The State of Vietnam grants the land use rights to overseas Vietnamese and FIEs primarily through the following 02 forms: (1) land allocation with collection of land use fee; and (2) land leases.
- Land allocation with a collection of land use fee
Overseas Vietnamese and FIEs can be allocated land with a collection of land use fees in order to implement investment projects i.e. for the construction of residential housing for sale, or for sale and lease.
- Land leases
Generally, overseas Vietnamese and FIEs shall lease land from the State and pay land rent through either of the following 02 methods: (1) annual rent; or (2) a one-off payment of land rent for the entire lease term. The land may then be used for all lawful purposes, including:
- agriculture, forestry, aquaculture or salt production;
- commerce and services, including land for construction of commercial and service business establishments and other works serving business, commercial and service activities;
- mineral activities, including the land used for mineral exploration, exploitation and processing; areas used to construction of works to provide support services regarding mineral activities, and safety corridors for mineral activities;
- production of construction materials;
- production of ceramics;
- construction of non-agricultural production facilities including land for construction of non-agricultural production establishments located outside industrial zones, industrial complexes and export processing zones;
- construction of community facilities for business purposes;
- construction of residential houses for rent;
- construction of underground facilities;
- construction of public service works, including land for construction of headquarters of public service organisations; cultural, social, health, education and training, sporting and physical recreational, science and technology establishments, and diplomatic establishments and other public service works; and
- the investment, construction and commercially operation of infrastructure projects in industrial zones, industrial zones clusters, export processing zones, and high- tech zones.
- Conditions for land allocation, land lease or permission to convert the land use purpose for the implementation of investment projects
Generally, any person to whom the State of Vietnam allocates or leases land or whom the State permits to convert the land use purpose to implement an investment project must satisfy the following general conditions:
- Having the financial capability to guarantee the land use in accordance with the schedule of the investment project;
- Paying an escrow deposit in accordance with the law on investment; and
- Not commit any breach of the laws on land in cases where such a person currently uses land allocated or leased by the State to implement another investment project.