Does the state only lease land and collect an annual land rental in Vietnam?

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Question date: 13/03/2023

Regarding the legal provisions on land, currently: Does the state only lease land and collect an annual land rental in Vietnam? Is the leasing land and  full one-off rental for the entire lease period not applicable anymore?

    • Does the state only lease land and collect an annual land rental in Vietnam?

      Pursuant to Article 56 of the 2013 Land Law, land lease is as follows:

      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.

      Thus, according to current regulations in Vietnam, the State may lease land and collect an annual land rental or full one-off rental for the entire lease period in the above cases. Moreover, at present, there is no alternative document on the content of only leasing land with annual land rental but not leasing and collecting full one-off rental for the entire lease period.

      Best Regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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