Rights and obligations of organizations using land in Vietnam under the Land Law

Rights and obligations of organizations using land in Vietnam under the Land Law (Internet image)

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

1. Rights and obligations of organizations that are allocated land without land use levy by the State in Vietnam

According to Article 173 of the Land Law 2013, the rights and obligations of organizations that are allocated land without land use levy by the State in Vietnam are as follows:

- Organizations to which the land is allocated by the State without land use levy have the rights and obligations prescribed in Articles 166 and 170 of the Land Law 2013.

-. Organizations to which the land is allocated by the State without land use levy may not exchange, transfer, donate, lease land use rights; mortgage, contribute land use rights as capital, and are not entitled to compensation upon land expropriation by the State.

2. Rights and obligations of organizations that are allocated land with land use levy by the State, or leased land with full one-off rental payment for the entire lease period in Vietnam

- Economic organizations that are allocated land with land use levy or leased land with full one-off payment for the entire lease period by the State have the rights and obligations prescribed in Articles 166 and 170 of the Land Law 2013.

- (*) Economic organizations that are allocated land with land use levy or leased land with full one-off rental payment for the entire lease period by the State have the following rights:

+ To transfer land use lights and land-attached assets under their ownership;

+ To lease land use rights and land-attached assets under their ownership in case of being allocated with land use levy by the State and to sublease land use rights and land-attached assets under their ownership in case of being leased land with full one-off rental payment for the entire lease period by the State;

+ To donate land use rights to the State and communities for construction of facilities for common public interests of the communities and donate land-attached gratitude houses in accordance with law;

+ To mortgage with land use rights and land-attached assets under their ownership at credit institutions which are licensed to operate in Vietnam;

+ To contribute land use rights and land-attached assets under their ownership as capital for cooperation in production and business with organizations, individuals, overseas Vietnamese or foreign-invested enterprises in accordance with law.

- Self-financed public non-business organizations leasing land with full one-off rental payment for the entire lease period from the State and for which the paid rental does not originate from the state budget, have the rights and obligations prescribed in above. The exercise of the rights is subject to written approval by a competent state agency.

Self-financed public non-business organizations leasing land with full one-off rental payment for the entire lease period from the State and for which the paid rental originates from the state budget have the rights and obligations prescribed in Section 1.

- Organizations that are allocated land with land use levy or leased land with full one-off rental payment for the entire lease period by the State, but are entitled to exemption from or reduction of land use levy or land rental, have the following rights and obligations:

(i) If the organization is allocated or leased land by the State for implementation of projects on construction of and trading in houses and is entitled to exemption from or reduction of land use levy or land rental, it has the same rights and obligations as being not entitled to exemption from or reduction of land use levy or land rental;

(ii) If the organization is allocated or leased land by the State for implementation of investment projects for profit purpose that is not prescribed at (i), and is allowed to pay a reduced land use levy or land rental, it has the same rights and obligations as being not entitled to exemption from or reduction of land use levy or land rental for the land type with similar land use purpose;

(iii) If the organization is allocated or leased land by the State for implementation of investment projects for profit purpose that is not prescribed at (i), and is exempted from land use levy or land rental, it has the same rights and obligations as leasing land with annual rental payment for the land type with similar land use purpose.

(Article 174 of the Land Law 2013)

3. Rights and obligations of economic organizations and public non-business organizations using leased land with annual rental payment in Vietnam

- Economic organizations or public non-business organizations using leased land from the State with annual rental payment have the following rights and obligations:

+ General rights and obligations prescribed in Article 166 and Article 170 of this Law;

+ To mortgage their assets attached to the leased land at credit institutions which are licensed to operate in Vietnam;

+ To sell their assets attached to the leased land upon the satisfaction of the conditions prescribed in Article 189 of the Land Law 2013. The buyer of these assets may continue to be leased land for determined land use purpose by the State;

+ To contribute their assets attached to the leased land as capital. The recipient of these assets may continue to be leased land for determined land use purpose by the State;

+ To sublease land use rights with annual rental payment for the land with completely constructed infrastructure in case they are permitted to invest in the construction and commercial operation of infrastructure in industrial parks, industrial clusters, export processing zones, hi-tech zones or economic zones.

- Economic organizations or public non-business organizations using land leased from organizations, households or individuals that are located outside industrial parks, industrial clusters or export processing zones have the rights and obligations prescribed in the civil law.

(Article 175 of the Land Law 2013)

4. Rights and obligations of economic organizations which acquire land use rights or change land use purposes

- Economic organizations which acquire land use rights or change land use purpose have the general rights and obligations prescribed in Articles 166 and 170 of the Land Law 2013.

- Economic organizations acquiring the rights to use the land which originates from being allocated with land use levy or being leased with full one-off rental payment for the entire lease period by the State and the land use levy or land rental does not originate from the state budget have the rights and obligations prescribed in (*) of Section 2.

- Economic organizations acquiring the agricultural land use rights in accordance with law have the following rights and obligations:

+ If they acquire land use rights without changing, the land use purpose, they have the rights and obligations prescribed in (*) of Section 2;

+ If they acquire land use rights and change the land use purpose and are eligible for being allocated land with land use levy or leased land with full one-off rental payment for the entire lease period, they have the rights and obligations prescribed in (*) of Section 2;

- If they acquire land use rights and change the land use purpose and are eligible for being leased land with annual rental payment, they have the rights and obligations prescribed in Section 3.

- The rights and obligations of economic organizations which are approved by competent state agencies to change the land use purpose from land allocation without land use levy to land allocation with land use levy or to land lease are prescribed as follows:

+ If the economic organization is allocated land with land use levy or leased land with full one-off rental payment for the entire lease period, it has the rights and obligations prescribed in (*) of Section 2;

+ If the economic organization is leased land with annual rental payment, it has the rights and obligations prescribed in Clause 1, Article 175 of the Land Law 2013.

(Article 176 of the Land Law 2013)

5. Rights and obligations of economic organizations receiving land use rights as contributed capital; land use rights of economic organizations upon dissolution or bankruptcy in Vietnam

- Economic organizations receiving land use rights as contributed capital from households, individuals or other economic organizations have the rights and obligations prescribed in Section 2 in the following cases:

+ The land of economic organizations which contribute capital is the land allocated with land use levy or leased with full one-off rental payment for the entire lease period by the State, or obtained through acquisition of land use rights;

+ The land contributed by households or individuals is not the land leased by the State with annual rental payment.

- Land use rights of cooperatives upon dissolution or bankruptcy are prescribed as follows:

+ The land allocated without land use levy or allocated with land use levy or leased by the State or obtained through buying land-attached assets or obtained through lawful acquisition of land use rights from others for which the land use levy or land rental, or the paid amount for purchase of land-attached assets, or the fund for acquisition of land use rights originates from the state budget, shall be recovered by the State;

+ The land allocated with land use levy, leased with foil one-off rental payment for the entire lease period by the State, or obtained through buying land-attached assets or obtained through lawful acquisition of land use rights from others for which the land use levy or land rental, or the paid amount for purchase of land-attached assets, or the fund for acquisition of land use rights does not originate from the state budget; the land obtained through contribution of land use rights as capital from cooperative members, is not expropriated by the State. Land use rights belong to the cooperative and shall be settled in accordance with the charter of the cooperative and the resolution of the members’ meeting.

- Land use rights of the economic organization which is an enterprise, upon its dissolution or bankruptcy, shall be settled in accordance with law.

(Article 177 of the Land Law 2013)

6. Rights and obligations of economic organizations that are leased land for construction of underground facilities in Vietnam

Economic organizations that are leased land by the State to invest in the construction of underground facilities have the following rights and obligations:

- If the land is leased with full one-off rental payment for the entire lease period, they have the same rights and obligations as economic organizations prescribed in Clauses 1, 2 and 4, Article 174 of the Land Law 2013;

- If the land is leased with annual rental payment, they have the same rights and obligations as economic organizations prescribed in Clause 1, Article 175 of the Land Law 2013.

(Article 178 of the Land Law 2013)

Nguyen Ngoc Que Anh

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