Term of land allocation or land lease to FDI enterprises in Vietnam

When a foreign invested company leases land from the State to implement its investment project, is there any limit on the term of the lease ? How is the maximum term of land allocation to an FDI company ?

DMS Lawyers in Danang, Vietnam advise about term of land allocation or land lease to FDI enterprises in Vietnam ?

The Law on Land No. 45/2013/QH13 dated 11/29/2013 (hereinafter called “Law on Land”), prescribe term of land use applicable to foreign invested enterprises in Vietnam, as follows:

Land use for limited term:

The term of land allocation or land lease to foreign-invested enterprises for implementing investment projects in Vietnam, shall be considered and decided on the basis of the investment projects or applications for land allocation or land lease, but must not exceed 50 years.

For large investment projects with slow recovery of capital, projects in areas with difficult socio-economic conditions or with especially difficult socio-economic conditions which require a longer term, the term of land allocation or land lease must not exceed 70 years.

For projects on construction of houses for sale or for a combination of sale and rent or for lease purchase, the land use term shall be determined in accordance with the duration of the project. Those who buy houses associated with land use rights may use land for a long and stable term.

At the expiry of the term, if the land users still have land use needs, the State shall consider an extension which must not exceed the term prescribed in Clause 3 Article 126 Law on Land./.

Related topics:

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

May an overseas Vietnamese acquire houses associated with land use rights in Vietnam ?

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

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DMS LAW LLC
Director
(Signed)
Lawyer Do Minh Son