The Land Law 2024 and Clause 3, Article 59 of Decree No. 102/2024/ND-CP stipulate that: in cases where land is used for the implementation of socio-economic development projects through agreements on the acquisition of land use rights, and the project area includes land managed by State agencies or organizations (if meeting the prescribed conditions), such land may be separated into an independent project (through land use right auction or investor selection bidding). Specific conditions for separating such land into an independent project shall be decided by the provincial-level People's Committee.
Accordingly, on March 31, 2025, the Ho Chi Minh City People's Committee (“People’s Committee”) issued Decision No. 51/2025/QD-UBND (“Decision 51”) stipulating the conditions, criteria, scale, and ratio for separating land areas managed by State agencies or organizations into independent projects within the city of Ho Chi Minh. Notable provisions of Decision 51 are as follows:
1. Clarification of the entities subject to the regulations on independent project separation in Ho Chi Minh City:
Decision 51 stipulates that, in addition to land used for implementing socio-economic development projects through agreements on the acquisition of land use rights, land currently under lawful use by organizations or individuals also falls within the scope of application for separation into independent projects in Ho Chi Minh City.
This expansion aims to maximize the creation of land funds for project implementation in the city and to avoid inefficient land use.
2. Basic conditions and criteria:
Some fundamental conditions and criteria for separating land into independent projects include:
a. General legal conditions:
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The land must conform with the general planning, zoning planning, detailed planning (if any), or land use planning (if any) as approved and announced by the competent authority;
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The land must not be subject to disputes, complaints, or violations at the time of review for separation into an independent project.
b. Criteria on location and plot characteristics:
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The land plot must adjoin an existing road or a traffic route with a minimum full width of 10.5 meters (≥10.5m), and the frontage of the land plot adjacent to the traffic route must be at least 10.5 meters (≥10.5m);
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The area of land conforming to the planning must be able to accommodate a rectangle with an area of 500m² and at least one side of 20m (≥20m) for low-rise zoning areas; or a rectangle of 1,000m² and at least one side of 30m (≥30m) for high-rise zoning areas;
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The land must ensure connectivity to transportation and technical infrastructure, consistent with the overall planning of the land plot and the surrounding existing area.
c. Land plot scale:
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In urban districts: The area of land conforming to planning must be at least 1,000m² (≥1,000m²) for high-rise zoning areas and at least 500m² (≥500m²) for low-rise zoning areas;
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In suburban districts (rural areas): The area of land conforming to planning must be at least 2,000m² (≥2,000m²) for high-rise zoning areas and at least 1,000m² (≥1,000m²) for low-rise zoning areas.
d. Ratio based on total land area:
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The area of land to be separated into an independent project must account for at least 5% (≥5%) of the total area conforming to the planning of the land plot for which the investor has agreed to acquire land use rights or currently holds land use rights;
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If the land proposed for separation as an independent project falls within an area proposed for expansion of an existing investment or socio-economic development project that has already been allocated or leased land by a competent authority, the minimum 5% (≥5%) ratio shall only apply to the expansion area.
In general, the conditions set out in Decision 51 are relatively stringent to ensure the feasibility of implementing projects after separation.
Decision 51 takes effect from April 10, 2025.
Comment: