Update on entities eligible to receive land use rights in Vietnam from August 1, 2024

Update on entities eligible to receive land use rights in Vietnam from August 1, 2024​ (Image from the Internet)

1. Update on entities eligible to receive land use rights in Vietnam from August 1, 2024

According to Clause 1, Article 28 of the Land Law 2024, the entities eligible to receive land use rights in Vietnam are stipulated as follows:

- Individuals eligible to receive land use rights transfer as stipulated in Point b, Clause 1, Article 37 of the Land Law 2024;

- Economic organizations, individuals eligible to receive the transfer of land use rights;

- Economic organizations with foreign investment, overseas Vietnamese who are permitted to enter Vietnam eligible to receive the transfer of land use rights in industrial zones, industrial clusters, and high-tech zones;

- Economic organizations with foreign investment eligible to receive investment transfer in the form of land use rights value as stipulated by the Government of Vietnam;

- Economic organizations, economic organizations with foreign investment eligible to receive capital contributions in the form of land use rights;

- Domestic organizations, individuals, and community groups eligible to receive land use rights as gifts according to the Land Law 2024;

- Domestic organizations, individuals, and community groups eligible to inherit land use rights;

- Overseas Vietnamese who are permitted to enter Vietnam eligible to purchase, rent-purchase residential housing associated with homestead land use rights, inherit homestead land use rights, and any type of land within the same parcel having residential houses according to civil law regulations; and receive gifts of residential houses associated with homestead land from statutory heirs as per civil law regulations;

- Domestic organizations, individuals, community groups, religious organizations, affiliated religious organizations, overseas Vietnamese permitted to enter Vietnam assigned land by the State; economic organizations with foreign investment assigned land by the State for housing development projects for sale or for lease-sale combination;

- Economic organizations, public service providers, religious organizations, affiliated religious organizations, individuals, overseas Vietnamese, economic organizations with foreign investment, foreign organizations with diplomatic functions leased land by the State;

- Domestic organizations, individuals, community groups, religious organizations, affiliated religious organizations recognized land use rights for stable land use;

- Domestic organizations, individuals, overseas Vietnamese permitted to enter Vietnam, economic organizations with foreign investment receiving land use rights under successful land dispute mediation recognized by a competent People's Committee; agreements in debt settlement mortgage contracts; decisions from competent State agencies on land dispute resolution, complaints, accusations about land, court judgments, decisions from enforcement agencies that have been executed; decisions or awards from Vietnamese commercial arbitration; documents recognizing land use rights auction results in accordance with the law; documents on division, separation of land use rights in accordance with the law for groups of land users with common land use rights;

- Community groups, religious organizations, affiliated religious organizations eligible to receive land use rights under successful land dispute mediation recognized by a competent People's Committee; decisions from competent State agencies on land dispute resolution, complaints, accusations about land, court judgments, decisions from enforcement agencies that have been executed; decisions or awards from Vietnamese commercial arbitration;

- Domestic organizations being newly formed legal entities through division, separation, merger, consolidation, organizational model transformation under a competent agency's or organization's decision or document of division, separation, merger, consolidation, organizational model transformation of economic organization in compliance with the law eligible to receive land use rights from divided, separated, merged, consolidated, transformed legal entities.

2. Regulations on foreign-invested business organizations in the form of land use rights in Vietnam

Article 9 of Decree 102/2024/ND-CP stipulates the regulations for foreign-invested business organizations in the form of land use rights in Vietnam as follows:

- Economic organizations with foreign investment are eligible to receive investment transfer in the form of land use rights value from economic organizations using land originating from the State's land allocation with land levy payment or land rental payment made in full for the entire lease period where the value of land use rights has become the charter capital of such economic organizations.

- In the case of receiving investment transfer in the form of land use rights value in border communes, wards, commune-level towns; coastal communes, wards, commune-level towns; islands; and other areas affecting national defense, security, the transfer of investment in the form of land use rights value shall follow the regulations stipulated by the investment law and related laws.

- Economic organizations with foreign investment using land through receiving investment transfer in the form of land use rights value according to Clause 1, Article 9 of Decree 102/2024/ND-CP have the rights and obligations stipulated in Clause 3, Article 41 of the Land Law 2024.

3. Regulations on receiving land use rights in areas with limited access to land in Vietnam from August 1, 2024

Article 10 of Decree 102/2024/ND-CP stipulates regulations for receiving land use rights in areas with limited access to land in Vietnam as follows:

- areas with limited access to land include border communes, wards, commune-level towns; coastal communes, wards, commune-level towns; islands; and other areas affecting national defense, security as stipulated by investment law and housing law.

- For investment projects using land requested by economic organizations with foreign investment, overseas Vietnamese for State land allocation or land lease in areas with limited access to land, opinions from the Ministry of Defense and the Ministry of Public Security are required. The consultation with the Ministry of Defense and the Ministry of Public Security shall follow investment law regulations.

- In the case of economic organizations with foreign investment, overseas Vietnamese receiving the transfer of land use rights as stipulated in Point c, Clause 1, Article 28 of the Land Law 2024, economic organizations with foreign investment receiving capital contributions in the form of land use rights as stipulated in Point d, Clause 1, Article 28 of the Land Law 2024 to implement investment projects in areas with limited access to land, the procedures for obtaining opinions from the Ministry of Defense and the Ministry of Public Security are as follows:

+ The entity receiving the transfer of land use rights or capital contribution in land use rights shall submit a written request to the Provincial People's Committee where the land is located for permission to receive the transfer or capital contribution in areas with limited access to land;

+ Within no more than 5 working days from the date of receiving the written request, the Provincial People's Committee shall send a written request for opinions from the Ministry of Defense and the Ministry of Public Security;

+ Within no more than 20 days from the date of receiving the request for opinions, the Ministry of Defense and the Ministry of Public Security shall provide written feedback to the Provincial People's Committee.

- The procedures for State land allocation, land lease, receiving land use rights transfer, and receiving capital contribution in the form of land use rights shall be implemented according to the regulations in Decree 102/2024/ND-CP and the Decree on basic land investigation; registration, issuance of land use rights certificates, ownership of assets attached to land, and land information system.

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