The short answer is yes. An economic organisation with foreign invested capital is one of the categories of land users under Article 4 of Land Law No. 31/2024/QH15 (in force since 1 August 2024) and may be leased land by the State to implement an investment project, including at locations outside industrial parks and clusters. What must be understood correctly is this: outside an industrial park, the enterprise does not sublease from an infrastructure developer but deals directly with the State — so the procedure, the rent basis and even site-clearance risk differ fundamentally from leasing inside a park.
1. Legal basis for leasing directly from the State
Three layers of basis matter. First, land-user status: Article 4 of the 2024 Land Law lists economic organisations with foreign invested capital among those eligible for land allocation and land lease by the State. Second, the form of land use: Article 120 provides that the State leases land with a one-off rent payment for the whole term only for three project groups (agricultural, forestry, aquaculture production and salt making; industrial park, cluster and high-tech park land plus commercial and service land for tourism and offices; social housing for rent) — an off-park project outside these groups leases on an annual rent payment basis. Third, the project must be a lawful investment project under Investment Law No. 143/2025/QH15 (in force since 1 March 2026): depending on scale and sector, the investor needs an investment policy approval or an Investment Registration Certificate under Decree 96/2026/ND-CP before applying for the land lease.
2. Three routes to a direct State land lease outside industrial parks
Route 1 — no auction, no bidding (Article 124): applies to the cases listed by law, typically projects exempted from land rent, public-investment or PPP projects, and cases where a project subject to State land recovery has only one investor meeting the conditions. This is the route for most off-park FDI manufacturing projects where the locality has not organised an auction or bidding.
Route 2 — land use rights auction (Article 125): applies to “clean” land funds created by the State that must be auctioned. The winning bidder pays the auction price and signs a land lease contract with the State agency; the starting price is set by reference to specific land prices (Article 160).
Route 3 — bidding to select the investor (Article 126): applies to land-using investment projects subject to State land recovery (Article 79) where the provincial People’s Council decides on bidding, or where sectoral law requires it. The winning investor must advance funds for compensation, support and resettlement; within 36 months of the decision recognising the bidding result, the competent People’s Committee must complete compensation and site clearance to hand over the land.
3. How do rights on directly leased land differ from an in-park lease?
Leasing directly from the State, the enterprise signs a land lease contract with the State agency and is issued a certificate of land use rights and ownership of assets attached to land. However, if the lease is on annual payment (the common off-park case), rights are restricted under Article 34 of the 2024 Land Law: the enterprise may not transfer the land use rights and may not contribute the land use rights as capital; it may only mortgage, contribute, sell or lease assets it owns that are attached to the land and the leasehold interest under the land lease contract. By contrast, a one-off payment lease carries the full set of rights under Article 33: transfer, sublease, mortgage and capital contribution of the land use rights. Inside an industrial park, the enterprise only holds a sublease with the infrastructure developer under the Article 202 framework — no direct lease relationship with the State and no certificate in its own name over the original plot.
4. Off-park risks to price in
First, schedule risk: under clause 8 of Article 81, project land left unused for 12 consecutive months, or used 24 months behind the schedule stated in the investment project, earns only a 24-month extension together with a payment corresponding to the delay period; if the land is still not put into use after the extension, the State recovers it without compensation (force majeure excepted). Second, site risk: off-park land is rarely “clean” — compensation, support and resettlement cost and timing are the biggest variables. Third, connection infrastructure (power, water, access roads, drainage) must be self-funded or negotiated with the locality, unlike the plug-and-play model inside a park. The lease term follows Article 172 and tracks the operating term of the investment project, capped at 50 years (up to 70 years in special cases).
Frequently asked questions
Does a direct State lease come with a land use rights certificate?
Yes. After signing the land lease contract and fulfilling financial obligations, the enterprise is issued a certificate of land use rights and ownership of assets attached to land in its own name, stating the lease form and term.
Can an FDI enterprise lease land to build housing for sale to workers?
Not under the ordinary production-land lease mechanism. Housing is an investment project in housing construction, governed by land allocation with land use fees or land lease under housing law and Articles 119–120 of the 2024 Land Law; worker accommodation may only be arranged inside industrial parks per planning (clause 7, Article 202).
Can we opt to pay rent in one lump sum to obtain full transfer rights?
Only if the project falls within the three groups in clause 1 of Article 120. In addition, Article 30 allows a tenant on annual payment that qualifies for one-off payment to switch to one-off payment for the remaining term, with the land price re-determined at the time of the conversion decision.
What is the maximum term of an off-park land lease?
Under clause 1 of Article 172, the term for land allocation or lease to implement an investment project must not exceed 50 years; for projects with an operating term above 50 years, not more than 70 years. Extension dossiers must be filed at least 06 months before the land use term expires.
