Determination of Land Levy, Land Rent in the Marine Reclamation Investment Project from April 16, 2024

Determining land levy and land rent in sea reclamation investment projects from April 16, 2024 (Image from the internet)

Regarding this issue, LawNet provides the following explanation:

On April 16, 2024, the Government of Vietnam promulgated Decree 42/2024/ND-CP on sea reclamation activities.

Determining land levy and land rent in sea reclamation investment projects from April 16, 2024

Accordingly, Article 9 of Decree 42/2024/ND-CP stipulates the determination of land levy and land rent as follows:

- The specific land price to calculate land levy and land rent shall be determined according to the provisions of the land law. In cases where the surplus method is applied to determine the specific land price, the estimated total development cost must include the sea reclamation cost approved by the competent state authority as specified in Article 6 of Decree 42/2024/ND-CP;

In cases where the total development cost exceeds the total development revenue, the difference is included in the cost of the sea reclamation investment project or the investment project that has a sea reclamation component.

- Within no more than 180 days from the completion date of sea reclamation, the investor of the sea reclamation investment project or the investment project that has a sea reclamation component must prepare a dossier requesting the settlement of sea reclamation costs and submit it to the specialized construction agency under the provincial People's Committee for evaluation.

Within no more than 90 days from the date of receiving the complete settlement dossier from the investor, the specialized construction agency under the provincial People's Committee shall settle the sea reclamation costs and submit them to the provincial People's Committee for approval.

- The handling of the difference between the settled sea reclamation costs and the sea reclamation costs included in the total development cost when determining the specific land price, in cases where the surplus method is applied (hereinafter referred to as the difference), shall be carried out as follows:

+ If the settled sea reclamation costs are less than the sea reclamation costs included in the total development cost, the investor must pay the difference;

+ If the settled sea reclamation costs exceed the sea reclamation costs included in the total development cost, the difference is included in the cost of the sea reclamation investment project or the investment project that has a sea reclamation component.

Investment policy decision, investment policy approval, investor selection for investment projects that involve sea reclamation activities

The investment policy decision, investment policy approval, and investor selection for investment projects that involve sea reclamation activities are stipulated in Article 5 of Decree 42/2024/ND-CP as follows:

- The investment policy approval and investment policy decision for investment projects that involve sea reclamation activities shall be carried out according to the provisions of the law on investment, public investment, and investment in the form of public-private partnership.

- The selection of investors to implement investment projects that involve sea reclamation activities using non-state budget capital shall be carried out according to the provisions of the law on investment, bidding, land, and investment in the form of public-private partnership.

- Sea reclamation activities in investment projects that involve sea reclamation are established as a sea reclamation investment project or a sea reclamation component of the investment project as specified in Article 6 of Decree 42/2024/ND-CP.

Nguyen Ngoc Que Anh

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