New Land Law issued
Amendments will impact foreign investors 
 

Law on Land No. 45/2013/QH13 (“new Land Law”) came into effect on 1 July. Some notable points include:

 

      The new Land Law changes and adds in a number of definitions. In particular, the term “foreign invested enterprise” (“FIE”) is officially referred to as a land
user (rather than being generally referred to as “foreign
organisations and individuals” as previously). FIEs are now defined as
comprising: 100% foreign owned enterprises, joint venture enterprises and
Vietnamese enterprises in which foreign investor(s) purchase shares, or with
which it merges or which it acquires.
This clearer definition of FIE corrects
the previous inconsistency between land laws and other laws, especially the Law on Investment, and should
remove some of the confusion
in implementation of land laws. 
     For land valuations, provincial People’s Committees will no longer issue annual land price lists. Instead, the central Government will
issue a land price range for each type of land every five years, and will adjust this range if market prices change by more than 20%.  Based on this land price range, provincial People’s Committees will issue land price lists every five years, and determine specific land prices on a case by case basis. Land pricing consultancy organisations may be involved in such issuance and adjustment of land price ranges and land price lists if so requested.
    The new Land Law clarifies the cases
where FIEs can be allocated and lease land.

The State may allocate or lease land to FIEs via auction of land use
rights, e.g. for investment in construction of residential housing for sale,
lease or hire-purchase, or for investment in construction of infrastructure for
transfer or lease.
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