If the project has mixed land use goals and different land use terms, how to implement the investment procedures and investor selection procedures?
- How to handle when an investment project has objectives and contents subject to approval for its investment guidelines by different investment guideline approving authorities?
- Conditions for determining whether an investment project uses land?
- If the project has mixed land use goals and the land use term for these purposes is different (fifty years or long-term period), how to implement the investment procedures and investor selection procedures?
How to handle when an investment project has objectives and contents subject to approval for its investment guidelines by different investment guideline approving authorities?
According to Clause 1 Article 29 of Decree 31/2021/ND-CP of Vietnam, the competence to accept investment projects with objectives and contents falling under the competence of different investment policy-approving agencies is as follows:
“Article 29. Investment guideline approval and investor selection
1. Authorities that have the power to approve investment guidelines are specified in Articles 30, 31 and 32 of the Law on Investment (hereinafter referred to as “investment guideline approving authorities”). If an investment project has objectives and contents subject to approval for its investment guidelines by different investment guideline approving authorities, the highest authorized authority shall grant approval for investment guidelines of the entire project.”
Thus, in case an investment project has objectives and contents subject to approval for its investment guidelines by different investment guideline approving authorities, the highest authorized authority shall grant approval for investment guidelines of the entire project.
If the project has mixed land use goals and different land use terms, how to implement the investment procedures and investor selection procedures?
Conditions for determining whether an investment project uses land?
According to Article 11 of Decree 25/2020/ND-CP of Vietnam as amended and supplemented by Clause 4 Article 108 of Decree 31/2021/ND-CP of Vietnam, conditions for determining whether an investment project uses land are as follows:
“Article 11. Conditions for determining whether an investment project uses land
A land-using investment project is subject to investor selection uses land if it satisfies the following conditions:
1. The project is the one specified in Point b Clause 1 Article 1 of this Article but does not use public investment capital to construct works. Projects on construction of urban areas and commercial housing; office buildings; commercial and services works shall be classified in accordance with regulations of law on construction. In the case of a project having multiple functions, the determination of whether the project uses land shall be carried out based on its main work or main work at the highest level if the project has multiple main works in accordance with regulations of law on construction.
2. The project is on the approved list of projects on land that needs expropriating in accordance with regulations of law on land, located in a land area that is currently being managed or used by the State but will be allocated or leased out by the provincial People’s Committee or economic zone management board to the approved investor.
3. The project belongs to a residential housing development program or plan in accordance with regulations of law on housing; an urban development program (if any) in accordance with regulations of law on urban development.
4. The project conforms to the socio-economic development plan or construction planning on a scale of 1/2.000 or 1/5.000 (if any); or the urban zoning planning a scale of 1/2.000 or 1/5.000 as prescribed by law.
5. The project is not qualified to hold a land use right auction in accordance with regulations of law on land.
6. The project does not fall into the case specified in Point b Clause 4 Article 22 and Article 26 of the Law on Bidding.”
If the project has mixed land use goals and the land use term for these purposes is different (fifty years or long-term period), how to implement the investment procedures and investor selection procedures?
Based on the reply of the Prime Minister's Special Working Group in Official Dispatch 2541/CV-TCT of Vietnam dated April 18, 2022 on guiding a number of contents on the deployment and implementation of business investment projects according to regulations of the Law. For tourism projects combined with real estate business (villas, apartments for sale or rent for residential land purposes, long term land use) or approved tourism projects If the investment is registered for the conversion of the objectives, the scale of the project with mixed land use goals and the land use term for these purposes is different (fifty years or long), the regulations on the investment procedures, the investor selection procedures are answered as follows:
- According to the provisions of Clause 1 Article 29 of Decree No. 31/2021/ND-CP, if an investment project has objectives and contents subject to approval for its investment guidelines by different investment guideline approving authorities, the highest authorized authority shall grant approval for investment guidelines of the entire project.
- According to the provisions of Clause 1 Article 11 of Decree No. 25/2020/ND-CP, in the case of a project having multiple functions, the determination of whether the project uses land shall be carried out based on its main work or main work at the highest level if the project has multiple main works in accordance with regulations of law on construction.
It is recommended to base on the above provisions to determine the appropriate investment procedures for each specific case.
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