Page 254 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

7.4 Imported/Exported Food The right to land use may be obtained through:
(1) Allocation by the state; (2) Lease by the state;
Laws on Food Safety prescribes strict regulations on (3) Concession awarded for winning an auction
imported/exported food. Under the law, imported food or a bidding organized by an authorized agency;
must be registered and relevant authorities must be (4) Renting from an authorized lessor (such as
notified of compliance with import requirements for a developer of an industrial estate/zone); or
each import batch. For exported food, it must obtain (5) Transfer of the right to land use (in the form of
many types of certificates from relevant authorities barter, right transfer, inheritance, donation or funding).
including sale certificates and certificates of origin. Enterprises invested by foreigners are not allowed to
The Public Health Ministry, the Ministry of Agriculture use land in the form of land development that charges
and Rural Development, and the Ministry of Industry fees for using land for their business (except for cases
and Trade have the power to issue any additional where the enterprises invested by foreigners use land
requirements on imported/exported food. for developing projects on investment and construction
of residential buildings for sale & lease).
8. Vietnam’s Laws on Land
In case of land development, enterprises are required to
8.1 Overview of Vietnam’s Land System pay land-use fees for the duration of land development.
In case of land lease, enterprises may pay all the rent for
The people of Vietnam are owners of the land and the entire rental period or make the payment annually.
the state is responsible for regulation to ensure The method of payment affects the land-use right of
that the people have access to long-term use of land. enterprises regarding the rented or allocated land plots.
Enterprises that pay the land-use fees without relying
Although the private sector is not permitted to on state budget or make the payment in a full amount
own land, a person may acquire the legal right to use are entitled to various rights, including the right to
land in Vietnam. He or she is considered “a land user” mortgage or capital payment by invoking the right to
in case of being awarded the right to long-term usage of land and property in the land plots. By choosing
use of land. Such individuals have the virtual right of other methods of payment, enterprises that pay
landholding. The Vietnamese may have the right over their land-use fees with state funds or make the payment
houses and apartments. The country’s present system of in annual installments only have the right to mortgage
land usage and management, as well as the rights and or capital payment with the property in the land plots.
duties of land users, are stipulated in the Land Law Enterprises invested by foreigners may use land for
No. 45/2013/QH13, which was approved by the National their business by paying the rental fees in advance or
Assembly of Vietnam on 29 November 2013, and making an annual payment.
came into force on 1 July 2014, along with the regulations
issued under the legislation. Lawful land users are entitled to the certificate of land-
usage right under their name. Likewise, lawful owners
The state lays down regulations regarding land, as well as of properties or buildings on the land have the right to
the following matters: duration of land use, land allocation the certificate of ownership. Such certificates are a basic
and lease, land revocation, usage objective for certain proof of the land-usage right and property ownership,
land plots, land evaluation, fees for land use, land rental and the documents can be used by the land users or
fees, land taxes, and rights and duties of land users. the property owners in claiming their relevant rights,
The right to land use is specified in accordance in transferring, mortgaging or selling the right to use
with the type of land usage, such as for agriculture, land or property, among others.
for non-agricultural purposes including residential
and industrial purposes, and unused land), as well as Generally, the duration of land lease equals the period
the type of land users. of investment project, which must last no longer than
50 years (or 70 years in certain cases). The exceptions
are when land users have the right over land for
an indefinite period (such as land plots used as residence

254 Annual Report 2021 (Form 56-1 One-Report)