The setup: two investors target the same 5-hectare plot — one holds a provincial MOU, the other holds a signed land sub-lease from the industrial park developer. Both file IRC dossiers. The agency rejects one: the project overlaps an already-licensed project on the same land. The loser protests: I have the province’s MOU! But an MOU is a cooperation commitment, not a land-use right — and the land-use right decides.
How overlaps happen
- Duplicate MOUs: the province signs memoranda with several investors for the same area; only one can convert the MOU into a real land allocation.
- Overlapping boundaries: adjacent projects’ surveyed boundaries encroach on each other; the later dossier is the one rejected.
- Land already allocated: the plot was leased or allocated to another investor whose project, though stalled, still holds a valid IRC — the land is legally occupied.
The legal test the agency applies
Point b, Clause 3, Article 39 of Decree 96/2026/ND-CP requires an identifiable project location backed by proof of land-use rights or a lawful site lease. The agency cross-checks the national land database and the files of already-issued IRCs under the Land Law 31/2024/QH14 (effective 1 August 2024): one parcel, one lawful user. Whoever cannot show an independent, lawful location right loses — regardless of who filed first or who holds an MOU.
How to avoid — and what to do if rejected
- Check before committing: obtain a cadastral extract and the land-use plan status of the plot; confirm with the land authority or the industrial park developer that the plot is free and allocable.
- Get a location confirmation in writing from the competent authority before filing the IRC.
- If rejected for overlap: pick another plot, or negotiate with the occupying investor (transfer or sub-lease of the project under the investment law’s project-transfer rules). If the rejection is wrong — for instance the overlapping project already terminated — complain under the Complaints Law 02/2011/QH13.
Frequently asked questions
1. Two projects, one location — who wins?
The investor who proves an independent, lawful right to use the location: a land allocation/lease decision or a lawful sub-lease — not the MOU holder or the earlier filer.
2. Does a provincial MOU guarantee the IRC?
No. An MOU is a cooperation commitment; it does not substitute for land-use rights or for meeting the IRC issuance conditions.
3. Where do I check whether land already hosts a project?
At the land registration office (cadastral extract), the provincial land authority, and the industrial park developer’s plot-allocation records.
4. Can projects inside industrial parks overlap?
Rarely — the park developer allocates each plot once. Overlaps there usually mean a boundary survey error, fixable by re-survey.
5. Can I complain about an overlap-based rejection?
Yes, under the Complaints Law 02/2011/QH13, if you can show the rejection was unfounded — e.g., the supposedly overlapping project has terminated.
This article has been quality-reviewed by the FLAW AI Legal Council