Guidance on the enforcement of Land Law 2013
VGP – The revised Land Law was adopted by the 13th National Assembly at its 6th session on November 29, 2013, featurring a number of important new points that draw great public concern.
Question: What are the new guidance on the implementation of the Land Law 2013?
Answer: The Government on May 15, 2014 released Decree 43/2014/ND-CP detailing the implementation of a number of articles of the Land Law.
Under the revised Land Law, foreign-invested enterprises are eligible to receive transfer of the investment capital, as the value of land use right applies to state-allocated land subject to collection of land use fees, the lease land is paid once for the entire rental period where the value of land use rights has been capitalized into the enterprise equity, except for transfer of the investment capital as the value of land use rights for agricultural production or forestry.
The transfer of the land use right associated with the residential housing investment project only applies to the land area having already completed construction of residential housings as per the approved projects.
Under Decree 43, project investors who build houses for sale are eligible to transfer land use rights by allocating plots of land for sale in areas outside of the intramural districts of the special grade cities, the areas of high-profile landscape architecture, and the central areas and surrounding highlights of urban architecture and so on.
Decree 43 creates a legal framework for transactions relating to the land area that its users have no right to transfer, lease or make capital contribution with the land use rights in accordance with the law. Accordingly, investors are eligible to agree to purchase the existing asset attached to the land, and the State conducts land recovery to the lease the recovered land to investors to implement project.
The Decree also provides guidelines on solving cases where the investment project term outlives the remaining land use term of the industrial zones, export processing zones or industrial groups.
Enterprise investor investing in the construction and business of industrial park infrastructure shall obtain permission from the competent authority to appropriately adjust the land use term; as long as the overall land use term shall not exceed 70 years and the project investor shall pay land use fees or land rent for the extended term area.
The Decree shall take effect from July 1, 2014./.
