During the course of a construction investment project, the project owner does not always hold the land use rights to the site where the project will be developed. In practice, many individuals and businesses lease land from other individuals or organizations to construct factories, office buildings, production facilities, retail stores, or other structures serving their investment activities. This raises an important legal question: Can a land lessee apply for a construction permit in its own name?

This issue is of particular concern to investors because identifying the correct entity entitled to apply for a construction permit directly affects the validity of the application dossier, the processing time of administrative procedures, and the overall implementation of the project. If the applicant fails to satisfy the legal requirements relating to land use rights or the legal authority to carry out construction investment, the permit application may be rejected or require amendments and additional documentation, resulting in project delays.

So, if a company leases land from an individual or another business, is the lessee entitled to apply for a construction permit in its own name? What legal conditions must be satisfied, and what documents must be prepared to obtain approval from the competent authority? In this article, Khanh An Business Law LLC analyzes the current legal framework and highlights key considerations to help individuals and businesses comply with the applicable procedures while minimizing legal risks during the construction investment process.

Can a Company Leasing Land from an Individual Apply for a Construction Permit in Its Own Name?

Pursuant to Clause 9, Article 3 of the Law on Construction 2014, a construction project owner (investor) is defined as an agency, organization, or individual that owns capital, borrows capital, or is directly assigned to manage and use capital for the purpose of carrying out construction investment activities.

In addition, Clause 1, Article 89 of the Law on Construction 2014, as amended by Clause 30, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Construction 2020 (applicable until June 30, 2026), provides that, as a general rule, all construction works must obtain a construction permit from the competent state authority before construction commences, except for cases exempted from construction permit requirements under the law.

Examples of projects exempt from construction permits include:

• Projects involving state secrets or emergency construction works;
• Projects funded by public investment where the investment decision is made by the competent authority in accordance with the law;
• Temporary construction works and other cases exempt from construction permits under the Law on Construction.

Based on the above provisions, it is clear that the entity eligible to obtain a construction permit is the project owner, and not necessarily the holder of the land use rights.

Accordingly, where a company leases land from an individual for the purpose of implementing a construction investment project, the company may apply for a construction permit in its own name, provided that it is the project owner, even though it is not the land user named on the land use right certificate.

In conclusion, under the Law on Construction 2014, as amended in 2020, a company leasing land from an individual is legally permitted to apply for a construction permit in its own name, provided that it acts as the project owner and fully satisfies all statutory conditions and documentation requirements prescribed by construction laws.

What Documents Are Required for a Construction Permit Application for a Project Built on Leased Land?

Pursuant to Clause 2, Article 95 of the Law on Construction 2014, the application dossier for a construction permit for a non-linear construction project must include the following documents:

• An application form for a construction permit in the prescribed format;
• A copy of one of the documents evidencing land use rights in accordance with land laws;
• A copy of the project approval decision or investment decision (where required by law);
• Construction design drawings and related design documents as prescribed by law;
• A declaration of the qualifications and experience of the design organization and the individuals serving as chief designers or design managers, together with copies of their professional practicing certificates.

Are Additional Documents Required for Construction on Leased Land?

In addition to the documents listed above, Article 53 of Decree No. 175/2024/ND-CP provides specific requirements for cases where the project owner leases land or leases an existing structure to implement a construction investment project.

Accordingly, the legal documents relating to land must demonstrate that the land is being used for the correct purpose and in compliance with applicable laws. Where a project owner leases land from a lawful land user for construction investment purposes, the application dossier must include not only one of the legally valid land-related documents prescribed by law but also a legally executed land lease agreement.

Similarly, if the project owner leases an existing building or a portion of a building for construction investment activities, a legally executed lease agreement for the building or the relevant part of the building must also be submitted as part of the application dossier.

How Should a Company Leasing Land from an Individual Prepare Its Application Dossier?

Accordingly, where a company leases land from an individual for the purpose of constructing a project that is subject to construction permit requirements, the company must submit not only the documents evidencing land use rights as prescribed by law but also a valid and legally binding land lease agreement.

The inclusion of the land lease agreement serves as evidence for the competent authority to verify the project owner's lawful right to use the leased land during the review and issuance of the construction permit for the proposed project. This document plays an important role in demonstrating the legal basis for the investor's use of the land and ensuring compliance with the applicable construction and land regulations.

How Is Information Recorded in the Cadastral Records for Construction Works Built on Leased Land?

The recording of cadastral information relating to construction works built on leased land is governed by Form No. 01/ĐK, issued together with Circular No. 10/2024/TT-BTNMT of the Minister of Natural Resources and Environment, which regulates cadastral records and Certificates of Land Use Rights and Ownership of Assets Attached to Land.

According to the Guidelines for Recording Information in the Cadastral Register, Section II – Land Parcel Registration, the following principles apply:

• Information relating to the land parcel must be recorded in accordance with Articles 8 and 9 of Circular No. 10/2024/TT-BTNMT.
• Under the section entitled "Person Assigned by the State to Manage the Land / Land User / Owner of Assets Attached to the Land," the land registration authority must accurately identify and record the appropriate registered subject.

Specifically:

• Where the registration is made by the land user, the entry shall be recorded as "Land User."
• Where the registration is made by the land manager, the entry shall be recorded as "Land Manager."
• If the land user is not also the owner of the assets attached to the land, the cadastral records must additionally include information identifying the Owner of the Assets Attached to the Land, together with the relevant information prescribed under Article 12 of Circular No. 10/2024/TT-BTNMT.

Registration of Construction Works Built on Leased Land

For construction works built on leased land, the land user and the owner of the construction work may be two different legal entities or individuals.

Accordingly, when registering such property in the cadastral register, the competent authority must record not only the information of the land user but also separately identify the owner of the assets attached to the land, in accordance with the provisions of Circular No. 10/2024/TT-BTNMT.

Therefore, where the land user is not simultaneously the owner of the construction work or other assets attached to the land, the cadastral register will contain information relating to both the land user and the owner of the assets attached to the land, with the ownership information being recorded in accordance with Article 12 of Circular No. 10/2024/TT-BTNMT.

Conclusion

Leasing land from an individual or another enterprise does not automatically entitle the lessee to apply for a construction permit in its own name. The right to apply for a construction permit depends on several legal factors, including the legal basis for land use, the terms of the land lease agreement, the construction investment rights agreed upon by the parties, and other conditions prescribed by Vietnam's land and construction laws.

Accordingly, before preparing a construction permit application, project owners should carefully review all relevant legal documents to determine the entity that is legally entitled to carry out the application procedures.

A proper understanding and application of these legal requirements not only facilitates the acceptance and processing of the application by the competent authorities but also helps ensure the legality of the construction project, thereby minimizing the risk of future disputes or administrative penalties during construction and subsequent operation.

If you are planning to develop a construction project on leased land and require legal advice regarding eligibility to apply for a construction permit, land use documentation, or other construction investment procedures, Khanh An Business Law LLC is ready to assist. Our experienced lawyers and legal professionals provide comprehensive legal solutions to help clients complete all required procedures efficiently, in full compliance with Vietnamese law, ensuring a smooth, secure, and successful investment process.

About Khanh An Business Law LLC

Khanh An Business Law LLC is proud to be one of Vietnam's trusted law firms, providing comprehensive legal services to both businesses and individuals. We are committed to delivering practical, reliable, and effective legal solutions tailored to the specific needs of each client.

Obtaining a Construction Permit is a critical step in ensuring that a construction project complies with applicable legal requirements while minimizing the risk of administrative sanctions, construction suspension, or legal disputes during project implementation. However, the legal framework governing construction permits—including licensing conditions, legal documentation, planning regulations, and administrative procedures—is frequently updated, making compliance increasingly challenging for investors, enterprises, and individuals.

With extensive experience in construction and investment law, Khanh An Business Law LLC provides comprehensive, end-to-end Construction Permit Application Services for all types of construction projects in accordance with Vietnamese law. Our services include:

• Advising clients on construction permit eligibility and applicable legal requirements;
• Reviewing the legal status of land use rights and construction design documents;
• Preparing and completing all required application documents;
• Representing clients in submitting applications and communicating with competent government authorities;
• Monitoring the application process until the construction permit is officially issued.

In addition to new construction permit applications, Khanh An Business Law LLC also advises and assists clients with:

• Amendment of construction permits;
• Extension of construction permits;
• Reissuance of construction permits;
• Consultation on cases exempt from construction permit requirements;
• Resolution of legal issues arising throughout the implementation of construction investment projects.

Supported by a team of highly experienced lawyers and legal experts, we are dedicated to providing accurate, efficient, and cost-effective legal services, helping clients save time, optimize costs, ensure full legal compliance, and successfully implement their projects in a safe and sustainable manner.

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Contact Information

KHANH AN BUSINESS LAW LLC

Hotline: (+84) 24 6688 5821 / (+84) 976 529 499

Address: 88 To Vinh Dien, Khuong Dinh, Hanoi, Vietnam

Website: khanhanlaw.com

Email: info@khanhanlaw.net