In-Principle Approval for real estate Projects Under 5ha Guide

A guide on securing in-principle approval for real estate projects under 5ha is a critical document that helps investors navigate legal requirements, reduce dossier processing time, and mitigate risks during project implementation. A clear understanding of this procedure not only ensures legal compliance but also optimizes investment efficiency. Long Phan Consulting Company provides detailed information on the process, conditions, and necessary dossiers for this approval.

When is In-Principle Approval for RE Projects Under 5ha Required?

According to Point b, Clause 1, Article 32 of the Law on Investment 2020, amended by Point b, Clause 8, Article 6 of the Law Amending the Law on Bidding, the Law on Public-Private Partnership Investment, the Law on Customs, the Law on Value-Added Tax, the Law on Export and Import Duties, the Law on Investment, the Law on Public Investment, and the Law on Management and Use of Public Property 2025 (effective from July 1, 2025), all investment projects for the construction of residential housing (for sale, lease, or lease-purchase) and urban areas must obtain in-principle approval for real estate projects under 5ha, irrespective of land area or population scale.

The application for in-principle approval for real estate projects under 5ha must be completed before initiating specific investment activities such as surveying, design, or construction. This approval is a prerequisite for the investor to be granted an Investment License or to carry out investment registration procedures as stipulated.

Investors must note that implementing a project without this approval will result in administrative penalties and a mandatory cessation of investment activities. Furthermore, the project must align with approved urban planning, land use planning, and other relevant master plans sanctioned by competent state authorities.

Authority for In-Principle Approval for RE Projects Under 5ha

The authority to grant in-principle approval for real estate projects under 5ha rests with the Provincial People’s Committee. This is mandated by Point b, Clause 1, Article 32 of the Law on Investment 2020, as amended by Point b, Clause 8, Article 6 of the Law Amending Various Laws 2025, effective July 1, 2025.

The provincial investment registration agency is the body responsible for receiving and appraising the dossier before submitting it to the Provincial People’s Committee for a final decision. This clear delegation of authority ensures uniform management and administration of investment projects within the province or centrally-run city.

The Application Process for In-Principle Approval

The application process and the required dossier components are pivotal to ensuring a project proceeds in compliance with the law. Understanding these steps and preparing all documents thoroughly saves time and prevents omissions. The following provides a detailed breakdown of the procedures, legal requirements, and necessary documentation.

Required Dossier Components for Investors

As stipulated in Clause 1, Article 33 of the Law on Investment 2020 and guided by Clause 1, Article 31 of Decree No. 31/2021/ND-CP, the investor’s dossier must include:

• A written request for project implementation, which includes a commitment to bear all costs and risks if the project is not approved (using Form A.I.1 issued with Circular 03/2021/TT-BKHĐT).
• Documents verifying the investor’s legal status.
• Documents proving the investor’s financial capacity, including at least one of the following: the investor’s financial statements for the last two years; a financial support commitment from the parent company; a financial support commitment from a financial institution; a guarantee of the investor’s financial capacity; or other documents substantiating financial capacity.
• An investment project proposal detailing: the investor or the method of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, implementation schedule, information on the current land use status at the project site and proposed land use needs (if any), labor demand, proposed investment incentives, socio-economic impacts and efficiency of the project, and a preliminary environmental impact assessment (if required). If construction law requires a pre-feasibility study report, this report may be submitted in place of the investment project proposal.
• Supporting documents for the investor selection method, which may include:
  • For land use rights auctions: A copy of the list of projects requiring land recovery approved by the Provincial People’s Council (if any) and documents proving land clearance (if any).
  • For bidding for projects using land: A copy of the list of projects requiring land recovery approved by the Provincial People’s Council (if any) and documents showing the land has not been cleared. The project proposal must include a preliminary total project cost, excluding compensation and resettlement support costs.
  • For bidding under specialized laws: Documents explaining the legal basis and conditions for applying the bidding method.
  • For investors with existing land use rights: Documents proving the project is not on the land recovery list, a copy of the land allocation or lease decision, or a land use rights certificate.
  • For investors receiving transfer of agricultural land use rights: A copy of the Provincial People’s Committee’s approval for the land use rights transfer agreement to implement a non-agricultural business project.
• If the project does not request land allocation, land lease, or change of land use purpose from the State, a copy of the land use rights documents or other documents confirming the right to use the location for the project.
• An explanation of the technology to be used for projects subject to technology appraisal as per the law on technology transfer.
• A Business Cooperation Contract (BCC) for projects under this investment form.
• Other documents related to the investment project and requirements on the investor’s conditions and capacity as prescribed by law (if any).

>>> See more at: Form No. A.I.1 issued together with Circular No. 03/2021/TT-BKHDT

>>> See more at:

• What documents are included in the application for investment policy approval?
• Procedures for approving investment policies of the Provincial People’s Committee

The In-Principle Approval Appraisal Process

According to Clause 4, Article 33 of Decree No. 31/2021/ND-CP (amended by other decrees), the appraisal process for obtaining in-principle approval for real estate projects under 5ha follows these steps:

• Step 1: Dossier Submission The investor or a competent state agency prepares and submits 04 sets of the application dossier to the provincial investment registration agency.
• Step 2: Sending for Appraisal Opinions Within 03 working days of receiving a valid dossier, the investment registration agency sends the dossier to relevant departments, the district-level People’s Committee of the project location, and other related agencies to solicit appraisal opinions on matters within their state management scope.
• Step 3: Response from Relevant Agencies Within 15 days of receiving the request, the consulted agencies must provide their appraisal opinions on matters within their management scope and send them to the investment registration agency. For projects requiring a preliminary environmental impact assessment, the provincial environmental protection agency is responsible for this content.
• Step 4: Preparation of Appraisal Report Within 25 days of receiving the valid dossier, the investment registration agency prepares an appraisal report covering the required appraisal contents and submits it to the Provincial People’s Committee.
• Step 5: Decision by the Provincial People’s Committee Within 07 working days of receiving the dossier and the appraisal report, the Provincial People’s Committee reviews and issues the in-principle approval for the real estate project under 5ha.
• Step 6: Sending and Announcing the Decision The Decision on In-Principle Approval is sent to the investor, the investment registration agency, and other relevant units. This officially communicates the result and serves as the basis for subsequent steps, such as land use rights auctions or bidding to select an investor.

Processing Timeline

The timeline for securing in-principle approval for real estate projects under 5ha shall not exceed 50 working days, as stipulated in Clauses 4, 5, and 6 of Article 33, Decree No. 31/2021/ND-CP.

• The investment registration agency has 03 working days to review the dossier and send it for consultation.
• Consulted agencies have 15 days to provide their appraisal opinions.
• The investment registration agency has 25 days to compile the appraisal report and submit it to the Provincial People’s Committee.
• The Provincial People’s Committee has 07 working days to review and issue a decision.

This timeline begins on the date the investment registration agency receives a complete and valid dossier. The specific deadlines ensure transparency and facilitate timely project implementation for investors.

Expert Recommendations for Securing In-Principle Approval

Investment consultants advise investors to conduct a thorough study of urban planning and land use planning before preparing the dossier. Project conformity with planning is the most critical criterion in the appraisal process for the in-principle approval for real estate projects under 5ha. Investors should consult with local planning authorities on project feasibility before investing time and resources in dossier preparation.

Financially, experts recommend demonstrating financial capacity that exceeds the minimum requirement to increase the likelihood of approval. The financial statements for the last two years must accurately reflect the business’s operational status and capital mobilization capabilities. If financial capacity is insufficient, investors can seek financial support commitments from reputable financial institutions or guarantees from a parent company to enhance credibility. The project proposal must clearly articulate its socio-economic benefits, positive impact on local development, and job creation potential.

Experts also highlight the need to prepare a preliminary environmental impact assessment for any project under 5ha that could affect the environment. While a full EIA is not mandatory at this stage, preparing mitigation measures demonstrates social responsibility. Close coordination with local authorities and the community in the project area will facilitate the appraisal process and subsequent implementation. The project implementation schedule must be realistic and aligned with resource mobilization capacity to avoid delays.

Consulting Services at Long Phan Consulting Company

Long Phan Consulting Company offers comprehensive support services for obtaining in-principle approval for real estate projects under 5ha, backed by a team of experienced experts. Our services cover process consultation, dossier preparation, representation during procedures, and monitoring of the application’s progress with competent authorities.

Our turnkey consulting and support services include:

Feasibility and Risk Assessment

• Analyzing legal, planning, and market factors to provide an initial assessment of the project’s success rate and potential risks.
• Providing detailed guidance on regulations related to construction planning, land use plans, and necessary legal procedures to ensure project alignment with local directives.
• Drafting and finalizing the complete dossier according to prescribed templates, ensuring all necessary documents are included.

Dossier Development and Substantiation

• Assisting investors in developing a detailed report on objectives, scale, investment capital, socio-economic efficiency, and the project implementation plan.
• Preparing documents and detailed explanations regarding the investor’s financial capacity, experience, and other content as required by state agencies.
• Representing the investor to liaise and work directly with provincial Departments, agencies, and the People’s Committee to discuss and provide project information.

Agency Representation and Follow-up

• Submitting the dossier on behalf of the client to the competent authority and proactively tracking the processing status throughout the entire procedure.
• Directly clarifying project contents and promptly supplementing or amending the dossier upon request from the appraisal agency, ensuring an uninterrupted process.

Common Topics Regarding In-Principle Approval for RE Projects Under 5ha

Below are frequently raised topics concerning the procedure for obtaining in-principle approval for real estate projects under 5ha.

Key Documents Required in the Application Dossier

The main documents include a Written Request for Project Implementation (Form A.I.1), documents on legal status, proof of financial capacity, and a detailed Investment Project Proposal.

Legal Basis: Clause 1, Article 33, Law on Investment 2020 and Clause 1, Article 31, Decree No. 31/2021/ND-CP.

Timeline for the Investment Registration Agency’s Appraisal Report

The investment registration agency has 25 days to prepare the appraisal report and submit it to the Provincial People’s Committee from the date of receiving a valid dossier.

Legal Basis: Clause 4, Article 33, Decree No. 31/2021/ND-CP.

Timeline for the Provincial People’s Committee’s Decision

The Provincial People’s Committee has 07 working days to review and issue the decision on in-principle approval after receiving the complete dossier and appraisal report.

Legal Basis: Clause 5, Article 33, Decree No. 31/2021/ND-CP.

Timeline for Specialized Agencies’ Appraisal Opinions

Within 15 days of receiving a request, consulted agencies (Departments, sectors, etc.) must submit their written appraisal opinions to the investment registration agency.

Legal Basis: Clause 4, Article 33, Decree No. 31/2021/ND-CP.

Conclusion

Correctly executing the procedure for in-principle approval for real estate projects under 5ha demands meticulous preparation and specialized legal knowledge. Investors must ensure their dossier is complete, accurate, and compliant with all regulations regarding timelines and authority to maximize the probability of approval. Long Phan Consulting Company is ready to assist you in successfully completing the in-principle approval procedure with professional services. Contact our hotline at 1900636389 for consultation and support.