1. What is the land for production and business?
To answer the question of whether land for production and business can be mortgaged to a bank loan, it is necessary to first know what is land for production and business.
According to Point d, Clause 3, Article 9 of the 2024 Land Law, production and business land is a type of land belonging to the non-agricultural land group, including:
- Land in industrial parks and industrial clusters.
- Commercial and service land.
- Land for non-agricultural production facilities.
- Land used for mineral activities.
Thus, production and business land is non-agricultural land used for the above purposes.
2. Can land for production and business be mortgaged to banks?
According to Point g, Clause 1, Article 37 of the 2024 Land Law, individuals who are allowed to mortgage land use rights at credit institutions allowed to operate in Vietnam, at other economic institutions or individuals as prescribed by law for the following types of land:
- Use agricultural land allocated by the State within the limit (according to Article 176 of the 2024 Land Law).
- Land allocated by the State with land use fees (residential land).
- Land leased by the State with one-time land rent payment for the entire lease term. These include:
+ Use land to implement investment projects in agricultural production, forestry, aquaculture, and salt production.
+ 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.
+ Use land to build social housing for rent according to the provisions of the law on housing.
- Land whose land use rights are recognized by the State.
- Land to be converted.
- Land received by transfer (purchase), donated, inherited.
Based on the above regulations, it can be found that households and individuals using land in industrial parks, industrial clusters, high-tech zones, workers' accommodation in industrial parks; land used for public purposes for business purposes; using commercial and service land for tourism activities, office business are one of the cases where land use rights are mortgaged.
However, it should also be noted that to mortgage land use rights, households and individuals must meet the conditions prescribed in Clause 1, Article 45 of the 2024 Land Law:
- Have a Land Use Rights Certificate.
- Land without disputes or disputes that have been resolved by competent state agencies, judgments, decisions of the Court, decisions or judgments of the Arbitration that have come into legal effect.
- Land use rights are not subject to seizure or other measures are applied to ensure enforcement of judgments.
- Within the land use term.
- Land use rights are not subject to temporary emergency measures.
If one of the above conditions is missing, it will not be eligible for mortgage of land use rights.
