The 2024 Land Law has many new points, investors need to quickly equip themselves with the necessary knowledge and information to operate effectively in the context of the new legal framework.
On the morning of July 17, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in collaboration with the Vietnam International Arbitration Center (VIAC) organized the Workshop " Land Law 2024: Effective implementation solutions for investors ".
At the event, Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, highlighted the new points and improvements of the 2024 Land Law for investors. In addition, there are a number of issues that need attention in understanding and applying the new legal regulations on land.
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| Many contents related to the 2024 Land Law are of interest to businesses and investors. |
Specifically, Mr. Hieu said, the 2024 Land Law approaches land resources in a comprehensive, focused, balanced and reasonable manner. The purpose is for real estate types to develop fairly, not favoring any specific segment.
For example, for commercial housing, businesses that want to develop commercial housing projects need land.
“How to get land?”, Mr. Hieu said and added that the State only recovers land to implement commercial housing projects, mixed housing and commercial and service projects when they are “urban construction investment projects” with synchronous functions. If they are not in the above cases, the enterprise must negotiate. Of course, it is possible to negotiate but not all types of land, only residential land transfer can be agreed upon.
Another option that businesses can implement is to change the land use purpose. However, that land must meet two conditions, one of which is that there must be a part of residential land in order to change the purpose of use to develop commercial housing.
"If a business owns land that does not have any residential land, it cannot be converted to commercial housing," said Mr. Hieu.
This expert added that this is an issue that many investors and businesses are interested in and have many different opinions. However, the National Assembly has also discussed this content very carefully and made the above decision to include it in the Law. Because the principle of law making by the National Assembly is to aim for stability, generalize into law for mass application. In cases where it is unclear, the Government will pilot it.
“The National Assembly delegates understand this very well and the above decision is intentional. The National Assembly also discussed very carefully on the basis of thorough and detailed consideration of each issue to determine the impact on each subject, before making such a decision,” Mr. Hieu said.
In contrast to commercial housing projects, for social housing, the new mechanism will be more open, creating more favorable conditions for businesses. Specifically, if the business does not have land, the State will reclaim the land. In case the business already has land, it will proceed normally, changing the purpose to develop the project.
Regarding the issuance of certificates for officetel, condotel products, etc., Mr. Hieu said that investors need to distinguish between housing and construction works. Housing will be granted a long-term ownership certificate, while new products like the above are construction works. Therefore, certificates will be granted according to the purpose and duration of use of the project. This issue needs to be clearly distinguished.
“The purpose of this Land Law is to promote and encourage the economical and effective use of land. Therefore, investors must use land with a purpose,” said Mr. Hieu.
Another content that many businesses and investors are interested in in the Land Law is the issue related to agricultural land. Specifically, what are the contents related to the recovery of agricultural land, conversion of agricultural land to non-agricultural land, transfer of agricultural land…?
Responding to this issue, Mr. Phan Duc Hieu said that agricultural land is also an important group of issues in the new Law. Accordingly, there are 3 groups of issues to note.
First is related to compensation, the general principle is that compensation for the type of land recovered is the same. Next is the transfer acceptance. The previous regulation was that individuals were allowed to receive transfers 10 times the limit, now it is expanded to 15 times the limit. For business organizations, there is no limit if there is a specific purpose and plan for use.
“The goal of the previous Law was to limit the possession, speculation, and use of agricultural land… Now, there is more openness in terms of input but limited output. Specifically, if the land is used for the wrong purpose within 12 months, it will be completely revoked,” said Mr. Hieu.
Next is the content: How to transfer agricultural land?
According to experts, the Government is currently working on a Decree guiding specific implementation of this issue. Investors interested in this content should proactively study the draft early, and if they see any unclear issues or questions, they should make early recommendations. Before the Decree is issued.
Presenting earlier at the event, Ms. Cao Thi Phi Van, Deputy Director of ITPC, said that the 2024 Land Law consists of 16 chapters and 260 articles, of which 180/212 articles of the 2013 Land Law are amended and supplemented and 78 new articles are added.
Some notable new points include: supplementing regulations on citizens' rights and obligations regarding land; amending regulations on land classification; continuing to improve land use planning and plans; expanding the limit for receiving transfer of agricultural land use rights of individuals; supplementing regulations on development, management and exploitation of land funds.
In addition, the 2024 Land Law also has provisions on decentralization and delegation of power to localities to suit the reality of each locality and legalize regulations that have been proven to be appropriate in practice, contributing to removing difficulties and obstacles, and unlocking land resources for national development.
Source: https://baodautu.vn/batdongsan/doanh-nghiep-can-luu-y-gi-khi-luat-dat-dai-2024-co-hieu-luc-d220208.html
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