Transfer of investment projects associated with the transfer of land use rights in Vietnam
Transfer of investment projects is a relatively common activity. In particular, this activity in some cases is also associated with the transfer of land use rights. Therefore, the legal provisions related to this issue are also complicated because they involve many different legal fields. LSX Lawfirm will give you an article about: “Transfer of investment projects associated with the transfer of land use rights in Vietnam”, as follows:
Legal grounds
Land Law 2013
Law on real estate business 2014
Law on Investment 2020
Decree 43/2014/ND-CP dated May 15, 2014 of the Government detailing the implementation of a number of articles of the 2013 Land Law
The concept of transfer of investment projects associated with the transfer of land use rights in Vietnam
The concept of an investment project using land is not yet defined in the law. However, Article 11 of Decree 25/2020/ND-CP has regulations on conditions for determining investment projects using land. Accordingly, an investment project that meets all three of the following conditions is considered an investment project using land:
- Firstly, belonging to the list of projects that need to be recovered land approved in accordance with the law on land or belonging to the land area currently being managed and used by the State; urban development program (if any) in accordance with the law on urban development.
- Secondly, Conformity with the socio-economic development plan, industry and field development plan; construction planning at the rate of 1/2000 or 1/500 (if any) or urban zoning planning at the rate of 1:2,000 or 1/500 according to the provisions of law.
- Thirdly, failing to meet the conditions to organize an auction of land use rights in accordance with the law on land.
Thus, investment project transfer is an activity of an investor transferring all or part of a project under his/her ownership to another investor. This activity must meet certain conditions prescribed by law.
Conditions for transfer of investment projects associated with the transfer of land use rights in Vietnam
According to Investment Law
According to the provisions of Article 46 of the Investment Law 2020, the transferred investment project must satisfy the following requirements:
- The transferred investment project or part of the project does not terminate
- Satisfy the requirements of foreign investors in case foreign investors receive the transfer
- Meeting the requirements of the land law in the case of transfer of investment projects associated with the transfer of land use rights and land-attached assets
- Satisfy the conditions prescribed by law on housing, real estate business for the project or part of the housing construction investment project, real estate project.
- Satisfy the conditions in the written approval of the investment policy; the investment registration certificate or in accordance with relevant laws.
State-owned enterprises in addition to the above provisions are responsible for complying with the provisions of law on management and use of state capital invested in production and business in enterprises before making project adjustments. invest.
According to the Law of the Land
Conditions for transferring land use rights under the provisions of the Land Law recorded in Clause 1, Article 188.
Accordingly, the conditions for transferring land use rights under this law are:
- Having a certificate (except for the case in Clause 1, Article 186 or the case of inheritance)
- Land without dispute
- The land use right does not distrain to ensure judgment enforcement – Within the land use term
Dossier for transfer of investment projects associated with the transfer of land use rights in Vietnam
To carry out the transfer of investment projects, investors need to prepare 01 application to submit to the investment registration agency. Pursuant to Article 37 of Decree 118/2015/ND-CP guiding the Law on Investment, the required documents include:
- Written request for adjustment of investment project
- Report on the implementation of the investment project up to the time of transfer of the investment project;
- Investment project transfer contract or other document with equivalent legal value;
- A copy of the identity card, identity card or passport for individual investors; a copy of the business registration certificate or another document of equivalent legal validity, for institutional investors the position of the investor receiving the transfer;
- Then A copy of the investment registration certificate or the written decision on investment policies (if any);
- A copy of the BCC contract for investment projects in the form of a BCC contract;
- A copy of one of the following documents of the investor receiving the investment project: financial statement of the last 2 years of the investor; commitment to financial support of the parent company, commitment to financial support; main financial institution, guarantee on the financial capacity of the investor, documents explaining the financial capacity of the investor;
Procedures for transferring investment projects associated with the transfer of land use rights in Vietnam
So, the agency competent to handle procedures for transfer of investment projects associated with the transfer of land use rights determined the Provincial People’s Committee; if the project approved by the Provincial People’s Committee. If a project approved by the Prime Minister, the Provincial People’s Committee shall consult relevant agencies to report to the Prime Minister for decision.
Then, the investor who wants to transfer the project shall submit 01 application to the competent authority; so which is the People’s Committee of the province; where the investment project is located. If the profile is incomplete or valid, it returned for supplementation or modification. Within 45 days and 4 days of receiving the complete dossier; the Provincial People’s Committee will consider, settle and decide to agree or not to agree to transfer the project.
So, above the entire content of the advice of LSX Lawfirm around the transfer of investment projects associated with the transfer of land use rights. For any legal problems that need advice, please contact a lawyer of LSX Lawfirm.
You can refer to the article related to Regulations on apartment ownership or In case the company’s head office address is located in an apartment building in Vietnam
Related artice: Procedures for foreigners to buy apartments in Vietnam
Foreigners buy apartments of Vietnamese individuals
Related questions
The purpose is to make a place to live for people whose houses and land have been cleared. People choose one of the following two cases:
Receive compensation and move to another place
Moving into a resettlement area (a type of apartment building with basic services)
This is a type of apartment for people with low income. People who have been working for a long time but do not have enough money to buy a house have to rent a house to live in. In general, you will have to show low income to get into this type of housing.
Social housing is only granted a certificate of house ownership, lease and transfer after 5 years of receiving the house.
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