New: Land handling plan when the public non-business unit is converted into a joint stock company in Vietnam

According to Article 11 of the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, before the competent authority decides to announce the value of the public non-business unit, the land use plan of the converted public non-business unit must be approved.

Thus, the public non-business unit must develop a land use plan suitable to:

- The plan on arrangement and handling of housing and land has been approved by the competent authority;

- Land use plans have been approved and announced;

- The field of public non-business service provision of the unit.

Note: Provincial People's Committees are responsible for monitoring land use after conversion of public non-business units. In case after the conversion, the joint-stock company no longer needs to use the land for the right purpose upon conversion, it shall handle it according to the provisions of the law on land.

Concurrently, land use forms of the converted public non-business unit are stipulated as follows:

- For the land area of public non-business units that are currently leasing land with annual payment, they may continue to perform land lease with annual payment;

- For the land area that has been leased land with one-off payment by the State, land allocated by the State without collection of land use levy or with collection of land use levy, the land transferred by a public non-business unit shall be public non-business units change to the form of land rental with annual payment.

View more details at the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, effective from February 15, 2021.

Ty Na

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