New regulations on procedures for short-term land lease in Nghe An province

Principles of exploitation, use and short-term land lease

The Provincial People's Committee stipulates the principles of short-term land exploitation, use and lease as follows: The exploitation and use of short-term land must ensure publicity, transparency, rationality and efficiency; ensure meeting the requirements of socio-economic development; avoid encroachment, occupation and illegal construction, contributing to limiting environmental pollution in land plots and lots managed by the Land Fund Development Center.

Short-term land lease under this Regulation does not require auctioning of land use rights, does not require bidding for investors to implement projects using land; does not require meeting requirements on conformity with land use planning and plans such as land allocation and land lease to implement investment projects.

The lease must be signed with a contract, determining the temporary land lease corresponding to the land use purpose according to regulations. The land lessee does not have to register the land, is not granted a Certificate of land use rights or ownership of assets attached to the land.

The lease term shall not exceed 5 years. During the contract term, when the State implements the land use plan, the contract must be terminated and no compensation or support for assets invested on the land shall be provided. Before terminating the contract, the Land Fund Development Center must notify the land lessee in writing no later than 60 days.

Organizations and individuals leasing land are not allowed to build permanent structures and must commit to voluntarily demolishing the structures when notified by the land fund development organization about the termination of the contract, and will not be compensated for land, assets and investment costs on the land. Organizations and individuals leasing land must pay a deposit for the responsibility of demolishing the structures.

The use of short-term leased land must ensure the environment and not affect the interests of people, businesses and organizations near the leased land.

The order and procedures for short-term land lease include: Establishing and approving a list of land plots for short-term lease; determining the starting price; publicly announcing the list of land plots for short-term lease; submitting an application for land lease registration; selecting organizations and individuals to lease land; paying a deposit for the responsibility of dismantling the construction when the land lease contract terminates; signing a land lease contract, paying land rent.

Regulations on liquidation and termination of land lease contracts

For contracts whose lease term has expired, before terminating the contract, the Land Fund Development Center must notify the land lessee in writing at least 60 days in advance. When the contract term expires, the Land Fund Development Center shall terminate the contract and take back the land or plot for continued management according to regulations.

Land lessees who violate the contract (delay in fulfilling financial obligations and other issues arising from land and environmental violations) will be handled according to current regulations. In addition, organizations and individuals renting land are responsible for terminating the contract and paying other fines and fees for violations of land, construction, and environmental laws according to current regulations.

For contracts that must be terminated before the deadline when the State implements the land use plan: The Land Fund Development Center shall send a written notice 30 days in advance to the organization or individual renting the land for information. Upon the deadline as notified, the land lease contract shall be liquidated and the land lease payment corresponding to the remaining land lease term shall be calculated and refunded.

Organizations and individuals leasing short-term land are responsible, within no more than 10 days from the date of contract liquidation, to self-demolish assets and constructions invested on the land and hand over the land and assets in their current condition before leasing to the Land Fund Development Center. In case after 10 days, the land lessee does not self-demolish the assets on the leased land, the Land Fund Development Center will carry out the demolition. The cost of the demolition will be deducted from the deposit of the organization or individual leasing the land.

This Decision also specifically regulates the management and use of short-term land fund and land-attached assets exploitation funds.