Decree 10/2023/ND-CP amending Decrees on land available in Vietnam

Decree 10/2023/ND-CP amending Decrees on land available in Vietnam (Internet image)

Additional regulations on auctioning of rights to use the State’s assigned land subject to the land use levy, or the State’s leased land in Vietnam

According to Decree 10/2023/ND-CP, Article 17a added to Decree 43/2014/ND-CP on auctioning of rights to use the State’s assigned land subject to the land use levy, or the State’s leased land in Vietnam is as follows:

- In order to be eligible to attend an auction of land use right, an entity shall fully meet the following conditions:

+ They are categorized as one of the subjects of the State's assignment and lease of land as defined in Article 55 and 56 in the Land Law.

If a parcel of land, or a project sited at one or more parcels of land under cross ownership of two (02) or more companies as provided in laws on enterprises, is put up for auction, only one company is allowed to participate in that auction;

+ They have to meet the conditions specified in clause 3 of Article 58 in the Land Law, clause 2 and clause 3 of Article 14 of Decree 43/2014/ND-CP (amended in Decree 10/2023/ND-CP);

+ They have to pay a deposit which is 20% of total value calculated at the starting price of the parcel or the complex of parcels at auction before coming up for the auction of land use right;

+ They are not prohibited from attending the auction as prescribed in laws;

+ They have to meet the conditions defined in laws on housing and laws on real estate business in order to attend the auction of the right to use land for execution of housing and other real estate business projects.

- Conditions for eligibility of family households and individuals to attend auctions of land use rights:

+ They are categorized as one of the subjects of the State's assignment or lease of land according to the regulatory provisions of Article 55 and 56 in the Land Law, and meet the conditions specified in point c and point d of clause 1 of Article 17a of Decree 43/2014/ND-CP (amended in Decree 10/2023/ND-CP);

+ If a family household or individual attends an auction of the right to use land for execution of an investment project, the conditions specified in point a of this clause, point b and point dd of clause 1 of Article 17a of Decree 43/2014/ND-CP (amended in Decree 10/2023/ND-CP).

- Conditions of land put up for an auction, including:

+ The land at auction has to meet all requirements set out in clause 1 of Article 119 in the Land Law;

+ The starting price at which the right to use such land is auctioned is decided by a competent state authority;

+ The process of auctioning of land use right is applicable to a single parcel;

+ The cadastral map in 1:500 scale of the parcel used for execution of a housing construction project has been available with approval from a competent authority.

- When the winner of an auction is announced, an advance payment and interest (if any) are converted into a deposit that secures financial obligations that such auction winner must take on in the role of a land user.

If that auction winner does not pay or underpays the successful bid as stated in point d of clause 5 of Article 68 of Decree 43/2014/ND-CP (amended in Decree 10/2023/ND-CP), the auction winner shall not be entitled to their deposit refund.

If the auction winner overpays the required deposit, they shall be entitled to the refund of the overpayment in accordance with regulations.

Regulations on issuance of certificates of ownership of construction works attached to land with tourist accommodation establishments in Vietnam 

According to Clause 5, Article 32 of Decree 43/2014/ND-CP (amended in Decree 10/2023/ND-CP) has added regulations on granting certificates of ownership of construction works associated with land with tourist accommodation establishments as follows;

For construction works used for the purpose of tourist accommodation according to the provisions of the law on tourism on commercial and service land, if the conditions are satisfied as prescribed by the law on land, the law in terms of construction, and the law on real estate business, the owner of construction works attached to land shall be certified according to the purpose of commercial and service land use;

The land use term is specified in Clause 3, Article 126, and Clause 1, Article 128 of the Land Law. Owners of construction works are responsible before the law for their satisfaction of conditions as prescribed by the law on construction and the law on real estate business.

More details can be found in Decree 10/2023/ND-CP effective from May 20, 2023.

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