Scenario: a factory needs 2.1 hectares, but the only vacant land left in the industrial park is a single 5-hectare block. The developer agrees to “split off 2.1 hectares for you” — yet plot splitting inside an industrial park does not work like splitting residential land: it is a chain of subdivision planning, cadastral measurement and certification for the sub-lessee. This article explains the mechanism and sequence so the investor can negotiate it properly from the start.
The legal position of a “plot” inside an industrial park
Under Article 202 of the Land Law 31/2024/QH15, land in an industrial park is leased by the State to the infrastructure developer to build and trade infrastructure; the developer sub-leases land to secondary investors. The boundaries of sub-lease lots are fixed by the park’s approved 1/500 detailed construction plan — the “master map” of every split. The consequence: an area becomes an independent sub-lease lot only when its boundary matches (or is amended into) the subdivision plan, is measured and marked, and is updated into the cadastral records. Unlike land outside parks, there is no civil plot-splitting between two equal land users here; “splitting” is a re-organisation of leasing frontage on top of the developer’s single master leasehold, framed by Decree 35/2022/ND-CP on industrial park management together with the detailed plan.
The sequence for splitting a lot for a secondary investor
Step one, check the plan: overlay the intended area on the 1/500 subdivision map. If it follows existing boundaries, proceed; if a new boundary must be drawn, the developer must run the detailed-plan amendment at the competent authority — the enterprise should demand a committed timeline for this in the leasing offer. Step two, test the split lot’s infrastructure independence: road access, power/water/drainage connection points, and setbacks and building density when the lot stands alone; a split lot that cannot reach shared infrastructure is technically dead however perfect its paperwork. Step three, measurement and marking: a licensed surveyor produces the status map and official area — the figure that drives rent calculation and enters the contract. Step four, sign the sub-lease for the split part with area and boundaries per the measurement, plus a rent-adjustment clause for any handover variance. Step five, for lump-sum sub-leases: complete certification of land use rights for the sub-lessee over the newly formed parcel.
Three negotiation risks to lock down
First, “paper split” risk: the contract is signed on an estimated area but measurement comes in smaller — lock it with rent priced on final measured area and a walk-away right beyond a variance threshold. Second, connection infrastructure risk: end-of-line split lots often attract extra connection costs (pumping stations, dedicated pipelines) that nobody wants to own — the contract must state exactly what infrastructure state the developer hands over at the lot boundary. Third, plan-amendment timing risk: if the split needs a 1/500 amendment, the factory’s whole construction schedule rides on that procedure — the contract needs a committed milestone, delay sanctions and a deposit-refund right on overrun. Plot splitting in an industrial park benefits both sides, but only when the sequence planning → measurement → contract → certificate is followed in order.
Frequently Asked Questions
What is plot splitting inside an industrial park, and when is it needed?
Plot splitting in an industrial park means dividing a large infrastructure lot into smaller lots so each secondary investor can sub-lease exactly the area it needs. It arises when the original 1/500 detailed plan drew large lots but an investor needs only part of one, or when the park developer wants more flexible leasing products. The fundamental difference from land outside parks: in-park land is not allocated directly to each factory — the State leases the whole land to the developer, and ‘splitting’ happens at the level of subdivision planning, cadastral measurement and certification for the sub-lessee under Article 202 of the Land Law 31/2024/QH15.
What conditions must a split part meet to be sub-leased separately?
Four substantive conditions: (1) the split area must conform to the approved 1/500 detailed construction plan — if the new boundary deviates, the plan must be amended first; (2) shared technical infrastructure (roads, water supply and drainage, power) must be connectable to the split lot without breaking the common system; (3) the split area must independently satisfy the park’s planning parameters (building density, height, setbacks); (4) the developer must have completed financial obligations and infrastructure investment on the relevant land. Only then come measurement, boundary marking and the sub-lease contract for the split part.
Does the sub-lessee of a split plot get its own land certificate?
Yes, if the sub-lease is paid in one lump sum for the whole term: under Article 202 of the Land Law 31/2024/QH15, the sub-lessee is issued a Land Use Rights Certificate for the sub-leased area, and the split part is recorded as an independent parcel in the cadastral file after measurement and boundary determination. If the sub-lease is paid annually, the sub-lessee receives no land certificate — its rights rest on the sub-lease contract and it may only mortgage or transfer assets attached to the land. This is why splitting must be completed before certification, not the other way round.
Who bears the measurement and splitting costs, and how long does it take?
By agreement in the land sub-lease with the developer; market practice puts cadastral measurement, boundary marking and certification fees on the party needing the split, while the developer completes the legal dossier of the master plot. Timing turns on whether the 1/500 plan needs amendment: a split inside approved boundaries is only measurement plus certification procedure; a deviating split adds plan-amendment time at the competent authority, usually the longest leg. The enterprise should price both scenarios when negotiating the area.
This article has been quality-reviewed by the FLAW AI Legal Council