Guide to Land Use Conversion for FDI

The land use conversion procedure for FDI enterprises with 50-year land leases is a critical process. It aligns foreign investment projects with Vietnam’s legal framework. Proper execution of the land use conversion not only secures the enterprise’s legal rights but also promotes the efficient use of land resources and supports sustainable economic development. This guide from Long Phan Consulting Company provides a detailed analysis of this procedure.

Cases Requiring State Approval for Land Use Conversion

According to Article 121 of the Land Law 2024, the following cases of land use conversion require permission from a competent state authority:

• Conversion of rice cultivation land, special-use forest, protection forest, or production forest to another type of agricultural land.
• Conversion of agricultural land to non-agricultural land.
• Conversion of other land types to land for large-scale concentrated animal husbandry projects.
• Conversion of non-agricultural land allocated by the State without land use fees to another type of non-agricultural land that is subject to land use fees or land lease.
• Conversion of non-residential non-agricultural land to residential land.
• Conversion of land for public works or business-oriented public facilities to non-agricultural production and business land.
• Conversion of non-agricultural production and business land that is not commercial or service land to commercial or service land.

Dossier for Land Use Conversion for FDI Enterprises

As stipulated in Decision 2304/QD-BTNMT (dated June 23, 2025), the application dossier for land use conversion varies depending on whether the project requires investment policy approval.

Dossier for Projects Requiring Investment Approval

• An application form (Form No. 01, issued with Decree No. 151/2025/ND-CP).
• A plan for using the topsoil layer (Form No. 26, Decree No. 151/2025/ND-CP), applicable for converting specialized rice cultivation land.
• A copy of the investment project approval, investment policy approval, or investor selection result.
• A copy of the land use rights certificate or other relevant land-related legal documents.

Dossier for Projects Not Requiring Investment Approval

• An application form (Form No. 01, issued with Decree No. 151/2025/ND-CP).
• A plan for using the topsoil layer (Form No. 26, Decree No. 151/2025/ND-CP), if applicable.
• A copy of the land use rights certificate or other relevant land-related legal documents.

Dossier Submission Methods

According to Decision 2304/QD-BTNMT, applicants can submit the dossier for land use conversion through one of the following methods:

• Direct submission at the Public Administration Service Center.
• Submission via public postal service.
• Online submission through the National Public Service Portal.
• Submission at an agreed-upon location with the Land Registration Office.

Procedure for Land Use Conversion

The procedure for land use conversion for FDI enterprises with a 50-year land lease follows these steps, as per Decision 2304/QD-BTNMT:

Step 1: Dossier Submission The applicant submits the dossier to the Public Administration Service Center. The applicant can choose to submit certified copies with originals for verification or submit notarized documents. For online submissions, documents must be digitized from originals or certified copies. The Center then forwards the dossier to the provincial Department of Agriculture and Environment.

Step 2: Processing by the Department of Agriculture and Environment The Department directs the Land Registration Office to provide land database information and a cadastral map extract. If the dossier is incomplete, the applicant is instructed to supplement it. The Department then:

• Reviews the dossier and conducts a field inspection.
• Coordinates with relevant agencies to determine any applicable land use fee or land rent exemptions.
• Prepares a final submission dossier for the Chairman of the Provincial People’s Committee, including a draft submission report, a draft decision on the land use conversion, and the cadastral map.

Step 3: Decision by the Provincial People’s Committee The Chairman of the Provincial People’s Committee reviews the dossier and issues a decision permitting the land use conversion.

Step 4: Fulfillment of Financial Obligations

• For cases based on the land price list: The Department sends a request to the tax authority. The tax authority calculates and issues a notice for payment of land use fees or land rent. After payment, the tax authority confirms completion.
• For cases based on a specific land price: The Department organizes a specific land price valuation and submits it for approval. After the price is approved, the process continues as above, with the tax authority calculating and collecting the required payments.

Step 5: Certificate Issuance The Department of Agriculture and Environment signs the new Land Use Rights Certificate and forwards the dossier to the Land Registration Office.

Step 6: Database Update and Result Delivery The Land Registration Office updates the land database and cadastral records, then transfers the final results to the receiving agency to return to the applicant.

Consulting Services for Land Use Conversion

The land use conversion procedure is complex. Long Phan Consulting Company provides comprehensive services to manage this process professionally and efficiently.

Our scope of services includes:

Comprehensive and In-depth Consultation:

• Analyzing the suitability of the land use conversion with local land use plans.
• Reviewing the legal conditions the FDI enterprise must meet.
• Estimating the financial obligations (taxes, fees) payable to the state.

Dossier Preparation and Completion:

• Guiding clients in collecting necessary documents and information.
• Drafting all required forms, applications, and investment reports.
• Ensuring the entire dossier is legally sound and consistent before submission.

Representation at Competent State Agencies:

• Submitting the dossier on the client’s behalf.
• Monitoring the processing status and communicating with authorities to provide clarifications.
• Receiving and delivering the final approved documents to the client.

Frequently Asked Questions

How many sets of dossiers are required for the land use conversion application?

According to Decision 2304/QD-BTNMT, you need to prepare one (01) complete set of the application dossier.

Are there any cases where land use fees are not required for a land use conversion?

Yes. According to Article 121 of the Land Law 2024, if land that was originally residential or long-term non-agricultural land is converted back to residential land in accordance with land use planning, no land use fee is required.

What are the general conditions for a land use conversion?

The applicant must:

• Provide a deposit or other financial guarantee as required by investment law.
• Have sufficient financial capacity to ensure land use according to the project schedule.
• Have no violations of land law, or have already complied with any penalties for past violations.

Are there additional conditions for converting land to build commercial housing?

Yes. In addition to the general conditions, the project must:

• Involve land that is residential or a mix of residential and other land types.
• Be consistent with urban planning and local housing development programs.
• Have an approved investment policy and investor approval from the competent authority.

What is the payment rate for converting specialized rice cultivation land to non-agricultural use?

The Provincial People’s Committee sets the specific rate, but it cannot be less than 50% of the value of the land, calculated based on the area converted and the land price list at the time of the land use conversion.

Conclusion

The land use conversion for FDI enterprises is a complex procedure with significant legal risks if not handled correctly. Engaging a professional consulting firm saves time and costs while ensuring a solid legal foundation for your investment project. For expert legal support, please contact Long Phan Consulting Company via Hotline 1900636389.