Hi Lawnet, I would like to ask some questions as follows: What are the regulations on land in industrial parks? And what is the use term for land in industrial parks? - Hoang Tan (Tien Giang, Vietnam)
Article table of contents
Vietnam: Industrial park and 03 things you need to know
1. What is industrial park?
According to Point dd, Clause 2, Article 10 of Vietnam's Land Law 2013, land for non-agricultural production and business, including land for industrial parks, industrial clusters, export processing zones; land for trading and service; land of non-agricultural production establishments; land used for mining activities; and land for production of building materials, and pottery;
Thus, industrial parks is understood as land for non-agricultural production and business
2. Regulations on land use of industrial parks
The use of industrial park land is specified in Article 149 of Vietnam's Land Law 2013 as follows:
- The use of land for construction of industrial parks, export processing zones, industrial clusters or trade villages must conform to land use master plans and plans and detailed construction master plans approved by competent state agencies.
During the planning and establishment of industrial parks or export processing zones, the planning and construction of housing areas and public facilities outside the industrial parks or export processing zones to serve the life of workers in industrial parks or export processing zones must be carried out simultaneously.
- The State shall lease the land to economic organizations, overseas Vietnamese or foreign- invested enterprises to invest in construction and commercial operation of infrastructure of industrial parks, industrial clusters and export processing zones.
For the land area that is leased with annual rental payment, the lessee may sublease that land with annual rental payment.
For the land area that is leased with full one-off rental payment for the entire lease period, the lessee may sublease that land with full one-off rental payment for the entire lease period or annual rental payment.
Investors are entitled to exemption from land rental for the land used for construction of infrastructure for common use in industrial parks, industrial clusters or export processing zones.
- Economic organizations, households, individuals, overseas Vietnamese and foreign- invested enterprises that invest in production and business in industrial parks, industrial clusters or export processing zones are entitled to sublease land together with infrastructure from:
+ Other economic organizations;
+ Vietnamese people residing abroad;
+ Foreign-invested enterprises invest in the construction and business of infrastructure.
At the same time, have the following rights and obligations:
+ In case of subleasing land with full one-off rental payment for the entire lease period, they have the rights and obligations prescribed in Article 174 of Vietnam's Land Law 2013;
+ In case of subleasing land with annual rental payment, they have the rights and obligations prescribed in Article 175 of Vietnam's Land Law 2013.
- Land users in industrial parks, industrial clusters or export processing zones shall use land for the determined land use purposes, be granted a certificate of land use rights and ownership of houses and other land-attached assets, and have the rights and obligations prescribed.
- Economic organizations, households, individuals or overseas Vietnamese that invest in production and business in industrial parks, industrial clusters or export processing zones and have been allocated land by the State or acquired land use rights together with infrastructure from
+ Other economic organizations
+ Overseas Vietnamese that have invested in the construction and commercial operation of infrastructure of industrial parks, industrial clusters
If the export processing zones prior to July 1, 2014, they may continue using the land for the remaining project duration without having to change to lease land.
At the expiry of the project duration, if these subjects still have demand, the State shall consider leasing land to them in accordance with the regulations.
3. Use term of land in industrial parks
The use term of land in industrial parks according to Clause 1, Article 51 of Vietnam's Decree 43/2014/ND-CP (amended in Clause 36, Article 2 of Vietnam's Decree 01/2017/ND-CP) is as follows:
- The duration of use of land parcels in an industrial park, export processing zone, industrial cluster or handicraft village shall accord with the duration of the investment projects.
- If the duration of the investment project(s) exceeds the remaining duration of use of the land parcel(s) in the industrial park, export processing zone, industrial cluster or handicraft village, the enterprise(s) constructing and operating the infrastructure of such industrial park, export processing zone, industrial cluster or handicraft village shall:
Apply to competent government authorities for adjusting the duration of land use accordingly; however, the total duration of land use shall not exceed 70 years and the land use fee or land rent shall be charged on the area(s) of land whose duration of use is extended.
Quoc Dat
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