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August 20, 2020

Land allocation procedures.

A- Conditions for land allocation are specified in Article 14 of Decree No. 43/2014 /ND-CP detailing the implementation of a number of articles of the 2013 Land Law as follows:

Article 14. Detailed provisions on conditions on persons allocated or leased land by the State or permitted by the State to change land use purpose to implement investment projects

1. Projects using land subject to the conditions specified in Clause 3, Article 58 of the Land Law include:
a/ Investment projects to build houses for sale or lease or both sale and lease in accordance with the housing law;
b/ Investment projects to deal in real estate associated with land use rights in accordance with the law on real estate business;
c/ Production or business projects not funded by the state budget.

2. The condition of financial capacity to ensure the land use according to the investment project’s schedule is prescribed as follows:
a/ Having own capital for implementation of the project equal to at least 20% of the total investment, for projects using less than 20 hectares of land; or to at least 15% of the total investment, for projects using 20 hectares of land or more;
b/ Being able to raise capital for implementation of the project from credit institutions, foreign bank branches and other organizations and individuals.

3. The identification of persons to be allocated or leased land by the State or permitted by the State to change the land use purpose to implement investment projects not in violation of the land law in case they are using land allocated or leased by the State for implementation of other investment projects must be based on the following grounds:
a/ Results of the handling of violations of the land law committed by local projects archived at provincial-level Natural Resources and Environment Departments;
b/ Contents of violations of the land law and results of the handling thereof publicized on the websites of the Ministry of Natural Resources and Environment and the General Department of Land Administration, for other local projects.

4. The examination of the conditions specified in this Article shall be conducted at the same time with the appraisal of the land use demands of investors upon the grant of investment certificates, appraisal of investment projects, elaboration of economic-technical reports or investment approval in accordance with the investment law and construction law in case of land allocation or lease not through the auction of land use rights or change of land use purpose. In case land use rights are auctioned, the examination of the above conditions shall be conducted before the auction of land use rights is organized.

B. Regarding the land assignment order and procedures, which are specified in Article 68 of Decree 43/2014/ND-CP detailing the implementation of a number of articles of the Land Law as follows:

Article 68. Order and procedures for land allocation, land lease and permission for change of use purpose of land for rice cultivation, land for protection forests and land for special-use forests to other purposes

1. The order and procedures for appraisal of land use demand and appraisal of conditions for land allocation, land lease and permission for change of land use purpose are prescribed as follows:
a/ The requester for land allocation, land lease or change of land use purpose shall submit a dossier for appraisal to the natural resources and environment agency.
Investment projects in which investment has been decided by the National Assembly or approved in principle by the Prime Minister are not required to go through appraisal procedures prescribed in this Clause;
b/ Within 30 days after receiving a complete and valid dossier, the natural resources and environment agency shall send an appraisal document to the investor for compilation of a dossier of request for land allocation, land rent or change of land use purpose.
The time limit prescribed at this Point excludes the time for implementation of procedures for permission for change of use purpose of land for rice cultivation, land for protection forest or land for special-use forests for implementation of investment projects prescribed in Clause 2 of this Article;
c/ The Ministry of Natural Resources and Environment shall specify the appraisal of land use demand and conditions for land allocation, land lease or change of land use purpose.

2. The order and procedures for permission for change of use purpose of land for rice cultivation, land for protection forests or special-use forests for implementation of investment projects are prescribed as follows:
a/ Natural resources and environment agencies shall summarize demands for change of use purpose of land for rice cultivation, land for special-use forests or land for protection forests for implementation of investment projects in localities and submit them to People’s Committees of the same level for reporting to superior People’s Committees or the Ministry of Natural Resources and Environment;
b/ Within 10 working days after receiving a complete and valid dossier, the provincial- level People’s Committee shall assume the prime responsibility for appraising the dossier and submit it to the provincial-level People’s Council for approval before a competent People’s Committee decides on the change of land use purpose. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, conducting the appraisal and shall propose the Prime Minister to approve the change of land use purpose before a competent People’s Committee decides on such change;
c) After the Prime Minister issues a written approval of change of land use purpose, the provincial-level People’s Council shall adopt a resolution on change of land use purpose and a competent People’s Committee shall organize the land recovery, land allocation, land lease or change of land use purpose.

3. The order and procedures for land allocation and land lease not through auction of land use rights are prescribed as follows:
a/ The natural resources and environment agency shall guide the investor in compiling a dossier of request for land allocation or land lease and fulfilling financial obligations as prescribed by law; and propose a competent People’s Committee to decide on the land allocation or land lease; and sign a land lease contract, in case of land lease;
b/ The person that is allocated or leased land shall pay land use levy in case of land allocation with land use levy, or pay land rental in case of land lease;
c/ The natural resources and environment agency shall propose a competent state agency to grant a certificate of land use rights and ownership of houses and other land-attached assets; organize land allocation in the field; hand over the certificate to the person that is allocated or leased land; and direct the updating and modification of the land database and cadastral records.

4. For land allocation and land lease not through auction of land use rights for project implementation prescribed in Articles 61 and 62 of the Land Law, some preparation steps for land allocation or land lease concurrently carried out together with the order and procedures for land recovery are prescribed as follows:
a/ During the implementation of the plan on land recovery, investigation, survey, measurement and inventory, the investor may conduct survey and measurement for elaboration of an investment project in accordance with the investment law and construction law. The competent agency shall carry out procedures for appraisal of the investor’s land use demand and conditions for land allocation or land lease;
b/ During implementation of the approved compensation, support and resettlement plan, the investor may submit a dossier of request for land allocation or land lease without having to wait until the ground clearance is completed.

5. For land allocation and lease through auction of land use rights, the order and procedures for allocation and lease of land with cleared ground are prescribed as follows:
a/ Based on the district-level annual land use plan approved by a competent state agency, the natural resources and environment agency shall direct the elaboration of a land use right auction plan for submission to the People’s Committee of the same level for approval;
b/ The organization selected under the approved land use right auction plan shall organize the auction of land use rights;
c/ The competent People’s Committee shall issue a decision recognizing the auction winning result;
d/ After the auction winner fulfills financial obligations, the natural resources and environment agency shall propose a competent agency to grant a certificate and sign a land lease contract, in case of land lease; organize the handover of land in the field and deliver the certificate; and direct the updating and modification of the land database and cadastral records.
When an auction winner fails to fully pay the required amount, the natural resources and environment agency shall propose the competent People’s Committee to cancel the decision recognizing the auction winning result.

6. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Justice in, organizing auctions of land use rights upon land allocation or lease by the State.

B – Land allocation documents are specified in Circular 30/2014/TT-BTNMT dated June 2nd, 2014 on documents for land allocation, land lease, change of land use purpose, land acquisition, as follows:

+ An application form for land allocation according to form No. 01 of Circular 30;
+ Copy of investment certificate or investment approval document, enclosed with explanation of investment project.
+ Investor’s financial report:
+ Document of assessment of land use demand; appraisal of land allocation and lease conditions prescribed in Clause 3 Article 58 of the Land Law and Article 14 of Decree No. 43/2014/ND-CP dated May 15, 2014 of the Government detailing the implementation of the number of articles of the Land Law established when issuing investment certificates or appraising investment projects or approving projects;
+ Extract of the cadastral map of the parcel of land or extract the cadastral measurement of the parcel.
+ A self-declaration of the project and self-comment on the investor’s observance of the land law:
+ Confirming ground clearance compensation in case the ground clearance is completed.
After preparing all the documents, the Investor submits the application to the Document Reception and Return Team – Department of Natural Resources and Environment of Ho Chi Minh City, 63 Ly Tu Trong street – District 1.
The Department of Natural Resources and Environment of Ho Chi Minh City considers and submits it to the People’s Committee of Ho Chi Minh City for decision on land allocation. The report enclosed with the draft decision on land allocation (Form No. 02) issued together with Circular 30.