What are actions for winning the auction of land use rights but failing to pay in Vietnam?

What are actions for winning the auction of land use rights but failing to pay in Vietnam?

Pursuant to Article 25 of Decree 172/2024/ND-CP stipulating the forms of violation handling:

Article 25. Forms of violation handling

1. Successful bidders for land use rights in cases of land allocation, land lease for investment projects, mineral exploitation rights who violate the obligation to pay the winning bid, leading to the annulment of the decision to recognize the auction result, shall be prohibited from participating in auctions for that type of asset, depending on the nature and severity of the violation, as follows:

a) Prohibited from participating in auctions from 02 to 05 years in cases where the successful bidder does not pay the winning bid;

b) Prohibited from participating in auctions from 06 months to 03 years in cases where the successful bidder does not pay the full winning bid.

2. Within 10 days from the date of issuing the decision to annul the decision recognizing the auction result of land use rights in cases of land allocation, land lease for investment projects, mineral exploitation rights, the competent authority deciding the auction ban shall consider issuing a decision prohibiting the auction participation for the successful bidder for that type of asset according to the provisions in clause 1 of this Article.

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According to the above regulations, the successful bidder of the land use rights in cases of land allocation, land lease for investment projects, mineral exploitation rights not paying the winning bid leading to the annulment of the decision to recognize the auction result, depending on the nature and severity of the violation, shall be prohibited from participating in auctions for that type of asset as follows:

- Not paying the winning bid: Prohibited from participating in auctions from 02 to 05 years

- Not fully paying the winning bid: Prohibited from participating in auctions from 06 months to 03 years

What are actions for winning the auction of land use rights but failing to pay in Vietnam?​ (Image from the Internet)

What are the conditions to conduct an auction for land use rights in Vietnam?

Pursuant to Article 125 of the Land Law 2024 stipulating the allocation of land, leasing land through auction of land use rights:

Article 125. Allocation of land, leasing land through auction of land use rights

1. The State allocates land with land levy, leases land with one-time payment for the entire lease term through auction of land use rights in the following cases:

a) Investment projects using land from the land fund stipulated in clause 1, Article 217 of this Law, except for cases stipulated in Article 124 and Article 126 of this Law;

b) Allocating homestead land to individuals except for cases stipulated in Article 124 of this Law.

2. The conditions to conduct an auction for land use rights include:

a) Land has been reclaimed and compensation, support, resettlement completed or not subject to compensation, support, resettlement; within the project area where the transportation infrastructure has been connected;

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According to the above regulations, to proceed with an auction for land use rights, the following conditions must be met:

- Land has been reclaimed and compensation, support, resettlement completed or not required; within the project area where the transportation infrastructure has been connected

- Included in the annual district land use plan approved for the purpose of auctioning land use rights, except for auctions of land use rights for land reclaimed by the State and allocated to land development organizations

- Detailed 1/500 planning approved by the competent state authority for the residential construction investment project

- An auction plan for land use rights has been approved by the competent authority.

Is the starting price for the auction of land use rights in Vietnam based on the land price list?

Pursuant to Article 159 of the Land Law 2024 stipulating the land price list:

Article 159. Land price list

1. The land price list is applied for the following cases:

a) Calculating land levy when the State recognizes the homestead land use rights of households and individuals; changes the purpose of land use for households and individuals;

b) Calculating land rent when the State leases land with annual land rent;

c) Calculating land use tax;

d) Calculating income tax from transferring land use rights for households and individuals;

đ) Calculating fees in land management and use;

e) Calculating fines for administrative violations in the field of land;

g) Calculating compensation to the State when causing damage in land management and use;

h) Calculating land levy, land rent when the State recognizes land use rights in the form of land allocation with land levy, leases land with one-time payment for the entire lease period for households and individuals;

i) Calculating the starting price for auctioning land use rights when the State allocates land, leases land for cases where land parcel or land zone has been invested in infrastructure according to detailed construction planning;

k) Calculating land levy in cases of allocating land without going through auctioning land use rights for households and individuals;

l) Calculating land levy for selling state-owned houses to tenants.

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Pursuant to Article 160 of the Land Law 2024 stipulating specific land prices:

Article 160. Specific land prices

1. Specific land prices are applied for the following cases:

a) Calculating land levy for organizations when the State allocates land with land levy not through auction of land use rights, not through bidding to select an investor for a project using land, allocating land with land levy to the winning investor or economic organization established by the winning investor to implement a project using land, recognizing land use rights, allowing the conversion of land use purpose but must pay land levy;

b) Calculating land rent when the State leases land with one-time payment for the entire lease period, except for cases through auction of land use rights;

c) Calculating the value of land use rights when equitizing state-owned enterprises according to the law on equitization;

d) Determining the starting price for auctioning land use rights when the State allocates land, leases land, except for cases stipulated at point i, clause 1, Article 159 of this Law;

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According to the above regulations, the starting price to auction land use rights when the State allocates land, leases land will be based on the land price list in cases where the land parcel or land zone has been invested in infrastructure according to detailed construction planning.

For the remaining cases, the determination of the starting price for auctioning land use rights when the State allocates land, leases land shall apply the specific land price.