How to change land use purpose in Vietnam to implement investment projects?
“Mr. Lawyer! Currently, my family has had a large land to grow rice for many years. Now seeing that the social situation is developing more and more, I want to convert to real estate investment with the conversion of business scale and purpose of use. My original land, do I have to apply for permission to re-register with the competent authority? And what are the order and procedure?” Thanks for your question. To learn more about this, today, LSX Lawfirm will give you an article about “How to change land use purpose in Vietnam to implement investment projects?“, as follows:
Legal grounds
- 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 of change of land use purpose and some cases of land use change that 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 case of change of land use purpose. must apply for permission or the registration of land changes in case the permission of the competent State agency is not required.
In which cases do you need permission to change the land use purpose?
How to change land use purpose in Vietnam to implement investment projects?
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 the land for rice cultivation to land for planting perennial crops, land for afforestation, land for aquaculture, land for salt production;
- Transfer of 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;
- Then Converting agricultural land to non-agricultural land.
- Converting non-agricultural land allocated by the State without land use the levy to non-agricultural land allocated by the State with the collection of 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; transfer of 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 not decided by the National Assembly and approved by the Prime Minister, the investment policy shall 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:
- Written approval of the Prime Minister for the case of changing the use purpose of 10 hectares or more of rice land; 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 fewer than 10 hectares of rice land; less than 20 hectares of protective forest land and special-use forest land.
In addition
Secondly, for projects with direct investment capital of foreign investors in islands and border and coastal communes, wards, and townships that are not subject to the approval and approval of the National Assembly or the Prime Minister of the Government. 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, except for cases where prohibited areas have 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.
Thirdly, the owner must have the financial capacity to ensure the land use according to the progress of the investment project;
Fourthly, deposit in accordance with the law on investment. The regulations on escrow for the implementation of investment projects (cases where the deposit must 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.
Fifthly, 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 shall submit 01 sets of dossiers to the People’s Committee of the competent authority for the school. In case of change of land use purpose, permission must 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 land-attached assets.
– Minutes of field verification.
- A copy of the explanation of the investment project, for the project that not required to submitted to a competent state agency for approval, the project not required to granted an investment certificate; a copy of the economic – technical report of the land-using organization, in case an investment project for work construction not required; write an assessment of land use demand; appraise the 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 made when issuing the investment certificate or appraising the project. investment projects or project approval, for projects that must submitted to competent state agencies for approval, and must issue investment certificates;
And
– Documents on the appraisal of land use needs, appraisal of conditions for permitting a 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 not required to submit to a competent state agency for approval, not required to issue an investment certificate and not required to formulate an investment project for the construction of works.
In case households and individuals apply for a change of agricultural land use purpose for commercial and service purposes with an area of 0.5 hectares or more, the written approval of the Committee must 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 promulgated together with Circular 30/2014/TT-BTNMT;
- Documents related to the receipt of the transfer of land use rights and land-attached assets, including Contract for transfer of land use rights, Certificate of land use rights (which clearly shows the seller of the property by himself) willing to return the land recovered by the State and leased to the buyer (the original);
- Power of attorney if assigned 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 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; guiding 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 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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Related questions
Article 12 of Circular 33/2017/TT-BTNMT stipulates cases of change of land use purpose without obtaining permission from competent State agencies.
According to Article 59 of the 2013 Land Law, the authority to change the land use purpose is due to:
– Firstly, The district-level People’s Committee has the authority to decide to permit the change of land use purposes 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.
– Secondly, Provincial People’s Committee has the authority to decide to change the purpose of land use within 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.
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 and the use purpose changed, and the land use right was recognized.
Purpose of using the land.
Land price for collection of land use levy then,
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) then.
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