According to point (i), clause 1, Article 64 of the Land Law of 2013, in cases where economic organizations have been allocated land or granted land lease but have not put the land to use within the prescribed period, they will be considered for a 24-month extension to utilize the land. If the land is still not put to use after the previous period, it will be reclaimed according to regulations. The 24-month extension period does not include the time of force majeure events.
During the period from early 2020 to early 2022, Vietnam went through the Covid-19 pandemic, leading to the temporary suspension of many economic activities by businesses due to the implementation of state-mandated isolation measures. However, there has been no official guidance from the competent state authorities regarding determining Covid-19 as a force majeure event. This poses a significant risk for many investors facing the possibility of land reclamation as the 24-month deadline approaches under point (i), clause 1, Article 64 of the Land Law.
Recently, to facilitate economic organizations/land users in self-remedying the situation and expedite the progress of project implementation by legal provisions, on July 17, 2023, the Hanoi People's Committee issued Official Letter No. 2198/UBND-TNMT ("Official Letter 2198") regarding the application of the law when handling cases where the Hanoi People's Committee has decided to extend land use for 24 months, but the land has not been put to use due to the force majeure Covid-19 pandemic as stipulated in point (i), clause 1, Article 64 of the Land Law of 2013. The essential content of Official Letter 2198 is as follows:
1. Officially recognizing Covid-19 as a force majeure event
Accordingly, Official Letter 2198 clearly determines that the period affected by the Covid-19 pandemic is 21 months, from January 23, 2020, to October 11, 2021[1], and this period will not be counted in the extension period of 24 months for projects under the provisions of point (i), clause 1, Article 64 of the Land Law of 2013 mentioned above.
2. Projects will not be automatically granted extension time
- The extension of the extension period will be based on the Decision applicable to each project by the Hanoi People's Committee.
- For projects that have reached the extended extension period under the force majeure event but the investor has not put the land into use, the district, town, or commune People's Committee will report to the Hanoi People's Committee, prepare the dossier, and submit it to the Hanoi People's Committee for a decision on land reclamation according to land law regulations.
[1] From the date of announcing the Covid-19 pandemic according to Decision No. 447/QD-TTg until the Government issued Resolution No. 128, which temporarily provides measures for safe adaptation and effective Covid-19 control.
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