In accordance with the Decree No. 43/2014/ND-CP detailing a number of articles of the Land Law issued by the Government on May 15, 2014, the allocated or leased land by the State or permitted by the State to change land use purpose to implement investment projects must satisfy some conditions on the projects using land and financial capacity to ensure the land use according to the investment project’s schedule.
In particular, investment projects to build houses for sale or lease or both sale and lease in accordance with the housing law; investment projects to deal in real estate associated with land use rights in accordance with the law on real estate business and production or business projects not funded by the state budget. The condition of financial capacity to ensure the land use according to the investment project’s schedule is prescribed as having own capital for implementation of the project equal to at least 20% of the total investment, for projects using less than 20 hectares of land; or to at least 15% of the total investment, for projects using 20 hectares of land or more and being able to raise capital for implementation of the project from credit institutions, foreign bank branches and other organizations and individuals.
Besides, the Decree also details the point of time for counting the land use term extension of 24 months in case land is not put to use or the land use schedule is late. In case an investment project fails to put land into use for 12 consecutive months after receiving land handed over in the field, the investor may extend the land use term for 24 months counted from the 13th month since the land handover. And in case the land use schedule of an investment project is 24 months late compared with the schedule stated in the project documents since the land handover in the field, the point of time for counting the land use term extension of 24 months is the 25th month since the planned time of completion of construction investment.
Provincial-level People’s Committees shall review, handle and publicize on their websites investment projects that have failed to put land into use for 12 consecutive months or have land use schedules 24 months late compared with those stated in project documents; projects that have their land use terms extended; and projects that have late land use schedules due to force majeure circumstances; and provide information to be publicized on the websites of the Ministry of Natural Resources and Environment and the General Department of Land Administration.
This Decree takes effect on July 1, 2014.
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