HIGHLIGHTS OF LAND LEASE FOR INDUSTRIAL PARKS

1. State laws governing the lease of property for industrial parks

Competent state agencies are required to carefully examine leasing land in industrial parks, export processing zones, industrial clusters, and craft villages while correlating master plans and land use plans. Because the development of industrial parks and export processing zones must coincide with the design and construction of residential areas and public infrastructure outside of industrial parks.

According to regulations, the State leases industrial park land to economic organizations, overseas Vietnamese, and foreign-invested enterprises to invest in the construction and business of industrial park infrastructure, industries, industrial clusters and export processing zones. For the land leased area with annual land rental payment, the person to whom the land is leased by the State has the right to sublease the land in the form of annual land rental payment. Regarding the land that is leased by the State and requires a one-time rental payment for the duration of the lease, the lessee has the option of subleasing the property for an annual rental fee or a one-time payment of land rent.

The following rights are also granted to businesses that get land allocations from the State in exchange for a land usage levy or that lease land from a third party in exchange for a one-time rental payment.

• Transfer of property rights to utilize land and other assets under their possession.

• Leasing land use rights and assets under their ownership attached to land in cases where the State leases the land with a one-time rental payment for the duration of the lease; leasing land use rights and assets under their ownership attached to land in cases where the State allows land with the collection of a land use levy.

• Giving the State the right to use the property; giving residential communities the right to use the land for the building of projects for the interests of the community, and giving houses attached to the land as gifts in accordance with the law.

• Mortgages at credit institutions authorized to conduct business in Vietnam that are tied to land and include land use rights and assets that belong to the borrower.

• Contributing capital with land usage rights and assets they possess tied to land for production and business collaboration with organizations, people, overseas Vietnamese, and foreign-invested enterprises outside the bounds of the law.

2. The paperwork needed to lease land in an industrial zone

Dossier to rent land in an industrial park, you need to prepare the following documents:

• Application for industrial park land lease (provided by the Industrial Park Management Board).

• Certificate/Document of investment approval and written assessment of industrial land use demand (copy).

• Description and summary of the industrial park land investment project.

• Extract the map / Extract the cadastral measurement of the land plot of the industrial zone.

After fully preparing the industrial park land lease dossier, the enterprise shall send it to the competent authority for consideration and settlement.

3. Procedures required to lease industrial park land

a. Prepare and submit your application

After preparing and completing the documents, the enterprise submits it to the Department of Natural Resources and Environment in the area of ​​the industrial park for processing.

b. Processing records

The Department of Natural Resources and Environment is the agency that receives and handles industrial park land lease documents. Accordingly, after receiving the application, the Department of Natural Resources and Environment will inspect and notify the applicant to promptly adjust or supplement the procedures to complete.

The complete set of dossiers received by the Department of Natural Resources and Environment will be sent to the Land Use Right Registration Office for extraction of cadastral maps or cadastral measurements of the land area for areas where there is no cadastral map.

After the data is returned, it will be transferred to the tax office to determine the financial obligations to the investor who leases the land. The dossier is examined, appraised and authenticated by the Department of Natural Resources and Environment in detail, then submitted to the relevant People's Committee of the province or centrally run city to make a decision on whether to lease it or not.

c. Pay taxes and return results

Subjects carrying out the procedures to apply for industrial zone land lease after submitting the application file need to fulfill financial obligations with the number provided by the tax authority. The processing time of the Department of Natural Resources and Environment will not exceed 20 days from the date of receipt of the complete application (Note not including the time to perform financial obligations).

After the above time, the lessee will receive the results at the Department of Natural Resources and Environment including the decision to lease the land and the certificate of land use right. At the same time, sign the land lease contract on the field under the direction of the competent authority. In case the application is not resolved, there will be a written explanation attached to notify the person carrying out the land lease procedure.

Conclusion

The whole update by INMERGERS on the subject of industrial park land lease is available above. We hope to assist companies that already know how to obtain a rental license in leasing industrial park land while also assisting them in making a reasonable investment plan for the future by providing comprehensive information on state regulations, documents to prepare, and procedures for leasing industrial land.