Now, this land lease contract is deemed invalid due to the fact that the management board of the industrial zones in the province did not have the authority to lease land according to the 2013 Land Law. If a new lease contract is signed at the new rental price, the investor will incur losses that are double or even triple compared to the original rental price.

Ms. Tuyen asks what provisions regarding land rental prices are included in the guiding documents for the 2024 Land Law and how these prices are calculated to ensure the rights and benefits of the investor in this case, given that the 2013 Land Law did not have such regulations.

The Ministry of Natural Resources and Environment responded to this issue as follows:

Article 255 of the 2024 Land Law provides transitional provisions regarding land allocation, land leasing, and changes in land use purposes when this Law takes effect:

"1. Households and individuals currently using agricultural land allocated before July 1, 2014, but exceeding the land allocation limit at the time of allocation must transition to leasing land according to the provisions of this Law for the area that exceeds the limit.

2. Economic organizations, households, individuals, and Vietnamese citizens residing abroad who have been allocated land with paid land use rights before this Law takes effect and who now fall under the circumstances of land leasing according to this Law may continue to use the land for the remaining term without having to switch to a land lease. Upon expiration of the land use term, if extended by the competent state authority, they must transition to leasing land according to the provisions of this Law.

3. Organizations, households, individuals, and Vietnamese citizens residing abroad who have been allocated land without paid land use rights before July 1, 2014, and who fall under the circumstances of land leasing according to the 45/2013/QH13 Land Law and this Law must transition to leasing land.

4. Economic organizations, households, individuals, and Vietnamese citizens residing abroad eligible to continue using land according to the provisions of Clause 3, Article 60 of the 45/2013/QH13 Land Law may continue to use the land for the remaining term without having to switch to leasing land according to the provisions of this Law.

5. Economic organizations that are eligible to continue using land according to the provisions of Clause 4, Article 60 of the 45/2013/QH13 Land Law may continue to use the land for the remaining term of the project without having to transition to leasing land according to the provisions of this Law.

6. Land users who are eligible to continue using land according to the provisions of Clause 5, Article 60 of the 45/2013/QH13 Land Law may choose to continue leasing land for the remaining term of use or transition to being allocated land with paid land use rights according to the provisions of this Law.

7. Organizations, households, individuals, Vietnamese citizens residing abroad, and foreign-invested enterprises that have submitted applications to carry out land allocation, land leasing, or changes in land use purposes but have not yet received decisions on land allocation, land leasing, or approval for changes in land use purposes shall carry out land allocation, land leasing, and changes in land use purposes according to the provisions of law prior to the effective date of this Law; if there is a need, they may proceed according to the provisions of this Law.

8. Public non-business units that have been allocated land without charging land use fees or leased land by the State before the effective date of this Law may continue to use the land for the remaining term of use in the form that was allocated or leased; if there is a need, they may transition to the form of land allocation or leasing according to the provisions of this Law. Upon expiration of the land use term, the extension of land use shall be carried out according to the provisions of this Law.

9. For investment projects that have received written approval for investment policies or investor selection from the competent authority in accordance with the laws on investment, housing, and bidding before July 1, 2014, but have not yet allocated or leased land to the investors or project owners, and that now comply with land use planning and plans, the provincial People's Committee shall review and confirm that the project has complied with the laws on investment, housing, and bidding at the time those documents were issued, and that the delay in land allocation or leasing is not the fault of the investors or project owners. In this case, there is no need to organize an auction for land use rights or to conduct bidding for selecting investors to implement the project that involves land use according to the provisions of this Law; the sequence, procedures, authority, and time limits for land allocation and leasing shall be carried out according to the provisions of this Law.

10. For investment projects that have selected investors or project owners in accordance with the laws on investment, housing, and bidding from July 1, 2014, to the effective date of this Law but have not yet allocated or leased land, and that fall under the cases of land allocation or leasing not conducted through the auction of land use rights according to the provisions of Land Law No. 45/2013/QH13, relevant laws, and comply with land use planning and plans, the subsequent steps in the sequence and procedures for land allocation and leasing shall continue to be carried out to allocate or lease land to the investors or project owners according to the provisions of this Law.

11. Individuals who have been allocated land for riverbank or coastal erosion before July 1, 2014, for agricultural purposes may continue to use it for the remaining term of the land allocation. Upon expiration of the land allocation term, if there is a need for land use, complies with land use planning and does not violate land law, the State will consider allocating or leasing land”.

Method of Determining Land Rental Prices

Article 257 of the 2024 Land Law regulates the resolution of land finance and land pricing when this Law comes into effect:

"1. The land price table issued by the provincial People's Committee according to the provisions of Land Law No. 45/2013/QH13 shall continue to be applied until December 31, 2025. If necessary, the provincial People's Committee shall decide to adjust the land price table in accordance with this Law to suit the actual land price situation in the locality.

 2. For cases where there has been a decision on land allocation, land leasing, approval for changing land use purposes, approval for converting from the annual payment for land leasing to a one-time payment for the entire lease period, extension of land use rights, adjustment of land use duration, or adjustment of detailed planning according to the provisions of land law and other relevant legal regulations prior to the effective date of this Law but where the land price has not yet been decided, the following provisions shall apply:

a) For cases of land allocation and land leasing according to the provisions of the 1993 Land Law, the Land Law No. 13/2003/QH11, and detailed regulations and implementation guidelines where the land was actually transferred before January 1, 2005, the policies on land use fees, land lease fees, and land prices for calculating land use fees and land lease fees shall be applied based on the land price table issued by the provincial People's Committee that came into effect in 2005.

b) For cases of land allocation and land leasing according to the provisions of the 1993 Land Law, the Land Law No. 13/2003/QH11, and detailed regulations and implementation guidelines where the competent state authority transferred the land from January 1, 2005, to the day before this Law comes into effect, the policies on land use fees, land lease fees, and land prices for calculating land use fees and land lease fees shall be determined at the time of actual land transfer.

c) For cases where there has been a decision on land allocation, land leasing, approval for changing land use purposes, approval for converting from annual land lease payment to a one-time payment for the entire lease period, extension of land use rights, adjustment of land use duration, or adjustment of detailed construction planning according to the provisions of Land Law No. 45/2013/QH13 and detailed regulations and implementation guidelines, but the land pricing proposal has not yet been submitted to the competent People's Committee, the policies on land use fees, land lease fees, and land prices shall be determined at the time the decision is issued.

If the competent People's Committee has already allocated or leased land according to the compensation, support, and resettlement schedule, the specific land price shall be determined based on the time of issuance of each decision;

d) The Government shall regulate the application of land valuation methods and the additional amount that land users must pay for the period not calculated for land use fees and land lease fees in the cases specified in Points a, b, and c of this Clause.

3.  If the land pricing proposal has been submitted to the competent People's Committee for the determination of specific land prices according to the law before this Law comes into effect, the competent People's Committee shall determine the specific land price based on the submitted proposal without applying the provisions of this Law”.

You are advised to contact the local Department of Natural Resources and Environment for specific guidance based on their authority and responsibility.