Is land for use on a contractual basis in agricultural farms transferrable in Vietnam?

Is land for use on a contractual basis in agricultural farms transferrable? (Illustrative image)

1. What is land for use on a contractual basis in agricultural farms under the law in Vietnam?

Currently, land law of Vietnam does not define land for use on a contractual basis in agricultural farms; however, it can be understood that land for use on a contractual basis in agricultural farms is the land allocated by the state to companies, organizations, or localities for management. These entities can subsequently contract the land to individuals or households.

Individuals and households receive land for use on a contractual basis in agricultural farms in the form of a contract, while the organization is the entity to which the state allocates this land for use on a contractual basis in agricultural farms. There exists a contractual relationship between households, individuals, and the contracting organization. Therefore, contracted land must be exploited, managed, and used in accordance with the contract and the form agreed upon by the parties.

2. Is land for use on a contractual basis in agricultural farms transferrable in Vietnam?

Article 19 of Decree 43/2014/ND-CP stipulates the Entities ineligible for grant of certificates of land use rights and ownership of houses and other land-attached assets in Vietnam as follows:

(1) Organizations, community groups assigned land by the State for management in cases stipulated by Article 8 of the Land Law.

(2) Individuals managing or using agricultural land belonging to the communal public land fund.

(3) Individuals leasing or subleasing land from land users, except for cases of leasing or subleasing land from investors constructing and operating infrastructure in industrial zones, industrial clusters, export processing zones, high-tech zones, and economic zones.

(4) Individuals contracting land in farms, forest enterprises, and agricultural and forestry enterprises, management boards of protective forests, and special-use forests.

(5) Individuals using land that is not eligible for the issuance of a Certificate of Land Use Rights, Ownership of Housing and Other Assets attached to the land.

(6) Individuals using land that meets the conditions for issuance of a Certificate of Land Use Rights, Ownership of Housing and Other Assets attached to the land but have received notification or decision of land recovery from a competent state authority.

(7) Organizations and commune-level People's Committees assigned land by the State without land levy for use in constructing public works including roads, water channels, pipelines for gasoline, oil, gas; power transmission lines, information transmission lines; outdoor recreational zones; cemeteries and graveyards not for business purposes.

Individuals contracting land in farms belong to one of the seven cases where a Certificate of Land Use Rights cannot be issued. This regulation is consistent with the definition of land for use on a contractual basis in agricultural farms as stated above because the individuals receiving contracted land are not the entities directly allocated land by the state. Hence, individuals contracting land in farms are not considered land users under the 2013 Land Law. Therefore, individuals, households receiving contracted land enjoy the rights as per the land contract and do not have the rights of land users, cannot be issued a Certificate of Land Use Rights, and thus cannot legally transfer land for use on a contractual basis in agricultural farms.

Hoa Hong

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