Necessary procedures to implement investment projects using land

Necessary procedures to implement investment projects using land is a core factor that helps investors ensure legality throughout the entire project implementation process. Understanding and complying with planning regulations, approval of investment policies, land allocation or land lease will help the project be implemented on schedule, limit legal risks and create favorable conditions for mobilizing capital, applying for construction permits and sustainable development.

Form of investor selection for projects using land

According to the provisions of Clause 1, Article 29 of the Law on Investment 2020, the selection of investors to implement projects using land is carried out through one of the following three forms:

• Auction of land use rights according to the provisions of land law: A common form applied to projects that have had decisions on land allocation or land lease. The investor who wins the auction will be granted a Land Use Rights Certificate and proceed with project implementation.
• Bidding to select investors according to the provisions of the law on bidding: Applicable to projects using land that need to select investors according to the provisions of the law on bidding. This process complies with the Law on Bidding and related guiding decrees.
• Investor approval is applied in cases where the investor has legal land use rights or receives transfer, capital contribution, or lease of land use rights to implement an investment project. Investors need to carry out investment policy approval procedures according to the provisions of the Law on Investment 2020.

Choosing the appropriate form to identify investors implementing projects using land not only ensures transparency and healthy competition but also contributes to improving land use efficiency and sustainable development in accordance with current law.

Necessary procedures to implement investment projects using land

To implement investment projects using land, investors need to clearly understand the processes and procedures that need to be followed. Below are the specific processes when implementing an investment project using land.

Procedures for approval of investment policy

The procedure for approval of investment policy is the first and most important step in the process of implementing an investment project using land. Determining the authority to approve investment policies depends on the scale and nature of the project.

According to the provisions of Clause 1a, Article 32 of the Law on Investment 2020, in cases where the investment project requests the State to allocate or lease land without going through auction, bidding or transfer, or the investment project requests permission to change the land use purpose, it falls under the authority to approve the investment policy of the Provincial People’s Committee.

According to the provisions of Article 36 of the Law on Investment 2020 and guided by Clause 4, Article 33, Decree 31/2021/ND-CP, investment project appraisal procedures are carried out through the following steps:

Step 1: Prepare documents and submit documents

The investor or competent state agency submits 04 sets of documents requesting approval of investment policies, documents requesting approval of investment policies proposed by investors specified in Article 33 of the Law on Investment 2020 include:

• Written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;
• Documents on the investor’s legal status;
• Documents proving the investor’s financial capacity include at least one of the following documents: the investor’s most recent 2-year financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor’s financial capacity; Other documents proving the investor’s financial capacity;
• The investment project proposal includes the following main contents: investor or form of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, implementation progress, information on the current status of land use at the project location and proposed land use needs (if any), labor needs, proposals for investment incentives, socio-economic impacts and efficiency of the project, preliminary assessment of impacts. Environmental impacts (if any) according to the provisions of law on environmental protection.

In cases where the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal.

• In case the investment project does not request the State to allocate land, lease land, or allow change of land use purpose, submit a copy of land use rights documents or other documents determining the right to use the location to carry out the investment project;
• Content explaining the technology used in investment projects for projects subject to appraisal and consultation on technology according to the provisions of law on technology transfer;
• BCC contract for investment projects in the form of BCC contract;
• Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any).

Step 2: Appraise the policy

Within 35 days from the date of receiving the dossier, the investment registration agency must notify the investor of the results.

Within 03 working days from the date of receiving complete documents, the investment registration agency sends the documents to seek appraisal opinions from state agencies related to the appraisal content.

Within 15 days from the date of receiving the request from the investment registration agency, the consulted agency shall have an appraisal opinion on the content within the scope of its state management and send it to the investment registration agency.

In case the project is subject to a preliminary environmental impact assessment according to the provisions of law on environmental protection, the provincial-level specialized environmental protection agency shall carry out the responsibilities specified in this Clause for the content of the preliminary environmental impact assessment.

Within 25 days from the date of receipt of valid documents, the investment registration agency prepares an appraisal report including appraisal contents and submits it to the Provincial People’s Committee.

Step 3: Receive approval results

Within 07 working days from the date of receiving the dossier and appraisal report, the Provincial People’s Committee approves the investment policy. In case of refusal, it must be notified in writing and clearly state the reason.

Procedures for applying for land allocation or land lease to implement investment projects

Procedures for land allocation and land lease are the next step after the project has been approved for investment policy. According to the provisions of Article 49, Decree No. 102/2024/ND-CP and Clauses 2, 3, 4 and 6, Article 44, Decree 102/2024/ND-CP, procedures for applying for land allocation to implement investment projects are prescribed as follows:

Step 1: Submit documents to the competent authority

Organizations and individuals subject to land allocation or land lease shall submit 01 set of documents to the agency receiving documents and returning results specified in the One-Stop Department according to regulations of the Provincial People’s Committee on receiving documents and returning results of administrative procedures at the provincial, district and commune levels.

The dossier includes an application for land allocation according to Form No. 02a or an application for land lease according to Form No. 02b in the Appendix issued with Decree 102/2024/ND-CP and one of the following documents:

• Copy of the document approving the investor selection results of the competent state agency for the cases specified in Clause 2, Article 116 of the Land Law 2024;
• Copy of document approving the investment project, decision approving the investment policy, decision approving the investment policy and approving the investor according to the provisions of the law on public investment and the law on investment; Document approving the investor selection results for investment projects using the public-private partnership method (if any);
• Copy of document of the competent state agency approving the investor according to the provisions of law on investment for the cases specified in Clause 5, Article 124 of the Land Law 2024;
• Copy of the document of the unit assigned to organize the auction of land use rights on the results of the auction of land use rights failing as prescribed in Point b, Clause 6, Article 125 of the Land Law 2024;
• Copy of document on the results of real estate project transfer according to the provisions of law on real estate business for the cases specified in Clause 7, Article 124 of the Land Law 2024;
• Copies of documents as prescribed by law for cases specified in Point i, Clause 1, Article 133 of the Land Law 2024 that require land recovery.

Step 2: Appraisal of documents

The agency with land management function assigns the Land Registration Office to provide information about the land database and prepare an extract of the cadastral map of the land plot in cases where the dossier is complete and valid; Instruct the person submitting the application to supplement the cadastral measurement of the land plot for the land plot in the area where there is no cadastral map according to regulations or re-do the application or supplement the application and resubmit it to the agency with land management function in case the application is incomplete or invalid; Review and check documents; field inspection.

The agency with land management function completes the dossier and submits it to the People’s Committee at the competent level to issue decisions on land allocation, land lease, and permission to change land use purposes, accompanied by a draft decision on land allocation and land lease, with content on land prices to calculate land use fees and land rents payable and the tax authority’s responsibilities in guiding land users to pay land use fees and land rents according to the provisions of law on land use fees and land rents.

Step 3: Consider issuing a decision

The People’s Committee at the competent level shall consider and issue decisions on land allocation, land lease, and permission to change land use purposes.

Step 4: Notify the tax authority

The agency with land management functions transfers cadastral information of the land plot to the tax authority.

Tax authorities determine land use fees and land rents payable according to regulations, issue notices of payment of land use fees and land rents to land users.

Step 5: Complete tax obligations

Land users pay land use fees and land rents according to the provisions of law on land use fees and land rents.

The tax authority confirms the completion of payment of land use fees and land rent and sends notification of results to the agency with land management functions.

Step 6: Update land information

The agency with land management function submits to the competent authority to sign and issue the Certificate and carry out the work specified in Clause 4, Article 228, Land Law 2024; In case of signing a land lease contract, follow the Form.

The Land Registration Office or Land Registration Office Branch is responsible for updating and adjusting the land database and cadastral records.

>>> See more: Procedures for applying for land allocation to implement enterprise investment projects.

Procedures for applying for investment registration certificate

The procedure for applying for an Investment Registration Certificate is a mandatory procedure for foreign investors and economic organizations with foreign investment capital. For domestic investors, an Investment Registration Certificate is not a mandatory condition to carry out investment activities, except in cases where the project is granted land, leased land, or allowed to change land use purpose by the State, or the project is subject to investment policy approval.

According to the provisions of Article 35 and Article 36, Decree No. 31/2021/ND-CP, the procedure for granting an Investment Registration Certificate is carried out through the following steps:

For investment projects subject to investment approval, based on the Decision approving investment policies, Decision approving investment policy adjustments, the investment registration agency shall issue or adjust the Investment Registration Certificate within 05 working days from the date of receiving the Decision approving investment policies, Decision approving investment policy adjustments.

For investment projects not subject to investment approval, implementation is as follows:

Step 1: Prepare documents

Organizations and individuals preparing dossiers to apply for an Investment Registration Certificate include:

• Document requesting implementation of investment project;
• Report assessing the investor’s financial capacity;
• Written agreement on the establishment of an economic organization (for foreign investors investing in the form of establishing an economic organization);
• Investment project proposal and other related documents.

Step 2: Assess the conditions of the application

The investment registration agency conducts appraisal of the conditions for granting investment registration certificates, specifically as follows:

• Not belonging to industries or occupations banned from business investment as prescribed in Article 6 of the Law on Investment 2020 and international treaties on investment;
• There is a location for implementing the investment project determined on the basis of a valid copy of land use rights documents or a valid copy of the location rental agreement or other documents or documents determining the right to use the location to implement the investment project;
• The investment project is in accordance with the planning as prescribed in Clause 7, Article 31 of Decree 31/2021/ND-CP;
• Meet the conditions of investment rate per land area prescribed by the Provincial People’s Committee based on actual local conditions and approved by the Standing Committee of the Provincial People’s Council (if any), number of labor used (if any);
• Meet market access conditions for foreign investors.

Step 3: Issue investment registration certificate

The investment registration agency carries out procedures for granting an Investment Registration Certificate within 15 working days from the date of receiving valid documents for projects not subject to investment policy approval.

Procedures for changing land use purposes in accordance with investment policies

The procedure for changing land use purpose is a mandatory procedure when an investment project needs to change the land use purpose from the current purpose to another purpose in accordance with the approved investment policy. Procedures for changing land use purposes are specified in Article 44, Decree No. 102/2024/ND-CP, including the following steps:

Step 1: Prepare documents and submit documents.

Investors submit applications to change land use purposes at the competent Natural Resources and Environment agency.

Application for change of land use purpose includes:

• Application for change of land use purpose;
• Certificate of land use rights or documents on land use rights according to the provisions of the Land Law;
• Investment policy approval document for projects subject to investment policy approval; and other documents according to the provisions of land law.

Step 2: Appraise documents and submit documents to competent authorities.

State agencies evaluate dossiers in cases where the dossiers are incomplete or invalid; Review and check documents; Conduct field inspection and then submit to the competent authority to decide on permission to change the land use purpose.

Step 3: Transfer information to the Tax authority.

The agency with land management functions transfers cadastral information of the land plot to the tax authority. The tax authority determines the land use fee and land rent payable according to regulations and issues a notice of payment of land use fee and land rent to the land user.

Step 4: Individuals and organizations complete financial obligations.

Land users pay land use fees and land rents according to the provisions of law on land use fees and land rents.

After that, the tax authority confirms the completion of payment of land use fees and land rent and sends notification of results to the agency with land management functions.

Step 5: Update and edit information.

The agency with land management function submits to the competent authority to sign and issue the Certificate and carry out the work specified in Clause 4, Article 228, Land Law 2024. The Land Registration Office or Land Registration Office Branch is responsible for updating and adjusting the land database and cadastral records.

>>> See more: Application for investment registration certificate and drafting consultation.

In-depth consulting services on how to implement investment projects using land at Long Phan Consulting Company

Long Phan Consulting Company provides in-depth consulting services on implementing investment projects using land, supporting investors in implementing complex procedures related to investment and land. With a team of highly experienced and specialized experts in the field of investment, Long Phan Consulting Company provides comprehensive services on investment procedure consulting.

Consulting services on investment policy approval procedures include:

• Consulting on determining authority to approve investment policies;
• Support in preparing documents to request full investment policy approval according to regulations;
• Support in drafting investment project proposals with necessary content;
• Investor representatives work with competent state agencies;
• Monitor the appraisal process and support explanations and additional documents when necessary.

Long Phan Consulting Company also provides consulting services on environmental impact assessment, site clearance, and construction procedures related to investment projects using land. With in-depth experience and comprehensive understanding of investment and land law, Long Phan Consulting Company is committed to supporting investors in completing legal procedures effectively and in accordance with regulations.

Frequently asked questions

Below are frequently asked questions about procedures for implementing investment projects when using land.

What are the common forms of investor selection for land-related projects?

The selection of investors for projects using land usually takes place through auction of land use rights, bidding for investor selection, or investor approval.

What is the first and most important step in the process of implementing an investment project using land?

The first and most important step is the investment policy appraisal procedure.

In what cases does the Provincial People’s Committee have the authority to approve investment policies?

The Provincial People’s Committee has the authority to approve when an investment project requests the State to allocate land, lease land without auction, bidding, or propose changing the land use purpose.

How long does it usually take the investment registration agency to notify investors of appraisal results?

The investment registration agency must notify investors of the results within 35 days from the date of receipt of the dossier.

What is the next procedure after the investment policy has been approved?

The next procedure is to apply for land allocation or land lease to implement an investment project.

Where should organizations or individuals qualified to allocate or lease land submit their applications?

Dossiers should be submitted at the One-Stop Department according to regulations of the Provincial People’s Committee on receiving dossiers and returning results of administrative procedures at all levels.

What documents are usually included in an application for land allocation or land lease?

Documents usually include an application for land allocation or an application for land lease, along with related legal documents such as the investment policy approval decision or investor selection results.

Conclude

Implementing investment projects using land requires compliance with many complex procedures. Please contact Long Phan Consulting Company immediately via the hotline: 0906735386 for comprehensive support from investment policy approval procedures to land, environment and construction procedures. Our team of experienced experts will help customers save time, costs and ensure investment projects comply with current legal regulations.