Change of land use purpose in Vietnam to implement investment projects

by NguyenThiThuTrang

Currently, my house has a large land to grow rice for many years, now seeing that the social situation is growing, I want to convert to investing in real estate with the conversion of my business scale and original land use purpose. , do I have to apply for permission to re-register with the competent authority? And what is the order and procedure?

With your question above. Lawyer X we would like to answer through the article below. Please follow and read immediately to know the specific laws on changing land use purposes to implement investment projects!

Land Law 2013
Decree 31/2021/ND-CP
Decree 43/2014/ND-CP
Circular No. 30/2014/TT-BTNMT
Decree 45/2014/ND-CP

What is land use change?

The 2013 Land Law does not provide a specific concept of land use purpose change, but only mentions cases where land use purpose is changed and some cases where land use purpose change must be approved by the competent authority. If the authority permits the change of land use purpose, the land owner may change the land use purpose.

From the cases of change of land use purpose, it can be understood:
Change of land use purpose is a 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 registration of land change in case of change of land use purpose. without having to ask permission from the competent state agency.

In which cases do you need permission to change the land use purpose?

According to Clause 1, Article 57 of the 2013 Land Law, cases of change of land use purpose must be approved by a competent state agency, including:

  • 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.

Conditions for change of land use purpose for implementation of investment projects

According to Article 58 of the 2013 Land Law, if you want to change the land use purpose, you need to properly and fully meet the following conditions:

Firstly, for projects that use rice-growing land, protection forest land or special-use forest land for other purposes that are not decided by the National Assembly and approved by the Prime Minister, the investment policy shall be approved by the Prime Minister. Competent state agencies may only decide on land allocation, land lease or permission to change land use purpose when having one of the following documents:

  • The written approval of the Prime Minister for the case of changing the use purpose from 10 hectares of rice land or more; from 20 hectares of protective forest land or special-use forest land or more;
  • Resolution of the People’s Council of the province in case of changing the use purpose of less than 10 hectares of rice land; less than 20 hectares of protective forest land and special-use forest land.

Secondly, for projects with direct investment of foreign investors in islands and border and coastal communes, wards and towns that are not subject to the approval or decision of the National Assembly or the Prime Minister. Before considering and approving the investment policy, the People’s Committee of the province shall send a written request to the Ministries in accordance with the following provisions:

  • The Ministry of National Defense, the Ministry of Public Security and the Ministry of Foreign Affairs, for land used in islands and border communes, wards and townships;
  • The Ministry of National Defense, for land used in coastal communes, wards or townships adjacent to the land used for national defense purposes, unless a prohibited area has been identified as prescribed;
  • The Ministry of Public Security, for land used in coastal communes, wards and townships adjacent to the land used for security purposes.

Third, the owner must have financial capacity to ensure the use of land according to the progress of the investment project;
Fourth, deposit in accordance with the law on investment. As for the regulations on escrow for the implementation of investment projects (cases where the deposit must be made and the deposit level) are specified in Article 25 of Decree 31/2021/ND-CP detailing and guiding the implementation of a number of articles of the Investment Law.
Fifth, do not violate the provisions of the law on land in case they are using land allocated or leased by the State to implement other investment projects.

A dossier of land use purpose conversion according to an investment project includes:

According to the provisions of Article 69 of Decree 43/2014/ND-CP and Article 6 of Circular No. 30/2014/TT-BTNMT, the land user submits 01 set of application to submit to the People’s Committee of the competent authority for the school. In case of change of land use purpose, permission must be obtained from a competent State agency; Profile include:

– An application for change of land use purpose, made according to Form No. 01 issued together with Circular 30/2014/TT-BTNMT;

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.

  • Minutes of field verification;
  • A copy of the explanation of the investment project, for the project that is not required to be submitted to a competent state agency for approval, the project is not required to be granted an investment certificate; a copy of the economic – technical report of the land-using organization, in case an investment project for construction of works is not required; documents on appraisal of land use needs; appraise the conditions for permitting the change of land use purpose specified in Clause 3, Article 58 of the 2013 Land Law and Article 14 of Decree No. 43/2014/ND-CP made when issuing the investment certificate or appraising the project. investment projects or project approval, for projects that must be submitted to competent state agencies for approval, and must issue investment certificates;

– The written assessment of the land use demand, the evaluation of conditions for permitting the change of land use purpose specified in Clause 3, Article 58 of the Land Law 2013 and Article 14 of Decree No. 43/2014/ND-CP for The project is not required to submit to a competent state agency for approval, is not required to issue an investment certificate and is not required to formulate an investment project for the construction of works.

In case households and individuals apply for change of agricultural land use purpose for commercial or service purposes with an area of ​​0.5 hectares or more, the written approval of the Committee must be added. provincial people under the provisions of Point a, Clause 2, Article 59 of the 2013 Land Law;

  • Extract the cadastral map of the land plot or extract the cadastral measurement of the land plot certified by the commune-level People’s Committee confirming that there are no disputes or complaints.

– The report enclosed with the draft decision permitting the change of land use purpose according to Form No. 05 issued together with Circular 30/2014/TT-BTNMT;

  • Documents related to receiving the transfer of land use rights and land-attached assets, including: Contract for transfer of land use rights, Certificate of land use right (which clearly shows the seller of the property himself) willing to return the land recovered by the State and leased to the buyer (the original);
  • Power of attorney if assigning to another person to carry out the documents and procedures.

Order of conversion of land use purposes according to investment projects

Step 1: The land user submits the application to the Department of Natural Resources and Environment of the locality where the land needs to be changed.

Step 2: The Natural Resources and Environment Agency is responsible for verifying the dossier; field verification, assessment 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 of the competent level to decide to permit the change of land use purpose; directing the updating and correction 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

Which agency has the authority to change the land use purpose?

According to Article 59 of the 2013 Land Law, the authority to change the land use purpose is due to:
The district-level People’s Committee has the authority to decide to permit the change of land use purpose for households and individuals.
In case a household or individual permits the change of agricultural land use purpose for commercial or service purposes with an area of ​​0.5 hectares or more, written approval from the People’s Committee is required. provincial level before making a decision.
Provincial People’s Committee has the authority to decide to change the purpose of land use with the organization.
Note: The agency competent to decide to change the land use purpose mentioned above cannot authorize another agency to change the land use purpose.

How much is the fee for changing the land use purpose to implement an investment project?

When changing the land use purpose to implement an investment project, the customer must bear the following amounts:
Land use fees
Regulations in Article 3 of Decree 45/2014/ND-CP show that in order to change the land use purpose, land use fees must be paid based on:
The allocated land area, which has been changed the use purpose, has the land use right recognized.
Purpose of using land.
Land price for collection of land use levy
Therefore, the price list for land use conversion will not be fixed, but it will depend on the factors of area, land price regulations, and land use purposes after conversion.
Registration fee: The fee level in this case will be 0.5% of the registration fee calculation price (Article 8 of Decree 10/2022/ND-CP).

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