Procedures for land leasing to implement domestic investment projects

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Procedures for land leasing to implement domestic investment projects is a complex process that requires thorough preparation and compliance with legal regulations. Accessing and performing related procedures helps ensure the rights of the parties and facilitates the project implementation. To better understand this process, let’s explore the land leasing procedures for domestic investment projects with Long Phan

Leasing land to carry out investment projects 

Leasing land to carry out investment projects

Conditions for the State to lease land for investment projects

Based on Article 58 of the 2013 Land Law, which stipulates conditions for leasing land to carry out investment projects:

1.For projects using agricultural land, protective forest land, or special-use forest land for other purposes not decided by the National Assembly, the Prime Minister must approve the investment principles. The competent state authority can only decide to allocate land, lease land, or permita change of land use purpose when one of the following documents is present:

  • A document of approval from the Prime Minister for cases involving a change of land use purpose from 10 hectares of agricultural land upwards; from 20 hectares of protective forest or special-use forest upwards;
  • A resolution from the Provincial People’s Council for cases involving a change of land use purpose under 10 hectares of agricultural land; under 20 hectares of protective forest or special-use forest.

2.For projects using land on islands, and in communes, wards, or towns in border or coastal areas, the competent state authority can only decide to allocate land, lease land, or allow a change of land use purpose with written approval from relevant ministries and sectors.

3.Individuals granted land by the State, leased land, or permitted to change the land use purpose to carry out investment projects must meet the following conditions:

  • Have the financial capacity to ensure the use of land according to the project’s timeline;
  • Provide a deposit in accordance with the regulations of the investment law;
  • Not violate the regulations of the land law for cases currently using land allocated or leased by the State to carry out other investment projects

Conditions for the State to lease land for investment projects  

Conditions for the State to lease land for investment projects

Procedure sequence for land leasing to implement investment projects

Documents to prepare

For projects that need to be reviewed by the competent state authorities or require an investment certificate:

  • Application for land allocation or land lease according to Form No. 01 of Circular No. 30/2014/TT-BTNMT dated June 2, 2014.
  • A copy of the Investment Certificate or investment approval document accompanied by the investment project explanation.
  • Document assessing the land use needs; assessment of land lease conditions stipulated in Clause 3 of Article 58 of the Land Law and Article 14 of Decree No. 43/2014/ND-CP dated May 15, 2014, by the Government made when issuing the investment certificate or assessing the investment project or approving the project.
  • Extract from the cadastral map of the land plot or cadastral survey of the land plot along with land plot statistics.

For projects that do not require approval from competent state authorities; projects that do not require an investment certificate; cases that do not require the establishment of an investment project for construction include:

  • Application for land allocation or land lease according to Form No. 01 of Circular No. 30/2014/TT-BTNMT dated June 2, 2014.
  • Extract from the cadastral map of the land plot or cadastral survey of the land plot along with land plot statistics.
  • A copy of the investment project explanation for projects that do not require approval from competent state authorities, projects that do not require an investment certificate;
  • A copy of the economic-technical report for cases that do not require the establishment of an investment project for construction. In cases of land application for religious facilities, an economic-technical report for constructing religious facilities is required.

Procedure for land leasing for investment projects

Based on Clause 3, Article 68 of Decree 43/2014/ND-CP, the procedure for land allocation and leasing without going through the auction of land use rights is as follows:

  • Step 1: The Department of Natural Resources and Environment guides the investor to prepare the application for land allocation or land lease, perform financial obligations according to legal regulations; submit it to the competent People’s Committee to decide on land allocation or leasing; sign a contract in case of land leasing.
  • Step 2: The person allocated or leased land fulfills financial obligations (if any).
  • Step 3: The Department of Natural Resources and Environment submits to the competent state authority to issue the Certificate of Land Use Rights, Ownership of Houses and Other Land-Attached Assets, lease the land; directs the update and adjustment of land database, cadastral records.

Based on Clause 4, Article 68 of Decree 43/2014/ND-CP, the procedure for land allocation and leasing through the auction of land use rights is as follows:

  • Step 1: The Department of Natural Resources and Environment directs the preparation of the land use rights auction plan and submits it to the People’s Committee of the same level for approval.
  • Step 2: The selected organization conducts the auction according to the approved land use rights auction plan.
  • Step 3: The competent People’s Committee issues a decision recognizing the auction results.
  • Step 4: After the auction winner has fulfilled the financial obligations, the Department of Natural Resources and Environment submits to the competent authority to issue the certificate, signs the land lease contract in case of land leasing; organizes the actual land allocation and hands over the certificate, directs the update and adjustment of the land database and cadastral records.

State fees

Based on Circular 106/2021/TT-BTC, the fee for reviewing land use right application files is regulated as follows:

  • The fee level is determined based on the size of the land plot, the complexity of each type of file, the purpose of land use, and the specific conditions of the locality.
  • Thus, the fee for reviewing land title application files varies among provinces and cities.

Procedure sequence for leasing land to implement an investment project

Procedure sequence for leasing land to implement an investment project

Resolution Time frame

Based on Clause 1 of Article 61 of Decree 43/2014/ND-CP concerning the timeline for land-related administrative procedures:

  • The time limit for land allocation or leasing is no more than 20 days, excluding the time for site clearance.
  • The time limit for changing the purpose of land use is no more than 15 days.

Important Notes During the Land Leasing Procedure

Leasing land to carry out an investment project is an important and complex process. Below are some tips to help ensure the procedure goes smoothly and quickly for you:

  • Ensure all necessary conditions for leasing land are checked, including legal regulations, local government regulations, and other relevant stipulations.
  • Clearly identify the purpose of land use and the terms of the land lease to avoid future disputes.
  • Ensure timely and accurate payment of land lease fees to avoid legal violations and loss of credibility with the land lessor.
  • Adhere strictly to the procedures to ensure satisfaction and long-term cooperation.

During the process of carrying out domestic investment projects, leasing land is an essential procedure. The procedure for leasing land for projects can be quite complex, depending on each case. If you have any questions related to this process or need advice on other related issues, please contact us via the Hotline at 0906.735.386 for legal advice and support. Thank you!

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Leasing land to carry out investment projects 

Procedures for land leasing to implement domestic investment projects