Foreign Investment

How long does it really take to complete direct State land lease procedures for an FDI project?

Columns in City Passage

There is no single number answering “how long does a direct State land lease take”. The statutory processing time of each administrative procedure is only a small part; most of the real timeline sits in compensation, site clearance and the land use demand appraisal. The correct approach is to break the process into milestones under Article 122 of Land Law No. 31/2024/QH15, identify which milestones carry statutory deadlines and which depend on field conditions — and manage progress milestone by milestone.

1. Milestone 1 — completing the investment file (the precondition)

Before the land file, the project needs its investment documents: an investment policy approval (for projects in that category) and an Investment Registration Certificate under Investment Law No. 143/2025/QH15 and Decree 96/2026/ND-CP. This milestone’s duration depends on the approving authority (province, Prime Minister or National Assembly) and dossier completeness; conditional-sector or large projects that must be consulted across many agencies take materially longer. Practical note: the land file is only received once the location, scale and schedule in the investment document are stable — amending the policy mid-way means redoing most of the land appraisal.

2. Milestone 2 — land use demand appraisal and the lease decision

This is the central land milestone under Article 122: the natural resources and environment agency appraises the land use demand (area, purpose, schedule for bringing land into use) based on the approved investment project, after which the provincial People’s Committee issues the land lease decision under clause 1 of Article 123. In practice the appraisal round generates requests for explanation and additional technical documents (detailed planning, master layout) and planning cross-checks — each supplementation round is its own time cycle. Projects on land that must be recovered from current users also wait for the compensation, support and resettlement plan to be approved; for projects awarded through investor-selection bidding, clause 2 of Article 126 sets an outer frame: the People’s Committee must complete compensation and site clearance within 36 months of the decision recognising the bidding result.

3. Milestone 3 — land pricing, contract signing and handover

After the lease decision, the competent authority determines the land price for rent calculation (per the land price table or specific land prices under Articles 159 and 160; valuation methods under Decree 71/2024/ND-CP and land rent under Decree 103/2024/ND-CP), notifies the financial obligation, signs the land lease contract and organises the on-site handover. Specific land pricing (where applied) requires engaging a valuation organisation and passing the land price appraisal council — a milestone routinely underestimated in project schedules. Field handover is only possible once compensation is complete; the handover minutes start the practical land use clock and the schedule “clock” under clause 8 of Article 81.

4. Milestone 4 — certification, and what drives the total duration

After handover and completion of financial obligations, the enterprise receives the certificate of land use rights and ownership of assets attached to land. The total real duration of the whole chain — from a stable investment document to the certificate — is in practice measured in many months to over a year, varying mainly with three variables: (i) the legal status of the plot (State-managed clean land is far faster than land requiring recovery and compensation); (ii) the number of supplementation rounds at the investment and demand appraisal stages; and (iii) local progress on land pricing and site clearance. The most effective management approach is to run the investment file and land file preparation in parallel, lock the detailed planning early, and write the land handover milestone into the project’s schedule commitments instead of treating it as passive administration.

Frequently asked questions

Can we apply for the land lease before the Investment Registration Certificate?

Not in the standard sequence: the investment document is the basis identifying the project for which land is leased (Article 116). Investors may survey, agree principles and prepare files in parallel, but the lease decision is issued only on the basis of an approved or registered investment project.

Why is the same procedure fast in one province and slow in another?

Because the time sits mainly in field stages (compensation, site clearance, land pricing) and in local agency processing capacity, not in the statutory time limits of the procedures. A project on clean State-managed land in a province with a good investment one-stop mechanism is usually much faster than a land-recovery project elsewhere.

From when does the lease term run — contract signing or handover?

Under clause 2 of Article 172, the land allocation/lease term runs from the date of the competent authority’s land allocation or lease decision. However, the obligation to bring land into use on schedule (clause 8 of Article 81) is counted from receipt of the land handover in the field — two different milestones that the investor must track both of.

If site clearance drags on too long, what rights does the investor have?

For bid-awarded projects, the investor is protected by the 36-month frame in clause 2 of Article 126 and by commitments in the contract with the State agency. For other routes, the investor should record the handover schedule and the handling mechanism for late handover in its arrangements with the locality from the start; delay caused by the State side is an important basis when authorities review project schedule and force majeure under Article 81.