Ministry of Agriculture and Environment responds to land auction conditions

Citizens sent questions to the Ministry of Agriculture and Environment with the content: Is it mandatory for individuals to have documents proving their financial capacity to implement projects when registering to participate in land use rights auctions to implement investment projects, and a written commitment not to violate land law regulations?

The Ministry of Agriculture and Environment has the following opinions:

- Clauses 3 and 4 of Article 125 of the Land Law stipulate:

“3. Organizations participating in land use right auctions in the cases specified in Clause 1 of this Article must have sufficient of the following conditions:

a) Belonging to subjects assigned land and leased land by the State according to the provisions of Article 119 and Article 120 of this Law;

b) Ensure the conditions specified in Article 122 of this Law for cases of land allocation and land lease to implement investment projects; have capacity and experience in project development;

c) Other conditions according to the provisions of law on property auctions.

4. Individuals participating in the land use right auction must meet the following conditions:

a) Belonging to the subjects to whom the State allocates land, leases land as prescribed in Article 119 and Article 120 of this Law;

b) Conditions according to the provisions of law on property auctions".

- Clause 1, Clause 2, Article 55 of Decree 102/2024/ND-CP dated July 30, 2024 of the Government detailing the implementation of a number of articles of the Land Law stipulates:

“1. Organizations participating in the land use right auction must meet the following conditions:

a) Ensure the conditions specified in Clause 3, Article 125 of the Land Law;

b) Groups of companies that are economic groups or parent companies, subsidiaries in accordance with the law on enterprises when participating in the auction of a land plot, land area or a project consisting of one or more land plots, must agree to appoint a company belonging to the group of companies to participate in the auction of land use rights;

c) Must pay a deposit equal to 20% of the total value of the land plot, land area calculated according to the starting price to auction land use rights;

d) Not subject to prohibition from participating in auctions according to the provisions of law;

e) Meeting the conditions and regulations of housing law and real estate business law for cases of auctioning land use rights to implement housing projects and other real estate business projects.

2. Conditions for individuals participating in land use right auctions

a) Ensuring the provisions of Clause 4, Article 125 of the Land Law;

b) In case an individual participates in the auction of land use rights to implement an investment project, they must commit to establishing an economic organization to ensure the conditions specified in Clause 1 of this Article. The establishment of an economic organization shall be carried out in accordance with the provisions of law on investment, law on enterprises, law on bidding and other relevant laws".

Based on the above regulations, individuals participating in land use right auctions to implement investment projects must meet the conditions specified in Clause 4, Article 125 of the Land Law, and must commit to establishing economic organizations to ensure the conditions specified in Clause 1, Article 55 of Decree No. 102/2024/ND-CP.

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