On January 18, 2024, the National Assembly passed the Law on Land 2024 (amending the Law on Land 2013). It can be said that the Law on Land is one of the decisive documents for the legal document system and the socio-economy of our country. Therefore, what are the fundamental changes of the Law on Land 2024 compared to the Law on Land 2013 and what impact it will have on Vietnam’s economy? These issues will be presented by ATA Legal Services and analyzed in the topic “OVERVIEW OF LAW ON LAND 2024 - IN COMPARISON WITH THE LAW ON LAND 2013”.
Section 1. General issues of the Law on Land 2024
1.1. Supplementing and adjusting the basic definition
The Law on Land 2024 supplements, adjusts and amends many definitions in a more complete, comprehensive, and scientific way than the Law on Land 2013; however, within the scope of this issues, ATA will present important concepts that have many impacts on the enterprise community and individuals as follows:
1.1.1. Economic organizations: determined under the Law on Investment (instead of based on the general provisions of civil law) to ensure the uniformity of legal provisions.
1.1.2. Households: the Law on Land 2024 abolishes the status of independent land users of households; instead, households will participate in Law on Land relations as groups of people who share common land use rights. To ensure the rights of the people, the Law on Land 2024 allows certificates of land use rights, house ownership and land-attached property that were issued to households under the previous regulations to remain valid and households to be determined only for those cases where land use right certificates have been issued, ownership of houses and other property attached to land or equivalent (“Certificate”) as provided by previous Law on Lands; at the same time, households allocated or leased land by the State according to previous regulations may continue to use land during the remaining land use term. However, it should be noted that households that have been granted certificates will be able to exercise the same rights and obligations as the rights and obligations of individual land users from the effective date of the Law on Land 2024.
Legal issues related to land use rights of households, current status of outstanding issues, and more multidimensional legal aspects will be analyzed and evaluated more in-depth by ATA Legal Services in a separate legal topic on this issue.
1.1.3. Lease rights in land lease contract: this is a very important definition supplemented by the Law on Land 2024 and defined as the rights of land users formed when the State leases land to collect annual land rent. From the perspective of legal science, the Law on Land 2024 stipulates that the lease rights in land lease contract is a type of property right. However, this property right under the Law on Land 2024 has two points worth noting:
(i) arises only in land leases that collect annual land rent between competent authorities and land users; not arising in land leases that collect lump sum payments.
(ii) the exercise of rights relating to lease rights in the lease agreement is limited; specifically, the Law on Land 2024 stipulates that owners of property rights that are lease rights in land lease contracts are only entitled to transfer, lease, inherit or donate in specific cases defined by the Law on Land 2024.
1.1.4. Overseas Vietnamese: The Law 2024 divides this category into (i) Overseas Vietnamese who are Vietnamese citizens and (ii) Overseas Vietnamese residing abroad to ensure consistency and conformity with the provisions of the Law on Nationality.
Within the scope of the Law on Land 2024, overseas Vietnamese who are Vietnamese citizens are determined to be Vietnamese citizens and permanently reside and live abroad; this entity is determined to have the status of land user as a domestic individual and has rights, corresponding obligations as domestic individuals; Because in essence, this group of subjects are still Vietnamese citizens, so these people still have the same rights and obligations as Vietnamese citizens.
Persons of Vietnamese origin residing abroad are defined as Vietnamese who have ever acquired Vietnamese nationality but at birth their nationality is determined according to the principle of blood and their children and grandchildren are residing and living permanently abroad; this entity is also determined to have the status of independent land users not in the same subject group with domestic individuals; Because in essence, this group of subjects is people who no longer have Vietnamese nationality and are also not living in Vietnam, the living situation of these people is also different from domestic individuals but they are of Vietnamese origin, so it is not necessary to define this group of subjects as domestic individuals but need to specify them in a clause separately with other rights and obligations with domestic individuals to ensure fairness.
It can be seen that, in general, the Law on Land 2024 defines the principle that Vietnamese nationals (whether living in the country or abroad) have the rights and obligations of Vietnamese citizens; and those who do not have Vietnamese nationality but are of Vietnamese origin will also have certain rights to ensure that these people still contribute to the development of Vietnam.
1.2. Adding some basic principles of land use
The Law on Land 2024 adds a number of principles of land use including:
- Not infringing upon the legitimate rights and interests of adjacent land users; Adaptation to climate change;
- It is forbidden to abuse plant protection drugs, chemical fertilizers that pollute or degrade the soil;
- Clearly define that land use must be sustainable and effective for land and resources on the surface and in the ground.
The principle of sustainable, effective land use for land and resources on the surface and in the ground, although new regulations, practical problems are not new. The inadequacies from the waste of land resources, inefficient use of land, wasted surface and underground resources have taken place in practice and the addition of the above land use principles is the concern of the State, the responsibility of the community, individuals and organizations with land use.
1.3. Institutions, guidelines and policies of the State in land management and use
In addition to adjustments directly related to the rights and obligations of individuals and organizations, the Law on Land 2024 also institutionalized major guidelines, policies and major orientations on economic development through land resources, specifically as follows:
1.3.1. Large-scale agricultural production: The Law on Land 2024 defines specific principles and regulations to guide the concentration and accumulation of land for agricultural production; thereby contributing to a fundamental change in agricultural production methods in our country from backward fragmented production to centralized production, There is investment in modern and synchronous technical infrastructure, creating higher quality agricultural products and higher qualified labor.
1.3.2. Sea reclamation to create a land fund for economic development: Sea reclamation is an activity that has been practiced in Vietnam for many years, identified as a plan for economic development but there are no official regulations on this issue. The Law on Land 2024 creates a legal framework for reclamation activities in Vietnam in the coming time by stipulating the following issues:
+ The concept of reclamation operations;
+ Principles in encouraging organizations and individuals to use capital, techniques and technologies to carry out reclamation activities; principles of ensuring national defense, security, economic and environmental benefits, and compliance with legal regulations.
+ Support policies and incentives for investors to carry out reclamation activities.
To ensure succession and transition, the 2024 Law on Land allows projects with reclamation activities that have been approved or decided by the National Assembly or the Prime Minister according to relevant regulations before the effective date of the Law on Land 2024, the investor is allocated land, Land lease without auction of land use rights, without bidding for projects with land use to continue to be implemented according to approved investment projects.
1.3.3. Special land policy for ethnic minorities: ethnic minorities are an integral part of the Vietnamese ethnic family; In order to better ensure the interests of this community, the Law on Land 2024 adds regulations on the State's responsibility for land for ethnic minorities, including: ensuring community land for ethnic minorities; first land support for individuals who are ethnic minorities in the poor or near-poor categories; exemption from land use levy, allowing the change of land use purpose to residential land within the limit; allocation of agricultural land within the limit of no land use levy.
1.3.4. Establishment and construction of the national land database system: similar to the provisions of other laws recently promulgated, the construction of a unified and centralized national land database system throughout the country; thereby creating publicity and transparency of information, strengthen the State's management, limit fraudulent acts and violations of the law that lawmakers pay attention to. The Law on Land 2024 stipulates specific requirements for the National Land Database; At the same time, ensure the value of data in the national database on land by stipulating that these data have official use value, equivalent to paper documents provided by competent agencies.
1.3.5. Supplementing the enforcement mechanism for land dispute settlement decisions not issued by the Court: The Law on Land 2013 does not clearly stipulate the enforcement mechanism for land dispute settlement decisions not issued by the Court, so land disputes settled under this mechanism usually have lower effectiveness than decisions made by the Court's dispute resolution decision. In order to overcome the above problem, the Law on Land 2024 specifies the mechanism for enforcing dispute settlement decisions not issued by the Court, especially for land disputes where litigants do not have land documents. Accordingly, the effective dispute settlement decision must be strictly complied with by the parties; after 30 days from the effective date of the dispute settlement decision, the parties or one of the parties who fail to comply will be enforced. The Law on Land 2024 also clearly stipulates that the Chairman of the People's Committee of the district where the disputed land is located shall issue an enforcement decision to implement the land dispute settlement decision and organize the implementation of the enforcement decision.
Section 2. Rights and obligations of land users
As the subject directly using the land, the rights and obligations of land users are regulated in Chapter III of the Law on Land 2024 instead of Chapter 11 as in the Law on Land 2013. The key issues of the Law on Land 2024, which directly relate to and significantly impact businesses and individuals, will be compiled and analyzed by ATA as follows:
2.1. Supplementing general obligations of land users
The Law on Land 2024 maintains the substance and essence of the provisions regarding the rights and obligations of land users as in the Law on Land 2013. However, the general obligations of land users are supplemented with provisions for handling, renovating, and restoring land in polluted or degraded areas caused by themselves. It also abolishes the requirement to return the land when the land use term expires without extension by the competent state authority. Thus, the Law on Land 2024 enhances the responsibility of land users in environmental protection and mitigating the environmental consequences caused by themselves.
2.2. Specifying the rights of land users
The Law on Land 2024 still defines land rights according to the land user categories, including individuals and economic organizations. Additionally, it stipulates other special cases, such as households (with individual members), whose rights and obligations are similar to individuals, and groups of land users with organizational members, whose rights and obligations are similar to economic organizations.
The Law on Land 2024 also specifies cases where the land use rights of a group of land users cannot be divided among individuals, in which case the members collectively exercise or delegate representation to carry out the rights and obligations of the group of land users. The Law on Land 2013 only allowed delegation without the option for collective exercise, thus the provision of the Law on Land 2024 provides better conditions for groups of land users.
2.2.1. Rights and obligations of individual land users
Individuals according to the Law on Land 2024 are defined as individuals in Vietnam (Vietnamese nationals living and settling in Vietnam), Vietnamese nationals residing abroad who are Vietnamese citizens, and groups of land users consisting of household members. The Law on Land 2024 stipulates the following general rights of individual land users:
(i) Right to transfer land use rights to other individuals, however, the geographical scope of transfer is expanded to “within the same province” (the Law on Land 2013 only allowed transfer within the same commune, ward, or town). This provision creates more favorable conditions and opportunities for individuals to exercise this right.
(ii) Right to receive land use rights as gifts, however, the scope is expanded to include receiving for building charitable houses, solidarity houses, houses closely associated with land, and receiving land use rights for Overseas Vietnamese permitted to enter Vietnam, except in cases prohibited by the law.
(iii) Right to receive land use rights based on awards of Vietnamese commercial arbitrators. This provision elevates the role of commercial arbitrators in Vietnam.
These general rights under the Law on Land 2024 are adjusted to be more suitable and provide more favorable conditions for land users. Other general rights of individual land users are guaranteed (including the rights to be allocated land, to lease land, and to have land use rights recognized). Besides general rights applicable to all individual land users, the Law on Land 2024 also stipulates specific rights for each category of individual land users as follows:
a) For individuals using agricultural land allocated by the state; land allocated by the state incurring land use fees, land leased incurring lease fees paid upfront for the entire lease term, and land received through conversion, inheritance, or gift, the Law on Land 2024 supplements the following rights:
+ Right to transfer property under ownership attached to the land;
+ Right to lease property under ownership attached to the land to other organizations, individuals, or Overseas Vietnamese investing in Vietnam;
+ Right to inherit property under ownership attached to the land through will or according to the law;
+ Right to mortgage property under ownership attached to the land to other economic organizations or individuals;
+ Right to contribute capital by property under ownership attached to the land to organizations; to contribute land use rights to individuals or Overseas Vietnamese for cooperative production and business.
The Law on Land 2024 regulates the rights of land users regarding property attached to the land directly within the provisions of the Law. The Law on Land 2013 did not specifically stipulate the rights of land users regarding property attached to the land, and these rights were determined according to the rights and obligations regarding property in general under the Civil Code.
b) For individuals leased land annually by the state, the Law on Land 2024 adjusts and supplements to ensure compatibility and consistency with lease rights in lease contracts, specifically:
+ Right to transfer lease rights in lease contracts when conditions are met as regulated;
+ Inheritance, gift of lease rights in lease contracts;
+ Sublease of lease rights in lease contracts.
Thus, individuals leased land annually by the state are not allowed to mortgage lease rights in lease contracts.
c) For the specific case of individuals subleasing land (not directly signing lease contracts with the state) in industrial zones, industrial clusters, or high-tech zones, they have equivalent rights and obligations as land users directly signing lease contracts with the state. However, the Law on Land 2024 does not clearly define which individuals subleasing land fall under this category (individuals signing lease contracts with the project infrastructure investor or individuals subleasing land with businesses subleasing land from the project infrastructure investor).
2.2.2. Rights and Obligations of Land Users who are Vietnamese Expatriates
As presented by ATA above, Vietnamese expatriates are a subject defined by the Law on Land 2024 to ensure compliance with nationality laws. Compared to Vietnamese expatriates who are Vietnamese citizens, Vietnamese expatriates have full rights and obligations equivalent to receiving and using land legally in Vietnam (including rights and obligations in cases of land allocation or leasing by the state). Unlike the Law on Land 2013, the Law on Land 2024 supplements the rights of Vietnamese expatriates to inherit land use rights and other types of land within the same residential land plot (the Law on Land 2013 only allows inheritance of residential land use rights, excluding other types of land).
Therefore, the Law on Land 2024 aims to create more favorable conditions for Vietnamese expatriates to participate in land transactions and housing in Vietnam, contributing to attracting a larger foreign investment capital.
2.2.3. Rights and Obligations of Land Users who are Domestic Organizations
Domestic organizations in this case include economic organizations (Vietnamese enterprises established under legal regulations, excluding economic organizations with foreign investment) continue to be governed by the basic rights and obligations under the Law on Land 2013, such as: (i) receiving transfers, capital contributions, gifts, or inheritance of land use rights; (ii) being allocated land, leased land, or recognized land use rights in specific cases; (iii) receiving land use rights based on dispute resolution results or decisions of arbitration authorities; (iv) obtaining land use rights in cases of reorganization (division, separation, merger, consolidation, or conversion of organizational models) as per legal regulations.
In addition to the general provisions, domestic organizations under the 2024 Law on Land have specific rights and obligations for each corresponding group of land users.
a) For domestic organizations allocated land without land use fees: The 2024 Law on Land maintains the provisions of the 2013 Law on Land, indicating that this group only has the common rights and obligations mentioned above and does not have the right to transfer, donate, lease land use rights, mortgage, or contribute capital using land use rights.
b) For domestic organizations leased land subject to annual land use fees: Besides the rights provided in the 2013 Law on Land, the 2024 Law on Land supplements mechanisms allowing this group to mortgage land use rights and property attached to land at credit institutions operating in Vietnam or other economic organizations or individuals as per regulations (the 2013 Law on Land only allows mortgage at credit institutions permitted to operate); this provision supports domestic organizations in mobilizing capital from multiple sources.
c) Specific provisions for domestic organizations leased land subject to one-time land use fees for the entire lease term but exempted or reduced land use fees:
The 2024 Law on Land specifies in detail cases where domestic organizations leased land for social housing projects, housing for armed forces, or investment projects for renovating, rebuilding apartment buildings (instead of only for housing business projects as stipulated in the 2013 Law on Land) that are exempted or reduced land use fees, they have rights and obligations according to Law on Lands as in cases not exempted or reduced land use fees.
The 2024 Law on Land also facilitates domestic organizations leased land subject to one-time land use fees for the entire lease term for business investment projects exempted or reduced land use fees by granting them rights and obligations similar to cases not exempted or reduced land use fees. This provision is considered more advantageous for land users as it applies to all cases, while the 2023 Law on Land only applies to some cases exempted or reduced land use fees, which have more limited rights for land users.
d) For economic organizations leased land subject to annual land use fees, to ensure consistency with lease rights in land lease contracts, the 2024 Law on Land supplements the following rights for this group:
The right to mortgage land use rights and property attached to land at credit institutions permitted to operate in Vietnam or other economic organizations or individuals as per regulations (the 2013 Law on Land only allows mortgage at credit institutions permitted to operate).
The right to lease property attached to land.
The right to sell and lease lease rights in land lease contracts.
2.2.4. Rights and Obligations of Land Users who are Economic Organizations with Foreign Investment
The role and contribution of economic organizations with foreign investment in Vietnam over the years are undeniable. Given the current period, Vietnam has more significant opportunities to attract larger foreign investment capital and higher-quality science and technology. Therefore, the 2024 Law on Land has been adjusted to provide the most favorable conditions for this group to access land while ensuring scientific and rational principles.
a) Economic organizations with foreign investment in Vietnam are granted additional rights to receive transfers of land use rights in industrial zones, industrial clusters, and high-tech zones (the 2023 Law on Land does not grant this right to this group). With this new right, the ability and opportunity for this group to access land in industrial zones, clusters, and high-tech zones will be significantly increased, thereby enabling them to engage in long-term production with sustainable economic benefits.
b) Economic organizations with foreign investment (including enterprises with 100% foreign capital) are entitled to contribute capital using land use rights. Compared to the provisions of the Law on Land 2013 (which required only joint ventures, not enterprises with 100% foreign capital, to be eligible to contribute capital using land use rights), the provisions of the Law on Land 2024 expand the scope of applicable entities and create more favorable conditions for this group of subjects.
c) Economic organizations with foreign investment in Vietnam are granted land use rights based on decisions or awards of commercial arbitration. Commercial arbitration is one of the dispute resolution methods frequently used by economic organizations with foreign investment, and allowing this group of subjects to obtain land use rights through arbitration awards is also a provision aimed at facilitating this group of subjects.
d) In addition to the aforementioned provisions, the Law on Land 2024 continues to regulate the rights of economic organizations with foreign investment as provided in the Law on Land 2013, including receiving the transfer of investment capital as the value of land use rights, being allocated land by the state for investment projects to build houses for sale or for combined sale and lease (this provision also ensures consistency with the provisions of the Housing Law 2023), and being leased land by the state.
2.2.5. Other Related Issues
(i) The Law on Land 2024 adjusts towards individuals who do not directly engage in agricultural production but receive transfers or gifts of land use rights for rice cultivation beyond the prescribed limit. In such cases, they must establish economic organizations and have a plan for rice cultivation land use approved by the People's Committee at the district level, except for cases where the recipient is an heir.
(ii) The Law on Land 2024 specifies amendments to cases not eligible to receive transfers or gifts of land use rights, including:
Economic organizations not eligible to receive transfers of forest protection land use rights, special-use forest land of individuals, except in cases of land use purpose transfer according to approved land use planning and plans by competent authorities;
Individuals not residing in forest protection areas, special-use forests are not eligible to receive transfers or gifts of residential land and other land within forest protection areas, within strictly protected areas, ecological restoration zones of those special-use forests;
Organizations, individuals, residential communities, religious organizations, subordinate religious organizations, overseas Vietnamese settling abroad, foreign-invested economic organizations not permitted by law to receive transfers or gifts of land use rights.
(iii) Stricter conditions are stipulated for the sale of assets attached to land and lease rights in land lease contracts leased by the state for annual land rent.
The Law on Land 2024 adjusts the regulations regarding economic organizations, individuals, overseas Vietnamese settling abroad, foreign-invested economic organizations selling assets attached to land leased by the state for annual land rent in a more stringent manner, specifically adding the following two requirements:
- Assets attached to leased land have been registered as required;
- Construction has been completed in accordance with detailed construction planning and the investment project has been approved, endorsed (if any), except in cases where implementation must be in accordance with the judgment, decision of a court that has come into effect, coercive decision of a civil enforcement agency, or conclusion of a competent state authority on inspection and examination.
In particular, economic organizations, individuals, overseas Vietnamese settling abroad, foreign-invested economic organizations leased land by the state can sell assets attached to land and lease rights in lease contracts when they meet the above conditions and have paid in advance for compensation, support, resettlement, which has not been fully deducted from the land rent to be paid.
Section 3: Land Allocation, Leasing, and Land Use Conversion
Principally, laws need to specify in detail and rigorously regulate the allocation, lease, and permission for land use conversion to ensure that these processes are conducted fairly, objectively, correctly targeted, and achieve the purpose, effectively utilizing the land. However, previous regulations have not adequately ensured these aspects. Therefore, the Law on Land 2024 has made fundamental and specific changes compared to the Law on Land 2013.
3.1. Specific regulations on the grounds for State allocation, land leasing, and permission for land use conversion
The Law on Land 2013 only stipulates two grounds for State allocation, land leasing, and permission for land use conversion, including the annual land use plan approved by the district-level authority and the land use needs expressed in investment projects, applications for land allocation, lease, or land use conversion. Legally, these two grounds are not sufficiently clear and do not conform to the usual legal procedures. The Law on Land 2024 specifies clear and specific grounds to ensure fairness and transparency, including:
a) Land allocation and leasing through land use rights auction: based on the document approving the result of winning the land use rights auction by the competent state authority.
b) Land allocation and leasing through investor selection bidding to implement projects with land use: based on the document approving the result of investor selection for projects organized through bidding in accordance with the laws on bidding.
c) Land allocation and leasing without land use rights auction, without investor selection bidding for projects with land use; permission for land use conversion includes:
For community and social projects such as land allocation for residential areas, production land for ethnic minority communities; land recovery projects within the year, resettlement projects, land intended for compensation for reclaimed landowners; relying on the annual district-level land use plan approved and investment decisions according to relevant legal regulations.
For other projects (including projects using land posing a threat to human life) based on investment decisions/approval of investment project proposals and approval of investors according to the laws on public investment, laws on public-private partnership investment, investment laws (under the jurisdiction of the Provincial People's Council and above).
3.2. More clearly stipulate cases of land use according to specific forms of land use
The Law on Land 2024 adjusts in the direction of stricter regulations on cases of land lease by the State as follows:
|
Form |
Allocation of land without land use levy |
Allocation of land with land use levy |
Land lease collects a one-time land rent for the whole lease period |
Land lease collects annual land rent |
|
|
Land allocated in this form is mainly land for public use, for the common good such as: + Building headquarters of agencies of the Party, State and community-based organizations; national defense and security; cemeteries, beliefs. + Protective forest land, special-use forests, production forests. + Construction of official housing, housing for resettlement. |
Land allocated in this form is mainly land allocated to be used for residential purposes such as: + Individuals are allocated residential land. + Economic organizations are allocated land to implement housing projects (commercial housing, social housing...) + Be allocated land due to land compensation. + Implement cemetery infrastructure investment projects to transfer land use rights associated with infrastructure. |
Land allocated in this form is mainly land leased for the implementation of production and business projects such as: + Investment projects in agriculture, forestry, aquaculture, salt making. + Industrial park project or similar; public projects with business purposes... + Social housing projects for rent. |
All remaining cases, not specified in the above three forms; and cases where land leases collect land rent once for the whole lease period but there is a need to collect annual land rent. |
Accordingly, as stated above by the ATA, the Law on Land 2024 defines the principle that, except for cases where land is allocated and leased by the State to collect land rent once for the whole lease period has been clearly stipulated, the remaining cases will have to carry out the land lease to collect annual land rent. At the same time, the State also encourages cases where land lease is collected by the State to collect land rent once for the whole lease period to convert to the form of land lease to collect annual land rent.
In order to ensure the legitimate interests of relevant entities, the Law on Land 2024 provides for transition in the implementation of legal provisions on land use forms according to the following principles:
(i) In cases where land has been allocated by the State with land use levy collection according to previous regulations, but in the case of land lease under the Law on Land 2024, they may continue to use land according to the remaining land use term without having to convert to land lease. In case it is extended when the land use term expires, it must be transferred to land lease.
(ii) In cases where land has been allocated by the State without collecting land use levy according to previous regulations, but in the case of land lease under the Law on Land 2024, it must be converted to land lease.
(iii) In cases where procedures for land allocation or land lease are being carried out but no decision on land allocation or land lease has been made, land allocation or land lease shall be carried out in accordance with the provisions of law before January 1, 2025; in case of need, it shall comply with the provisions of the Law on Land 2024.
3.3. Specifying cases of land allocation, land lease, non-auction of land use rights, non-bidding for selection of investors to execute land-using projects
The Law on Land 2013, other relevant laws and implementation guiding documents have provided for cases of land allocation and land lease through auction of land use rights, through bidding to select investors. However, these regulations are not really clear, and there are overlaps and obstacles in the implementation process. Therefore, the Law on Land 2024 specifies the following cases of land allocation, land lease through auction of land use rights/through bidding for investor selection and cases of land allocation, land lease without auction of land use rights, without bidding for investor selection.
|
Land allocation, land lease through auction of land use rights |
+ Investment projects using land from prescribed land funds unless otherwise stated. + Allocation of residential land to individuals unless otherwise. |
|
Land allocation, land lease through bidding for investor selection |
+ Investment projects on construction of urban areas with mixed service functions, synchronization of technical and social infrastructure systems with housing for new construction or urban renovation and embellishment; + Rural residential projects for which the People's Councils of provinces decide on land allocation, land lease through bidding and selection of investors to implement investment projects using land. + Investment projects using land in cases where the State recovers land according to regulations and do not fall into the above cases but in cases where bidding must be organized to select investors in accordance with the law on management of branches and domains. |
|
Land allocation, land lease without auction of land use rights, without bidding for investor selection |
+ Cases of land allocation or land lease that are exempt from land use levy or land rent unless otherwise applied. + Allocate or lease land for the implementation of projects in case the State recovers land in accordance with the provisions of the Law on Investment or Investment in the form of public-private partnership. + Allocation of land with land use levy or land lease in specific cases such as: allocation of residential land to priority subjects according to regulations. + Change of land use purposes according to regulations. + In cases where there is an interested investor but only one investor satisfies the conditions for inviting interest in the project, the number of interested investors must be determined in accordance with the provisions of the law on bidding and the law on management of industries and domains. + In case the land offered for auction of land use rights 02 times fails in the prescribed case or there are no participants. + Foreign-invested economic organizations shall receive the transfer of real estate projects in accordance with the law on real estate business. |
In addition, the Law on Land 2024 also stipulates the conditions for conducting the auction of land use rights, conditions for bidding to select investors on the basis of inheriting relevant provisions of law and documents guiding the implementation of the law.
The 2024 Law on Land also provides transitional provisions related to the implementation of the process of auctioning land use rights and bidding for investor selection according to the following principles:
(i) The investment project has been approved for the investment policy in writing or selected the investor or investor in accordance with regulations before 01/07/2014 but has not yet allocated land or leased land to the investor but is now in accordance with the land use planning and plan, reviewed by the People's Committee of the province, certifying that it has complied with relevant laws at the time of issuance of such documents, and that the delay in land allocation or land lease is not the fault of the investor, it is not necessary to organize the auction of land use rights, not to bid to select investors to implement projects using land in accordance with the provisions of the Law on Land 2024.
(ii) For selected investment projects, the investor shall comply with the provisions of the law on investment, the law on housing, the law on bidding from 01/07/2014 to before 01/01/2025 but have not yet allocated land or leased land, but in the case of land allocation or land lease without auction in accordance with the provisions of the Law on Land 2013, relevant laws and in accordance with land use plannings and plans, continue to take the next steps in the order and procedures for land allocation, land lease for land allocation and land lease to investors in accordance with the provisions of the Law on Land 2024.
Regarding the issue of changing land use purposes, in order to strengthen the State's management, the Law on Land 2024 has adjusted regulations in a stricter and clearer direction, specifically as follows:
(i) The decision to allow the change of use purposes of land for rice cultivation, special-use forest land, protective forest land and production forest land to other purposes shall only be made after a resolution of the provincial-level People's Council, except for cases where the land for project implementation falls under the competence of the National Assembly, The Prime Minister shall approve and decide on investment policies according to regulations regardless of the area proposed for change of use purposes as prescribed by the Law on Land 2013.
The change of land use purpose is also more clearly regulated than the 2013 Law on Land in the direction that: if it is not in the case of having to apply for a change of land use purpose prescribed by the Law on Land 2024, it is not required to apply for permission from a competent state agency.
Section 4: Compensation for Land, Property; Support, Resettlement when the State Recovers Land and Cases of Land Recovery by the State
The Law on Land 2024 adjusts towards resolving fundamental issues that currently hinder land clearance.
Regarding compensation principles, the Law on Land 2024 determines compensation as the state returning the value of land use rights (for the area of land recovered) to the landowners, instead of returning the value of land use rights to land users as in the Law on Land 2013. Thus, the Law on Land 2024 expands the compensation beneficiaries to include those currently using the land without proper certification, thereby better protecting the rights of those whose land is recovered.
Regarding "support" when the state recovers land, the Law on Land 2024 also makes fundamental adjustments to the principle: the essence of support is the state's policy for landowners, property owners attached to the land, and those outside the compensation scope.
4.1. Supplementing specific compensation principles
The Law on Land 2024 clearly stipulates compensation, support, and resettlement principles when the state recovers land, summarized as follows:
a) Ensuring democracy, objectivity, fairness, transparency, timeliness, and compliance with legal regulations, for the common interests of the community.
b) If there is demand and local conditions regarding land and housing funds, compensation may be considered with other land use purposes than the recovered land type or housing.
c) Compensation for damages when property is damaged or production, business activities are suspended.
d) Compensation funds in land recovery cases are included in the compensation, support, resettlement budget of the investment project.
These principles are specified in decrees guiding the implementation of the Law on Land 2013. The specific provisions in the Law on Land 2024 provide a legal framework for transparent compensation implementation, ensuring the rights of those whose land is recovered.
In addition to general principles, the Law on Land 2024 adds provisions for compensation, support, and resettlement in special cases, including:
a) For investment projects decided, approved by the National Assembly, the Prime Minister, affecting entire communities and their socio-economic life, cultural traditions, the Provincial People's Council decides appropriate compensation, support, resettlement policies based on local conditions.
b) In cases where land recovery poses a threat to human life, landowners are compensated, supported, resettled as in regular land recovery cases.
c) When the state recovers land, organizations suffering property damage under state management and usage are relocated to new premises, with compensation used for investment in the new location according to authorized investment projects.
Several other related issues are also specified in the Law on Land 2024 to ensure the rights of those whose land is recovered, including:
Adjusting compensation plan amendments when land or property prices are lower than the approved plan, applying the approved plan's compensation price.
Land use fees for resettlement land for those compensated for residential land, allocated land, are determined based on land prices at the time of approving the compensation, support, resettlement plan.
Landowners for investment projects in urban areas are compensated with residential land or houses in situ; during resettlement arrangements, temporary housing is provided or rental support is given, with specifics determined by the Provincial People's Committee according to local conditions.
4.2. Adjusting conditions for land compensation when the State recovers land for defense, security purposes; socio-economic development for national interests, public benefits
Besides enhancing the protection of landowners' rights, the Law on Land 2024 adjusts conditions for land compensation, aiming for more flexibility and suitability.
The Law on Land 2013 stipulates that compensated entities must have Land Use Right Certificates/House Ownership Certificates and other property rights attached to the land or meet conditions for obtaining such certificates. However, the Law on Land 2024 lists the entities eligible for land compensation (expanded from the Law on Land 2013), and these entities need only one of the following documents regarding the land to be eligible for compensation:
- Certificates as per regulations
- Land allocation or leasing decisions or decisions allowing land use purpose transfers from competent state agencies
- Any land use right documents used to grant Land Use Right Certificates to households, individuals, or communities as per regulations
- Land use rights transferred according to legal procedures but not yet registered
- Land use agreements in mortgage contracts for debt settlement; documents recognizing auction results of land use rights where auction winners have fulfilled financial obligations as per regulations.
Additionally, the Law on Land 2024 adjusts provisions concerning households, individuals using agricultural land, who are eligible for compensation when the state recovers land, whether compensated with agricultural land, money, land for other purposes, or housing.
4.3. Specifying More Appropriate Property Compensation in Line with Market Prices
The Law on Land 2024 adjusts this issue as follows:
a) For residential structures integral to household or individual land use, or for Vietnamese-origin individuals residing abroad, compensation is provided for new construction values without requiring full or partial demolition.
b) When state land recovery damages aquatic or other livestock that cannot be relocated, actual damages are compensated based on specific compensation rates set by the Provincial People's Committee.
c) Specific conditions for support beneficiaries receive cash support not exceeding five times the agricultural land price in the local land price table for the entire agricultural land area recovered but not exceeding the agricultural land allocation limit in the locality.
d) Provincial People's Committees issue compensation rates for actual damages to houses, residential structures, and construction works to serve as a basis for compensation calculations when recovering land. These rates must ensure market suitability and be reviewed and adjusted as needed due to market fluctuations.
4.4. Ensuring Stable Resettlement for Affected Individuals
To ensure stability in the lives of individuals affected by land recovery, the Law on Land 2024 supplements provisions requiring that resettlement areas meet the following conditions:
a) Technical infrastructure in resettlement areas must minimally meet the standards of the New Rural Area for rural regions and urban standards for urban areas. This includes ensuring access roads connecting to neighboring areas, electricity for lighting and household use, water supply and drainage systems, communication facilities, and environmental management.
b) Social infrastructure must ensure access to healthcare, education, culture, sports, markets, commerce, services, recreation, and cemeteries.
c) It must be in accordance with the conditions, customs, and practices of each region or locality.
Resettlement locations must also prioritize:
a) Within the administrative boundaries of communes, wards, and towns where land is being recovered;
b) Within the administrative boundaries of districts, towns, and cities under provincial authority, where there is no land available for resettlement in communes, wards, and towns where land is being recovered;
c) In other locations with equivalent conditions to those in districts, towns, and cities under provincial authority, where there is no land available for resettlement in communes, wards, and towns where land is being recovered;
d) Priority should be given to selecting land with favorable conditions to establish resettlement areas.
Furthermore, the Law on Land also stipulates the principle that land prices for land use compensation for individuals compensated for residential land and those allocated land for resettlement in cases where they do not meet the conditions for residential land compensation shall be determined according to the land price list at the time of approving the compensation, support, and resettlement plan. The land price list will be issued annually to timely reflect market fluctuations.
4.5. Stringent regulations on State land recovery
4.5.1. Adjusting Regulations on Cases of State Land Recovery for Socioeconomic Development for National Interest and Public Interest
Vietnam is still undergoing a period of construction and development; therefore, land recovery for socioeconomic development for national interest and public interest is still identified as work to be regularly and continuously carried out. In response to challenges in implementing regulations on land recovery for socioeconomic development for national interest and public interest, the Law on Land 2024 has made fundamental adjustments as follows:
a) Except for cases of land recovery for national defense and security purposes, land recovery for socioeconomic development projects may only be carried out when truly necessary.
b) Instead of decentralizing project approval authority to the National Assembly, the Prime Minister, and the People's Council at the provincial level as stipulated in the Law on Land 2013, the Law on Land 2024 lists 31 cases of investment projects in infrastructure and social infrastructure, education, healthcare, social, scientific and technological, cultural, and sports purposes. Regarding residential and urban area projects, the state only recovers land for specific cases:
- Social housing projects, housing for armed forces (except for cases of agreement on land use rights);
- Civil servant housing projects;
- Reconstruction and construction projects for apartment buildings, excluding other cases as stipulated;
- Resettlement projects;
- Investment projects in constructing urban areas with functions serving a mixed-use purpose, a comprehensive technical infrastructure system, and social infrastructure with housing as regulated by construction law for new construction or urban renovation and embellishment;
- Rural residential area projects;
- Allocation of residential and agricultural land for ethnic minorities to implement land policy support for ethnic minorities.
Overall, the Law on Land 2024 provides more detailed and specific regulations compared to those stipulated in the Law on Land 2013. Additionally, to ensure flexibility in addressing new issues in practice, the Law on Land 2024 specifies two cases that may be considered exceptions for projects approved by the National Assembly, the Prime Minister, and other cases not regulated by law but deemed necessary by the National Assembly for national interest and public interest.
4.5.2. Supplementing and adjusting cases of State land recovery due to violations of Law on Land
Violations of Law on Lands leading to land recovery are also a matter of concern in recent times, as many projects have been stalled for several years without land recovery, resulting in the wastage of land resources. Cases of state land recovery due to violations of Law on Lands have been adjusted and supplemented as follows:
a) For cases where land users damage land, the condition for land recovery is supplemented with the requirement that the land user must have been administratively fined for land-damaging behaviors and continues to violate them.
b) The case of land users failing to fulfill obligations to the state and having been administratively fined for violations without compliance has been repealed.
c) Supplementing provisions have been added for cases where aquaculture land is not used continuously for 12 months and has been administratively fined for violations without putting the land into use within the timeframe specified in the administrative fine decision, resulting in land recovery except in cases of force majeure.
4.6. Detailed regulations on Land Recovery Procedures to Ensure the Best Interests of Affected Individuals
4.6.1. Public disclosure and transparency of State compensation policies for land recovery
The Law on Land 2024 aims to promote transparency in state compensation policies for land recovery to safeguard the rights of affected individuals. Accordingly, the Law on Land 2024 mandates:
a) Before issuing a land recovery notice, responsible authorities must hold meetings with landowners in the affected area to disseminate information and gather opinions on the purpose, significance, and importance of the project or construction to be implemented, as well as the state regulations and the proposed content of compensation, support, and resettlement plans.
b) Publicly post compensation, support, and resettlement plans at the common meeting place of the residential area where land is being recovered within a 30-day period. Immediately after the expiration of the public posting period, organize meetings to gather opinions on the compensation, support, and resettlement plans through direct discussions with residents in the affected area.
c) In cases where contact cannot be established and a land recovery notice cannot be delivered to the affected landowners, the notice must be published in one of the central and provincial daily newspapers for three consecutive issues and broadcasted on central and provincial radio or television stations three times over three consecutive days. Additionally, the notice must be posted at the commune-level People's Committee headquarters, the common meeting place of the residential area where land is being recovered, and published on the electronic portal of the district-level People's Committee throughout the compensation, support, and resettlement period.
4.6.2. Amending the land recovery decision issuance timeframe
The Law on Land 2024 adjusts significant provisions regarding the timing of land recovery decision issuance. Accordingly, land recovery decisions must be issued within 10 days from the date:
a) Approval of compensation, support, and resettlement plans for cases not requiring resettlement.
b) Affected landowners are allocated in situ resettlement and agree to receive temporary residence compensation.
c) Affected landowners are allocated and handed over land on-site for self-construction of resettlement housing by competent authorities.
d) Affected landowners are provided with resettlement housing by competent state agencies.
e) Affected landowners are allocated residential land attached to resettlement housing.
f) Affected landowners agree to and have received compensation for self-arranged accommodation.
g) Affected landowners voluntarily transfer land to the state and have been provided with temporary residence or compensated for temporary residence expenses.
Thus, the principle of the Law on Land 2024 is adjusted to stipulate that land recovery decisions are issued only after affected landowners have received compensation according to the regulations, whereas the Law on Land 2013 stipulates that land recovery decisions are issued on the same day as the approval of compensation, support, and resettlement plans. Additionally, the Law on Land 2024 supplements provisions on the effective period of land recovery notices, which is 12 months from the date of issuance, serving as an important basis for determining the rights and obligations of land users during investigation, survey, measurement, and counting periods as stipulated. For ongoing projects implementing land clearance and compensation, the Law on Land 2024 regulates the transfer of implementation based on the following principles:
(i) Cases with land recovery decisions made before January 1, 2025, but without approved compensation, support, and resettlement plans, continue to be implemented according to the provisions of the Law on Land 2024.
(ii) Cases with land recovery decisions and approved compensation, support, and resettlement plans before January 1, 2025, but not yet implemented, continue to be implemented according to the approved plans.
(iii) For investment projects approved by the Prime Minister for compensation, support, and resettlement policy frameworks before January 1, 2025, but with no local approval of plans, the more favorable policies for affected landowners shall apply.
Section 5. Land Finance
Land finance directly relates to the obligations of land users, citizens, and organizations regarding land. Recent challenges and even violations directly related to land finance issues, hence the Law on Land 2024 has been adjusted to regulate land finance matters more rigorously.
5.1. Adjusting basis for land rent calculation
The Law on Land 2024 continues to stipulate that annual land rent remains stable for a period of five years from the moment the State decides to lease the land, as in the Law on Land 2013. However, adjustments are made as follows: the land rent for the next cycle is calculated based on the land price list of the specified year; if the land rent increases compared to the previous cycle, the adjustment must not exceed the rate determined by the government for each period, and this rate must not exceed the national Consumer Price Index (CPI) for the previous 5-year period. This provision reflects market dynamics but may pose challenges for businesses as they cannot predict the extent of rent increases, affecting financial planning.
5.2. Adjusting cases of exemption or reduction of land use fees and rent
Key provisions in this section include:
a) Commercial land use within investment preferential sectors or investment preferential areas no longer qualifies for exemptions or reductions in land use fees or rent.
b) Adding cases eligible for exemptions or reductions in land use fees or rent, such as land use for community-oriented purposes like housing for industrial park workers or armed forces personnel, or for priority groups as stipulated; land use for investment projects under public-private partnerships.
c) Supplementing an important principle regarding land price determination: in cases where land use fees or rent are exempted, the process of determining land prices is waived. Users exempt from land fees or rent are not required to request exemption. This provision streamlines procedures, preventing delays and excessive costs.
5.3. Tightening land valuation
5.3.1. Adjusting of land valuation principles
The Law on Land 2013 stipulates that one of the bases for land valuation is the prevailing market price of land with the same intended use that has been transferred, the auction-winning price of land use rights in areas where land use rights are auctioned, or income from land use; meaning that land prices are determined by referencing prices of similar cases.
The Law on Land 2024 adjusts towards land valuation based on input information. This includes information sourced from official, credible, and referenceable sources such as land and price databases, contracts for land use rights transfer, auction-winning prices after fulfilling financial obligations, and information on revenue, costs, and income from land use. The input information must be formed within a period of 24 months from the time of land price determination as prescribed.
The Law on Land 2024 adjusts the principles of land valuation to align with the nature of the matter, including:
a) Pricing land according to market principles;
b) Strict adherence to the method, procedure, and process of land valuation;
c) Ensuring honesty, objectivity, transparency, and openness;
d) Ensuring independence between the organization advising on land valuation, the Council appraising land price lists, the Council appraising specific land prices, and the authorized agency or individual determining land prices;
e) Ensuring a balance of interests between the State, land users, and investors.
5.3.2. Adjusting and supplementing land price list regulations
In addition to provisions in the Law on Land 2013, the Law on Land 2024 supplements cases where land price lists apply, including:
a) Setting starting prices for land use rights auctions where land has been invested in technical infrastructure according to detailed construction plans.
b) Determining land use fees for cases not subject to land use rights auctions for households or individuals.
c) Calculating land use fees for state-owned houses sold to current tenants.
The Law on Land 2024 also stipulates that the Provincial People's Committee shall establish and submit to the People's Council at the same level the decision on the Land Price List for the first time for publication and application from January 1, 2026; the land price list shall be published and applied annually.
For cases where land has been used in accordance with the law before the effective date of the Law on Land 2024 but land prices have not been determined, the Law on Land 2024 prescribes the implementation as follows:
(i) For cases of land allocation or lease according to the provisions of the Law on Land 1993, Law on Land 2003, where land has been actually allocated or leased before January 1, 2005, the land use fees, land lease fees, and land prices for calculating land use fees and land lease fees shall be based on the land price list of 2005 issued by the Provincial People's Committee which was effective at the time.
(ii) For cases of land allocation or lease according to the provisions of the Law on Land 1993, Law on Land 2003, where land has been allocated or leased from January 1, 2005, to before the effective date of the Law on Land 2024, the land use fees, land lease fees, and land prices for calculating land use fees and land lease fees shall be determined at the time of actual land allocation or lease.
(iii) For cases where there has been a decision on land allocation, lease, permission for change of land use purpose, permission for change from annual land lease payment to one-time payment for the entire lease period, extension of land use term, adjustment of land use term, adjustment of detailed construction planning according to the provisions of the Law on Land 2013 but the proposal for land price determination has not been submitted to the competent Provincial People's Committee, the land use fees, land lease fees, and land prices shall be determined at the time of issuance of that decision.
Section 6. Planning and Land Use Plans
Planning and land use plans are also among the important issues that concern the parties involved in land relations. The Law on Land 2024 has some basic adjustments as follows:
6.1. Basic principles of land use planning
Land use planning plays a crucial role in the economic life of individuals and businesses; therefore, the Law on Land 2024 stipulates some strict principles in land use planning as follows:
Land use planning at all levels must synthesize and balance the land use needs of sectors and fields; ensure the balance between the land use needs of sectors, fields, regions, and align with the national land potential.
Land use planning at all levels must be prepared simultaneously; higher-level land use planning must be decided and approved before lower-level land use planning.
Land use plans must be prepared simultaneously with the establishment or adjustment of land use planning at the same level.
Additionally, the Law on Land 2024 asserts that the budget for planning should be ensured by the state budget from the sources of economic development, thereby limiting the influence of external organizations on the state's planning work.
6.2. Cases exempt from provincial land use planning and plans
6.2.1. Regarding provincial-level planning and plans, the Law on Land 2024 stipulates:
a) Provinces that are not centrally governed cities are not required to establish provincial land use plans but must periodically plan land use for each five-year period as stipulated in point e, clause 2 of this Article.
b) Centrally governed cities that have approved general planning in accordance with urban planning laws are not required to establish provincial land use plans but rely on general planning to establish provincial land use plans.
c) If general planning is approved after the approval of provincial land use plans and changes the land use indicators in the provincial land use plans, there is no need to adjust the provincial land use plans but rely on general planning to establish provincial land use plans.
6.2.2. Regarding district-level planning, the Law on Land 2024 stipulates:
Districts, cities, and towns belonging to centrally governed cities or provinces that have approved general planning or zoning plans in accordance with urban planning laws are not required to establish district-level land use plans but rely on general planning or zoning plans and land use indicators already allocated from provincial land use planning and local land use indicators to establish annual district land use plans.
6.3. Cases of projects not included in plans but implemented without the need to supplement annual district land use plans
The Law on Land 2024 stipulates these cases including:
Investment decisions made under public investment laws.
Investment project approval decisions according to public-private partnership investment laws.
Approval decisions for investment policy according to laws on investments under the authority of the National Assembly, the Prime Minister.
Projects using land to recover land due to risks threatening human lives.
6.4. Changes in the authority to approve land use plans towards centralized decentralization in the management system
The Law on Land 2024 adjusts towards reducing the role of legislative bodies, people's representative bodies in approving land use plans. Specifically:
a) The Government (instead of the National Assembly) approves national land use plans.
b) The Prime Minister (instead of the Government) approves provincial land use plans; provincial land use plans for centrally governed cities do not require provincial People's Committees to submit to the People's Council at the same level for approval before submitting to the Government for approval.
c) Provincial People's Committees approve district land use plans; district land use plans do not require approval by the district People's Council before being submitted to the provincial People's Committee for approval.
6.5. Public announcement of land use planning
The Law on Land 2024 supplements content on the public announcement of annual district land use plans. Accordingly, the district People's Committees are responsible for publicly announcing the content of district land use plans, annual district land use plans related to communes, wards, and towns at the headquarters of the district People's Committee. Commune-level People's Committees are responsible for publicly announcing to the people.
To increase accessibility to information for individuals, organizations, and in line with new circumstances, the Law on Land 2024 requires the public announcement of planning to be carried out on the electronic portals of the Ministry of Natural Resources and Environment, provincial-level People's Committees, and district-level People's Committees. The Law on Land 2024 also stipulates that publicly announced documents include:
- Documents approving land use plans.
- Explanatory reports on approved land use plans.
- Maps of approved land use plans.
Thus, the Law on Land 2024 supplements provisions on the public announcement of annual district land use plans at the headquarters of district People's Committees, showing the accessibility to information about planning.
Section 7. Land Use Regime
7.1. Specific guidance on land use extension
Some key provisions stipulated by the Law on Land 2024 include:
a) Regarding the agricultural land use term: For individuals directly engaged in agricultural production within the quota, the land transfer period, recognition of agricultural land use rights is 50 years; upon expiration, the Law on Land 2024 stipulates that this case naturally extends land use without the need for extension procedures (previously, the Law on Land 2013 required households, individuals to apply for extension if needed). This new regulation has facilitated individuals directly involved in agricultural production who are allocated/recognized agricultural land use rights without having to go through the extension process as previously required, thereby reducing administrative procedures related to land.
b) The Law on Land 2024 supplements provisions on land use extension to be carried out within a period from a minimum of 6 months to a maximum of the last 5 years of the land use term, except for cases where no extension procedures are required as mentioned above (the Law on Land 2013 only stipulated a minimum extension period of 6 months); thereby enabling organizations, individuals to proactively arrange capital, finance, and determine land use needs.
Additionally, the Law on Land 2024 also supplements provisions that if land use is not extended, the land user is responsible for handling assets on the land. Beyond 24 months from the land use expiration date without asset disposition by the land user, the state will revoke the land without compensation for the land and assets. The landowner bears the demolition costs. This provision has established a legal basis for the recovery and handling of assets on the land that has reached the land use term.
7.2. Increasing the limit for receiving agricultural land use rights transfers
The Law on Land 2024 adjusts to increase the limit for receiving transfers of agricultural land use rights for individuals to no more than 15 times instead of no more than 10 times as stipulated in the Law on Land 2013. According to ATA Legal Services' assessment, allowing the expansion of the limit for receiving transfers of agricultural land use rights for individuals up to 15 times the limit of land allocation for individuals for each type of land aims to increase opportunities for individuals to accumulate agricultural land for large-scale agricultural production activities; creating conditions for rapid, sustainable, efficient agricultural development, ensuring national food security, and increasing the scale of agricultural commodity production.
7.3. Encouraging large-scale agricultural/animal husbandry production
7.3.1. Concentrating and aggregating agricultural land
Previously, the Law on Land 2013 and implementing guidance documents did not have provisions or content on concentrating and aggregating agricultural land. However, in response to the need for concentration and aggregation of agricultural land, the Law on Land 2024 supplements new provisions to encourage agricultural production towards concentration, efficiency, high productivity, high quality, and large-scale production. Specifically, the Law on Land 2024 allows the aggregation of agricultural land to be carried out through the following methods:
Receiving transfers of agricultural land use rights.
Contributing capital with agricultural land use rights.
To ensure state management and achieve the set objectives, the Law on Land 2024 stipulates the important principle of agricultural land aggregation to be consistent with the characteristics of land, topography, climate, culture, labor transition, job conversion in rural areas of each region, each area, each locality, and in line with market demand.
7.3.2. Concentrated zones for livestock, crop cultivation, production, processing of agricultural, forestry, aquatic products
Previously, the Law on Land 2013 also had no provisions on this issue, until the Law on Land 2024 supplemented provisions for the establishment of infrastructure for concentrated zones for livestock, crop cultivation, production, processing of agricultural, forestry, aquatic products to allow investors to invest in infrastructure to lease land back (similar to Industrial Zones) or directly implement concentrated agricultural, forestry, aquatic product production projects. Infrastructure investors of agricultural zones are allowed to sublease land once or annually (if the agricultural zone infrastructure investor leases land annually) or re-lease land annually (if the agricultural zone infrastructure investor leases land annually).
The newly added provisions above have initially formed the infrastructure of agricultural zones, creating clean land funds for secondary investors to lease for agricultural production projects.
7.3.3. Concentrated animal husbandry land
Previously, the Law on Land 2013 did not have provisions on concentrated animal husbandry land, however, the Law on Land 2024 supplements new provisions on concentrated animal husbandry land to establish a legal framework and mechanism for developing land funds to build concentrated animal husbandry models. Accordingly, concentrated animal husbandry land is land for building livestock farms in designated areas as prescribed. The use of concentrated animal husbandry land must comply with the following regulations:
a) Implementing environmental protection measures, waste management, and other measures to avoid affecting land users in the area and nearby;
b) In cases where concentrated animal husbandry land is used for construction projects attached to land, it must comply with the provisions of investment, construction laws.
7.4. Clarifying on land consolidation, subdivision, and amalgamation
The Law on Land 2024 defines the principles of land subdivision, consolidation, and amalgamation, in addition to the basic principles already stipulated in the Law on Land 2013, must also ensure the following issues:
Land subdivision, consolidation must ensure accessibility; be connected to existing public roads; ensure adequate water supply, drainage, and other necessary needs reasonably. In cases where the land user allocates a portion of the land area or land with residential and other land within the same plot for access, when carrying out land subdivision or consolidation, there is no need to change the land use purpose for the portion of the land used for access.
In case of changing the land use purpose of a portion of the land, subdivision must be carried out, and the minimum area of the land plot after subdivision must be equal to or greater than the minimum area of the land type after the change of land use purpose. For land with residential and other land, subdivision is not mandatory when changing the land use purpose of a portion of the land, except when the land user has the need for subdivision.
7.5. Multiple-purpose land use
The Housing Law 2023, the Real Estate Business Law 2023 have stipulated towards allowing entities to construct, use facilities on land for multiple combined purposes. To ensure consistency, compatibility with related laws, and also as one of the solutions to unlock land resources, the Law on Land 2024 supplements provisions on types of land for combined multiple purposes including:
(i) Agricultural land combined with commercial-service purposes, animal husbandry, medicinal plant cultivation;
(ii) Public land combined with commercial-service purposes;
(iii) Construction land for project works combined with commercial-service purposes;
(iv) Residential land combined with agriculture, commercial-service, business-oriented project works;
(v) Specialized water surface land combined with pond, lake, swamp water surface land; coastal water surface land; specialized water surface land;
(vi) Religious land combined with commercial-service purposes;
(vii) Agricultural land, non-agricultural land combined with agriculture, infrastructure construction for postal and telecommunications, information technology, outdoor advertising, solar power.
The Law on Land 2024 also supplements provisions on the use of multiple-purpose land must meet the following requirements:
a) Do not change the land type according to classification and as determined in the specified documents;
b) Do not lose the necessary conditions to return to land use for the primary purpose;
c) Limit the impact on the conservation of natural ecosystems, biodiversity, environmental landscapes;
d) Fulfill financial obligations and comply with relevant legal provisions.
In cases where land is used for commercial-service purposes, a land use plan must be submitted to the competent authority for approval. However, the Law on Land 2024 has not yet specified the authority to approve multiple-purpose land use plans.
Section 8. Land registration and issuance of land use right certificates, property ownership certificates attached to land
Building upon the provisions of the Law on Land 2013, the Law on Land 2024 continues to mandate land registration for land users and land grantors for management purposes. However, to enhance land registration for all plots, ensuring that cadastral records contain complete information to inventory, assess, and accurately reflect land use situations, serving the state's land management at all levels, the Law on Land 2024 has supplemented provisions on the responsibility of provincial-level People's Committees to direct dissemination, propaganda, and organization of initial registration for cases not yet registered.
8.1. Eliminating the requirement to register land changes in certain cases
The Law on Land 2024 only requires registration of changes when leasing or subleasing land use rights in infrastructure construction business projects. Therefore, for cases of leasing or subleasing land use rights, no such procedure is required;
Splitting the registration of land changes when converting land use purposes into two cases. Accordingly, for cases of conversion without the need for approval from the competent authority, land users have the option to register land changes or not.
The above adjustment is in line with practicality and reduces administrative procedures, facilitating organizations and individuals in the process of conducting related transactions.
8.2. Supplementing cases requiring registration of land changes
The following cases are added by the Law on Land 2024 requiring registration of land changes:
(i) Transfer of projects involving land use;
(ii) Change of information regarding land users, owners of property attached to land on issued certificates;
(iii) Registration of property ownership rights attached to plots already issued certificates.
(iv) Changes in land use rights, property ownership rights attached to land according to the decision of the Vietnam Commercial Arbitration Center;
(v) Changes in land use rights for constructing surface-level structures serving the operation, exploitation of underground facilities, ownership rights of underground facilities;
(vi) Reissuing certificates issued at the request of land users;
(vii) Sale of assets, transfer, assignment of land use rights as state assets.
The Law on Land 2024 takes effect from January 1, 2025. However, the provisions regarding reclamation activities will be implemented from April 1, 2024, and land use planning at all levels will be effective from the expiration of Resolution No. 61/2022/QH15.
The above is ATA's analysis of the new points, notable changes in the Law on Land 2024. Along with the Housing Law and the Real Estate Business Law in 2023 updated in our previous articles, we hope that this article will help readers update essential information and thereby obtain comprehensive perspectives, assessments, and the potential impact of the provisions of the Law on Land 2024 in the current context.
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