Is it permissible to mortgage a land which is indicated in land use plan in Vietnam?

Is it permissible to mortgage a land which is indicated in land use plan in Vietnam?

Pursuant to Clause 2 Article 49 of the Law on Land in 2013 stipulating implementation of land use master plans and plans in Vietnam as follows:

If the land use master plan has been publicized but the annual district-level land use plan is not yet available, land users may continue using land and exercise the rights of land users as prescribed by law.

If the land use master plan and the annual district-level land use plan are available, land users for whom the land use purposes are to be changed or whose land is to be expropriated in accordance with the plans may continue exercising the rights of land users, but may not build new houses or construction works or plant perennial crops. They shall apply for permission from competent state agencies before repairing or renovating existing houses or construction works.

As regulations above, in your case, If the land use master plan has been publicized but the annual district-level land use plan is not yet available, land users may continue using land and exercise the rights of land users as prescribed by law. Therefore, you can mortgage this land.

What are oligations of mortgagor regarding mortgage of a land which is indicated in land use plan at the banks in Vietnam?

Pursuant to Article 320 of the Civil Code in 2015 stiput obligations of mortgagor in Vietnam as follows:

1. Transfer documents related to the mortgaged property, unless otherwise agreed or prescribed by law.

2. Take care of and preserve the mortgaged property.

3. If the mortgaged property is in danger of losing its value or depreciating in value due to its exploitation, to take necessary remedial measures, including ceasing the exploitation of the mortgaged property.

4. When the mortgaged property is damaged, the mortgagor is obligated to, within a reasonable period, repair or substitute another property with equivalent value, unless otherwise agreed.

5. Provide information about the actual condition of the mortgaged property to for the mortgagee.

6. Deliver the mortgaged property to the mortgagee for realization in one of the cases prescribed in Article 299 of this Code.

7. Notify the mortgagee of any third person rights with respect to the mortgaged property (if any). In the case of failure to provide such notice, the mortgagee shall have the right to cancel the contract of mortgage of property and demand compensation for damage or the right to maintain the contract and agree on the rights of the third person with respect to the mortgaged property.

8. Do not sell, exchange or give the mortgaged property, except in the cases provided in Clauses 4 and 5 of Article 321 of this Code.

Best regards!