How is land allocation and land lease through bidding regulated under the 2024 Land Law?

Article 126 of the 2024 Land Law stipulates:

1. The State allocates land with land use fees collected, leases land through bidding to select investors to implement investment projects using land in the following cases:

a) Projects specified in Clause 27, Article 79 of this Law for which the Provincial People's Council decides on land allocation or land lease through bidding to select investors to implement investment projects using land.

The Provincial People's Council shall prescribe criteria for deciding on the implementation of bidding to select investors to implement investment projects using land in accordance with the actual situation of the locality;

b) Investment projects using land that are subject to land recovery by the State under Article 79 of this Law and are not subject to the provisions of Point a of this Clause but are subject to the need to organize a bidding process to select investors according to the provisions of law on industry and sector management.

2. The land fund for bidding to select investors to implement investment projects using land with an area subject to land recovery by the State as prescribed in Article 79 of this Law. In case the land area for project implementation includes a land area prescribed in Clause 1, Article 217 of this Law, the State shall recover the land to allocate or lease through bidding to select investors to implement the project for the entire land area.

3. Conditions for bidding to select investors to implement investment projects using land as prescribed in Point a, Clause 1 of this Article include:

a) Belonging to the list of land plots for bidding for investment projects using land decided by the Provincial People's Council;

b) Have a detailed plan or a 1/2000 scale zoning plan approved by a competent authority;

c) Conditions as prescribed by law on bidding.

4. Investment projects using land specified in Point b, Clause 1 of this Article must satisfy the conditions for bidding to select investors specified in Clause 3 of this Article and other conditions as prescribed by laws governing the sector or field.

5. Organizations participating in bidding to select investors to implement investment projects using land must meet the following conditions:

a) Belonging to the subjects that are allocated land or leased land by the State according to the provisions of Articles 119 and 120 of this Law;

b) Must ensure the conditions specified in Article 122 of this Law in cases of land allocation and land lease to implement investment projects;

c) Conditions as prescribed by law on bidding.

6. Foreign investors participating in bidding to select investors to implement investment projects using land must ensure the conditions specified in Points b and c, Clause 5 of this Article; in case of winning the bid, they must establish an economic organization to be allocated land or leased land to implement the project according to Government regulations in accordance with the provisions of the law on investment, the law on bidding and other relevant legal provisions.

7. The Provincial People's Committee has the following responsibilities:

a) Announce the plan and list of land plots for bidding for investment projects using land according to the provisions of this Law;

b) Organize detailed planning or have zoning plans at a scale of 1/2000;

c) Organize the preparation and implementation of compensation, support, resettlement and land recovery plans according to the provisions of this Law;

d) Allocate and lease land to the winning investor or an economic organization established by the winning investor in accordance with Government regulations to implement the project in accordance with the commitments in the contract signed between the winning investor and the competent authority and meet the conditions prescribed by the law on investment, the law on bidding and other relevant legal provisions; determine land prices to calculate land use fees and land rents for the investor to fulfill its financial obligations to the State.

8. Within 36 months from the date of issuance of the decision recognizing the winning bid or other period according to the contract signed with the competent state agency, the People's Committee at the competent level must complete the compensation, support, and resettlement for land allocation and land lease.

Organizations that are allocated or leased land as prescribed in Clause 6 and Point d, Clause 7 of this Article are responsible for providing capital to carry out compensation, support and resettlement at the request of competent state agencies on the basis of approved compensation, support and resettlement plans; after 06 months from the date of receiving the request of competent state agencies, if they fail to provide sufficient capital to carry out compensation, support and resettlement, the competent state agency shall decide to cancel the winning bid.

9. The order and procedures for bidding to select investors to implement projects using land shall comply with the provisions of law on bidding.

10. The Government shall detail this Article.