Vietnam: Land expropriation due to failure to fulfill financial obligations

Land expropriation against a land user's non-fulfillment of obligations to the government shall proceed if the land user does not or has not fulfilled the payment of the land use fee or land rent as per the laws and then oppose competent government authorities' coercion of financial obligations.

Moreover, Decree No. 01/2017/ND-CP of Vietnam’s Government also specifies land expropriation against termination of investment project as follows:

If the government allocates an area of land and charges the land use fee or leases the area of land and collects the rent in lump sum for the entire duration of the lease, land expropriation proceeds as follows:

- The investor can continue using the land area in 24 months from the date that the investment project terminates pursuant to the legislation on investment;

- In 24 months from the date of termination of the investment project as per regulations, the investment can transfer the land use right and sell legitimate properties on the land area to another investor as per the laws.

- If the investor fails to transfer the land use right and sell its legitimate properties on the land area to another investor after the 24-month extension of land use, the government shall expropriate the land area pursuant to Point i, Clause 1, Article 64 of the Land Law.

If the government leases the land area and collects the rent on annual basis, land expropriation shall proceed in the following manner:

- The investor can continue using the land area in 24 months from the date that the investment project terminates pursuant to the legislation on investment;

- In 24 months from the date of termination of the investment project as per regulations, the investment can sell legitimate properties on the land area to another investor as per the laws.

The government shall expropriate the land area from the seller of the properties on the land area and lease it to the buyer of such properties;

- If the investor fails to sell its legitimate properties on the land area to another investor after the 24-month extension of land use, the government shall expropriate the land area pursuant to Point i, Clause 1, Article 64 of the Land Law.

More details can be found in Decree No. 01/2017/ND-CP of Vietnam’s Government, which takes effect from March 03, 2017.

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