Process of allocation and lease of land for investment projects in industrial parks

Besides factors related to the industry attracting investment, market demand, investment capital, investment policies, labor resources … One issue that any investor should pay attention to when implementing investment projects in industrial parks is the process of allocating and renting investment land. 

In order to help investors have an overview of the procedures for applying for land lease in the industrial park, GMP Groups summarizes the process of land allocation and lease as follows. 

Conditions for renting land in industrial parks

Conditions for land lease in industrial parks require land use rights to be sub-leased only when not included in Article 175 of the Land Law. In addition, land lease contracts and legal papers to carry out procedures for leasing land in industrial parks need to be transparent and notarized in accordance with law.

Land lease in industrial parks needs to be in accordance with the regulations and investment conditions of each locality as well as the owner of the industrial park.

Records for land lease in industrial parks

– Application for lease of industrial park land (Form available).

– A copy of the investment certificate or written approval of investment. (Attach an investment project explanation).

– Outline summarizing investment projects in industrial parks or industrial clusters.

– Written assessment of land use needs. A written document on land leasing conditions made when issuing investment certificates. Appraisal of investment projects or project approval.

– Extracting cynx maps or extracting cystrite measurements of land plots to be rented.

– Number of applications required: 01 set.

The Natural Resources and Environment Agency shall provide extracts of cynical maps of land plots for places where cynical maps are already available or cynical measurements of land plots at the request of land allocation and lease applicants.

Process of allocation and lease of project land in industrial parks

Signing an official land lease contract

This can be said to be one of the most important steps of land lease investment in the industrial park. Because it is the basis for establishing the right of investors to use their leased land. 

After being granted an investment license, the investor (foreign) will have to establish a legalist in Vietnam, this legal (enterprise) will sign a land lease contract with the industrial park infrastructure investor. Along with this process, the parties proceed to pay the land rent according to schedule and actual land handover.

Depending on the policy of each industrial park, when receiving the Land Use Right Certificate, the investor will have to pay all or part of the value of the remaining land lease contract to the industrial park infrastructure investor.

Handover of premises

After signing the land lease contract and fulfilling financial obligations, the parties will focus on carrying out the handover of the premises to implement the next steps. In the process of handing over the premises, it is necessary to be present on the handover party as representatives of the industrial park management board and the contractors including: project investors and representatives of relevant units. 

Issuance of land use right certificates

From the time of signing the official land lease contract, the industrial park infrastructure investor will be responsible for registering land fluctuations for the state management agency on land to issue land use right certificates to investors. At the end of this process, the investor is entitled to receive a certificate of land use right for his/her leased land, which is the basis for establishing the rights to land transfer transactions (if any) as prescribed by law. 

The order of implementation for granting land use right certificates includes:

Step 1: Land users submit their applications at the Department of Receiving and Returning the results of the Management Board of industrial parks;

Step 2: The department receives and returns the results of the dossier examination; if the dossier is complete and valid, write a receipt; in case the dossier is incomplete and valid, the instructions shall be supplemented or amended;

Step 3: Return the result: The land user receives the certificate of land use right, the certificate of ownership of property attached to the land at the Department of Receiving and returning the results of the Management Board of Industrial Parks.

The components of land use right certificate dossiers include: 

– Application for issuance of certificates of land use rights, ownership of houses and other properties attached to land;

– Extracting the main land plot or extracting cynstrite of land plots;

– Documents on the performance of financial obligations; papers related to the exemption and reduction of financial obligations on land and assets attached to land (if any);

The above is the whole content of the process of assigning and renting land to implement investment projects in the Industrial Park that GMP Groups sends to investors. Please contact us if you wish to seek investment locations and look forward to assistance with legal procedures related to the investment process. 

For more information, please contact:

GMP Groups Joint Stock Company

Head office: Lot LK20.8, Ecoriver Eco-Investor, Hai Tan Ward, Hai Duong City, Hai Duong Province

Hotline: 0945.255.457

Website: gmpgroups.com.vn

Email: info@gmpgroups.com.vn