Regulations on the management and exploitation of short-term land banks in Vietnam from August 1, 2024

Regulations on the management and exploitation of short-term land banks in Vietnam from August 1, 2024 (Image from the Internet)

On July 30, 2024, the Government of Vietnam issued Decree 102/2024/ND-CP guiding the Land Law 2024.

Regulations on the management and exploitation of short-term land banks in Vietnam from August 1, 2024

According to the provisions of Article 43 of Decree 102/2024/ND-CP, the management and exploitation of short-term land banks in Vietnam are as follows:

- Based on the land funds, assets attached to the land allocated by the State for management, the land fund development organization can lease the land area and assets attached to the land (if any) according to the following principles:

+ The lease must be established by contract, determining the temporary land lease corresponding to the land use purpose as stipulated in Article 9 of the Land Law 2024 and the provisions of Articles 4, 5, and 6 of Decree 102/2024/ND-CP. The lessee is not required to carry out land registration and will not be issued a Certificate;

+ The lease term shall not exceed 05 years. During the contract term, if the State implements the land use plan, the contract must be liquidated without compensation or support for invested assets on the land. Before contract liquidation, the land fund development organization must notify the lessee at least 60 days in advance.

- The starting price for land leases is determined by the Chairman of the People's Committee with the authority to lease the land.

- Money from land lease and assets attached to the land is calculated into revenue and accounted for in accordance with legal provisions for public service providers.

- Organizations and individuals leasing the land are not allowed to construct permanent structures and must commit to voluntarily dismantle structures when notified by the land fund development organization about contract termination, and will not receive compensation for land, assets, and investment costs into the land. These organizations and individuals must submit a deposit for the responsibility of dismantling the structures.

- The land fund development organization is responsible for compiling a list of land areas and parcels capable of short-term exploitation, publicly announcing them on electronic portals, websites of the provincial People’s Committee, district People’s Committee where the land is located, and of the land fund development organization to select organizations and individuals applying for the land lease and proposing the highest lease price within no more than 30 days from the date of the announcement.

In cases where only one organization or individual applies for the land lease and proposes a lease price not lower than the starting price specified in Clause 2, Article 43 of Decree 102/2024/ND-CP, the land fund development organization will sign a land lease contract with that organization or individual.

If the 30-day period expires without any organization or individual applying for the land lease, the public announcement will be re-conducted as specified in Clause 5, Article 43 of Decree 102/2024/ND-CP.

- The short-term land lease specified in Article 43 of Decree 102/2024/ND-CP is not subject to land use rights auction, investment project bidding, and does not need to meet the requirements of conformity with the land use plan like land allocation or lease for investment project implementation.

- The provincial People's Committee shall specifically regulate the order and procedures for short-term land fund leases in the locality.

More details can be found in Decree 102/2024/ND-CP, which comes into force in Vietnam from August 1, 2024.

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