The Ministry of Natural Resources and Environment (MNRE) has recently proposed to the Government a bunch of solutions to problems related to compensation, ground clearance, housing investment, “suspended” plannings, etc.
Under the MNRE’s proposal, provincial-level People’s Committees would be allowed to decide on the execution of projects to build houses for sale or lease, or projects to build houses in the form of division of land lots for selling house foundations or direct allocation of land to households or individuals for building houses under planning.
Foreign entities that use land for the execution of projects to build houses for sale or lease may transfer land use rights for the land area where construction under approved projects has been completed. They may also transfer land use rights by selling foundations on which houses are not yet built for projects which are not located in urban areas where projects to build houses are not allowed in the form of division of land lots for selling foundations. These provisions would be specified by the Government.
In case a project consists of different components, the investor may transfer land use rights after having completed each component. Particularly, the investor who cannot continue executing the project may transfer land use rights after having fulfilled ground clearance and financial obligations.
Specifically, under the proposed amendments to Government Decree No. 84/2007/ND-CP, provincial-level People’s Committees would recover land of economic development projects in the following cases: the land area is one hectare or larger; domestic investment capital is over VND 100 billion; and the project has been approved by a state agency.
In case an investor wishes to negotiate compensations for land which is subject to recovery by the State, if, after 90 days (instead of 180 days as currently applicable), persons having that land still disagree with compensations offered, the competent People’s Committee would decide to recover that land.
For land in urban areas, if the investor fails to negotiate the transfer or lease of land use rights, or receipt of capital contributed in the form of land use rights for the execution of investment projects under planning, the State would issue a land recovery decision.-