In the course of investment activities, the demand for legal advisory on enterprises’ rights in long-term land leasing has significantly increased, with a view to ensuring stability and efficient utilization of land resources.
In the course of investment activities, the demand for legal advisory on enterprises’ rights in long-term land leasing has significantly increased, with a view to ensuring stability and efficient utilization of land resources.
I. Current situation relating to legal advisory on enterprises’ rights in long-term land leasing
1. Increasing demand for long-term land leasing
The development of industrial zones, economic zones, and large-scale investment projects has made enterprises increasingly dependent on stable land resources over extended periods.
Long-term land leasing enables enterprises to proactively plan investments, recover capital, and exploit assets effectively. Moreover, supportive policies, such as extensions of land rental payment deadlines during difficult periods, demonstrate that the State continues to regard land leasing as an important instrument to support business operations.
2. Legal procedures remain complex and time-consuming
In practice, enterprises often have difficulties in accessing land due to the multi-step procedures involved in land allocation, land leasing, determination of rental rates, and completion of legal documents.
Changes in policies or adjustments in planning may also delay project implementation, directly affecting costs and investment schedules. It makes early-stage legal advisory essential to minimize potential risks.
3. Risks related to costs and financial obligations
Land rental constitutes a long-term expense that may fluctuate depending on land finance policies. In reality, the State has issued various mechanisms to extend or adjust financial obligations, indicating that such costs have a significant impact on cash flow and investment efficiency.
Without proper legal advice, enterprises may face risks such as collection of financial obligations, adjustment of rental rates, or violations of land use obligations.
4. Emergence of disputes and issues during land use
Certain enterprises have difficulties when changing project objectives, transferring assets attached to land, or terminating projects prior to the lease expiry.
Additionally, cases where the State recovers land for public purposes or due to violations may raise issues relating to compensation, support, and asset handling. These situations require legal advisory to protect enterprise rights and determine appropriate courses of action.
5. Weak legal awareness among enterprises
Many enterprises, particularly small and medium-sized enterprises, do not fully understand their rights and obligations in long-term land leasing, resulting in loosely drafted agreements or unforeseen legal risks.
Therefore, legal advisory services not only assist in dispute resolution but also serve a preventive function, ensuring project stability.
The current situation indicates that while long-term land leasing is an inevitable demand, it is accompanied by various legal, financial, and procedural risks. Accordingly, legal advisory on enterprises’ rights in land leasing is not merely supportive but constitutes a critical solution to ensure legal safety and long-term investment efficiency.
II. Concept of legal advisory on enterprises’ rights in long-term land leasing
1. What is legal advisory on enterprises’ rights in long-term land leasing?
Legal advisory on enterprises’ rights in long-term land leasing refers to the provision of legal opinions, analysis of applicable laws, and practical solutions to assist enterprises in:
- Clearly identifying their rights and obligations in land leasing;
- Assessing the legal status of land plots and lease agreements;
- Ensuring stable rights to use and exploit land throughout the lease term;
- Preventing and addressing risks arising during land use.
In essence, it is a process that supports enterprises in accessing land in a lawful, efficient, and legally sustainable manner.
2. Why do enterprises need legal advice in long-term land leasing?
Enterprises require legal advisory because long-term land leasing is typically associated with high-value projects and long capital recovery periods, while land law imposes stringent conditions and obligations.
Legal advisory enables enterprises to:
- Understand land use rights and rights to exploit land-attached assets;
- Identify legal costs and financial obligations;
- Control risks arising from planning changes, land recovery, or policy adjustments;
- Develop well-structured lease agreements to protect long-term interests.
As a result, enterprises can take a more proactive approach to investment strategies and minimize disputes.
3. When should enterprises seek legal advisory services?
Enterprises should engage legal advisory services in the following circumstances:
- Prior to deciding to lease land for an investment project;
- When reviewing the legal status of land or lease agreements;
- When issues arise regarding rental payments, lease term, or land use purposes;
- When intending to adjust projects, transfer land-attached assets, or extend lease terms;
- When disputes arise or there is a risk of land recovery.
Timely legal advisory helps enterprises not only resolve issues but also prevent risks from the outset of the project.
III. Legal regulations governing enterprises’ rights in long-term land leasing
1. Conditions for enterprises to be granted long-term land leases by the State
Pursuant to Clauses 1 and 2, Article 122 of the Land Law 2024, the conditions include:
- Competent state authorities may decide on land leasing only after obtaining a resolution of the provincial People’s Council and satisfying the grounds set out in Article 116 of the Law, except for projects approved by the National Assembly or the Prime Minister under relevant investment laws.
Enterprises must satisfy the following conditions:
- Providing a deposit or other forms of security as required by investment laws;
- Demonstrating financial capacity to ensure land use in accordance with project schedules and other legal requirements;
- Not having violated land laws, or having fully complied with effective judgments or decisions in case of prior violations.
These conditions reflect strict control over land leasing to ensure that land is allocated to capable entities and used for proper purposes in accordance with project timelines, thereby enhancing land management efficiency and minimizing risks.
2. Forms of long-term land leasing
Under Article 120 of the Land Law 2024, enterprises may lease land under the following forms:
- Lump-sum payment of land rent for the entire lease term; or
- Annual payment of land rent.
Lump-sum payment applies in cases such as:
- Agricultural, forestry, aquaculture, or salt production projects;
- Industrial zones, high-tech zones, worker housing, commercial and service land for tourism or office business;
- Construction of social housing for lease.
Annual payment applies to:
- Cases not eligible for lump-sum payment;
- Cases eligible for lump-sum payment but opting for annual payment;
- Public service units selecting land leasing forms under applicable provisions.
The choice of leasing form directly affects property rights and financial strategies, and therefore requires careful legal consideration.
3. Main legal issues requiring advisory in long-term land leasing
Enterprises should seek legal advice on:
- Legal status of land and planning compliance;
- Appropriate leasing form and financial obligations;
- Lease term and extension possibilities;
- Rights to transfer, mortgage, or contribute capital using land lease rights;
- Risks of land recovery and mitigation measures;
- Contract terms and dispute resolution mechanisms.
Legal advisory ensures both compliance and optimization of enterprise interests.
4. Rights and obligations of enterprises in long-term land leasing
Pursuant to Articles 26 and 31 of the Land Law 2024:
Rights:
- Stable land use throughout the lease term;
- Exploitation of benefits from land and attached assets;
- Transfer, sublease, mortgage, or capital contribution using land lease rights (within legal limits);
- Entitlement to compensation upon land recovery if conditions are met.
Obligations:
- Using land for the correct purpose and in accordance with project schedules;
- Fulfilling all financial obligations relating to land rent;
- Complying with environmental protection and land management regulations;
- Returning land upon lease expiry or lawful recovery.
These provisions establish a clear legal framework for enterprises to access land, determine leasing forms, and exercise rights and obligations, thereby serving as a foundation for effective legal advisory and long-term investment optimization.
IV. Questions regarding legal advisory on enterprises’ rights in long-term land leasing
1. How are legal advisory fees determined?
Fees depend on:
- Scope of work (legal review, contract drafting, dispute resolution, etc.);
- Complexity and value of the project;
- Time and resources required;
- Agreement between the enterprise and the advisory provider.
In practice, fees may be calculated hourly, as fixed service packages, or based on project value.
2. Are enterprises given priority to renew leases upon expiry?
Upon lease expiry, enterprises may be considered for extension if they meet conditions under Clause 2, Article 122 of the Land Law 2024.
However, it is not an automatic right and depends on the decision of competent authorities. Legal advisory is therefore essential in preparing extension applications.
3. Are enterprises allowed to sublease land?
Under Article 33 of the Land Law 2024, enterprises paying lump-sum rent may sublease land use rights and attached assets.
Additionally, under Article 34, enterprises paying annual rent may sublease land (with annual payments) where infrastructure has been completed in industrial or high-tech zones, subject to compliance with legal requirements.
4. Is a written land lease contract mandatory?
Land leasing by the State must be documented in a written contract, which serves as the legal basis for determining rights and obligations and for land registration. Without such a contract, land use rights are not fully recognized.
5. Do enterprises have the right to file complaints or lawsuits?
As lawful land users, enterprises have the right to:
- File complaints against administrative decisions or acts;
- Initiate lawsuits before courts to protect their lawful rights and interests.
This constitutes an important legal mechanism to ensure transparency and protect property rights.
V. Why choose NPLaw for legal advisory on long-term land leasing?
Given the complexity of legal regulations governing long-term land leasing, professional legal support is essential for safeguarding enterprise interests and mitigating risks throughout the investment process. NPLAW provides comprehensive services, including legal due diligence, advisory on leasing structures, contract drafting, and dispute resolution representation.
The above information is for reference only. For detailed advice tailored to specific cases, please contact NPLAW for prompt assistance.
