Procedures for applying for land lease to implement investment projects in Vietnam

Hello Lawyer, I have a need to rent land to implement an investment project, what is the procedure? What do you need to prepare when you want to rent land? What is the current land lease procedure? Which agency has the authority to decide on the land leases? Procedures for applying for land lease to implement investment projects in Vietnam? What are the characteristics of land for implementing investment projects? Looking forward to helping my counsel. I would like to express my sincere thanks to Lawyer.

Thank you for trusting our consulting service. Regarding the above issue, Lawyer X would like to advise you as follows:

What does a land rental application include?

– An application for land lease, made according to form No. 01 issued together with Circular 30/2014/TT-BTNMT on regulations on documents for land allocation, land lease, change of land use purpose, and land recovery.

– Copy of Investment Certificate

– Written assessment of land use demand; appraisal of conditions for land allocation and land lease specified in Clause 3, Article 58 of the Land Law and Article 14 of Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government detailing the implementation of a number of articles of the Land Law (hereinafter referred to as Decree No. 43/2014/ND-CP) made when granting investment certificates or appraising investment projects or approving projects;

– Documents proving financial capacity, ability to raise capital, total investment amount

– An assessment of the impact of the investment project

– Extract the cadastral map of the land plot or extract the cadastral measurement of the land plot. To collect this document, we need to go to the Department of Natural Resources and Environment of the District People’s Committee to provide an extract of the cadastral map of the land area that needs to be rented (if there is a cadastral map) or request the implementation of the plan. Currently extracting cadastral measurements of the land plot.

When the dossier is complete, we need to send the dossier to the Department of Natural Resources and Environment for consideration and appraisal of the dossier.

How to apply for land lease to implement an investment project?

Article 73. Land use through the form of receiving the transfer, leasing of land use rights, receiving capital contribution with land use rights for production and business

1. The use of land for the implementation of production or business projects or works that is not subject to land recovery by the State specified in Articles 61 and 62 of this Law but conforms to the master plan and plan on use If the land has been approved by a competent state agency, the investor may transfer or lease the land use right or receive capital contribution in the form of land use rights in accordance with law.
2. The State adopts policies to encourage the leasing of land use rights and receipt of land use rights as capital contributions from economic organizations, households and individuals for the implementation of production and business projects and works. “

Based on the above provisions, enterprises can lease land use rights from people to carry out production and business projects and works.

Order and procedures for renting land from people to implement non-agricultural production and business projects

• In case the land use purpose of a production or business project or work is different from the land use purpose of the land parcel leased by the investor from the current land user, the land user shall carry out the procedures for transferring the land. land use purposes before carrying out procedures for leasing land use rights to investors;
• In case the land use purpose of the project, production or business works does not change compared to the purpose of the leased land parcel, the investor or land user shall carry out the procedures prescribed in Article 79 of this Law. Decree 43/2014/ND-CP.
• In case of leasing agricultural land use rights for implementation of non-agricultural production and business projects, the procedures for leasing land use rights shall be carried out after obtaining written approval from competent agencies according to regulations. defined in Clause 1, Article 193 of the 2013 Land Law.

Some specific cases related to the procedures for investors to lease land from people to implement non-agricultural production and business projects are guided in Article 16 of Decree 43/2014/ND-CP (amended as amended). by Decree 148/2020/ND-CP) as follows:

1) In case economic organizations lease agricultural land use rights to implement non-agricultural investment projects, the provisions of Clause 3, Article 16 of Decree No. 43/2014/ND-CP (amended by Decree No. Decree 148/2020/ND-CP):

“Article 16. Use of land for the implementation of investment projects through the form of purchasing assets attached to land, receiving the transfer or lease of land use rights, or receiving capital contribution in the form of land use rights.

3. In case an economic organization receives the transfer, capital contribution or lease of agricultural land use rights to implement a non-agricultural investment project, it must send a written request to the Department of Natural Resources and Environment using the Form No. 01 board. accompanying this Decree. Within 15 days from the date of receipt of the written request, the Department of Natural Resources and Environment shall submit it to the People’s Committee of the province. Within 10 days from the date of receipt of the dossier submitted by the Department of Natural Resources and Environment, the People’s Committee of the province shall consider giving written approval or reply to the economic organization on the receipt of transfer, contribute capital, lease land use rights.

The written approval of the People’s Committee of the province specified in this Clause is valid for 36 months from the date of signing the written approval.

Note on conditions for leasing agricultural land use rights to implement non-agricultural production and business investment projects in Article 193 of the 2013 Land Law as follows:

“Article 193. Conditions for receipt of transfer, capital contribution or lease of agricultural land use rights to implement non-agricultural business and production investment projects

Economic organizations, households and individuals may receive transfer, capital contribution or lease of agricultural land use rights to implement non-agricultural business and production investment projects when fully meeting the following conditions: :

1. Having written approval from a competent state agency for economic organizations that receive transfer, capital contribution or lease of agricultural land use rights for project implementation;
2. The purpose of use for the land area receiving transfer, capital contribution or lease of land use rights must be consistent with the master plan and plan on land use already approved by a competent state agency;
3. For land specialized in wet rice cultivation, the provisions of Clause 3, Article 134 of this Law must be complied with.”

2) In case the land area for which the investment project is implemented has an area that people currently using that land do not have the right to lease but have properties attached to the land, the provisions of Clause 4, Article 16 of Decree 43 shall apply. /2014/ND-CP (amended by Decree 148/2020/ND-CP):

“4. In case the land area for which the investment project is implemented has a portion of land that the current land user does not have the right to transfer, lease or contribute as capital with the land use right as prescribed by the law on land, but has the following assets: If it is attached to land, the investor is allowed to agree to buy land-attached assets from the current land user, the State recovers the land, allocates the land or leases the land to the investor without going through an auction of the right to use the land. land use, not through bidding for projects that use land, change the purpose of land use to implement investment projects, and must determine specific land prices for calculation and collection of land use levies and land rents according to regulations. . The content of the contract for sale and purchase of assets attached to land must clearly state that the seller of the property voluntarily returns the land for the State to recover the land and allocate the land to the property buyer to lease land.

3) In case the land area for which the investment project is implemented has a portion of land allocated by the State for management, agricultural land used for public purposes, land that the current land user does not have the right to lease, and If there are no assets attached to the land, but this land area is located interspersed with the leased land area, the provisions of Clause 5, Article 16 of Decree No. 43/2014/ND-CP shall apply. (amended by Decree 148/2020/ND-CP):

“5. In case the land area for which an investment project is implemented has a portion of land allocated by the State for management as prescribed in Article 8 of the Land Law, agricultural land used for public purposes, land that is currently being used by people land without the right to transfer, lease or contribute as capital with land use rights in accordance with the law on land and have no properties attached to the land, but this part of the land is located interspersed with the land area. If the area of ​​land has been transferred, leased, or contributed as capital using land use rights, the settlement shall be settled according to the following provisions:

a) In case the land area is eligible for splitting into independent projects, the competent People’s Committees shall decide on land recovery for land allocation or land lease for implementation of such independent projects in the form of auction. land use right. The auction of land use rights shall be conducted no later than 90 days from the date on which the State issues a decision on land recovery;

b) If the land area is not eligible to be separated into independent projects, the People’s Committee of the province shall, based on the current land use status and socio-economic conditions of the locality, organize the review and identification of the project. specifying project scale, investment location and deciding to recover land for land allocation or land lease for implementation of investment projects without auctioning land use rights, not through bidding for projects involving land use rights. land use and must determine specific land prices for calculation and collection of land use levies and land rents according to regulations;

c) The land recovery, compensation, support and resettlement specified at Points a and b of this Clause shall comply with regulations as in the case of land recovery for use for economic development purposes. – society in the national interest, public interest;

d) Provincial-level People’s Committees shall specify conditions, criteria, scale and ratio for splitting into independent projects specified at Points a and b of this Clause.”

Please see more

• Procedure of land acquisition for project implementation in Vietnam
• Sequence of recovering encroached land in Vietnam
• Land valuation income method in Vietnam

What is the procedure for leasing land without auctioning land use rights?

– Step 1: Organize; overseas Vietnamese; Foreign organizations and individuals who wish to allocate or lease land shall submit dossiers at the Department of Natural Resources and Environment for receiving and returning results.

– Step 2: The Department of Natural Resources and Environment’s Department of Natural Resources and Environment’s Department of Natural Resources and Environment receives and returns the results to check the dossier; guide to supplement the dossier if it is invalid or incomplete. After receiving the application, it is transferred to the specialized department.

– Step 3: The Department of Natural Resources and Environment prepares procedures and submits to the City People’s Committee for issuance of the Decision on land allocation and land lease.

– Step 4: The City People’s Committee considers and issues the Decision on land allocation and land lease and sends the results to the Department of Natural Resources and Environment.

– Step 5: Organize; overseas Vietnamese; Foreign organizations and individuals who request land allocation or land lease receive results at the Department of Natural Resources and Environment’s Department of Natural Resources and Environment for receiving and returning results.

– Step 6: The Department of Natural Resources and Environment shall assume the prime responsibility for, and organize the announcement and implementation of, the content of the decision and hand over the land in the field.

The Department of Natural Resources and Environment directs the update and correction of the land database and cadastral records.

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