When can land users exercise their capital contribution rights through land use rights in Vietnam?

What is capital contribution by land use rights?

Based on Clause 22, Article 3 of Land Law 2024, it is defined as follows:

Interpretation of terms

In this Law, the terms below are construed as follows:

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22. Capital contribution by land use rights is an agreement between parties regarding the transfer of land use rights through the contribution of land use rights to form the charter capital of an economic organization, including capital contribution for the establishment of an economic organization or additional capital contribution to the charter capital of an established economic organization.

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According to this Article, capital contribution by land use rights is an agreement between parties regarding the transfer of land use rights through the contribution of land use rights to form the charter capital of an economic organization.

Capital contribution by land use rights includes capital contribution for the establishment of an economic organization or additional capital contribution to the charter capital of an established economic organization.

When can land users exercise their capital contribution rights through land use rights in Vietnam? (Image from the Internet)

When can land users exercise their capital contribution rights through land use rights in Vietnam?

Based on Article 45 of Land Law 2024, the conditions for land users to contribute capital by land use rights are as follows:

Conditions for exercise of the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights; to contribute land use rights as capital; receive transfer, receive donation of land use rights

1. Land users are entitled to exercise the rights to exchange, transfer, lease, sublease, inherit, donate or mortgage land use rights; to contribute land use rights as capital when they meet the following conditions:

a) The land has a Certificate of land use rights or a Certificate of ownership of residential houses and land use rights or a Certificate of land use rights, ownership of residential houses and other assets attached to land or a Certificate of land use rights, ownership of assets attached to land, except for cases of inheriting land use rights, converting agricultural land when consolidating fields, changing parcels, donating land use rights to the State, the community and cases specified in Clause 7 of Article 124 and Point a, Clause 4 of Article 127 of this Law;

b) The land is not in dispute or any dispute has been resolved by competent state agencies, judgments, decisions of courts, decisions or awards of arbitrators that have legal effect;

c) The land use rights are not encumbered, applying other measures to ensure the enforcement of judgments as prescribed by law on civil enforcement;

d) Within the land use term;

e) The land use rights are not subject to temporary urgent measures as prescribed by law.

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Therefore, land users can exercise the right to contribute land use rights as capital when they meet the following conditions:

- The land has a Certificate of land use rights or equivalent certificates, except for cases of inheriting land use rights, converting agricultural land when consolidating fields, changing parcels, donating land use rights to the State, the community and households, individuals using land without being granted a Certificate of land use rights;

- The land is not in dispute or any dispute has been resolved;

- Not being encumbered, applying other measures to ensure the enforcement of judgments;

- Within the land use term;

- The land use rights are not subject to temporary urgent measures.

What are the general obligations of land users in Vietnam?

Based on Article 31 of Land Law 2024, land users have the following general obligations:

- Using land for the right purpose, within the boundaries of the land parcel, complying with regulations on the depth of land use and the height above ground, protecting public works within the land and complying with other relevant provisions of the law.

- Carrying out land registration; fulfilling the procedures for conversion, transfer, lease, sublease, inheritance, donation of land use rights, mortgage, capital contribution by land use rights as prescribed by law.

- Fulfilling financial obligations regarding land as prescribed by law.

- Implementing measures to protect land; handling, renovating and restoring land in areas polluted, degraded by themselves.

- Complying with environmental protection regulations, not causing damage to the legitimate assets and interests of related land users.

- Complying with the provisions of the law regarding the discovery of objects within the land.

- Returning the land when the State decides to revoke the land as prescribed by law.

Note: Land Law 2024 takes effect from January 1, 2025. Only Article 190 of Land Law 2024 and Article 248 of Land Law 2024 take effect from April 1, 2024.

Best Regards!