Guidance on resolving cases where the investors cannot reach an agreement with the land users to carry out socio-economic development projects in Vietnam

Guidance on resolving cases where the investors cannot reach an agreement with the land users to carry out socio-economic development projects in Vietnam (Internet image)

1. Guidance on resolving cases where the investors cannot reach an agreement with the land users to carry out socio-economic development projects in Vietnam

According to Article 61 of Decree 102/2024/ND-CP, the process for resolving cases where the investors cannot reach an agreement with the land users to carry out socio-economic development projects in Vietnam is as follows:

- When the deadline for completing the agreement stipulated in the approval document under Clause 4, Article 60 of Decree 102/2024/ND-CP has expired and the investor has not completed the agreement, an additional extension can be considered once, not exceeding the initial agreement completion time stated in the approval document, if the investor requests it.

- If the extension period under Clause 1, Article 61 of Decree 102/2024/ND-CP expires without completing the agreement, or if the investor does not request an extension, the following actions will be taken:

+ The investor may request to adjust the project scope to match the area where the agreement with the land user was completed. If the project meets the conditions for obtaining investment policy approval from the competent state authority, the provincial People's Committee will permit the project to proceed;

+ If the completed agreement area does not meet the conditions for project implementation, the agreement to acquire land use rights is terminated. The area where the investor completed the agreement to acquire land use rights is handled according to Clause 3, Article 61 of Decree 102/2024/ND-CP;

+ If the agreement to acquire land use rights for project implementation falls under the state's land recovery as stipulated in Point c, Clause 1, Article 127 of the Land Law 2024 and involves land allocation or lease without land use rights auction, and without a bid to select an investor for a project using land, the competent authority's People's Committee will recover the land to allocate or lease it to the investor.

- Handling of the land area where the investor completed the agreement to acquire land use rights, but the area is insufficient for project implementation, is as follows:

+ If the agreement to acquire land use rights for project implementation does not fall under the state's land recovery, the investor may continue to use the land for the remaining term or transfer the land use rights, or contribute capital with the land use rights;

+ If the agreement to acquire land use rights for project implementation falls under the state's land recovery as stipulated in Point c, Clause 1, Article 127 of the Land Law 2024 and involves land allocation or lease through land use rights auction or bidding to select an investor for a project using land, the competent authority's People's Committee will recover the land for land use rights auction or leasing to the winning investor of the project using land as per regulations. The area for which the investor completed the agreement to acquire land use rights will be compensated and supported by the state according to regulations;

+ If the agreement to acquire land use rights in the form of land lease does not meet the conditions for project implementation, the land lease contract will be terminated. The resolution of rights and obligations between the investor and the land user will be carried out according to civil law provisions.

2. Procedures for acquiring, leasing land use rights, and contributing capital with land use rights for carry out socio-economic development projects in Vietnam

According to Article 60 of Decree 102/2024/ND-CP, the sequence and procedures for economic organizations to acquire, lease land use rights, and contribute capital with land use rights for implementing socio-economic development projects in Vietnam are as follows:

- Economic organizations seeking to acquire, lease land use rights, or contribute capital with land use rights for implementing investment projects should provide an excerpt of the proposed project land location and a proposal document using Form No. 07 in the Appendix issued with Decree 102/2024/ND-CP to the provincial People's Committee where the land is located.

Form No. 07

- Within no more than 03 working days from receipt of the proposal document, the provincial People's Committee assigns the provincial land management authority to chair and coordinate with relevant agencies to assess and submit to the provincial People's Committee for consideration and decision.

- Within 15 days from receipt of the provincial People's Committee's directive, the provincial land management authority must provide an assessment document to the provincial People's Committee. The assessment document must include:

+ Conditions regarding conformity with the district-level land use plan or general plan or subdivision plan or construction plan or approved and published rural plan;

+ Compliance with conditions stipulated in Point c, Clause 2, Article 122 of the Land Law 2024;

+ Compliance with cases stipulated in Clause 1, Article 127 of the Land Law 2024;

+ Information from the land registry records of the land parcel or land zone proposed by the investor for project implementation;

+ Conclusion on the eligibility to allow the economic organization to acquire, lease land use rights, or contribute capital with land use rights for implementing the investment project; if ineligible, state the reason clearly;

+ Proposal on whether to approve or disapprove the investor for acquiring, leasing land use rights, or contributing capital with land use rights.

- Within no more than 05 working days from receipt of the assessment document from the land management authority, the provincial People's Committee should consider and provide a written approval or disapproval for the economic organization to acquire, lease land use rights, or contribute capital with land use rights for implementing the project to the economic organization making the proposal. The approval content must specify the scale, area, location, and time duration for completing the agreement, and other related contents.

- Based on the provincial People's Committee's approval, the economic organization will implement the acquisition, leasing of land use rights, or contributing capital with land use rights to implement the project as per regulations.

If the land use purpose is changed to implement the investment project, the sequence and procedures will follow the provisions under Article 48 of Decree 102/2024/ND-CP.

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