Provisions of law on land in case a joint venture is converted into a 100% FDI company

Hi DMS Lawyers in Vietnam! I work in a joint venture between Vietnamese parties and a foreign party. The Vietnamese parties have contributed capital to the company in the form of land use rights. My company is going to convert into a wholly foreign owned company. Could you advise me about rights and obligations of the company regarding the land after the conversion ? Thank you!

Hi!

If a joint venture in which the Vietnamese party contributes land use rights as capital is converted into a wholly foreign-invested enterprise, it has the following rights and obligations:

The rights and obligations prescribed in Clause 2, Article 183 of this Law, for the case in which the contributed land use rights are not used for implementing investment projects on houses for sale and the wholly foreign-invested enterprise is leased land by the State with annual rental payment under Clause 1, Article 56 of this Law;

The rights and obligations prescribed in Clause 3, Article 183 of this Law, for the case in which the contributed land use rights are not used for implementing investment projects on houses for sale and the wholly foreign-invested enterprise is leased land by the State with lump sum rental payment for the entire lease period under Clause 1, Article 56 of this Law;

The rights and obligations prescribed in Clause 3, Article 183 of this Law, for the case in which the contributed land use rights are used for implementing projects on houses for sale and the wholly foreign invested enterprise is allocated land by the State under Clause 3, Article 55 of this Law.

Therefore, you may refer to the above provisions of law to apply accordingly to your company (Clause 4 Article 184 Law on Land No. 45/2013/QH13 dated 29 November 2013).

Related topics:

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

Land use rights as in-kind capital contribution in Vietnam

Rights of overseas Vietnamese, foreign invested enterprises allocated land or leased land by the State

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

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Provisions of law on land in case a joint venture is converted into a 100% FDI company