Additional rights and obligations to use land for the construction of aerial works in Vietnam

Additional rights and obligations to use land for the construction of aerial works in Vietnam are specified in the Draft Law on amendments to Land Law.

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Additional rights and obligations to use land for the construction of aerial works in Vietnam (Internet image)

Draft Law on amendments to Land Law

Rights and obligations to use land for construction of underground and aerial works in Vietnam

Economic organizations that are allocated or leased land by the state to invest in the construction of underground and aerial works have the following rights and obligations:

Cases of land allocation without a land use levy in Vietnam

In the case of land allocation without the collection of a land use levy, they have the rights and obligations specified in Article 34 of the draft law.

According to Article 34, domestic organizations that are allocated land by the state without paying a land use levy have the general rights and obligations specified in Articles 27 and 31 of the draft law.

Domestic organizations that are allocated land by the state without paying a land use levy have no right to exchange, transfer, donate, or lease land use rights; mortgage or contribute capital with land use rights; or be compensated for land when the state recovers the land.

Cases of a land lease, a one-time payment of land rental for the entire lease period in Vietnam

In the case of a land lease with a one-off rental payment for the entire lease period, they have the same rights and obligations as economic organizations, as specified in Clauses 1, 2, and 4 and Article 35 of the draft law.

Specifically, economic organizations that are allocated land by the state with a land use levy or lease land with a one-off rental payment for the entire lease period have the general rights and obligations specified in Articles 27 and 31 of the draft law.

Economic organizations that are allocated land by the state with the collection of a land use levy or lease land with a one-off rental payment for the entire lease period, in addition to the above-said rights and obligations, also have the following rights:

Transfer of land use rights and assets under their ownership attached to land; leasing land use rights and assets under their ownership attached to land in the case of land allocation by the state with the collection of a land use levy; subletting land use rights and assets under their ownership attached to land in case the state leases land with a one-off rental payment for the entire lease period; donating land use rights to the state; donating land use rights to residential communities for the construction of works serving the common interests of the community; and donating gratitude houses attached to the land according to the provisions of law

Besides, mortgage with land use rights and assets under their ownership attached to land at credit institutions licensed to operate in Vietnam, at other economic organizations or individuals as prescribed by law; contribute capital with land use rights and assets under their ownership attached to land for production and business cooperation with organizations and individuals; and invest overseas in Vietnamese and foreign-invested economic organizations as prescribed by law.

A domestic organization that is allocated land by the state with the collection of land use levy or leases land with a one-off rental payment for the entire lease period but is exempted or reduced from land use levy or land rent shall
has the following rights and obligations:

In case land is allocated or leased by the state for the implementation of housing construction and business projects and is exempted or reduced from land use levy or land rent, the landowner has rights and obligations as prescribed by the land law, such as in the case of not being exempted or not being entitled to a reduction of land use levy or land rent.

In case the state allocates or leases land to implement an investment project for profit purposes other than the cases specified at Point a of this Clause but is exempted or reduced from land use levy or land rent, it has rights and obligations as prescribed by the land law, such as in the case of not being exempted from or not entitled to a reduction of land use levy or land rent. In cases of exemption from land use levy or land rent, when exercising the right to transfer or mortgage land use rights, an amount of money must be paid to the state corresponding to the period of land use levy or land rent exemption.

Case of a land lease with an annual land rental payment in Vietnam

In the case of a land lease with an annual rental payment, they have the same rights and obligations as economic organizations, as specified in Clause 1 and Article 36 of the draft law.

Specifically, according to Clause 1 of Article 36, economic organizations that are leased land by the State with an annual rental payment have the following rights and obligations:

General rights and obligations specified in Articles 27 and 31 of the draft law: mortgage assets under their ownership attached to land and lease rights in land lease contracts at credit institutions licensed to operate in Vietnam; sell or lease properties under their ownership attached to land and the right to lease in the land lease contract when fully meeting the conditions specified in Article 49 of the draft law; the purchaser of property on land and the lessee under the land lease contract may continue to use the land according to the defined purpose.

 

In addition, contribute capital with their own assets attached to the leased land; the recipient of capital contribution with the property shall continue to lease the land from the state according to the defined purpose; sublease land use rights in the form of annual land rental payments for land with completed infrastructure construction in the event that investment in the construction and business of infrastructure is permitted for land in industrial parks, industrial clusters, export processing zones, and hi-tech parks.

Chau Thanh

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