Where Can Enterprises Mortgage Land?
According to the provisions of the current law, land users are entitled to perform the rights of exchanging, transferring, leasing, sub-leasing, inheriting, gifting, mortgaging, and contributing capital using land use rights as prescribed in the Land Law 2013.
Under the regulations of the Land Law 2013, land users include organizations, individuals, households, etc., who are allocated land, leased land, recognized for land use rights, or receive the transfer of land use rights by the State according to the provisions of the Land Law 2013.
In this context, organizations (including domestic organizations and foreign organizations with diplomatic functions) may be granted land use rights by the State to land users through the following forms: land allocation without land levy, land allocation with land levy; land lease with annual land rent, land lease with one-time payment for the entire lease term; or recognition of land use rights.
According to the provisions of Clause 1 Article 167 of the Land Law 2013, land users are entitled to perform the rights of exchanging, transferring, leasing, sub-leasing, inheriting, gifting, mortgaging, and contributing capital using land use rights as prescribed in the Land Law 2013.
Thus: Based on the regulations cited above, organizations are lawfully permitted to mortgage their land use rights according to the provisions of the law.
At Point d Clause 2 Article 174 of the Land Law 2014, it is stipulated:
"Article 174. Rights and obligations of organizations allocated land by the State with land levy, leased land with one-time land rent payment for the entire lease term
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2. Economic organizations that are allocated land by the State with land levy or leased land with one-time rent payment for the entire lease term, besides the rights and obligations stipulated in Clause 1 of this Article, also have the following rights:
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d) Mortgage with land use rights, assets owned attached to the land at credit institutions authorized to operate in Vietnam;"
Therefore: Based on the regulations cited above, domestic organizations (including economic organizations) are allowed to mortgage their land use rights with credit institutions authorized to operate in Vietnam.
Consequently, domestic organizations are not permitted to mortgage their land use rights with other organizations or individuals not authorized as credit institutions operating in Vietnam.
=> Therefore: Regarding the case you provided, your enterprise, allocated land by the State with land levy and has been granted a land use right certificate, is only allowed to mortgage its lawful land use rights in this instance at credit institutions authorized to operate in Vietnam, such as commercial banks or branches of foreign banks in Vietnam, etc.
The above constitutes our advisory opinion concerning the issues you are concerned with.
Sincerely!
