Leasing State land outside an industrial park is not a single “apply and receive” step: an FDI enterprise must pass four layers of conditions at the same time — a lawful investment project, planning conformity of the land, an appraised land use demand, and proven financial capacity. Miss one layer and the land file stops, however perfect the others are. This article organises the four condition groups under Land Law No. 31/2024/QH15 and Investment Law No. 143/2025/QH15 as at 20 October 2026.
1. The investment project condition: the project comes before the land
Land is leased only to implement a specific investment project. Depending on sector, capital scale and location, the project falls into one of three tracks: (i) it needs an investment policy approval from the National Assembly, the Prime Minister or the provincial People’s Committee under the authority allocation in Investment Law No. 143/2025/QH15; (ii) it only needs an Investment Registration Certificate under Decree 96/2026/ND-CP; or (iii) it must register the investment because it uses land. The investment document fixes the project’s objectives, scale, schedule and operating term — and is also the basis on which the land authority sets the lease term (tracking the project term under Article 172 of the 2024 Land Law) and the appropriate land area. Without a valid investment document there is no legal basis for a land lease.
2. The planning and land-use basis condition
Under Article 116 of the 2024 Land Law, the bases for a State land lease are: the approved land use planning and plans; the land use demand expressed in the investment project; and the capacity of the local land fund. Appraisal in practice concentrates on three questions: whether the requested plot sits in land use planning with a purpose matching the project’s sector; whether the project falls within the State land recovery cases of Article 79 (which decides the auction/bidding route under Articles 125, 126 and 124); and whether the requested area is proportionate to the project scale — over-requesting area is the most common reason for a cut at the demand appraisal stage.
3. The land use demand appraisal condition
The sequence in Article 122 of the 2024 Land Law places the appraisal of land use demand before the lease decision. The natural resources and environment agency leads the appraisal on a dossier comprising: the land lease application; a copy of the investment policy approval or Investment Registration Certificate; documents proving financial capacity; and the project’s land use plan (construction scale, density, schedule for bringing the land into use). For projects involving land recovery, the dossier must also tie into the compensation, support and resettlement plan. The appraisal result grounds the provincial People’s Committee — the authority competent to decide land leases for organisations under clause 1 of Article 123 — in issuing the land lease decision, which is the basis for signing the land lease contract and determining land rent under Decree 103/2024/ND-CP.
4. The financial capacity and security deposit condition
Financial capacity is evidenced in two places: in the investment dossier (under Decree 96/2026/ND-CP, documents on the investor’s financial capacity such as financial statements, a parent company’s financial support commitment, or a financial institution’s commitment) and in the investment project security deposit under the Investment Law: a project leased land by the State falls within the deposit requirement, calculated as a percentage of the project’s investment capital, reducible or exemptible in statutory cases (for example where the investor has advanced compensation and site-clearance funds). In addition, land-related financial obligations (land rent, fees) must be met on time — clause 6 of Article 81 of the 2024 Land Law makes failure to perform financial obligations to the State a ground for land recovery. After leasing, the key “maintenance” condition is schedule: land not put into use for 12 consecutive months, or used 24 months behind the investment project schedule, triggers a maximum 24-month extension mechanism and recovery if still unimplemented (clause 8 of Article 81).
Frequently asked questions
A newly established FDI company with no revenue — can it prove financial capacity?
Yes, through the investor’s documents: the parent company’s audited financial statements, a parent financial support commitment, or a bank balance confirmation/funding commitment — exactly the document group Decree 96/2026/ND-CP requires in the investment registration dossier. There is no rule that the project company must have revenue before leasing land.
The leased area was cut below our proposal. Can we challenge it?
The leased area is determined from the land use demand appraisal tied to the approved project scale. The investor may re-explain with technical documents (1/500 detailed planning, master layout, sector land-use norms) if actual demand is larger; this is a professional exchange within the appraisal, not an administrative dispute over an issued decision.
What extra land conditions apply to conditional sectors such as waste treatment?
Beyond the four general groups, the project must satisfy sectoral law at the chosen site: for example environmental safety distances and an environmental impact assessment approved under the Law on Environmental Protection 72/2020/QH14 before implementation. If sectoral conditions fail, planning-conforming land still cannot host the project.
Must the security deposit be paid before the land lease decision?
The deposit agreement is signed with the investment registration authority before the land handover/lease moment; payment follows that agreement and the statutory schedule. The deposit belongs to the investment track — run both files in parallel so the land handover is not delayed.
