Implementation of the Land Law 2024 regarding management and use of public property in Vietnam

Implementation of the Land Law 2024 regarding management and use of public property in Vietnam

Land Law 2024 comes into effect in Vietnam from August 1, 2024; wherein, it stipulates certain contents related to the management and use of public property in Vietnam.

To promptly implement the management and use of public property, ensuring compliance with land law provisions and avoiding errors and violations, the Ministry of Finance requests Ministries, ministerial-level agencies, agencies under the Government of Vietnam, other central agencies, and People’s Committees of provinces and centrally-run cities to pay attention to directing and fully implementing the provisions of the Land Law 2024 and detailed guiding documents in the management and use of public property; particularly regarding policies for the use of public service provider land as follows:

- Public non-business units using land for the construction of public works shall be allocated land by the State without land levy for stable, long-term use; in cases where they are allocated land without land levy and have a need to use a portion or the entire area of the allocated land for production, business, or service provision, they may opt to switch to the form of leasing land from the State with annual land rent for that portion of the land.

- Public non-business units leasing land from the State with a one-time payment for the entire lease term to invest in building and operating industrial infrastructure complexes or clusters shall have the same rights and obligations as economic organizations leasing land from the State with a one-time payment for the entire lease term.

- Public non-business units leasing land from the State with annual land rent not for constructing and operating industrial infrastructure complexes as stipulated in Clause 2, Article 202 of the Land Law 2024 shall have the same rights and obligations as economic organizations leasing land from the State with annual land rent, except for the rights to sell, mortgage, contribute capital with land-attached property, and the right to sublease in land lease contracts; they shall also be entitled to land rent exemptions and reductions as prescribed at Point d, Clause 1, Article 157 of the Land Law 2024. The exploitation and use of leased land for other purposes shall comply with the following provisions:

+ For public service provider land leased by the State, they are allowed to autonomously exploit and use the land for multipurpose uses according to a plan approved by the managing agency, in compliance with the Land Law 2024 and other relevant laws; in cases of investing in construction on the land, it must comply with construction laws. The exploitation and use of land for multiple purposes must be recorded in accordance with the law;

+ For land used by public service providers that need to lease, form joint ventures, or associate with economic organizations, a proposal for using the public asset for leasing, joint venture, or association must be approved by the competent authority in accordance with the law on management and use of public property.

- Public non-business units allocated land without land levy or leasing land from the State before the Land Law 2024 comes into effect shall continue to use the land for the remaining land use term according to the form of land allocation or lease. If there is a need, they may switch to the form of land allocation or lease according to the Land Law 2024.

More details can be found in Official Dispatch 8288/BTC-QLCS issued on August 7, 2024.

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