Changing Land Use Form for Economic Organizations

The procedure for changing land use form for economic organizations is an administrative process that arises during land use, governed by land law. Depending on its needs and development strategy, an economic organization can request to adjust its land use form to align with its legal rights and obligations. This article by Long Phan Consulting Company details this procedure to help economic organizations navigate the process effectively.

Conditions for Changing Land Use Form

The procedure for changing land use form for economic organizations applies in cases specified by Article 30 of the Land Law 2024. An organization must meet the following conditions:

• An economic organization currently leasing land from the State with annual rent payments may switch to a one-off payment for the entire remaining lease term, provided it qualifies for this form. In this case, the land price must be re-determined at the time of the decision.
• An economic organization currently leasing land with a one-off payment for the entire term can switch to annual rent payments. The pre-paid amount will be credited against the annual rent payable, as regulated by the Government.
• A public service unit that was allocated land without a land use fee but wishes to use all or part of the area for production, business, or service provision can switch to leasing that portion from the State with annual rent payments.

Additionally, the following requirements must be met:

• Competent authorities must determine a specific land price for cases requiring land use fee or land rent payments based on a specific price.
• The Provincial People’s Committee must issue specific regulations on the timeline for each step to ensure compliance and progress.

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Required Dossier for Changing Land Use Form

To execute the procedure for changing land use form for economic organizations, a complete dossier must be prepared as per Section II, Part III, Appendix I of Decree 151/2025/ND-CP.

The dossier includes:

Application for changing the land allocation or lease form (Form No. 02 of Decree 151/2025/ND-CP). One original copy is required, signed and sealed by the legal representative.

Documents proving land use rights. One of the following:

• The issued Land Use Rights Certificate.
• Documents as stipulated in Article 137 of the Land Law 2024.
• A decision on land allocation, land lease, or change of land use purpose from a competent state agency.

Legal documents of the organization and its representative:

• Business establishment and operation license.
• Decision appointing the legal representative.
• A copy of the legal representative’s ID card.
• A notarized power of attorney if the application is submitted by an authorized person.

Procedure for Changing Land Use Form

The process for changing land use form for economic organizations varies based on the payment method.

Case 1: Payment Based on the Land Price List

This procedure applies when the land use fee or rent is calculated from the official land price list.

1. Submit Dossier: The organization submits the dossier to the One-Stop-Shop section of the Provincial People’s Committee.
2. Dossier Processing: The Department of Natural Resources and Environment (DONRE) reviews the dossier. It directs the Land Registration Office to provide database information and a cadastral map extract.
3. Submit to People’s Committee: DONRE submits the complete dossier to the Provincial People’s Committee for a decision.
4. Issue Decision: The Provincial People’s Committee issues the decision to change the land use form.
5. Financial Obligation: DONRE sends land information to the Tax Authority to determine the financial obligation.
6. Tax Notice: The Tax Authority issues a payment notice to the organization.
7. Payment: The organization pays the land use fee or rent as notified. The Tax Authority confirms completion of the financial obligation.
8. Final Steps: DONRE proceeds with issuing the Land Use Rights Certificate, signing the lease contract (if applicable), handing over the land, and providing the Certificate to the organization.
9. Database Update: The Land Registration Office updates the land database and cadastral records.

Legal Basis: Section II.1, Part III, Appendix I of Decree 151/2025/ND-CP.

Case 2: Land Allocation Without Land Use Fee

This is the simplest procedure, as no financial obligation for land use fees is involved.

1. Submit Dossier: The organization submits the dossier to the One-Stop-Shop section of the Provincial People’s Committee.
2. Dossier Processing: DONRE reviews the dossier and directs the Land Registration Office to prepare necessary land data.
3. Submit to People’s Committee: After review, DONRE submits the dossier to the Provincial People’s Committee.
4. Issue Decision: The Provincial People’s Committee issues the decision.
5. Issue Certificate & Handover: DONRE arranges for the issuance of the Land Use Rights Certificate, hands over the land, and provides the Certificate to the organization.
6. Database Update: The Land Registration Office updates all relevant land records.

Legal Basis: Section II.2, Part III, Appendix I of Decree 151/2025/ND-CP.

Case 3: Payment Based on a Specific Land Price

This is the most complex process due to the additional step of specific price determination.

1. Submit Dossier: The organization submits the dossier to the One-Stop-Shop.
2. Dossier Review: DONRE reviews the dossier.
3. Initial Decision: DONRE submits the dossier to the Provincial People’s Committee, which issues an initial decision to change the land use form.
4. Price Determination: DONRE organizes the specific land price determination process.
5. Approve Price: The Provincial People’s Committee issues a decision approving the specific land price.
6. Financial Obligation: DONRE sends the land information and approved price to the Tax Authority.
7. Tax Notice & Payment: The Tax Authority issues a payment notice, and the organization fulfills its financial obligation.
8. Final Steps: After payment confirmation from the Tax Authority, DONRE completes the remaining steps: issuing the Certificate, signing the lease, and handing over the land.
9. Database Update: The Land Registration Office updates the land database.

Legal Basis: Section II.3, Part III, Appendix I of Decree 151/2025/ND-CP.

Processing Time

• Normal Areas: 20 working days from the receipt of a valid dossier.
• Mountainous or Disadvantaged Areas: 30 working days.
• Exclusions: The time for determining a specific land price and the time for the organization to fulfill its financial obligations are not included in the timeframe for changing land use form for economic organizations.

Consulting Services at Long Phan Consulting Company

Long Phan Consulting Company provides expert services for the procedure of changing land use form for economic organizations. Our services include:

• Assessing conditions and legal grounds for the change.
• Advising on the appropriate payment method.
• Guiding dossier preparation for specific cases.
• Consulting on the legal procedure and sequence.
• Acting as an authorized representative to work with state agencies.
• Tracking the process and delivering the final results to the client.

Frequently Asked Questions

What is the core difference between State land allocation and land lease?

The main difference is in the land user’s rights. Allocated land (with a one-off payment) provides long-term, stable use rights that are nearly equivalent to ownership, including the right to transfer, gift, or mortgage. Leased land has a defined term, and the lessee’s rights are more limited, depending on the payment method.

What are the financial pros and cons of switching from annual rent to a one-off payment?

The primary advantage is gaining stable land use rights, protection from annual rent increases, and full transaction rights (transfer, mortgage). The disadvantage is the requirement for a large initial capital outlay to pay the entire remaining rent.

If an organization switches from a one-off payment to annual rent, what happens to the money already paid?

The pre-paid amount for the remaining term will be converted and credited against the annual rent payments. The specific conversion method is determined by Government regulations. (Legal Basis: Clause 2, Article 30 of the Land Law 2024).

Why is a specific land price determined in some cases instead of using the land price list?

Specific price determination is used for high-value or strategically located land plots to ensure the price reflects the market value at the time of the transaction. This prevents revenue loss for the state budget and ensures fairness among investors.

What common errors lead to the rejection of an application to change the land use form?

Common errors include inconsistencies between the application form and other legal documents, lack of valid authorization for the representative, and failure to provide proof of completion of prior financial obligations related to the land.

Does changing the rent payment method affect the right to mortgage the land use right?

Yes. With a one-off payment, the organization can mortgage the land use right. With annual payments, it can only mortgage the assets it owns on the land, not the land use right itself.

Can an organization request to change the land use form for a portion of the land it is currently using?

Yes, the law allows economic organizations to request a change in the land use form for part or all of the land area they are currently using, provided that the portion in question meets the necessary conditions and is consistent with the approved land use planning.

Conclusion

The procedure for changing land use form for economic organizations, including converting the form of land allocation or land lease, requires an in-depth understanding of the law and implementation process. Clients must prepare complete documentation and comply with prescribed timelines to ensure efficiency. Long Phan Consulting is ready to assist economic organizations in completing the procedure quickly and accurately. Contact our hotline at 1900 636389 for free consultation and a tailored service quotation.