Regarding mortgaging assets on leased land, Point d, Clause 1, Article 33 of the 2024 Land Law stipulates the right of organizations leased land by the State to collect one-time land rent for the entire lease term as follows:
- Economic organizations that are allocated land by the State with land use fees collected, leased land with one-time land rental fees collected for all lease terms in addition to the rights and obligations specified in Clause 1 of this Article also have the following rights: mortgaging land use rights and assets owned by them attached to land at credit institutions permitted to operate in Vietnam, at other economic organizations or individuals as prescribed by law.
Regarding the rights of economic organizations and public service organizations to use leased land to pay annual land rent, Point b, Clause 1, Article 34 of the 2024 Land Law stipulates as follows:
- Economic organizations, religious organizations, and affiliated religious organizations that are leased land by the State for annual land rent collection have the following rights and obligations: mortgage their own assets attached to land at credit institutions permitted to operate in Vietnam, at other economic organizations or individuals as prescribed by law.
Thus, according to the above regulations, economic organizations using leased land that pay land rent once for the entire lease/payment of annual land rent are allowed to mortgage their own assets attached to leased land at credit institutions licensed to operate in Vietnam.
Therefore, economic organizations are allowed to mortgage factories on leased land when they meet the conditions and meet the prescribed procedures. The mortgages of the factories are allowed to exploit the use and enjoy the benefits from the mortgaged assets.
In addition, the mortgagor of the factory on the leased land has the right to lease or re-lend this factory, but must notify the lessee or borrower about the leased or leased property being used for mortgage and must notify the mortgagee.
