice for investors.
In case of change of land use purpose, permission must be obtained
According to the provisions of Clause 1, Article 57 of the 2013 Land Law, cases of change of land use purpose that must be permitted by a competent state agency include:
- Change of land for rice cultivation to land for planting perennial crops, land for afforestation, land for aquaculture, land for salt production;
- Converting land for planting other annual crops to land for saltwater aquaculture, salt production, aquaculture land in the form of ponds, lakes or lagoons;
- Change of special-use forest land, protection forest land, production forest land to use for other purposes in the group of agricultural land;
- Converting agricultural land to non-agricultural land;
- Converting non-agricultural land allocated by the State without land use levy to non-agricultural land allocated by the State with land use levy or leased land;
- Converting non-agricultural land which is not residential land to residential land;
- 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.
Can industrial land be converted to residential land?
The change of industrial land use purpose to residential land is the change in land use purpose compared to the original land type by administrative decision in case of change of land use purpose requiring permission or land registration. belt in case it is not required to obtain permission from the competent State agency.
According to Article 6 of Circular 30/2014/TT-BTNMT, households and individuals prepare 01 set of documents, including:
– An application for change of land use purpose, made according to Form No. 01.
– Certificate of land use right or Certificate of ownership of houses and residential land use rights or Certificate of land use rights, ownership of houses and other assets attached to land.
When submitting the application, present additional identity card or citizen identification card if required. However, according to the provisions of Article 52 of the 2013 Land Law, the grounds for permitting the change of land use purpose include:
- The annual land use plan of the district has been approved by the competent state agency.
- Demand for land use expressed in investment projects, applications for land allocation, land lease, change of land use purpose.
Thus, in the case of changing the use purpose of industrial land to residential land, a permit must be obtained from a competent State agency, an application must be made and the State agency shall base on the annual land use plan of the local authority. district to decide whether to allow the change of land use purpose or not, because it is not necessary to write an application for permission to change the land use purpose. The conversion of industrial land use purpose to residential land must be based on the annual land use plan approved by a competent state agency.
Authority to permit change of land use purpose
According to the provisions of Article 59 of the 2013 Land Law; The authority to allocate land, lease land or permit the change of land use purpose shall be implemented as follows:
Provincial People’s Committees decide on land allocation; lease land, permit change of land use purpose in the following cases:
Land allocation, land lease, permission to change land use purpose for organizations;
Land allocation to religious establishments;
Land allocation to overseas Vietnamese; foreign-invested enterprises as prescribed in Clause 3, Article 55 of this Law;
Leasing land to overseas Vietnamese; foreign-invested enterprises as prescribed at Points dd and e, Clause 1, Article 56 of this Law;
Leasing land to foreign organizations with diplomatic functions.
District-level People’s Committees decide on land allocation; lease land, permit change of land use purpose in the following cases:
Land allocation, land lease, permission to change land use purpose for households; individual. In case of leasing land to households and individuals; For permission to change the purpose of agricultural land use for commercial and service purposes with an area of 0.5 hectares or more, a written approval from the People’s Committee of the province must be obtained before making a decision. ;
Allocate land to residential communities.
Commune-level People’s Committees lease land belonging to the agricultural land fund for public purposes of the commune or ward; town.
Agencies competent to decide on land allocation or land lease; permission to change the land use purpose specified in Clauses 1 and 2 of this Article is not authorized.
Thus, the authority to allocate land, lease land, permit change of land use purpose is determined as follows:
Authority of the District People’s Committee
Land allocation, land lease, permission to change land use purpose for households and individuals. Cases for households; individuals lease land, permit the conversion of agricultural land use purposes for commercial use; services with an area of 0.5 hectares or more, the written approval of the People’s Committee of the province must be obtained before making a decision;
Allocate land to residential communities.
Authority of Provincial People’s Committee
Land allocation, land lease, permission to change land use purpose for organizations;
Land allocation to religious establishments;
Land allocation to overseas Vietnamese; foreign-invested enterprises as prescribed in Clause 3, Article 55 of this Law;
Leasing land to overseas Vietnamese; foreign-invested enterprises as prescribed at Points dd and e, Clause 1, Article 56 of this Law;
Leasing land to foreign organizations with diplomatic functions.
Order of permitting change of land use purpose
According to the provisions of Article 69 of Decree 43/2014/ND-CP, the order of permitting the change of land use purpose is prescribed as follows:
Step 1: The land user submits an application for permission to change the land use purpose.
Step 2: The Natural Resources and Environment Agency is responsible for:
- Verification of records;
- Field verification, appraisal of the need to change the land use purpose;
- Guide land users to fulfill their financial obligations as prescribed by law;
- Submit to the People’s Committee at the competent level for decision permitting the change of land use purpose;
- Directing the updating and editing of land databases and cadastral records.
In case the investor receives the transfer of the land use right of the person currently using the land for the implementation of an investment project, the procedures for transferring the land use right shall be carried out concurrently with the procedure for permitting the change of land use purpose. soil.
Step 3: Land users fulfill financial obligations as prescribed.
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Frequently asked questions:
Term of land use: According to the term of the investment project, but not more than 70 years. In case the investment term is longer than the remaining time of the land plot, the investor must seek permission from the competent authority and must pay tax and land use levy for the overdue period.
Tenant’s responsibility: Must use the original intended use. Even in the future, if there is no need to rent anymore and rent it to another person, the next tenant must continue to use it for the specified purpose. If you deliberately do it wrong, the future use of land will be made difficult by the sanctions of the state.
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