In fact, there are many projects in which lands have been allocated or leased by the state for implementation but are still vacant, which has greatly affected people living in the area. To overcome this situation, Law amendments to Construction Law 2020 of Vietnam has allowed people to build houses on the suspended planning land.
“Suspended planning” can be known as the status of the land area that has been determined by a competent state agency, recorded in the land use plan for one or more different purposes, and has been announced to be acquired for the implementation of the plan but still fails to comply with the schedule and plan.
According to Clause 5 Article 94 of the Construction Law 2014 of Vietnam, for works or separate houses located in areas with construction zoning plans approved by competent state agencies for which district-level annual land use plans have been issued, no new construction permits with definite terms but only construction permits with definite terms for repair and renovation shall be granted. According to this provision, people are not permitted to build new separate houses in areas with construction zoning plans, while repair and renovation are permitted in case having the construction permits.
However, the fact that suspended planning has been appearing a lot and persists for many years, which has greatly affected people living in the area when they want to repair and rebuild their houses. To resolve this situation, according to Point i Clause 1 Article 64 of the Land Law 2013 of Vietnam, land that is allocated or leased for implementing investment projects is not used within 12 consecutive months, or the land use schedule is 24 months late compared with the schedule stated in the project documents since the hand-over in the field. In case of not putting the land into use, the land use term may be extended 24 months and the investors shall pay a sum of money equivalent to the total land use levy or land rental for the delayed period. If the investors still fail to put the land into use when the extended time is over, the State shall recover the land without compensation for land and land-attached assets, except due to force majeure. Despite the provisions of 4 years of land use schedule, and the State will recover the land if the investors still fail to put the land into use when the extended time is over, there are still many projects left vacant for decades. It can be seen that this provision is not applicable in practice.
In order to overcome this situation, the Law amendments to Construction Law 2020 of Vietnam (officially effective from January 01, 2021) provides the following amendments and supplements:
After 03 years from the date of announcement of a district-level annual land use plan, if a competent state agency issues no land appropriation decision or gives no approval for change of land use purposes according to the published district-level annual land use plan but fails to adjust or abrogate the district-level annual land use plan, or fails to publish the adjustment or abrogation of the district-level annual land use plan, land users may apply for definite-term construction permits according to the provisions in Clause 2 and Clause 3 of this Article.
Thus, from 2021, the Law amendments to Construction Law 2020 of Vietnam allows land users to apply for definite-term construction permits in suspended planning land if, after 3 years, the land is still under planning but the competent authority land has not been acquired for project implementation.
Thuy Tram
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- Law amendments to Construction Law 2020