Upcoming in Vietnam: Land allocation, land lease shall be mainly through auction of land use right

Currently, the auction of land use rights when the State allocates or leases land is prescribed in Article 118 of Vietnam's Land Law 2013 as follows:

* The State shall allocate land with land use levy or lease land through auction of land use rights (except the cases prescribed in Clause 2 of this Article) in the following cases:

- Investment in construction of houses for sale or for lease or for lease-purchase;

- Investment in construction of infrastructure for transfer or for lease;

- Use of land fund to create capital for infrastructure construction;

- Use of land for trading or services, and land for non-agricultural production establishments;

- Lease of land which is part of agricultural land fund for public purposes for agriculture, forestry, aquaculture or salt production;

- Allocation or lease of land recovered by the State through rearrangement and handling of working offices, non-business establishments, or production or business establishments of which the land-attached assets are owned by the State;

- Allocation of urban and rural residential land to households or individuals;

- Allocation or lease of land in the cases eligible to land use levy or land rental reduction.

* Cases not subject to auction of land use rights upon land allocation and land lease by the State:

- Land allocation without land use levy;

- Use of land for which land use levy or land rental is exempted as prescribed in Article 110 of Vietnam's Land Law 2013;

- Use of land as prescribed at Points b and g, Clause 1, and in Clause 2, Article 56 of Vietnam's Land Law 2013;

- Use of land for mining activities;

- Use of land for implementation of projects on construction of resettlement housing, social housing or public-duty housing;

- Land allocation to cadres, civil servants and public employees who change offices under transfer decisions of competent agencies;

- Allocation of residential land to households or individuals that have permanent residence status books in a commune but have no residential land and have not been allocated residential land by the State;

- Allocation of residential and to households of individuate that have permanent residence status books in a township in an area with difficult socio-economic conditions or with especially difficult socio-economic conditions but have no residential land and have not been allocated residential land by the State;

- Other cases as decided by the Prime Minister of Vietnam