Vietnam: What are the supplements to the conditions for holding auctions of land use rights and conditions for land put up for an auction under Decree 10/2023/ND-CP?
- What are the conditions for organizations and individuals to participate in the auction of land use rights the State allocates or leases land with collection of land use levy in Vietnam?
- What are the conditions for land put up for an auction in case the State allocates or leases land with collection of land use levy in Vietnam?
- What are the principles of auctions of land use rights in Vietnam?
What are the conditions for organizations and individuals to participate in the auction of land use rights the State allocates or leases land with collection of land use levy in Vietnam?
Currently, Article 119 of the 2013 Land Law stipulates as follows:
Holding auctions of land use rights
1. Conditions for holding an auction of land use rights upon land allocation or land lease by the State:
a/ The annual district-level land use plan approved by a competent state agency is available;
b/ The land has been cleared or is land with attached assets owned by the State;
c/ The plan for holding the auction of land use rights approved by a competent state agency is available.
2. Organizations and individuals participating in an auction of land use rights must satisfy the following conditions:
a/ Being eligible to be allocated or leased land as prescribed in Article 55 or 56 of this Law;
b/ Meeting the conditions for the implementation of investment projects under Article 58 of this Law in case of land allocation or land lease for implementation of investment projects.
Accordingly, in order to participate in the auction of land use rights, organizations, and individuals must satisfy the conditions prescribed by the law.
(1) Conditions for holding an auction of land use rights upon land allocation or land lease by the State:
- The annual district-level land use plan approved by a competent state agency is available;
- The land has been cleared or is land with attached assets owned by the State;
- The plan for holding the auction of land use rights approved by a competent state agency is available.
(2) Organizations and individuals participating in an auction of land use rights must satisfy the following conditions:
- Being eligible to be allocated or leased land as prescribed;
- Meeting the conditions for the implementation of investment projects under Article 58 of this Law in case of land allocation or land lease for implementation of investment projects.
On April 3, 2022, the Government issued Decree 10/2023/ND-CP on amendments and supplements to several Articles of Decrees on instructions for implementation of the Law on Land.
Accordingly, in Clause 3, Article 1 of Decree 10/2023/ND-CP, Article 17a has been added after Article 17 of Decree 43/2014/ND-CP as follows:
Auction of rights to use the State’s allocateed land subject to the land use levy, or the State’s leased land
1. In order to be eligible to attend an auction of land use right, an entity shall fully meet the following conditions:
a) They are categorized as one of the subjects of the State's assignment and lease of land as defined in Article 55 and 56 in the Law on Land. If a parcel of land, or a project sited at one or more parcels of land under cross ownership of two (02) or more companies as provided in laws on enterprises, is put up for auction, only one company is allowed to participate in that auction;
b) They have to meet the conditions specified in clause 3 of Article 58 in the Law on Land, clause 2 and clause 3 of Article 14 herein;
c) They have to pay a deposit which is 20% of total value calculated at the starting price of the parcel or the complex of parcels at auction before coming up for the auction of land use right;
d) They are not prohibited from attending the auction as prescribed in laws;
dd) They have to meet the conditions defined in laws on housing and laws on real estate business in order to attend the auction of the right to use land for execution of housing and other real estate business projects.
2. Conditions for eligibility of households and individuals to attend auctions of land use rights:
a) They are categorized as one of the subjects of the State's assignment or lease of land according to the regulatory provisions of Article 55 and 56 in the Law on Land, and meet the conditions specified in point c and point d of clause 1 of this Article;
b) If a household or individual attends an auction of the right to use land for execution of an investment project, the conditions specified in point a of this clause, point b and point dd of clause 1 of this Article.
Under the new regulations, In order to be eligible to attend an auction of land use rights when the State allocates or leases land with collection of land use levy, organizations, households and individuals in Vietnam must meet the following conditions:
(1) For organizations
- They are categorized as one of the subjects of the State's assignment and lease of land as defined in Articles 55 and 56 in the Law on Land. If a parcel of land, or a project sited at one or more parcels of land under cross-ownership of two (02) or more companies as provided in laws on enterprises, is put up for auction, only one company is allowed to participate in that auction;
- They have to meet the conditions specified in clause 3 of Article 58 in the Law on Land, clause 2 and clause 3 of Article 14 of Decree 43/2014/NĐ-CP;
- They have to pay a deposit which is 20% of the total value calculated at the starting price of the parcel or the complex of parcels at auction before coming up for the auction of land use right;
- They are not prohibited from attending the auction as prescribed in laws;
- They have to meet the conditions defined in laws on housing and laws on real estate business in order to attend the auction of the right to use land for the execution of housing and other real estate business projects.
(2) For households and individuals
- They are categorized as one of the subjects of the State's assignment or lease of land according to the regulatory provisions of Articles 55 and 56 in the Law on Land, and meet the conditions specified in point c and point d of Clause 1 of Article 17a of Decree 43/2024/ND-CP;
- If a household or individual attends an auction of the right to use land for the execution of an investment project, the conditions specified in point a of clause 2, point b and point dd of clause 1 of Article 17a of Decree 43/2024/ND-CP.
What are the conditions for land put up for an auction in case the State allocates or leases land with collection of land use levy in Vietnam?
Pursuant to Clause 3, Article 1 of Decree 10/2023/ND-CP, Article 17a has been added after Article 17 of Decree 43/2014/ND-CP as follows:
Auction of rights to use the State’s allocated land subject to the land use levy, or the State’s leased land
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3. Conditions of land put up for an auction, including:
a) The land at auction has to meet all requirements set out in clause 1 of Article 119 in the Law on Land;
b) The starting price at which the right to use such land is auctioned is decided by a competent state authority;
c) The process of Auction of land use right is applicable to a single parcel;
d) The cadastral map in 1:500 scale of the parcel used for execution of a housing construction project has been available with approval from a competent authority.
Thus, the conditions for land put up for an auction in case the State allocates or leases land with collection of land use levy in Vietnam are:
- The land at auction has to meet all requirements set out in clause 1 of Article 119 in the Law on Land;
- The starting price at which the right to use such land is auctioned is decided by competent state authority;
- The process of Auction of land use right is applicable to a single parcel;
- The cadastral map in 1:500 scale of the parcel used for execution of a housing construction project has been available with approval from a competent authority.
What are the principles of auctions of land use rights in Vietnam?
In Article 117 of the Land Law 2013, the principles of auctions of land use rights in Vietnam are:
- Auctions of land use rights shall be conducted on the principles of publicity, continuity, impartiality, honesty, equality and protection of lawful rights and interests of involved parties.
- Auctions of land use rights shall be conducted in accordance with the order and procedures prescribed in the land law and law on asset auctions.
Decree 10/2023/ND-CP will take effect from May 20, 2023.
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