Land — the biggest project asset. Both Vietnam and China use term land-use rights — but terms, renewals and risks differ. This article compares. Chinese-law points are for reference only.
1. Vietnam: maximum 50-year leases
- Principle: land owned by the people — investors lease;
- Term: maximum 50 years — under the Land Law 2024;
- Special: special cases — up to 70 years;
- Form: leases with lump-sum or annual payment;
- Practice: most FDI projects — 50 years.
2. China: purpose-based land-use terms
- Principle: also term-based — by land purpose;
- Framework: residential 70 — industrial 50 — commercial 40 years (reference);
- Industrial: factories — typically 50 years;
- Details: ask Chinese counsel — current rules;
- Compare: similar to Vietnam — term-based.
3. Foreigners holding land in China: the forms
- Principle: no land ownership — only use rights;
- Form: granted land-use rights — term-based;
- Lease: leasing — from park developers;
- Condition: a Chinese entity — holding title;
- Advice: structuring — ask counsel.
4. Renewal mechanics per country
- Vietnam: renewal — on expiry, if still needed;
- Procedure: applying — before expiry;
- China: local — variations, ask local counsel;
- Reality: renewals usually granted — but not automatic;
- Plan: planning 5 years ahead — of expiry.
5. Expiry risks: recovery or renewal?
- Principle: on expiry — the state may recover;
- Reality: usually renewed — for good projects;
- Risk: planning changes — no renewal;
- Assets: assets on land — handled on recovery;
- Prevention: tracking terms — proactively.
6. Vs Vietnam’s 50 years: which is safer?
- Terms: equivalent — 50 years;
- Renewal: both have mechanics — similar in practice;
- Difference: procedures — each country’s own;
- Assess: no big safety gap;
- Decide: other factors — decide location.
7. Leasing inside industrial parks: the reality
- Vietnam: subleasing — from park developers;
- Term: following the park’s remaining term;
- Price: lump-sum — or annual;
- China: similar — ask in practice;
- Compare: rental prices — per park.
8. Land rent: lump-sum vs annual
- Lump-sum: paying upfront — peace of mind, big capital;
- Annual: lighter on capital — but adjustable prices;
- Compare: present-valuing — both options;
- Incentives: exemptions/reductions — encouraged projects;
- Decide: the project’s cash flow.
9. Mortgaging land-use rights
- Vietnam: allowed — when qualified;
- Banks: borrowing — against land;
- China: apply — ask Chinese counsel;
- Value: valuing — by remaining term;
- Note: the nearer expiry — the lower the value.
10. Planning risks
- Change: planning changes — land recovered;
- Compensation: compensation policies — per country;
- Prevention: researching planning — before leasing;
- Long term: monitoring — planning adjustments;
- Both: risks exist — both countries.
11. Land disputes: handling
- Common: boundaries and rents — disputes;
- Mediate: negotiating — first;
- Legal: courts/arbitration — when needed;
- Prevention: tight contracts — from the start;
- Survey: determining boundaries — on handover.
12. Land outside parks: advisable?
- Pro: cheaper — flexible;
- Con: infrastructure — your own;
- Procedure: more complex — purpose conversion;
- Risk: planning — higher;
- Advice: parks — for most FDI.
13. Remaining term: a valuation factor
- Acquiring: existing projects — remaining term;
- Value: the longer the more valuable;
- Renewal: likelihood — priced in;
- Diligence: checking — land papers;
- Negotiate: discounting — for short terms.
14. Expiry planning: 5 years out
- Track: a calendar — land terms;
- Assess: still wanting to continue — or not;
- Procedure: starting early — renewal;
- Negotiate: new rental prices — preparing;
- Backup: a plan B — relocation.
15. Land-use-rights checklist
- Term — how many years?
- Lease form — lump-sum or annual?
- Renewal mechanics — clear?
- Planning — checked?
- Disputes — reviewed?
- Expiry plan — ready?
16. Land handover inspections
- Inspect: inspecting — on handover;
- Record: recording — the condition;
- Dispute: raising issues — promptly;
- Sign: signing — handover minutes.
17. Vietnam’s land price framework: price tables
- Tables: provincial People’s Committees — issuing;
- Applied: calculating rents — land-use fees;
- Adjusted: periodically — to markets;
- Reference: market prices — negotiating;
- Note: varying — per locality.
18. Land recovery: how is compensation handled?
- Basis: a recovery decision;
- Compensate: land and assets — on land;
- Support: relocation — stabilisation;
- Appeal: the right — to complain and sue;
- Prevention: monitoring — planning.
19. Land disputes: where are they resolved?
- Negotiate: talks — first;
- Conciliate: the People’s Committee — conciliation;
- Courts: suing — when needed;
- Arbitrate: agreeing — arbitration;
- Evidence: land papers.
20. Checking planning: procedures
- Information: requesting — planning information;
- Authority: the Planning and Architecture Department;
- Written: written replies;
- Before leasing: mandatory — checking;
- Periodic: updating — adjustments.
21. Lump-sum vs annual rent: deeper analysis
- Lump-sum: stable — no price-rise worry;
- Annual: flexible — lighter capital;
- Present value: discounting — cash flows;
- Mortgage: lump-sum — easier borrowing;
- Decide: the project’s finances.
22. Mortgaging land-use rights: what do banks look at?
- Qualify: complete — papers;
- Value: remaining term — value;
- Ratio: lending — against value;
- Register: secured transactions — registration;
- Risk: bank — assessment.
23. Sublease contracts inside parks: key clauses
- Term: following — the park’s term;
- Price: periodic — adjustments;
- Purpose: correct — sectors;
- Transfer: transfer conditions;
- Terminate: compensation — on termination.
24. Land-rights FAQ
- Can foreigners own land? — no — only use rights;
- Maximum term? — 50 years — usually;
- Renewable? — yes — if still needed;
- Outside parks? — possible — more complex;
- Best advice? — checking planning first.
25. Land-use fees: how they are calculated
- Base: the provincial price table;
- Multiply: area — by unit price;
- Adjust: coefficients — location and purpose;
- Exemptions: reductions — encouraged projects;
- Verify: recalculating — official notices.
26. Land auctions vs direct allocation
- Auction: competitive — bidding;
- Direct: allocated — per planning;
- Investors: usually — via parks;
- Transparent: public — processes;
- Prepare: deposits — for auctions.
27. Land for offices and housing of experts
- Offices: commercial — land use;
- Housing: expert — accommodation;
- Rules: different — from industrial land;
- Lease: renting — often simpler;
- Plan: zoning — compliance.
28. Environmental land-use conditions
- EIA: approved — before land handover;
- Purpose: correct — land purpose;
- Buffer: distances — from residents;
- Monitor: ongoing — obligations;
- Breach: recovery — risks.
29. Land-use right certificates: the pink book
- Certificate: the land-use certificate — key document;
- Check: verifying — authenticity;
- Update: updating — after changes;
- Keep: safe — storage;
- Copy: certified — copies for dossiers.
30. Land disputes with neighbours: boundaries
- Survey: surveying — on handover;
- Markers: boundary — markers;
- Record: recording — with neighbours;
- Resolve: mediating — early;
- Prevent: fencing — promptly.
31. Joint ventures and land contributions
- Contribute: land-use rights — as capital;
- Value: valuing — the contribution;
- Partner: local — partners;
- Risk: disputes — over valuation;
- Document: clear — JV terms.
32. Land-related taxes and fees calendar
- Annual: land rents — and taxes;
- Deadlines: payment — schedules;
- Penalties: late — payment fines;
- Track: a tax calendar;
- Assign: responsible — staff.
33. Land valuation for M&A pricing
- Method: comparable — transactions;
- Adjust: remaining — term;
- Valuer: licensed — valuers;
- Negotiate: discounts — for short terms;
- Document: valuation — reports.
34. Land in industrial clusters vs parks
- Clusters: cheaper — less service;
- Parks: full — infrastructure;
- Choose: sector — requirements;
- Compare: total — costs;
- Visit: both — types.
Contact us
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This article has been quality-reviewed by the FLAW AI Legal Council