Procedures for land allocation through auction of land use rights

Land allocation through auction of land use rights is an important process in the management and distribution of land resources in Vietnam. This process is regulated by state policy to ensure transparency and fairness in granting land use rights to investors and businesses. The article below will provide detailed instructions on the steps to carry out land allocation through auction, from the preparation stage to cases of auction results cancellation.

Cases of applying land allocation through auction

Land allocation through auction of land use rights is applied in the form of the State allocating land with collection of land use fees, leasing land with one-time payment for the entire lease period through auction of land use rights in schools. the following:

• Investment projects using land from the land fund specified in Clause 1, Article 217 of the Land Law 2024, except for the cases specified in Articles 124 and 126 of the Land Law 2024;
• Allocating residential land to individuals, except in the cases specified in Article 124 of the Land Law 2024.

Conditions for conducting an auction of land use rights include:

• Land has been recovered and compensation, support, and resettlement has been completed or no compensation, support, or resettlement is required; In the project area, there is already connected transportation infrastructure;
• Included in the approved district-level annual land use plan for the purpose of auctioning land use rights, except in the case of auctioning land use rights for land specified in Point e, Clause 1, Article 217 of this Law. Land Law 2024;
• Have a detailed 1/500 plan prepared and approved by a competent state agency for housing construction investment projects;
• There is a plan to auction land use rights approved by a competent authority.

Legal basis: Article 125 of the Land Law 2024

The process of land allocation through auction of land use rights

Preparation phase

Preparation for organizing the auction of land use rights is carried out as follows:

1. The unit being assigned to manage the land fund prepares a plan for auctioning land use rights and submits it to the competent authority for approval;
2. The unit assigned to organize the auction of land use rights is responsible for preparing documents of the land area and plot of land for auction and sending them to the agency with land management function for submission to the People’s Committee at the appropriate level. Authority to decide on auction of land use rights;
3. The agency with land management function shall organize the determination of the starting price of the land and land plot for auction and submit it to the competent People’s Committee for approval;
4. Based on the request of the agency with land management function, the People’s Committee at the competent level decides to auction land use rights;
5. The unit assigned to organize the auction of land use rights is responsible for organizing the selection and signing a contract to lease the unit and organize the auction of land use rights.

Auction organization stage

The unit or organization conducting the auction of land use rights is responsible for conducting the auction of land use rights in accordance with the law on asset auctions.

1. Appraisal and approval of land use rights auction plans

• In case of auction of land use rights under the authority of land allocation or land lease of the district-level People’s Committee, the agency with district-level land management function shall check and complete the dossier and submit it to the district-level People’s Committee. Approve the auction plan for land use rights;
• In case of auction of land use rights under the authority of land allocation or land lease of the Provincial People’s Committee, the agency with land management function at the provincial level shall check and complete the dossier to submit to the Provincial People’s Committee. Approve the plan to auction land use rights.

1. Determine the starting price for auctioning land use rights

• The unit assigned to organize the auction of land use rights is responsible for preparing documents for the auctioned land plots and land areas. The dossier includes: information on planning, land use plans and detailed construction planning related to the auctioned land plot approved by a competent state agency; Extract of cadastral map or extract of cadastral map measurement of land plot or extract of cadastral measurement of auction land plot in case there is no cadastral map;
• The agency with land management function shall determine the starting price according to the provisions of law.

1. Decision to auction land use rights

• The agency assigned to auction land use rights prepares auction documents and sends them to the agency with land management functions. The documents include: approved land use rights auction plan; Document approving the starting price of the auctioned land or land plot according to the provisions of Point c, Clause 1, Article 229 of the Land Law; Draft proposal and decision on auction of land use rights;
• The agency with land management function shall check and complete the dossier and submit it to the People’s Committee at the competent level for approval of the land use rights auction plan specified in Clause 4 of this Article to issue a decision on the rights auction. land use.

1. The selection of units and organizations to conduct the auction of land use rights shall comply with the provisions of law on bidding. The order for conducting the auction of land use rights shall comply with the provisions of Clause 2, Article 229 of the Land Law and the Law on Asset Auctions.

Legal basis: Article 55 of Decree 102/2024/ND-CP

Results recognition stage

Recognition of land use rights auction results is carried out as follows:

1. The unit assigned to organize the auction of land use rights prepares documents and sends them to the agency with land management function to submit to the competent People’s Committee to issue a decision to recognize the winning results of the land use rights auction. land use;
2. The People’s Committee at the competent level shall sign and issue a decision recognizing the results of the successful auction of land use rights and send it to the agency with land management functions and the unit assigned to organize the implementation. Currently auctioning land use rights, tax authorities and land use rights auction winners.
3. The auction winner pays land use fees and land rent according to the provisions of law.
4. After the auction winner completes the payment of land use fees and land rent,

Legal basis: Article 229 Land Law 2024.

Regulations on cancellation of auction results

From the time of announcing the winning auction results, the deposit and interest (if any) are converted into a deposit to ensure the fulfillment of the land user’s financial obligations.

In case the auction winner does not pay or does not fully pay the winning price for the land use rights auction as prescribed in Point b of this Clause, then after 120 days from the date of approval of the land use rights auction winning results, the agency will The tax authority is responsible for notifying the agency with land management functions and submitting it to the competent People’s Committee to cancel the decision to recognize the winning auction results. The auction winner will not receive the deposit back.

In cases where the auction winner has paid more than the deposit, the State will refund the difference greater than the deposit according to regulations;

Legal basis: Clause 9, Article 55 of Decree 102/2024/ND-CP.

Consulting services on land allocation procedures through auction of land use rights

During the process of implementing land allocation through auction of land use rights, support from professional consulting services can help investors and businesses save time and optimize the process. Below are the main consulting services that customers may need:

• Consulting on document preparation: Instructions on preparing documents to participate in the auction, including necessary legal and financial documents.
• Support during the auction process: Provide support in participating in the auction, from making bids to signing land delivery contracts.
• Assist in completing and submitting bids on time to ensure they are not rejected due to omissions or errors.
• Assist in completing the necessary legal procedures to receive land use rights certificates from authorities.
• Problem solving support: Resolve problems that arise during the auction process, ensuring compliance with legal regulations.

Land allocation through auction of land use rights is closely related to land management activities, economic development and sustainability of the country. To successfully carry out land allocation procedures through auction of land use rights, investors need to fully comply with legal regulations and auction organization processes. If you need more information or support, please contact us immediately via hotline 0906.735.386 for detailed and professional advice.