Can land transfer be associated with transfer of investment projects in Vietnam?

Can land transfer be associated with transfer of investment projects in Vietnam? What cases are subject to auction of land use right in Vietnam? 

My business is researching and planning to buy a land plot that is implementing a project (a housing project), I see that there is a regulation that the transfer of this project's land must be through a project transfer. So, can land transfer be be associated with transfer of investment projects? In what cases are auction of land use right allowed?

Please advise.

Can land transfer be associated with transfer of investment projects in Vietnam?

Pursuant to Article 42 of Decree 43/2014/ND-CP on conditions for transfer of land use rights associated with the transfer of part or the whole of investment projects on construction and trading of houses:

The transfer of land use rights associated with the transfer of part or the whole of investment projects on construction and trading of houses must satisfy the following conditions:

1. All the conditions prescribed in Clause 1, Article 188 of the Land Law;

2. The investors fulfill all financial obligations related to the projects’ land, such as land use levy and land rental; and land-related taxes, charges and fees (if any).

3. Transferees of land use rights associated with part or the whole of investment projects on construction and trading of houses conduct relevant business lines and satisfy the conditions prescribed in Article 58 of the Land Law and Articles 13 and 14 of this Decree.

According to this Article, when meeting the above conditions, you are entitled to transfer part or the whole of investment projects on construction associated with the transfer of the housing construction investment project in Vietnam.

What cases are subject to auction of land use right in Vietnam? 

According to Clause 1, Article 118 of the 2013 Land Law on cases subject to auction of land use rights and cases not subject to auction of land use rights, according to which:

1. The State shall allocate land with land use levy or lease land through auction of land use rights in the following cases, except the cases prescribed in Clause 2 of this Article:

a/ Investment in construction of houses for sale or for lease or for lease-purchase;

b/ Investment in construction of infrastructure for transfer or for lease;

c/ Use of land fund to create capital for infrastructure construction;

d/ Use of land for trading or services, and land for non-agricultural production establishments;

e/ Lease of land which is part of agricultural land fund for public purposes for agriculture, forestry, aquaculture or salt production;

f/ Allocation or lease of land expropriated by the State through rearrangement and handling of working offices, non-business establishments, or production or business establishments of which the land-attached assets are owned by the State;

g/ Allocation of urban and rural residential land to households or individuals;

h/ Allocation or lease of land in the cases eligible to land use levy or land rental reduction.

Best Regards!

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