PROJECTS AND LAND USAGE OF FDI ENTERPRISES IN VIETNAM

From mega infrastructural projects to industrial zones, FDI enterprises have transformed vast expanses of land, creating new opportunities for employment and economic growth. This article intends to explore regulations on land usage patterns of FDI enterprises in Vietnam

1. Forms of land use

Various forms of land use by foreign-invested enterprises are as follows:
+ Foreign-invested enterprises can acquire land from the State of Vietnam through a one-time payment of land use levy for the entire lease period. This is applicable for investment projects involving the construction and sale or sale and lease of houses.
+ Foreign-invested enterprises can also lease land from the State of Vietnam for projects related to agricultural production, forestry, aquaculture, salt making, non-agricultural production and business activities, construction of public works for commercial purposes, as well as housing investment projects for lease. Renting the land can do annually or through a one-time payment for the entire lease period.

2. The period of land use

The State of Vietnam designates or leases land for a specific period, known as the land use period. As per the Land Law, foreign-invested enterprises interested in executing investment projects in Vietnam will have the duration of their land allocation or lease determined and decided based on their investment projects or application for land allocation or lease. It is important to note that the maximum duration allowed is 50 years.
The land allocation or land lease period for projects with large investment capital but slow capital recovery, investment projects in areas with difficult socio-economic conditions, and areas with extremely difficult socio-economic conditions that require a long period, shall not exceed 70 years.

3. Conclusion

Overall, the projects and land usage of FDI enterprises in Vietnam have played a significant role in the country’s economic development and transformation. These investments have attracted capital, technology, and expertise to various sectors, contributing to job creation, increased productivity, and improved infrastructure.
#landuse #law #land

For the full detail of this post, please reference on this link: http://hmlf.vn/projects-and-land-usage-of-fdi-enterprises-in-vietnam/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn
Email: miller@hmlf.vn

Get the latest legal news and updates at Global Law Experts