Hello Lawyer X, I want to rent a plot of land but that land is located in an industrial zone, is it possible? What are the current regulations on land lease in industrial zones? Please advise.
Hello, Currently, many investors and businesses have the need to rent land in industrial parks more and more to expand their business scale. However, what is the regulation for renting land in industrial zones? To answer the above question, let’s find out with Lawyer X.
Legal grounds
- Decree 43/2014 ND-CP
- Land Law 2013
Regulations on land in industrial zones
Industrial park land is regulated and guided on conditions for determination, land allocation, land lease with use levy, and other relevant contents, specifically as follows:
Industrial zone land includes land for the construction of industrial clusters, industrial parks, export processing zones, and other concentrated production and business zones with the same land use regime.
The use of land for the construction of an industrial park must be consistent with the detailed land use planning, detailed land use plan, and detailed planning for the construction of industrial parks already approved by competent state agencies. When making detailed planning for the construction of industrial parks, it must be synchronized with the planning of houses and public works to serve the lives of workers working in the industrial park.
The State allocates land with collection of land use levy or leases the land with annual rental payment to economic organizations and overseas Vietnamese; leases land with one-time rental payment for the entire lease period or collect annual land rental for overseas Vietnamese, foreign organizations, and individuals to invest in construction and business of infrastructure industrial area.
For the land area for construction of infrastructure for common use in the industrial park, the investor does not have to pay land use levy or land rent.
Economic organizations, households and individuals investing in production and business in industrial parks may choose the form of receiving land with collection of land use levy or renting land from the State; receive, transfer, lease or sublease land associated with infrastructure of other economic organizations, overseas Vietnamese investing in the construction and business of industrial park infrastructure; sublease land associated with infrastructure of foreign organizations and individuals investing in the construction and business of infrastructure of industrial parks.
Overseas Vietnamese investing in production and business in industrial parks may choose the form of receiving land allocation with collection of land use levy, or renting land from the State with one-off rental payment for the entire period. rent or pay annual land rent; lease or sub-lease land associated with the infrastructure of other economic organizations and overseas Vietnamese investing in the construction and business of industrial park infrastructure; sublease land associated with infrastructure of foreign organizations and individuals investing in the construction and business of infrastructure of industrial parks.
Foreign organizations and individuals investing in production and business in industrial parks may choose to rent land from the State with one-off rental payments for the entire lease period or pay annual land rentals; lease or sub-lease land associated with the infrastructure of economic organizations or overseas Vietnamese investing in the construction and business of industrial park infrastructure; sub-lease land associated with infrastructure from other foreign organizations and individuals investing in the construction and business of industrial park infrastructure.
Land users in industrial parks must use the land for the right purposes for which it has been determined, be granted a certificate of land use rights and have the rights and obligations as prescribed by the 2003 Land Law.
In case of transferring the land use right in an industrial park, the transferee must continue to use the land for the determined purpose.
The person who subleases land in an industrial park before the effective date of the 2003 Land Law who has paid the land sublease for the entire sublease period or prepaid the land sublease for many years for which the land sublease term has been paid If the remaining money is at least five years, the economic organization with the rights to the economic organization shall be allocated land by the State with the collection of land use levy. For households and individuals, they have the rights of households and individuals to use land other than leased land.
Regulations on industrial zone land lease
When wishing to rent and use industrial land, enterprises and investors should understand the general provisions in Article 149 of the Land Law 2013 as follows:
The use of land for construction of industrial parks, export processing zones, industrial clusters and craft villages must conform to master plans, plans on land use, detailed construction planning already approved by competent state agencies. approve.
When planning and establishing an industrial park or an export processing zone, it is necessary to concurrently plan and build residential areas and public works located outside the industrial parks and export processing zones to serve the lives of employees working in the country. industrial parks and export processing zones.
The State leases land to economic organizations, overseas Vietnamese, and foreign-invested enterprises to invest in the construction and business of infrastructure in industrial parks, industrial clusters, processing zones and industrial zones export. For the land leased area with annual rental payment, the person to whom the land is leased by the State has the right to sublease the land in the form of annual land rental payment; for the land leased area with one-off rental payment for the entire lease period, the person to whom the land is leased by the State has the right to sublease the land in the form of one-off payment of land rent for the entire lease period or payment of rent. land every year.
Procedures for renting land in an industrial park
When renting land in an industrial park, enterprises and investors must prepare all documents and follow the prescribed order. As follows:
Documents to prepare when renting industrial land
Application for industrial park land lease (provided by the Industrial Park Management Board).
Certificate/Document of investment approval and written assessment of industrial land use demand (copy).
Description and summary of the industrial park land investment project.
Extract the map / Extract the cadastral measurement of the land plot of the industrial zone.
After preparing a full dossier of land lease in the industrial zone, the enterprise shall send it to the competent authority for consideration and settlement.
Process and procedures for leasing industrial land
- Enterprises and investors search, research and select to find an industrial park suitable to their needs.
- Then contact the industrial park land leasing unit to discuss and agree on a number of important issues such as: area, location, infrastructure, accompanying utilities, price as well as means of transport. payment method.
- After the policy of leasing industrial land is approved, the lessor and the representative of the enterprise and the investor will sign a contract and hand over the land to put it into use.
Related articles:
- Transfer of investment projects associated with the transfer of land use rights in Vietnam
- Guidance on procedures for transferring land use rights in Vietnam
Frequently asked questions
The sale of mortgaged assets that are assets attached to land when dealing with mortgages is essentially a way for enterprises to sublease land with infrastructure in the IP to sell their land-attached assets. However, due to the characteristics of leasing land in IPs and enterprises subleasing land from investors, not directly from the State, the application of the provisions of the 2013 Land Law will not be applied
Industrial park land lease contract is a legal agreement signed between an investor in infrastructure of an industrial park and a party wishing to lease land in an industrial park for the purpose of renting land and infrastructure of the land in the industrial park.
The industrial park land lease contract is essentially a land lease contract in the industrial park. Land lessors sublease state land, invest in industrial park infrastructure and sub-lease the invested land.
Regarding the use term of industrial land, in Clause 1, Article 51 of Decree 43/2014/ND-CP stipulates as follows:
“- The land use term in industrial parks, export processing zones, and industrial clusters is according to the term of the investment project.
In case the term of the investment project is longer than the remaining land use period of the industrial park, export processing zone or industrial cluster, the enterprise investing in the construction and business of infrastructure of the industrial park or processing zone shall For production, industrial clusters must obtain permission from the competent State agency for permission to adjust the land use term accordingly, but the total land use term must not exceed 70 years and must pay land use levy or land rent to the owner. with the land area before the extension of use.’
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