What Types of Land Use Projects Require an Investor Tender Process?

In accordance with Decree 115/2024/ND-CP, there are two groups of investment projects that utilize land and fall under the category of requiring a bidding process to select investors.

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Firstly, the projects for investing in the construction of urban areas and rural residential areas as prescribed in Point a, Clause 1, Article 126 of the Land Law. Secondly, the projects prescribed by the sectoral management law.

Clause 2, Article 4 of the Decree stipulates that the scope of projects prescribed by the sectoral management law that must be bid to select investors includes projects for investing in the construction of solid waste treatment works, water supply works, building markets, building rest stops, and constructing aeronautical service works at aerodromes and airports.

Investment projects in the fields of education, health, culture, sports, and the environment shall be subject to bidding according to the law on encouraging socialization when there are two or more investors interested in registering for implementation.

Projects for investing in the construction of urban areas and rural residential areas must be bid to select investors.

Investment projects for social housing construction; renovation and reconstruction of apartment buildings; and construction of housing for the armed forces shall be subject to bidding according to the law on housing when there are two or more investors interested in registering for implementation.

Investment projects for horse and dog racing, including business activities such as horse and dog racing betting, and international football betting, must be bid when there are two or more investors interested in registering for implementation and the Prime Minister has approved the investment proposal.

Investment projects for the construction of energy works shall be subject to bidding according to the law on electricity when there are two or more investors interested in registering for implementation.

Other projects falling under the scope of Article 79 and Point b, Clause 1, Article 126 of the Land Law.

At the same time, the land fund expected to implement the project must fully meet the following conditions: It falls under the cases of land retrieval as prescribed in Article 79 of the Land Law; in case there is land prescribed in Clause 1, Article 217 of the Land Law within the land area for project implementation, the State shall retrieve the land to allocate and lease it through bidding to select investors to implement the project for the entire land area; It is on the list of land plots for bidding on investment projects with land use decided by the Provincial People’s Council according to the law on land.

According to Lawyer Pham Thanh Tuan, together with Decree 23/2024, which stipulates that the selection of investors for projects must be bid according to the sectoral management law, Decree 115/2024 has provided a legal mechanism for selecting investors in all fields of social infrastructure, especially in the field of real estate. This will overcome the “legal gaps” in the absence of a procedure for selecting investors for projects according to the sectoral management law in the previous Decree 25/2020.

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