Land lease and purchase for FDI and foreigners in Vietnam

by BichNgoc

LSX Lawfirm will give you an article about: “Land lease and purchase for FDI and foreigners in Vietnam”, as follows:

Law on land 2013

Land use right, certificate of land use right, ownership of houses and other land-attached assets (“Certificate”)

What is a certificate related to land lease and purchase for FDI and foreigners in Vietnam

Documents issued by the State to prove the legal land use rights and ownership of assets (such as houses; buildings) attached to the land.

Related article: What should foreigners pay attention to when buying a house in Vietnam?

Procedures for renting houses for foreigners in Vietnam

How are certificates related to apartment buildings issued?

For Certificates related to apartment buildings:

2.1. The investor granted a Certificate for the land area under the project according to the following provisions:

a) Firstly, the investor granted a Certificate for the land area for construction of apartment buildings; and related infrastructure works (including commercial works). This approval will be based on the approved detailed master plan,
b) Secondly, failing to issue a Certificate for the land used for roads; and then other infrastructure not related to the apartment project. This includes also utilities for people living inside; and outside the apartment project that the developer did not use to provide services for the apartment project (“Area 1”).
2.2. Apartment owners issued a Certificate for the common land used by all apartment owners (“Area 2”).

2.3. Developer Certificates will be adjusted when a Common Region Certificate is issued to Region 2.

It also related to land lease and purchase for FDI and foreigners in Vietnam

How do foreign-invested companies in Vietnam get land use rights?

Accordingly, Foreign-invested companies can obtain land use rights by:

3.1. The State allocates land with collection of land use fees,

3.2. land directly leased by the State with annual rental payment; or leased with one-off rental payment for the entire lease period,

3.3. lease or sub-lease land from permitted land owners in accordance with current law.

Related questions about “Land lease and purchase for FDI and foreigners in Vietnam”

For what purposes can a foreign-invested company use land in the form of land allocation with collection of land use fees?

Investment projects to build houses for sale or a combination of sale and lease.

How long is the land allocation period?

The determination of the deadline will be based on the scope and duration of the project. However, it must not exceed 50 years (and 70 years in special cases).
The term may be extended at the discretion of the State.
The time limit for land allocation is counted from the date a competent State agency issues a decision on land allocation.

What rights and obligations does a foreign-invested company have with respect to the allocated land?

Foreign-invested enterprises that are allocated land with collection of land use levy for project implementation have the following rights and obligations (in addition to the general rights and obligations of land users):
1. transfer the land use rights and land-attached assets under their ownership within the land use term,
2. lease out land use rights and land-attached assets under their ownership during the land use term,
3. mortgage their land use rights and land-attached assets at credit institutions licensed to operate in Vietnam during the land use term,
4. contribute capital with land use rights and land-attached assets for cooperation in production and business during the land use term.
The above rights apply even in cases where foreign-invested enterprises are exempted or reduced from land use fees.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Land lease and purchase for FDI and foreigners in Vietnam”, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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