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Hi!

Law on Land No. 45/2013/QH13 dated 11/29/2013 prescribes forms of land use for foreign invested enterprises, such as:

Land allocation with land use levy:

Foreign-invested enterprises that are allocated land 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 full one-off rental for the entire lease period in the following cases: Foreign-invested enterprises that 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 đ Clause 1 Article 56 Law on Land).

Acquisition of land use rights:

Foreign-invested enterprises may acquire investment capital which is the value of land use rights in accordance with the Government’s regulations. Foreign-invested enterprises may acquire land use rights through land allocation by the State to carry out investment projects on construction of houses for sale or for a combination of sale and lease (Points b, g Clause 1 Article 169 Law on Land);

Transfer of investment capital being the value of land use rights:

Foreign-invested enterprises may acquire 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 forestland.

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 (Article 39 Decree No. 43/2014/NĐ-CP dated 05/15/2014).

Related topics:

Term for land allocation or land lease to foreign-invested enterprises in Vietnam

Legal assistance:

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Forms of land use for FDI companies in Vietnam 

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Prepared by: Thi-Ha Nguyen, Lawyer’s assistant

DMS Lawfirm in Vietnam Director (Signed) Lawyer Do Minh Son