Chapter V
LAND ALLOCATION, LAND LEASE AND CHANGE OF LAND USE PURPOSE
Article 52. Bases for land allocation, land lease and change of land use purpose
1. The annual district-level land use plans which have been approved by competent state agencies.
2. Land use demands as indicated in investment project documents or in applications for land allocation, land lease or change of land use purpose.
Article 53. Allocation or lease of land which is currently used by a person to another
The State’s decision on allocation or lease of land which is already being used by a person to another may be made only after a competent state agency decides on land expropriation in accordance with this Law and the compensation, support and resettlement have been completed in accordance with law in case ground clearance is required.
Article 54. Land allocation without land use levy
The State shall allocate land without land use levy in the following cases:
1. Households and individuals directly engaged in agriculture, forestry, aquaculture or salt production to whom agricultural land is allocated within the quotas prescribed in Article 129 of this Law;
2. Persons who use land for protection forests, special-use forests or production forests which are natural forests, for office construction, for national defense or security purpose, for noncommercial public use, for cemeteries and graveyards which fall outside the cases prescribed in Clause 4, Article 55 of this Law;
3. Public non-business organizations that are not self-financed and use land for office construction.
4. Organizations that use land for construction of resettlement houses under the State’s projects.
5. Communities using agricultural land; religious institutions using non-agricultural land as prescribed in Clause 1, Article 159 of this Law.
Article 55. Land allocation with land use levy
The State shall allocate land and collect land use levy in the following cases:
1. Households and individuals that are allocated residential land;
2. Economic organizations that are allocated land to implement investment projects on construction of houses for sale or a combination of sale and lease;
3. Overseas Vietnamese and foreign-invested enterprises that are allocated land to implement investment projects for the construction of houses for sale or for a combination of sale and lease;
4. Economic organizations that are allocated land to implement investment projects on infrastructure of cemeteries and graveyards for transfer of land use rights together with the infrastructure.
Article 56. Land lease
1. The State may lease land and collect an annual land rental or full one-off rental for the entire lease period in the following cases:
a/ Households and individuals that use land for the purpose of agriculture, forestry, aquaculture or salt production;
b/ Households and individuals that need to further use agricultural land that exceeds the land allocation quotas prescribed in Article 129 of this Law;
c/ Households and individuals that use land for trading and services, mining activities, production of construction materials, production of ceramic products, and non-agricultural production establishments;
d/ Households and individuals that use land for construction of public facilities for commercial purpose;
e/ Economic organizations, overseas Vietnamese and foreign-invested enterprises that use land to implement investment projects in agriculture, forestry, aquaculture or salt production, for non-agricultural business and production purpose, for construction of public facilities for commercial purpose, and for implementation of investment projects on houses for lease;
f/ Economic organizations, self-financed public non-business organizations, overseas Vietnamese and foreign-invested enterprises that use land for construction of non-business facilities;
g/ Foreign organizations with diplomatic functions that use land to build offices.
2. The State may lease land to and collect annual rentals from people’s armed forces units for the purpose of agriculture, forestry, aquaculture or salt production, or in combination with national defense or security tasks.
Article 57. Change of land use purpose
1. Cases in which change of land use purpose requires permission by competent state agencies:
a/ Change of land for rice cultivation to land for perennial crops, forests, aquaculture or salt production;
b/ Change of land for other annual crops to land for saltwater aquaculture, salt production or aquaculture in ponds, lakes or marshlands;
c/ Change of land for special-use forests, protection forests or production forests to land for other purposes within the type of agricultural land;
d/ Change of agricultural land to non-agricultural land;
e/ Change of non-agricultural land which is allocated by the State without land use levy to non-agricultural land which is allocated by the State with land use levy, or to leased land;
f/ Change of non-agricultural land which is not residential land to residential land;
g/ Change of land for construction of non-business facilities or land for public purposes involving commercial purpose, or non-agricultural land for business and production purposes which is not land for trading or services to land for trading or services; change of land for trading or services or land for construction of non-commercial facilities to land for non-agricultural production establishments.
2. When changing the land use purpose under Clause 1 of this Article, land users shall fulfill financial obligations as prescribed by law. The land use regime and the rights and obligations of land users are those applicable to the type of the land used for the new purpose.
Article 58. Conditions for land allocation, land lease and change of land use purpose to implement investment projects
1. For investment projects that use paddy land or land for protection forests or land for special- use forests for other purposes and are other than those to be decided by the National Assembly or approved in principle by the Prime Minister, competent state agencies may only decide on land allocation or land lease or permit change of land use purpose when one of the following documents is available:
a/ The written approval by the Prime Minister for change of land use purpose for the paddy land with an area of 10 ha or more, and for protection forest or special-use forest with a land area of 20 ha or more;
b/ The resolution of the provincial-level People’s Council for change of land use purpose for the paddy land with an area less than 10 ha, and for protection forest or special-use forest with a land area less than 20 ha.
2. For investment projects which use land on islands or in border or coastal communes, wards or townships, competent state agencies may only decide on land allocation, land lease or change of land use purpose upon receiving written approval from related ministries and agencies.
3. Those who are allocated land or leased land by the State, or permitted by the State to change land use purpose to implement investment projects must meet the following conditions:
a/ Having financial capacity to ensure the land use according to the investment project’s schedule;
b/ Paying a deposit in accordance with the investment law;
c/ Not violating the land law if they are implementing other projects on the state-allocated or -leased land.
4. The Government shall detail this Article.
Article 59. Competence to allocate, lease land and approve change of land use purpose
1. Provincial-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:
a/ Allocation or lease of land to, and permission for change of land use purpose for, organizations;
b/ Allocation of land to religious institutions;
c/ Allocation of land to overseas Vietnamese or foreign-invested enterprises under Clause 3, Article 55 of this Law;
d/ Lease of land to overseas Vietnamese or foreign-invested enterprises under Points e and f, Clause 3, Article 56 of this Law;
2. District-level People’s Committees may decide on the allocation or lease of land, and permit change of land use purpose in the following cases:
a/ Allocation or lease of land to, and permission of change of land use purpose for, households and individuals. If these subjects wish to lease or use agricultural land with an area of 0.5 ha or more for trading and service purposes, written approval from the provincial-level People’s Committee is required before the district-level People’s Committee makes decision;
b/ Allocation of land to communities.
3. Commune-level People’s Committees may lease land from the agricultural land fund for public purposes in their communes, wards or townships.
4. Agencies having the competence to decide on land allocation or lease and permit change of land use purpose as prescribed in Clauses 1 and 2 of this Article may not delegate their competence.
Article 60. Handling of cases of land allocation and land lease which are decided prior to the effective date of this Law
1. Economic organizations, households, individuals and overseas Vietnamese that are eligible to lease land in accordance with this Law and are allocated land with land use levy by the State prior to the effective date of this Law, may continue using the land for the remaining land use term without having to change to lease land. Upon the expiry of the land use term, if permitted to extend the land use term by a competent state agency, they shall change to lease land in accordance with this Law.
2. Organizations, households, individuals and overseas Vietnamese who are eligible to lease land in accordance with this Law and are allocated land by the State without land use levy prior to the effective date of this Law, shall change to lease land from the effective date of this Law and pay land rental.
3. Economic organizations, households, individuals and overseas Vietnamese that are eligible to lease land in accordance with this Law and lawfully acquire land use rights prior to the effective date of this Law, may continue using the land for the remaining land use term without having to change to lease land in accordance with this Law.
4. Economic organizations that are eligible to lease land in accordance with this Law and lawfully acquire agricultural land use rights from households or individuals that are allocated land without land use levy by the State to implement investment projects in agricultural production prior to the effective date of this Law, may continue using the land for the remaining land use term without having to change to lease land in accordance with this Law.
5. Overseas Vietnamese and foreign-invested enterprises that lease land with full one-off rental payment for the entire lease period to implement investment projects on construction of houses for sale or for a combination of sale and rent prior to the effective date of this Law, may continue using the land for the remaining land use term, or change to land allocation with land use levy in accordance with this Law if they have demand.
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