In which cases is the auction of land use rights conducted in Vietnam? What are conditions for individuals participating in the auction of land use rights in Vietnam?
In which cases is the auction of land use rights conducted in Vietnam?
Based on Article 125 of the Land Law 2024 regulating land allocation and land lease through land use rights auction:
Article 125. Land allocation and land lease through land use rights auction
1. The State allocates land with land levy collection, leases land for a one-time lump sum payment for the entire lease term through land use rights auction in the following cases:
a) Investment projects using land from the land fund stipulated in Clause 1 of Article 217 of this Law, except as specified in Article 124 and Article 126 of this Law;
b) Allocation of homestead land to individuals, except as stipulated in Article 124 of this Law.
- Conditions for conducting the land use rights auction include:
a) Land has been recovered, and compensation, support, and resettlement have been completed or are not required; in projects with connected transportation infrastructure;
b) Included in the approved annual district-level land use plan with the purpose of auctioning land use rights, except for the auctioning of land use rights for land stipulated in point e Clause 1 Article 217 of this Law;
c) A 1/500 detailed planning approved by competent state authorities for residential construction investment projects;
d) An auction plan for land use rights has been approved by the competent authority.
[...]
Thus, the state allocates land with land levy collection and leases land for a lump sum payment for the entire lease term through a land use rights auction in the following cases:
[1] Investment projects using land from the land fund stipulated in Clause 1 Article 217 of the Land Law 2024, which includes:
- Land used for public purposes
- River, canal, stream, pond, lake, swamp land
- Cemetery, funeral home, cremation facility land; columbarium land
- Specialized water surface land
- Special-use forests, protection forests, production forests
- Land recovered by the State and assigned to land fund development organizations for management
- Land recovered by the State and assigned to commune-level People's Committees for management in the following cases:
+ Land recovery in cases where forests have been reclaimed according to forestry law regulations
+ Land in environmentally polluted areas threatening human life; other land in environmentally polluted areas that cannot continue to be used for its determined purpose
+ Residential land at risk of landslide, subsidence, or affected by other natural disasters threatening human life; other landslide, subsidence-affected lands with no further use capability
+ Land users reduce or no longer have a need to use land and voluntarily request to return land in rural areas
+ Lands recovered for national defense, security, or socio-economic development for national, public interests not yet allocated or leased for use in urban areas are managed, exploited, used by land fund development organizations; in rural areas, managed by commune-level People's Committees.
+ Unimplemented land allocated to commune-level People's Committees for management.
- Reassigned or transferred land use rights of foreign organizations with diplomatic functions when there is no land use requirement implemented based on international treaties, agreements, and relevant legal regulations
- Agricultural land used for commune, ward, commune-level town public purposes
- Unused land.
Except as stipulated in Article 124 Land Law 2024 and Article 126 Land Law 2024. To be specific:
- Cases of land allocation, land lease not auctioning land use rights, not bidding for investor selection on projects with land use
- Land allocation, land lease through bidding for investor selection for investment projects with land use
[2] Allocation of homestead land to individuals, except for cases of land allocation, land lease not auctioning land use rights, not bidding for investor selection on projects with land use
In which cases is the auction of land use rights conducted in Vietnam? What are conditions for individuals participating in the auction of land use rights in Vietnam? (Image from the Internet)
What are conditions for individuals participating in the auction of land use rights in Vietnam?
Based on Article 55 of Decree 102/2024/ND-CP regulating the conditions for individuals to participate in land use rights auction:
- Belonging to the group eligible for land allocation with land levy collection, land lease by the State
- Conditions as stipulated by the law on asset auctions.
- In case individuals participate in land use rights auctions to implement an investment project, they must commit to establishing an economic organization ensuring the following conditions:
+ Belonging to the group eligible for land allocation with land levy collection, land lease by the State
+ Ensure the conditions for land allocation, land lease, permission to change land use purposes in cases of land allocation, land lease to carry out investment projects; have capacity, experience in project development
+ Other conditions as stipulated by the law on asset auctions.
+ A group company is either an economic conglomerate or a parent company, subsidiary company as defined by enterprise law when participating in the auction of a land parcel or land zone, or a project consisting of one or more parcels, must agree to appoint one company within the group to participate in the land use rights auction
+ Must deposit 20% of the total value of the land parcel or land zone calculated based on the starting price to auction the land use rights
+ Not belonging to the group prohibited from participating in auctions as stipulated by law
+ Meet conditions stipulated by law on housing and real estate business for cases of auctioning land use rights to implement housing projects or other real estate business projects.
Note: The establishment of economic organizations is implemented according to the regulations of the investment law, enterprise law, bidding law, and other relevant laws.
Which agency in Vietnam is responsible for preparing the auction plan for land use rights?
Based on Article 56 of Decree 102/2024/ND-CP regulating the auction of land use rights for unused agricultural land not for public purposes:
Article 56. Auction of land use rights for agricultural land not used for public purposes
- Commune-level People's Committees prepare a plan for land use rights auction and submit it to the district-level People's Committee for review and decision.
- The preparation, appraisal, and approval of the land use rights auction plan follow the provisions of Clauses 3, 4, and 5 of Article 55 of this Decree. In which the form of land lease is the State leasing land for annual land rent and the starting price is determined according to the annual land price list.
- Hiring an entity to conduct the land use rights auction is done according to the Law on Asset Auctions but ensures that the auction service remuneration, asset auction costs, do not exceed 10% of the value of the leased public-purpose land use rights.
- If a suitable asset auction organization cannot be selected as per Article 56 of the Law on Asset Auctions, the Chairperson of the commune-level People's Committee where the land is located decides to establish an asset auction council to conduct the public-purpose land use rights auction according to the Law on Asset Auctions.
- The auction winner signs a land lease contract with the commune-level People's Committee; pays the land rent according to the signed contract.
According to the above regulations, commune-level People's Committees prepare a plan for land use rights auction and submit it to the district-level People's Committee for review and decision.
