According to Article 120 of the 2024 Land Law, land lease is regulated as follows:
1. The State leases land and collects one-time land rent for the entire lease term or collects annual land rent in cases not falling under the provisions of Articles 118 and 119 of this Law.
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 production, 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 land rent payment.
c) Public service units choose the form of land lease as prescribed in Clause 3, Article 30 of this Law.
4. The land lease prescribed in this Article is implemented in accordance with the provisions of Articles 124, 125 and 126 of this Law.
Accordingly, the State stipulates two forms of land rent collection:
- Collect land rent at one time for the entire lease term
- Collecting annual land rent
Depending on the type of project, land use purpose and tenant's needs. Individuals and businesses can choose the appropriate form.
1.1. In case of land lease with one-time payment
According to Clause 2, Article 120 of the 2024 Land Law, cases eligible for land lease with one-time payment include:
- Using land to invest in agricultural/forestry production; aquaculture; salt production.
- Using land in industrial parks/industrial clusters/high-tech zones; accommodation for workers in industrial parks; commercial land, used for business and tourism purposes.
- Using land to build social housing.
1.1. Cases of land lease with annual payment
According to Clause 3, Article 120 of the 2024 Land Law, cases of land lease with annual payments include:
- Cases that are not eligible for one-time land lease as prescribed in Clause 2, Article 120 of the 2024 Land Law.
- Cases of subjects who are allowed to lease land for one-time payment but have a need to pay annually.
- Public service unit.
