Do people have the right to choose method of land rental payment in Vietnam?

Do people have the right to choose method of land rental payment in Vietnam? (Internet image)

1. Do people have the right to choose method of land rental payment in Vietnam?

According to Article 172 of the Land Law 2013, the right to choose method of land rental payment is as follows:

- Economic organizations, self-financed public non-business organizations, households, individuals, overseas Vietnamese and foreign-invested enterprises specified in Clause 1, Article 56 of the Land Law 2013 may choose between the form of annual rental payment or full one-off rental payment for the entire lease period.

- Economic organizations, self-financed public non-business organizations, households, individuals, overseas Vietnamese and foreign-invested enterprises that are leasing land from the State with annual rental payment may change to the form of full one-off rental payment for the entire lease period. The specific land price used for determination of land rental must be re-determined in accordance with the Land Law 2013 at the time the decision on approval of the change to the form of full one-off rental payment for the entire lease period is issued.

Thus, according to the above regulations, the land lessee may choose between the form of annual rental payment or full one-off rental payment for the entire lease period.

2. Forms of land rent payment in Vietnam

Article 56 of the Land Law 2013 stipulates land lease as follows:

(i) The State may lease land and collect an annual land rental or full one-off rental for the entire lease period in the following cases:

- Households and individuals that use land for the purpose of agriculture, forestry, aquaculture or salt production;

- Households and individuals that need to further use agricultural land that exceeds the land allocation quotas prescribed in Article 129 of this Law;

- Households and individuals that use land for trading and services, mining activities, production of construction materials, production of ceramic products, and non-agricultural production establishments;

- Households and individuals that use land for construction of public facilities for commercial purpose;

- Economic organizations, overseas Vietnamese and foreign-invested enterprises that use land to implement investment projects in agriculture, forestry, aquaculture or salt production, for non-agricultural business and production purpose, for construction of public facilities for commercial purpose, and for implementation of investment projects on houses for lease;

- Economic organizations, self-financed public non-business organizations, overseas Vietnamese and foreign-invested enterprises that use land for construction of non-business facilities;

- Foreign organizations with diplomatic functions that use land to build offices.

(ii) The State may lease land to and collect annual rentals from people’s armed forces units for the purpose of agriculture, forestry, aquaculture or salt production, or in combination with national defense or security tasks.

Thus, there are two forms of land rent payment: annual rental payment or full one-off rental payment for the entire lease period.

3. General obligations of land users in Vietnam

Pursuant to Article 170 of the Land Law 2013, the general obligations of land users are stipulated as follows:

- To use the land for proper purposes, in accordance with the land parcel boundaries, in compliance with regulations on use of the depth beneath and the space above the parcel while protecting underground public facilities and in accordance with other relevant laws.

- To declare and register land; to complete all related procedures upon exchange, transfer, lease, sublease, inheritance, donation of land use rights; mortgage or contribution of land use rights as capital in accordance with law.

- To fulfill financial obligations in accordance with law.

- To take measures to protect the land.

- To comply with regulations on environmental protection and not to cause damage to the lawful benefits of related land users.

- To comply with the law on discovery of underground objects.

- To return the land upon the State’s decision on land expropriation or at the expiry of the land use term without being permitted to extend the land use term.

Nguyen Ngoc Que Anh

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