Many land investors want to learn about investing in industrial land. However, land investors do not clearly understand the regulations as well as the benefits and risks when investing in industrial park land. Today we will summarize what you need to know when investing in industrial park land. Let’s find out details with LawFirm.Vn!
1. What is industrial park land?
According to the provisions of the 2013 Land Law , industrial park land is land to build industrial clusters, industrial parks, export processing zones and other concentrated production and business zones with the same land use regime.
In other words, industrial park land is a place to build companies and concentrated business zones, all of which have the same land use regime. The term of land use in industrial parks, export processing zones, industrial clusters, and craft villages depends on the term of the investment project.
In case the term of the land investment project is longer than the remaining land use term of the industrial park, export processing zone, industrial cluster, or craft village, the enterprise invests in the construction and business of industrial park infrastructure. Industries, export processing zones, industrial clusters, and craft villages must apply for permission from competent state agencies in accordance with the law to adjust the land use term accordingly. But the total land use term must not exceed 70 years and must pay land use fees or land rent for the land area whose use term is extended.
When drawing up detailed planning for the construction of industrial parks, export processing zones, and industrial clusters, the Provincial People’s Committee will base on the current status of local residential areas and the housing needs of workers. In industrial parks, export processing zones, and industrial clusters, it is necessary to arrange land funds outside industrial parks, export processing zones, and industrial clusters in accordance with planning and land use plans to build apartment buildings and industrial parks. cultural, social, and service programs that are reasonable and best serve the lives of workers.
2. Regulations when investing in industrial park land
According to the provisions of the Land Law 2013 , individuals and organizations that want to invest in industrial park land need to comply with the provisions of this law and other related documents. But in general, there are the following regulations that industrial park land investors need to pay attention to when investing
Economic organizations, households, and individuals who intend to invest in production and business in industrial park land can choose to receive land allocation with land use fees or to rent land from the State. ; Investing in the form of transfer, land lease, or sublease of land attached to infrastructure from other economic organizations, Vietnamese people residing abroad have invested in construction and business of regional infrastructure. industry. It is also possible to sublease land associated with infrastructure from foreign organizations and individuals investing in the construction and business of industrial park infrastructure.
For Vietnamese people residing abroad who want to invest in production and business in industrial parks, they will have the option of receiving land allocation with collection of land use fees, or renting land from the State with one-time payment of land rent. for the entire rental period or pay annual land rent. Vietnamese people residing abroad can also rent land, sublease land attached to the infrastructure of economic organizations, and other Vietnamese people residing abroad can invest in construction and business of industrial park infrastructure. Karma. They can also sublease land associated with infrastructure from foreign organizations and individuals investing in construction and business of industrial park infrastructure.
Foreign organizations and individuals investing in production and business in industrial parks can choose to rent land from the State with one-time land rental payment for the entire rental period or annual land rental payment. Organizations that lease land, sublease land associated with infrastructure of economic organizations, and Vietnamese residing abroad to invest in construction and business of industrial park infrastructure. It is possible to sublease land associated with infrastructure from other foreign organizations and individuals investing in the construction and business of industrial park infrastructure.
3. Advantages when investing in industrial park land
Firstly , when you invest in industrial park land, you can link and develop other types of real estate. Developing industrial parks will bring a large number of experts and workers from other localities to work and live, and the demand for services will increase rapidly. The business potential when investing in industrial park land can therefore always be met, for example you can rent out premises, factories, offices, boarding houses for workers and other workers, providing Providing services such as restaurants, bars, cafes…
Second , the planning and infrastructure of the industrial park are methodically invested in land. Project planning in industrial parks is often quite transparent and clear, and infrastructure is invested in synchronously. Verifying legal issues will be more comfortable for investors. Besides, industrial parks often have quite prime locations with convenient transportation locations, near major roads. Investing in industrial land for factories and workshops will help business owners more conveniently travel and manage the place where they invest. However, it cannot be ruled out that customers buy industrial land near residential areas, or after the factory comes into operation, there will be additional surrounding residential areas due to planning. Thus, there will be many difficulties in the production and business process due to the project’s impact on people, giving rise to unnecessary disputes and lawsuits.
Third , the potential for price increase of industrial park land is very high in the trend of industry gradually becoming key. The focus on developing the industrial economy as well as the above advantages will contribute to changing the position of industrial parks in the market and the economy, leading to the real estate market in this area having more opportunities to price increase. After purchasing many industrial park lands, their functions can be converted into housing projects, the land value then increases many times compared to when first invested. If the legal documents are clear and complete, investors can mortgage the project, then borrow bank capital to serve production and business model development.
4. Risks when buying and selling industrial park land
If you buy industrial land that has ambiguous planning information, unclear documents, has not been granted a construction permit by a competent authority according to regulations, or delays investment time… it is risky. that buyers may encounter if they rush to spend money without carefully checking the necessary information for the project. There are many cases where industrial land plots are introduced and painted as grandiose by brokers, but in reality the development potential is non-existent, there are only deserted lands around, investors who pour money in can easily lose their capital. .
People in need of housing around weak industrial land areas are low-income workers and young households (usually low income, not very stable due to frequent job changes). Therefore, trading in motel rooms for customers in industrial land areas will be more suitable for investors with idle capital than other investors.
