What should businesses use land for multiple purposes?

Businesses use land for multiple purposes helps optimize land funds, increase business efficiency and exploit land resources flexibly. The use of land for various purposes, such as manufacturing, trade, services or investment, provides a competitive advantage and enhances asset value. However, businesses need to comply with legal regulations and carry out procedures to adjust land use purposes to ensure legality and avoid risks.

What type of land can be used for multiple purposes?

The combined use of land for multiple purposes must comply with the provisions of the Land Law 2024 and guiding documents.

Clause 1, Article 99 of Decree 102/2024/ND-CP stipulates: Multi-purpose combined land use is the use of a part of the land area of ​​the main land use purpose for another purpose specified in Article 218 of the Land Law. Land use purpose is the purpose of the land plot allocated, leased, and recognized by the State for land use rights and is being used stably and is eligible for issuance of a Certificate.

According to Clause 1, Article 218 of the Land Law 2024, the following types of land are allowed to be used in combination with other purposes:

• Agricultural land: Used in combination with commerce, services, livestock raising, and growing medicinal plants.
• Public land: Can be combined with commerce and services according to planning.
• Land for construction of public works: Used in combination with commercial and service purposes to optimize land use efficiency.
• Residential land: Can be used in combination with agriculture, commerce, services or public works for business purposes.
• Land with water surface: Can be exploited for multiple purposes according to the provisions of Articles 188, 189 and 215 of the Land Law 2024.
• Religious and belief land: Allowed to be combined with commerce and services but must ensure not to change the nature of land use.
• Types of land belonging to the agricultural land and non-agricultural land groups according to Clauses 2 and 3, Article 9 of the Land Law 2024: Used in combination with agriculture, telecommunications infrastructure, information technology, outdoor advertising, and solar power.

The combined use of land for multiple purposes needs to meet legal conditions to ensure no change in land type, no impact on the environment, national defense, security and financial obligations.

Conditions for businesses use land for multiple purposes

Businesses that want to use land for multiple purposes must meet the conditions specified in Clause 2, Article 218 of the Land Law 2024:

• Do not change the land type according to the classification in Clauses 2 and 3, Article 9 of the Land Law 2024.
• Ensure the ability to restore the main purpose when necessary, without losing the original land use conditions.
• Does not affect security and national defense, avoid negative impacts on public interests.
• Protect the environment, preserve natural ecosystems, biodiversity and surrounding landscapes.
• Does not affect the land use rights of the adjacent land plot.
• Fulfill financial obligations related to land use rights.
• Comply with other relevant laws, including regulations on investment, construction, and environmental protection.

In addition, the scope and conditions for combined multi-purpose land use are also stipulated in Clause 2, Article 99 of Decree 102/2024/ND-CP as follows:

• Using land for combined purposes does not fall under the case of changing land use purposes specified in Article 121 of the Land Law;
• The land area used for combined purposes must not exceed 50% of the land area used for main purposes, except for residential land area used for multiple purposes;
• Construction works on agricultural land for multi-purpose land use must have appropriate scale and nature and be easy to dismantle. The area of ​​land for construction works to be used for combined purposes on rice cultivation land and forestry land shall comply with the provisions of the Decree detailing rice cultivation land and the law on forestry. Land with water surface is not leveled, changing the flow, water surface area, and water depth;
• The construction and renovation of works for combined purposes must be in accordance with the provisions of law on construction and other relevant laws;
• The duration of land use for combined purposes does not exceed the remaining land use term of the main purpose.

The above conditions help control the use of land for multiple purposes in a reasonable manner, avoid conflicts of interest and ensure sustainable development.

Procedures for applying for multi-purpose land use by businesses

Enterprises that want to use land for multiple purposes must carry out administrative procedures according to the provisions of the Land Law 2024 and related guiding documents.

Necessary documents

Enterprises need to prepare dossiers requesting land use for multiple purposes, including:

• Application for permission to use land for multiple purposes.
• Certificate of land use rights (notarized copy) or one of the documents specified in Article 137 of the Land Law.
• Land use plan, clearly showing the purpose of the combination.
• Environmental impact assessment if required.
• Written approval from specialized management agencies (if necessary).
• Investment license or investment policy decision according to the Law on Investment 2020 (if any).

This file helps state agencies evaluate the feasibility of using land for multiple purposes.

Execution order

Pursuant to the provisions of Clause 4, Article 99 of Decree 102/2024/ND-CP, procedures for approving multi-purpose combined land use plans are prescribed as follows:

Step 1: Submit application

Organizations wishing to use land for multiple purposes shall submit 01 set of applications for registration of combined land use to the agency with land management function at the provincial level.

Step 2: Appraise and approve the multi-purpose land use plan:

• The agency with the function of land management at the provincial level shall preside over and coordinate with relevant departments and branches to appraise the combined land use plan and submit it to the Provincial People’s Committee. The Provincial People’s Committee is responsible for considering and approving the combined land use plan.
• The time for appraisal and approval of the combined land use plan is no more than 15 days from the date of receipt of complete and valid documents. In case of disapproval, there must be a written response clearly stating the reason.

Step 3: Fulfill financial obligations:

• Land area used for commercial and service purposes; non-agricultural production establishments; used for mineral activities; construction of postal, telecommunications, technology and information infrastructure; outdoor advertising; Solar power must pay annual land rent.
• In case the land is used for the main purpose for which land use fees and land rent have been paid, only the land use fee and land rent for the difference between the main land use purpose and the combined purpose must be paid.

The land price used to calculate land rent is the land price in the land price list decided by the Provincial People’s Council.

Note: The extension of the multi-purpose combined land use plan is implemented as follows:

• 30 days before the end of the combined land use period, if the land user wishes to extend, they must send a written request to extend the combined land use plan to the competent authority permitting combined land use;
• Within no more than 07 working days from the date of receiving the application, the competent People’s Committee is responsible for considering and extending the combined land use plan.

When the land use term for combined purposes expires and is not extended, organizations and individuals using the land are responsible for restoring it to be eligible to use the land for the main purpose according to the approved plan.

Complying with the above process helps businesses legalize the use of land for multiple purposes in accordance with the law.

Competent authority to resolve

According to the Land Law 2024 and Clause 4, Article 99 of Decree 102/2024/ND-CP, the current provincial land management agency is the Land Registration Office under the Department of Natural Resources and Environment (After the merger, it will be the Department of Agriculture and Environment) of the province/city where the land is located.

Businesses need to identify the correct competent authority to carry out procedures quickly and accurately.

Consulting services for businesses use land for multiple purposes at Long Phan Consulting Company

Long Phan Consulting Company provides services to support businesses in applying for approval of multi-purpose land use plans according to legal regulations. Services include:

• Consulting on licensing conditions and reasonable land use plans.
• Assist in drafting documents and ensuring complete documentation according to regulations.
• Representatives work with state agencies, helping businesses complete procedures quickly.
• Monitor document processing progress and have solutions when risks arise.
• Consulting on financial obligations after approval.

Long Phan Consulting Company’s services help businesses ensure their rights and comply with legal regulations when using land for multiple purposes. In addition, we will base on your needs and each specific case to come up with the most optimal and effective solution.

>>> Reference: Consulting services for land lease applications for projects for businesses.

Some frequently asked questions when businesses use land for multiple purposes

To give you a clearer perspective on this issue, we provide some common questions when businesses use land for multiple purposes:

How is combined multi-purpose land use understood under the Land Law 2024?

This is the simultaneous exploitation of a plot of land for the identified main land use purpose and one or more other secondary purposes according to regulations, such as agricultural land combined with commercial services.

Which businesses are eligible to apply for a license to use land for multiple purposes?

Any economic organization that is using land legally and meets the conditions according to Clause 2, Article 218 of the Land Law 2024 can request to use land for multiple purposes.

Are there limits on the size or ratio of use for combined purposes?

The law requires that combined uses must not change the original land type and must be consistent with the approved land use plan, ensuring that the main purpose remains the dominant one.

What happens if the business does not comply with the conditions when using mixed land?

Enterprises must strictly comply with legal conditions; Failure to comply may result in administrative handling of land violations and forced restoration of the original state.

Are permit procedures different between types of land?

The basic procedural sequence is similar, however, specific documents and specialized appraisal agencies (such as construction, environment) may be different depending on the type of land and purpose of combination.

Is the combined purpose allowed to overwhelm the main land use purpose?

No, one of the prerequisites is not to change the land type according to the legal classification and to maintain the ability to restore the main use purpose.

What are the specific financial obligations when using combined land?

Enterprises must fulfill related financial obligations such as land rent (if any), land use tax and other fees and charges arising from the addition of use purposes according to tax and land laws.

When do businesses need to perform an environmental impact assessment (EIA)?

Carrying out EIA is mandatory if the combined use purpose is on the list of projects that must carry out EIA according to the provisions of the Law on Environmental Protection 2020.

What does “no change in soil type” mean in practice?

This means that the combined activity must not change the nature or main use objective of the land parcel that has been allocated, leased or recognized by the state. For example, residential land combined with services must still ensure its main function is for living.

Is an investment license a mandatory condition in all cases?

An investment license or investment policy decision is only necessary if the combined land use project is subject to this procedure according to the provisions of the Law on Investment 2020.

Conclude

Enterprises need to comply with legal regulations when using land for multiple purposes to avoid legal risks. Preparing complete documents, following the correct procedures and identifying the competent authority are important factors. For detailed advice and support, please contact Long Phan Consulting Company via the hotline 0906735386 for quick and accurate support.