Can land under suspended planning be mortgaged in Vietnam?

Can land under suspended planning be mortgaged in Vietnam?

According to Clause 7, Article 49 of the 2013 Land Law, amended and supplemented by Clause 1, Article 6 of the Law on amending and supplementing some articles of the 37 Laws related to planning in 2018, the regulations on implementation of land use planning and land use plans are as follows:

7. In the cases where the land use planning has been published but a district land use plan is not available, the land user is entitled to keep using land and exercise the rights of a land user as prescribed by law.

In the cases where the district land use plan is available, the land user in the area where land has to be repurposed and expropriated according to the planning is entitled to keep exercising the rights of a land user but is not allowed to build new residential houses or works or grow perennials. Any land user that wishes to renovate or repair existing residential houses or works must obtain permission from a competent authority as prescribed by law.

Therefore, if the land use planning has been announced but there is no annual land use plan of the district level or there is an annual land use plan of the district level, the land users in the area must change the land use purpose and expropriate the land according to the plan, and continue to exercise their rights as land users, including the right to transfer and mortgage the land. According to this regulation in Vietnam, you can transfer the land if it falls under the above-mentioned provisions.

Can land under suspended planning be mortgaged in Vietnam? (Image from the Internet)

Can houses be built on perennial crop land in Vietnam?

According to the provisions of Clause 1, Article 170 of the 2013 Land Law, which stipulates the general obligations of land users as follows:

1. To use the land for proper purposes, in accordance with the land parcel boundaries, in compliance with regulations on use of the depth beneath and the space above the parcel while protecting underground public facilities and in accordance with other relevant laws.

In addition, Clause 1, Article 57 of the 2013 Land Law, stipulates the cases where land use purposes must be changed, including:

1. Cases in which change of land use purpose requires permission by competent state agencies:

a/ Change of land for rice cultivation to land for perennial crops, forests, aquaculture or salt production;

b/ Change of land for other annual crops to land for saltwater aquaculture, salt production or aquaculture in ponds, lakes or marshlands;

c/ Change of land for special-use forests, protection forests or production forests to land for other purposes within the type of agricultural land;

d/ Change of agricultural land to non-agricultural land;

e/ Change of non-agricultural land which is allocated by the State without land use levy to non-agricultural land which is allocated by the State with land use levy, or to leased land;

f/ Change of non-agricultural land which is not residential land to residential land;

g/ Change of land for construction of non-business facilities or land for public purposes involving commercial purpose, or non-agricultural land for business and production purposes which is not land for trading or services to land for trading or services; change of land for trading or services or land for construction of non-commercial facilities to land for non-agricultural production establishments.

Therefore, if you want to build a house on that piece of land, you need to go to the competent authority to change the land use purpose from perennial crop land to residential land in Vietnam.

Best Regards!