The right to choose the form of land rent payment under the Land Law 2024 in Vietnam

The right to choose the form of land rent payment under the Land Law 2024 in Vietnam​ (Image from Internet)

1. Right to choose the form of land rent payment under the Land Law 2024 in Vietnam​

According to Article 30 of the Land Law 2024, regulations on the right to choose the form of land rent payment in Vietnam are as follows:

- Economic organizations, public service providers, individuals, overseas Vietnamese, and foreign-invested economic organizations that are renting land from the State with annual land rents but qualify for renting land with a lump-sum payment for the entire lease period as prescribed by the Land Law 2024 are allowed to choose to switch to renting land with a lump-sum payment for the remaining lease term and must re-determine the land price to calculate the land rent at the time of the decision allowing the switch to a lump-sum payment form according to the Land Law 2024.

- Economic organizations, individuals, overseas Vietnamese, and foreign-invested economic organizations currently renting land with a lump-sum payment for the entire lease period may choose to switch to annual land rent payments. The paid land rent shall be deducted from the annual land rent payable as prescribed by the Government of Vietnam.

- Public service units that are allocated land by the State without collecting land levy but wish to use part or all of the allocated area for production, business, or service provision may choose to switch to the form of the State leasing land with annual land rents for that area.

2. Rights and obligations of individuals using land in Vietnam

The rights and obligations of individuals using land in Vietnam according to Article 37 of the Land Law 2024 are as follows:

- Individuals using agricultural land allocated by the State within the limit; land allocated by the State with the collection of land levy, lease of land with a lump-sum payment for the entire lease period, land recognized by the State for land use rights; land received through exchange, transfer, gift, or inheritance have the following rights and obligations:

+ General rights and obligations stipulated in Articles 26 and 31 of the Land Law 2024;

+ Exchange land use rights with another individual;

+ Transfer land use rights, assets owned by themselves attached to the land as prescribed by law;

+ Lease land use rights and assets owned by themselves attached to the land to organizations, individuals, or overseas Vietnamese investing in Vietnam;

+ Individuals using land have the right to bequeath land use rights and assets owned by themselves attached to the land according to a will or by law.

If the heir is an overseas Vietnamese governed by clause 1 Article 44 of the Land Law 2024, they may inherit land use rights; if not, they enjoy the value of the inheritance;

+ Donate land use rights to the State; donate land use rights to the community for building projects serving common community interests or expanding roads according to planning; donate land use rights for constructing houses for charity, solidarity houses attached to the land as prescribed by law; donate land use rights and assets owned by themselves attached to the land to individuals or overseas Vietnamese governed by clause 1 Article 44 of the Land Law 2024;

+ Mortgage land use rights and assets owned by themselves attached to the land at credit institutions authorized to operate in Vietnam, other economic organizations, or individuals as prescribed by law;

+ Contribute capital by land use rights and assets owned by themselves attached to the land with organizations, contribute land use rights with individuals, overseas Vietnamese for production cooperation, business.

- Individuals renting land from the State with annual land rents have the following rights and obligations:

+ General rights and obligations stipulated in Articles 26 and 31 of the Land Law 2024;

+ Sell assets owned by themselves attached to the land, sell assets owned by themselves attached to the land and the lease rights in the land lease contract when meeting the conditions prescribed in Article 46 of the Land Law 2024. The buyer of the assets attached to the land and the lease rights in the land lease contract continues to lease the land according to the predetermined purpose and remaining land use term; they inherit the rights and obligations of the land user as prescribed in the Land Law 2024 and relevant legislation;

+ Bequeath, donate assets owned by themselves attached to the land and lease rights in the lease contract; the heir, donee of the assets and lease rights in the lease contract shall continue to lease the land from the State according to the predetermined purpose;

+ Lease assets owned by themselves attached to the land, sublease the lease rights in the land lease contract;

+ Mortgage assets owned by themselves attached to the land at credit institutions authorized to operate in Vietnam, other economic organizations, or individuals as prescribed by law;

+ Contribute capital by assets owned by themselves attached to the land during the lease term with organizations, individuals, or overseas Vietnamese; contributors by assets are allowed to continue leasing the land from the State according to the predetermined purpose and remaining term.

- Individuals subleasing land in industrial zones, industrial clusters, high-tech zones have the following rights and obligations:

+ If leasing land, subleasing land with lump-sum rent payment for the entire lease period, they have the rights and obligations prescribed in clause 1 Article 37 of the Land Law 2024;

+ If leasing land, subleasing land with annual rent payments, they have the rights and obligations prescribed in clause 2 Article 37 of the Land Law 2024.

- Individuals that are allocated land, leased land by the State and enjoy exemptions or reductions in land levy, land rent have the same rights and obligations as in cases without exemptions or reductions.

- Individuals using land rented from organizations, individuals, not according to clause 3 Article 37 of the Land Law 2024 have rights and obligations according to the provisions of civil legislation.

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