What are procedures for preparation and organization of a land use right (LUR) auction in 2024 in Vietnam?

What are procedures for preparation and organization of a land use right (LUR) auction in 2024 in Vietnam?

Pursuant to Clause 1 Article 229 of the Law on Land in 2024 stipulating procedures for land allocation or land lease through LUR auctions:

Procedures for land allocation or land lease through LUR auctions

1. A LUR auction is prepared and organized as follows:

a) The unit being assigned to manage the land bank shall prepare an LUR auction arrangement and submit it to the competent authority for approval;

b) The unit assigned to organize the LUR auction shall prepare documents of the land zone, land parcel being auctioned and send them to the land authority for submission to the competent People's Committee which will issue a LUR auction decision;

c) The land authority shall organize the determination of starting price of the land zone or land parcel being auctioned, submit it to the competent People's Committee for approval;

d) At the request of the land authority, the competent People's Committee shall issue a LUR auction decision;

dd) The unit assigned to organize the LUR auction shall select and sign a land lease contract with the unit or organization conducting the LUR auction.

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As regulated above, a LUR auction is prepared and organized as follows:

Step 1: The unit being assigned to manage the land bank shall prepare an LUR auction arrangement and submit it to the competent authority for approval;

Step 2: The unit assigned to organize the LUR auction shall prepare documents of the land zone, land parcel being auctioned and send them to the land authority for submission to the competent People's Committee which will issue a LUR auction decision;

Step 3: The land authority shall organize the determination of starting price of the land zone or land parcel being auctioned, submit it to the competent People's Committee for approval;

Step 4: At the request of the land authority, the competent People's Committee shall issue a LUR auction decision;

Step 5: The unit assigned to organize the LUR auction shall select and sign a land lease contract with the unit or organization conducting the LUR auction.

What are procedures for preparation and organization of a land use right (LUR) auction in 2024 in Vietnam? - image from internet

What are conditions for conducting LUR auctions in Vietnam?

Pursuant to Clause 2 Article 125 of the Law on Land in 2024, conditions for conducting LUR auctions include:

- Land must have been expropriated and the recompense, support or resettlement provision has been completed or the recompense, support or resettlement provision is not required; there must be connected transport infrastructure within the project areas;

- Land must be included in the approved district-level annual land use plans and be used for auctioning LURs, except for LUR auction of the land expropriated and allocated by the State to land bank development organizations for management;

- There must be detailed planning at the scale of 1/500 that has been developed and approved by competent regulatory agencies for investment projects on construction of housing;

- There must be LUR auction arrangements that have been approved by competent authorities.

What are cases in which the People’s Committees of first-level administrative divisions shall grant permission for land repurposing in Vietnam?

Pursuant to Clause 1 Article 123 of the Law on Land in 2024 stipulating authority to allocate land, lease out land or grant permission for land repurposing:

Authority to allocate land, lease out land or grant permission for land repurposing

1. The People’s Committees of first-level administrative divisions shall issue decisions to allocate land, lease out land or grant permission for land repurposing in the following cases:

a) Allocating land, leasing out land or granting permission for land repurposing to Vietnamese organizations;

b) Allocating land or leasing out land to religious organizations or affiliated religious organizations;

c) Allocating land or leasing out land to persons of Vietnamese descent residing overseas or foreign-invested business organizations;

d) Leasing out land to foreign diplomatic organizations.

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As regulated above, the People’s Committees of first-level administrative divisions shall grant permission for land repurposing in the following cases:

- Allocating land, leasing out land or granting permission for land repurposing to Vietnamese organizations;

- Allocating land or leasing out land to religious organizations or affiliated religious organizations;

- Allocating land or leasing out land to persons of Vietnamese descent residing overseas or foreign-invested business organizations;

- Leasing out land to foreign diplomatic organizations.