An eco-tourism investor in Hoa Binh leased 30 ha for 50 years; construction finished in year 10 — 40 years sounds long, but banks lend only when remaining lease terms comfortably exceed loan periods. Tourism land leasing is a 50-year decision — one misunderstood clause can kill a project in year one.
Commercial/service land: tourism’s land type
Hotel, resort, amusement-park, and golf-course land is commercial/service land — State-leased (not allocated with land-use fees like residential land), with lump-sum or annual rent. Under the Land Law 31/2024/QH15 (effective 01/8/2024), maximum lease term is 50 years; large, slow-payback projects in difficult areas get 70 years.
Lump-sum or annual payment?
Lump-sum: near-full lessee rights — transfer, mortgage, and capital contribution with land-use rights within the term. Annual: more limited rights (no lease-right transfer) but lighter upfront capital, with rent adjusted every 5 years. For capital-hungry tourism projects needing bank mortgages — lump-sum is usually mandatory since banks only accept lump-sum lease-right mortgages.
Renewal on expiry
On expiry, land users may renew with continued need, planning conformity, and financial obligations met — land is not automatically lost, but renewal is not automatic either: procedures must start before expiry. Practice: begin renewal 1–2 years early to avoid legal gaps; mortgaged projects need bank coordination during renewal.
Hot issues: purpose conversion and land rent
- Purpose conversion: farmland and forest land in tourism projects needs conversion approval to commercial/service land — rent and conversion costs are major investment-budget items.
- Rent incentives: tourism projects in difficult areas or at scale may earn land-rent exemptions or reductions under investment incentives — applied for and decided, not automatic.
- Recovery: leased land may be recovered for violations (abandonment, wrong-purpose use) — long-“suspended” projects face review.
Frequently Asked Questions
1. How many years can foreigners lease tourism land?
Same as Vietnamese: up to 50 years, 70 for qualifying projects. Foreign investors lease land in tourism zones or sublease from tourism-zone infrastructure investors.
2. Can solid hotels be built on annually-paid leased land?
Yes — construction rights do not depend on payment form. But mortgaging hotel construction loans usually requires lump-sum lease rights.
3. What happens to on-land assets if renewal is denied?
Attached assets belong to the lessee — on non-renewed expiry, handle per agreements and regulations: possible compensation or required demolition. Lease contracts and financial plans should pre-model this scenario.
This article has been quality-reviewed by the FLAW AI Legal Council.
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