What are the rights and obligations of foreign-invested enterprises using land through capital contributions in the form of land use rights?
According to the latest law, what are the rights and obligations of foreign-invested enterprises using land through capital contributions in the form of land use rights? This is a matter of concern for Mr. Tran Van Hong (Vinh City, Nghe An).
Reply: Article 42 of the 2024 Land Law stipulates the rights and obligations of economic organizations with foreign investment capital using land through capital contributions in the form of land use rights as follows:
1. Foreign-invested economic organizations that receive capital contributions in the form of land use rights allocated by the State with land use fees collected, or land use rights that are leased and pay land rent at one time for the entire lease term have the rights and obligations specified in Clause 3, Article 41 of this Law.
2. A foreign-invested economic organization converted from a joint venture enterprise in which the Vietnamese party contributes capital in the form of land use rights shall have the following rights and obligations:
a. The rights and obligations specified in Clause 2, Article 41 of this Law in the case where the land use rights received from previous capital contributions are not used to implement housing investment projects for sale and foreign-invested economic organizations are leased land by the State and pay annual land rent according to the provisions of this Law;
b. The rights and obligations specified in Clause 3, Article 41 of this Law in the case where the land use rights received from previous capital contributions are not used to implement housing investment projects for sale and foreign-invested economic organizations are leased land by the State and pay land rent in one lump sum for the entire lease term in accordance with the provisions of this Law;
c. The rights and obligations stipulated in Clause 3, Article 41 of this Law in the case where the land use rights received from previous capital contributions are used to implement housing investment projects for sale and foreign-invested economic organizations are allocated land by the State with land use fees collected in accordance with the provisions of this Law.
3. State-owned enterprises that were leased land by the State before July 1, 2004 and are allowed to use the value of land use rights as allocated by the State budget to the enterprise, are not required to record debt and do not have to repay land rent according to the provisions of the law on land, and contribute capital to joint ventures with foreign organizations and individuals, then the joint venture enterprise has the rights and obligations specified in Clause 1 and Clause 3, Article 33 of this Law. The value of land use rights is the capital contributed by the State to the joint venture enterprise.