On the Government Portal, Mr. L.V.T in Ho Chi Minh City said that he wanted to convert 500 m2 of his family's agricultural land to non-agricultural production land (production and business land) because it was in accordance with local planning.
According to Mr. T's reference, after changing the purpose, the land will be converted to the form of land lease by the State and annual land rent payment. However, some local officials said they would pay a one-time fee for the entire rental period.
Mr. T asked, in your case, which form of land rent will be paid?
Regarding this issue, the Ministry of Finance has the following opinion:
Clause 2 and Clause 3, Article 120 of the 2024 Land Law clearly stipulates the cases where the State leases land and collects one-time land rent for the entire lease term and the cases where the State leases land and collects annual land rent:
"2. The State leases land and collects one-time land rent for the entire lease term in the following cases:
a) Using land to implement investment projects in agricultural, forestry, aquaculture, and salt production;
b) Using land in industrial parks, industrial clusters, high-tech parks, workers' accommodation in industrial parks; land used for public purposes for business purposes; using commercial and service land for tourism activities, office business;
c) Using land to build social housing for rent in accordance with the provisions of the law on housing.
3. The State leases land and collects annual land rent in the following cases:
a) Cases not specified in Clause 2 of this Article;
b) Cases specified in Clause 2 of this Article that require annual payment of land rent;
c) Public service units choose the form of land lease as prescribed in Clause 3, Article 30 of this Law".
The 2024 Land Law was submitted by the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment) to the Government and the National Assembly and is currently being assigned to preside over the amendment of the 2024 Land Law.
In addition, according to the provisions of Point d, Clause 20, Article 2 of Decree No. 35/2025/ND-CP dated February 25, 2025 of the Government, guidance on land allocation and land lease is under the functions and tasks of the Ministry of Agriculture and Environment.
Therefore, for the above problems, Mr. L.V.T is requested to contact the Ministry of Agriculture and Environment for further guidance.
