What are conditions for individuals to change land use purpose to implement investment projects in Vietnam?

What are conditions for individuals to change land use purpose to implement investment projects in Vietnam?

Pursuant to Article 58 of the 2013 Land Law, which stipulates conditions for land allocation, land lease and change of land use purpose to implement investment projects as follows:

1. For investment projects that use paddy land or land for protection forests or land for special- use forests for other purposes and are other than those to be decided by the National Assembly or approved in principle by the Prime Minister, competent state agencies may only decide on land allocation or land lease or permit change of land use purpose when one of the following documents is available:

a/ The written approval by the Prime Minister for change of land use purpose for the paddy land with an area of 10 ha or more, and for protection forest or special-use forest with a land area of 20 ha or more;

b/ The resolution of the provincial-level People’s Council for change of land use purpose for the paddy land with an area less than 10 ha, and for protection forest or special-use forest with a land area less than 20 ha.

2. For investment projects which use land on islands or in border or coastal communes, wards or townships, competent state agencies may only decide on land allocation, land lease or change of land use purpose upon receiving written approval from related ministries and agencies.

3. Those who are allocated land or leased land by the State, or permitted by the State to change land use purpose to implement investment projects must meet the following conditions:

a/ Having financial capacity to ensure the land use according to the investment project’s schedule;

b/ Paying a deposit in accordance with the investment law;

c/ Not violating the land law if they are implementing other projects on the state-allocated or -leased land.

4. The Government shall detail this Article.

As such, if you are an individual changing the purpose of land use to implement an investment project, you must have the conditions of financial capacity, deposit, and not violate the land law as prescribed above in Vietnam. 

Where do individuals have to apply for permission to change land use purposes to implement commercial investment projects in Vietnam?

According to Article 59 of the 2013 Land Law, competence to allocate, lease land and approve change of land use purpose is as follows:

1. Provincial-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:

a/ Allocation or lease of land to, and permission for change of land use purpose for, organizations;

b/ Allocation of land to religious institutions;

c/ Allocation of land to overseas Vietnamese or foreign-invested enterprises under Clause 3, Article 55 of this Law;

d/ Lease of land to overseas Vietnamese or foreign-invested enterprises under Points e and f, Clause 3, Article 56 of this Law;

2. District-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:

a/ Allocation or lease of land to, and permission of change of land use purpose for, households and individuals. If these subjects wish to lease or use agricultural land with an area of 0.5 ha or more for trading and service purposes, written approval from the provincial-level People’s Committee is required before the district-level People’s Committee makes decision;

b/ Allocation of land to communities.

3. Commune-level People’s Committees may lease land from the agricultural land fund for public purposes in their communes, wards or townships.

4. Agencies having the competence to decide on land allocation or lease and permit change of land use purpose as prescribed in Clauses 1 and 2 of this Article may not delegate their competence.

According to this Article, if you are an individual who wants to change the purpose of agricultural land use for commercial investment in Vietnam, you must obtain permission from the District-level People’s Committees. With an area of 0.5 ha or more, the written approval of the Provincial-level People’s Committees must be obtained before making a decision.

What are cases in which change of land use purpose requires permission by competent state agencies in Vietnam?

Article 57 of the 2013 Land Law stipulates change of land use purpose as follows:

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.

2. When changing the land use purpose under Clause 1 of this Article, land users shall fulfill financial obligations as prescribed by law. The land use regime and the rights and obligations of land users are those applicable to the type of the land used for the new purpose.

Thus, the cases of changing the land use purpose must be permitted by the competent state agency specified above in Vietnam.

Best Regards!