Forms of land use applicable to a foreign invested company in Vietnam

Hi DMS Lawyer in Vietnam! Could you advise me about forms of land use applicable to a foreign invested company in Vietnam ? How can a foreign invested company receive land use rights to carry out its investment project ? Can a foreign invested company be assigned land from the State to carry out its investment project ? Can an FDI company receive investment capital being the value land use rights ? 

Hi!

Law on Land No. 45/2013/QH13 dated 29 November 2013 (hereinafter called “Law on Land”), prescribed forms of land use applicable to foreign invested enterprises as follows:

Land allocation with land use levy:

Foreign-invested enterprises may be allocated land by the State in return for payment of land use levies to implement investment projects for the construction of houses for sale or for a combination of sale and lease (Clause 3 Article 55 Law on Land).

Land lease:

The State may lease land and collect an annual land rental or a lump sum rental for the entire lease period in case foreign-invested enterprises use land to implement investment projects in agriculture, forestry, aquaculture or salt production, for non-agricultural business and production purpose, for construction of public facilities for commercial purpose, and for implementation of investment projects on houses for lease (Point dd Clause 1 Article 56 Law on Land)

Receive land use right:

Foreign-invested enterprises may receive the transfer of investment capital being the value of land use rights in accordance with the Government’s regulations. Foreign-invested enterprises may receive the land use rights through the State allocation of land to implement investment projects for the construction of houses for sale or for a combination of sale and lease (Point b Clause 1 Article169 Law on Land).

Foreign-invested enterprises may receive investment capital being the value of land use rights transferred from enterprises that are currently using land originating from the allocation by the State with land use levy or lease by the State with full one-off rental payment for the entire lease period while the value of land use rights has been included in the capital of enterprises, except transfer of investment capital being the value of the rights to use agricultural production land or forest land.

When transferring investment capital, enterprises or owners of enterprises shall determine the capital amount being the value of land use rights in the total transferred capital amount, and fulfill tax, charge and fee obligations in accordance with law (Clauses 1, 2 Article 39 Decree No. 43/2014/NĐ-CP dated 05/15/2014).

Related topics:

Conditions for transferring all or a portion of a real estate project in Vietnam

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Forms of land use applicable to a FDI company in Vietnam