When a foreign investor decides to discontinue a project in Vietnam, one item to resolve is the land rent prepaid for unused years. The procedure has two stages: terminating the investment project under investment law, then claiming a land rent refund under land and tax administration law.
Stage 1: terminating the investment project
Under the Investment Law 143/2025/QH15 (effective 1 March 2026, replacing Law 61/2020), the investor may decide on its own to terminate the project (Article 48(1)). Procedures follow Decree 31/2021/ND-CP Article 57: within 15 days of the decision, the investor sends the termination decision to the investment registration authority together with the investment registration certificate (if any). After termination, the investor liquidates the project itself as prescribed by law; land use rights and attached assets are handled under land law.
Stage 2: refunding prepaid land rent
For one-off rent payment land, the rent corresponding to the remaining lease term is an overpayment — the investor files a refund request with the tax authority, enclosing the land lease decision, payment vouchers and the project termination decision. Refunds follow the Law on Tax Administration 108/2025. For annual rent payment land, no rent refund arises (nothing was prepaid); the remaining duty is to liquidate the land lease contract with the lessor and hand over the land.
Practical notes
Do not confuse the two: project termination (with the investment registration authority) and land obligation settlement (with the tax and natural resources authorities) are independent procedures — run them in parallel to save time. Keep full land-rent payment vouchers over the years — they are the sole basis for calculating the refund. If the land was subleased from an industrial park infrastructure developer (not directly from the State), refunds follow the sublease contract terms, not the state-budget refund mechanism.
Frequently asked questions
1. Does voluntary project termination need state “approval”?
No approval is needed. The investor decides on its own (Article 48(1), Investment Law 143/2025) and only notifies the investment registration authority within 15 days. The authority issues termination decisions only in forced cases (Article 48(2)).
2. Where is the land rent refund filed?
A written refund request goes to the directly managing tax authority, with the land lease decision, payment vouchers and the project termination decision. Refunds follow Law 108/2025 on Tax Administration.
3. Any refund for annually-paid leased land?
No rent refund arises since nothing was prepaid. But the land lease contract must be liquidated, the site handed over, and financial obligations settled up to termination.
4. What about land subleased inside an industrial park?
Refunds are settled with the park infrastructure developer under the sublease contract — a civil relationship, not the state-budget refund procedure. Review the liquidation clauses before signing the termination.
Key takeaways for investors
- Project termination and land rent refund are independent procedures — run them in parallel.
- Voluntary termination: notify the investment registration authority within 15 days (Decree 31/2021, Article 57).
- Only one-off prepayment generates a rent refund for the remaining term.
- Industrial park subleases: refunds follow the contract with the developer, not the budget mechanism.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.
