Instructions on handling cases where the auctions of land use rights fails in Vietnam

Instructions on handling cases where the auctions of land use rights fails in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Conditions for holding of auctions of land use rights in Vietnam

onditions for holding an auction of land use rights upon land allocation or land lease by the State:

- The annual district-level land use plan approved by a competent state agency is available;

- The land has been cleared or is land with attached assets owned by the State;

- The plan for holding the auction of land use rights approved by a competent state agency is available.

Organizations and individuals participating in an auction of land use rights must satisfy the following conditions:

- Being eligible to be allocated or leased land as prescribed in Article 55 or 56 of the Land Law 2013;

- Meeting the conditions for the implementation of investment projects under Article 58 of the Land Law 2013 in case of land allocation or land lease for implementation of investment projects.

(Article 119 of the Land Law 2013)

2. Instructions on handling cases where the auctions of land use rights fails in Vietnam

Pursuant to the provisions of Clause 3, Article 118 of the Land Law 2013, in case the land has been put up for auction of land use rights as but nobody participates in the auction or only one person registers or the auction fails after at least 2 times, the State may allocate or lease land without organizing auctions of land use rights.

Cases subject to auction of land use rights and cases not subject to auction of land use rights are as follows:

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

+ 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 expropriated 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 this Law;

+ Use of land as prescribed at Points b and g, Clause 1, and in Clause 2, Article 56 of this Law;

+ 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.

Thus, according to regulations, in case the land has been put up for auction of land use rights as prescribed in Clause 1 of this Article but nobody participates in the auction or only one person registers or the auction fails after at least 2 times, the State may allocate or lease land without organizing auctions of land use rights.

Nguyen Ngoc Que Anh

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