Regulations on receiving land use rights from FDI enterprises

Receiving land use rights from FDI enterprises is a process that directly affects investment activities in Vietnam. Current regulations of Vietnamese law create a legal corridor for FDI enterprises to access and use land, serving investment and business goals. This article analyzes legal regulations related to land use rights, legal rights and obligations of FDI enterprises when receiving land use rights, as well as professional legal consulting services from Long Phan Consulting Company.

What is an FDI enterprise?

According to the provisions of Clause 46, Article 3 of the Land Law 2024, FDI enterprises (Foreign Direct Investment) is an economic organization with foreign investment capital that must meet the conditions and carry out investment procedures prescribed for foreign investors according to the provisions of the Law on Investment to implement projects using land.

>>> See more: Can FDI enterprises receive land use rights transfer?.

In what cases does an FDI enterprise receive land use rights?

Pursuant to Clause 1, Article 28 of the Land Law 2024, FDI enterprises are entitled to receive land use rights through the following forms:

1. Receive transfer of land use rights in industrial parks, industrial clusters, high-tech parks.
2. Receiving transfer of investment capital is the value of land use rights according to Government regulations.
3. Receive land use rights through land allocation by the State to implement investment projects to build housing for sale or for combined sale and lease.
4. Receive land use rights through land leasing by the State.
5. Receive land use rights according to:

• The results of successful conciliation on land disputes are recognized by the People’s Committee at the competent level.
• Agreement in mortgage contract to handle debt.
• Decisions of competent state agencies on resolving land disputes, land-related complaints and denunciations, decisions or judgments of the People’s Court, and judgment enforcement decisions of judgment enforcement agencies have been implemented.
• Document recognizing the results of the auction of land use rights in accordance with the law.
• Document on the division of land use rights in accordance with the law for groups of people with common land use rights.

Thus, not in all cases do FDI enterprises receive land use rights, but only in the above cases.

Rights and obligations of FDI enterprises receiving capital contributions in the form of land use rights

Pursuant to Clause 1, Article 41 of the Land Law 2024, FDI enterprises receive capital contributions in the form of land use rights originating from the State with land use fees collected. Land use rights are leased with land rent paid once for the entire rental period, you have the following rights and obligations:

• General rights and obligations specified in Article 26 and Article 31 of this Law;
• Transfer of land use rights and assets attached to the land within the term of land use;
• Lease or sublease land use rights and assets owned by oneself attached to land during the land use term. Mortgage of land use rights and assets owned by oneself attached to land at credit institutions licensed to operate in Vietnam;
• Contribute capital with land use rights and assets owned by you attached to land.

FDI enterprises receiving capital contributions in the form of land use rights need to pay attention to the above rights and obligations to ensure effective operations.

Consulting services for receiving land use rights from FDI enterprises

Long Phan Consulting Company provides professional consulting services on receiving land use rights from FDI enterprises. Services include:

• Consulting on legal regulations on receiving land use rights from FDI enterprises.
• Evaluate the legality of land use rights transactions.
• Draft and review contracts and documents related to receiving land use rights.
• Representing customers to participate in negotiations and dispute resolution (if any).
• Support customers in completing administrative procedures.
• Consulting and answering other related issues.

With a deep understanding of land and investment law, Long Phan Consulting Company is committed to supporting FDI enterprises in receiving land use rights legally, transparently and effectively. We accompany customers from consulting, drafting contracts to completing procedures, ensuring safe transactions and compliance with regulations.

Frequently asked questions about receiving land use rights from FDI enterprises

Below are frequently asked questions about receiving land use rights from FDI enterprises that customers can refer to:

Are FDI enterprises allowed to buy agricultural land in Vietnam?

According to current regulations, foreign-invested economic organizations are not allowed to transfer the use rights of rice cultivation land, protective forest land, or special-use forest land from households or individuals, except in cases where the land use purpose is changed according to planning and land use plans approved by competent state agencies.

Can FDI enterprises receive land use rights as gifts from individuals?

Foreign-invested enterprises are not allowed to receive land use rights as gifts in cases where the law does not allow the transfer or donation of land use rights.

Can FDI enterprises transfer land use rights in industrial zones?

FDI enterprises are allowed to receive land use rights transfer in industrial parks, industrial clusters, and high-tech zones. And transfer the rights to use that land.

What is the form of land rent payment for FDI enterprises?

The form of land rent payment for FDI enterprises is to pay land rent once for the entire lease period, or pay land rent annually.

What conditions do FDI enterprises need to allocate land?

FDI enterprises need to have financial capacity to ensure land use according to the progress of the investment project and not violate land laws.

When can FDI enterprises receive land use rights through auction results?

When there is a document recognizing the results of the auction of land use rights in accordance with the law.

Conclude

Mastering the regulations on land use rights is a factor that helps FDI enterprises optimize their investment and operations in Vietnam. Long Phan Consulting Company has a team of experienced experts, always ready to accompany customers in all land-related issues. If you have any questions, please contact the hotline: 0906735386 for detailed advice.