Directions for handling assets on land when investment projects are revoked

Directions for handling assets on land when investment projects are revoked directly affects the interests of investors. When an investment project is terminated and leads to land recovery, the disposal of assets on land must comply with legal regulations. This article aims to provide detailed information about project termination cases, asset handling and land recovery procedures, helping customers understand and protect their rights.

Cases of termination of investment project activities

According to Article 48 of the Law on Investment 2020, investment projects can be terminated in the following cases:

Investors terminate investment activities or investment projects:

• The investor decides to terminate the operation of the investment project;
• According to the conditions for termination of operations specified in the contract and charter of the enterprise;
• Expiration of the investment project’s operating term.

Investment registration agency terminates investment project activities:

The investment project falls into one of the cases specified in Clauses 2 and 3, Article 47 of the Law on Investment 2020 where the investor is unable to overcome the conditions of cessation of operations;

• The investor is not allowed to continue using the investment location and does not carry out procedures to adjust the investment location within 06 months from the date of discontinuation of the investment location, except in cases where the investment project is subject to land recovery due to failure to put land into use or delay in putting land into use according to the provisions of land law;
• The investment project has stopped operating and after the 12-month period from the date of shutdown, the investment registration agency cannot contact the investor or the investor’s legal representative;
• Investment projects subject to land recovery due to failure to put land into use or delay in putting land into use according to the provisions of land law;
• Investors do not deposit or do not have a guarantee for deposit obligations according to the provisions of law for investment projects subject to investment project implementation guarantee;
• Investors carry out investment activities on the basis of fake civil transactions according to the provisions of civil law;
• According to court judgments, decisions, and arbitration awards.

Directions for handling assets on land when investment projects are revoked

Handling assets on land when investment projects are revoked is detailed in Clause 2, Article 35 of Decree 102/2024/ND-CP. Accordingly:

• The investor may continue to use the land for a period of 24 months from the date the investment project is terminated.
• During this period, the investor is allowed to transfer land use rights or sell assets attached to the land to other organizations or individuals.
• People who buy assets attached to land or receive land use rights can continue to carry out investment projects or propose new investment projects.
• At the end of the 24-month period from the date the investment project is terminated, if the investor cannot transfer the property, the State has the right to recover the land without compensation.
• In case of force majeure, the time limit shall be considered to be extended by the time the force majeure situation occurs.
• The cost of land recovery and disposal of assets attached to land is paid by the state budget. If the investor wishes to continue using the land, the investor must pay these costs to the budget before being allocated or leased land by the State.

These regulations help ensure the rights of both investors and the State, while creating favorable conditions for the continued effective use of land.

>>> See more: Contents of bidding documents for investment projects using land.

Procedures for land recovery due to termination of investment projects

The order and procedures for land recovery due to termination of investment projects are specified in Article 33 of Decree 102/2024/ND-CP, including the following steps:

Step 1: The investor sends a document terminating the investment project to the agency with land management functions.

Step 2: The agency with land management function shall submit to the competent state agency for land recovery within 30 days from the date of receipt of the document terminating the investment project.

Step 3: Issue land recovery decisions and organize decision implementation. The project owner whose land is recovered is obliged to comply with the decision and hand over the land and land use rights documents.

In addition, the competent People’s Committee of the place where the recovered land is located shall:

• Notify land recovery to land users, and post it on the portal or website of the People’s Committee at provincial and district levels.
• Direct the handling of the remaining value of the value invested in land or assets attached to land.
• Direct the district-level People’s Committee to organize the enforcement of land recovery decisions and allocate funds for implementation.

Consulting services on handling assets on land when investment projects are revoked at Long Phan Consulting Company

At Long Phan Consulting Company, we provide in-depth consulting services on handling assets on land when investment projects are revoked, including:

• Consulting on legal regulations related to termination of investment projects and land recovery.
• Evaluate the legal status of assets on land and propose appropriate handling plans.
• Draft and submit necessary documents and records to competent state agencies.
• Representing customers in working sessions and negotiations with state agencies and relevant parties.
• Support customers in carrying out procedures for transferring land use rights and selling assets attached to land.
• Consulting on resolving disputes arising during the process of land recovery and asset disposal.
• Analyze and evaluate legal risks related to assets on land when the project is terminated.

Frequently Asked Questions (FAQ)

Below are frequently asked questions about handling assets on land when investment projects are revoked that customers can refer to:

What is the maximum time for investors to handle assets on land after the project is terminated?

Investors are allowed to continue using the land for a maximum period of 24 months, calculated from the date the investment project officially ends operations.

What rights do investors have during the period of permission to continue using land after the project ends?

During this 24-month period, the investor has the right to transfer land use rights or purchase and sell assets attached to that land to other organizations or individuals.

What happens if the investor cannot transfer the land assets within the allowed time limit?

If the 24-month period expires and the transfer is not successful, the State has the right to recover the land without compensation to the investor.

In what cases can investors extend the time to handle assets?

In case of force majeure, the duration of force majeure will be reviewed and may be extended.

Who is responsible for paying the costs of land acquisition and disposal of assets attached to the land?

Costs for land recovery and disposal of assets attached to land will be paid by the state budget. If the investor wishes to continue using the land, the investor must repay these costs to the budget before being allocated or leased land by the State.

What will happen to people who buy assets attached to land or receive land use rights from the investor of a revoked project?

People who buy assets attached to land or receive land use rights will be allowed to continue implementing old investment projects or propose new investment projects on that land.

Conclude

Understanding the regulations and procedures related to handling assets on land when investment projects are revoked in order to protect the investors’ interests. Hope this article has provided useful information for customers. If you have any questions, please contact Long Phan Consulting Company immediately via the hotline: 0906735386 for timely advice and support.