Company B was permitted by the Provincial People's Committee to lease land with a one-time payment for the entire lease period, which lasts 50 years. Due to the land's location in a socio-economic difficult area, the company was exempt from land rent for 7 years and granted a 2-year exemption for basic construction.
Company B has fulfilled its financial obligations for the remaining 41 years of the lease and has been issued a Land Use Certificate in accordance with regulations.
Mr. Đỗ Trung Phương (Phú Thọ) asks if Company B is allowed to exercise its rights to transfer land use rights and mortgage the land under the Land Law and Decree No. 99/2022/ND-CP on secured transactions.
The Ministry of Natural Resources and Environment responded to this issue as follows:
Since the content of the question does not specify the type of investment project for which the state leased land, there is insufficient basis to provide a specific answer. The Ministry of Natural Resources and Environment provides the following general principles:
According to Clause 4, Article 174 of the Land Law, organizations that lease land with a one-time payment for the entire lease period but are exempt from or have reduced land use fees and land rents have the following rights and obligations:
"a) In cases where the State allocates or leases land for the implementation of housing development projects and provides exemptions or reductions in land use fees or land rents, the rights and obligations will be in accordance with the land law as if there were no exemptions or reductions in fees;
b) In cases where the State allocates or leases land for investment projects for profit purposes not specified in point a of this clause, and the land use fees or land rents are reduced, the rights and obligations will be in accordance with the land law as if there were no exemptions or reductions in fees for land used for corresponding purposes;
c) In cases where the State allocates or leases land for investment projects for profit purposes not specified in point a of this clause, and the land use fees or land rents are exempt, the rights and obligations will be in accordance with the land law as if the State leases the land with annual payments for land rents for land used for corresponding purposes."
