Decree No. 10/2023/ND-CP supplementing regulations on land recovery in case of termination of investment projects in Vietnam?
- Amending regulations on land recovery in case of termination of investment projects in Vietnam?
- Supplementing the land recovery processes and procedures applied in case of terminating investment projects in Vietnam?
- In which cases does an investor terminate investment activities or investment projects in Vietnam?
Amending regulations on land recovery in case of termination of investment projects in Vietnam?
On April 3, 2023, the Government issued Decree No. 10/2023/ND-CP amending and supplementing a number of articles of Decrees on instructions for implementation of the Law on Land.
In which, in Clause 2, Article 1 of Decree No. 10/2023/ND-CP inserting Article 15b after Article 15 of Decree No. 43/2014/ND-CP as follows:
Land recovery requirements applied in case of terminating investment projects as prescribed in laws on investment
The following land recovery formalities shall be applied in case of terminating investment projects as per laws on investment, except as the State recovers land under clause 1 of Article 64 and clause 1 of Article 65 in the Law on Land:
1. If the State assigns land subject to land use levy, or lease out land for a lump-sum land rent paid for the entire lease period, land recovery formalities shall be taken as follows:
a) The investor is entitled to the 24 months' grace to continue to use the assigned or leased land from the day on which the investment project is terminated as defined in laws on investment;
b) Within the 24 months’ grace from the day on which the investment project is terminated in accordance with law, an investor is entitled to transfer the land use right or sell legal land-attached property to another investor by operation of law.
After expiry of the 24 months’ grace, if the investor fails to do so, the State may recover land without paying any compensation for such land or legal land-attached property, except as any force majeure event specified in clause 1 of Article 15 herein takes place.
2. If the State leases out land and collects land use levy on an annual basis, land recovery formalities shall be as follows:
a) The investor is entitled to the 24 months' grace to continue to use the leased land from the day on which the investment project is terminated as defined in laws on investment;
b) Within the 24 months’ grace from the day on which the investment project is terminated as stipulated in law, the investor is entitled to sell legal land-attached property to another investor as prescribed in law. The State recovers land of the seller of property attached to the leased land to let it out to the buyer of such property.
After expiry of the 24 months’ grace, if the investor fails to do so, the State may recover land without paying any compensation for such recovery of land or legal land-attached property, except as the force majeure event specified in clause 1 of Article 15 herein takes place.
Thus, the following land recovery formalities shall be applied in case of terminating investment projects as follows:
If the State assigns land subject to land use levy, or lease out land for a lump-sum land rent paid for the entire lease period, land recovery formalities shall be taken as follows:
- The investor is entitled to the 24 months' grace to continue to use the assigned or leased land from the day on which the investment project is terminated as defined in laws on investment;
- Within the 24 months’ grace from the day on which the investment project is terminated in accordance with law, an investor is entitled to transfer the land use right or sell legal land-attached property to another investor by operation of law.
After expiry of the 24 months’ grace, if the investor fails to do so, the State may recover land without paying any compensation for such land or legal land-attached property, except as any force majeure event specified in clause 1 of Article 15 in Decree No. 43/2014/ND-CP takes place.
In addition, at Point b, Clause 5, Article 5 of Decree No. 10/2023/ND-CP, there is an annulment of regulations on land recovery in case the operation of an investment project is terminated in accordance with the law on investment in Clause 14, Article 2 of Decree No. 01/2017/ND-CP.
Decree No. 10/2023/ND-CP supplementing regulations on land recovery in case of termination of investment projects in Vietnam?
Supplementing the land recovery processes and procedures applied in case of terminating investment projects in Vietnam?
Pursuant to Clause 8, Article 1 of Decree No. 10/2023/ND-CP to add Article 65a to Article 65 of Decree No. 43/2014/ND-CP stipulating the land recovery processes and procedures applied in case of terminating investment projects as prescribed in laws on investment as follows:
Land recovery processes and procedures applied in case of terminating investment projects as prescribed in laws on investment
1. The investment registration agency or investor sends the written notice of termination of the investment project using land as defined in laws on investment to the natural resource and environment authority having jurisdiction over the project land, except as stipulated in point d of clause 2 of Article 48 in the Law on Investment.
2. Upon receipt of that written notification of termination of the investment project, the natural resource and environment authority shall have the duty to check and determine whether land of that investment project is recovered.
3. Land recovery and implementation of land recovery decisions shall be subject to Article 15b and clause 2, 3 and 4 of Article 66 in this Decree.
Thus, from May 20, 2023, the land recovery processes and procedures applied in case of terminating investment projects as prescribed in laws on investment shall comply with the above provisions.
In which cases does an investor terminate investment activities or investment projects in Vietnam?
Pursuant to the provisions of Clause 1, Article 48 of the 2020 Law on Investment in Vietnam stipulating as follows:
Termination of investment projects
1. An investor shall terminate their investment activities and/or investment project in the following cases:
a) The investor decides to terminate the project;
b) The project has to be terminated according to the conditions set out in the contract or charter of the enterprise;
c) The project duration is over.
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Thus, the investor terminates investment activities and/or investment projects in the above cases.
Decree No. 10/2023/ND-CP takes effect from May 20, 2023.
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