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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
18-CP
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Hanoi,
February 13, 1995
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DECREE
DETAILING THE IMPLEMENTATION OF THE ORDINANCE
ON THE RIGHTS AND OBLIGATIONS OF DOMESTIC ORGANIZATIONS WITH STATE-ASSIGNED OR
LEASED LAND
THE GOVERNMENT
Pursuant to the Law on Organization of the Government on the 30th of
September, 1992;
Proceeding from the Land Law on the 14th of July 1993;
Proceeding from the Ordinance on the Rights and Obligations of the Domestic Organizations
with State-Assigned or Leased Land on the 14th of October 1994;
At the proposal of the General Director of the General Administration of Land,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- This Decree details
the rights and obligations of the domestic organizations with State-assigned or
leased land. The allotment of State-assigned land by State-owned businesses for
agricultural production, forestry and aquaculture, is regulated by a separate
Government decree.
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1. The land used for public or
national interests (not for profit), including:
Public traffic roads, bridges,
culverts, pavements, water supply and drainage systems, rivers, lakes, dikes,
dams, schools, hospitals, market places, parks, flower beds, children's
playgrounds, squares, stadiums, airports, harbors, water reservoirs, wells for
use by many families, garbage dumps at residential quarters, reservoirs at
hydro-electric power plants, electric power grids, power-generating stations,
power-transformer stations, infrastructure works, cemeteries, water conservancy
works, grounds for scientific research, office buildings (headquarters of State
and socio-political organizations), and the special cases decided by the Prime
Minister.
2. The land assigned for
national defense and security purposes shall comply with Government provisions.
Article 3.- The organization, to
which the State leases land, shall pay rent to the State in accordance with the
following provisions:
1. The land rent is remitted to
the State Budget.
2. The land rent is accounted
into the cost of production and business of the leasing organization.
3. The land rent is paid
annually. In case of payment in installments over many years or in package,
discount is applied in accordance with the provisions of the Ministry of
Finance.
4. The Ministry of Finance sets
the price brackets for land rent. The People's Committees of the provinces and
cities directly under the Central Government shall, on the basis of these
brackets, set the detailed brackets to be applied at their localities.
5. The land rent shall not
change for at least 5 years. Each increase shall not exceed 15%.
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Article 4.- The agency with
authority in land assignment (as provided for in Article 23 of the Land Law) is
also the authorized agency in land leasing. Based on the nature and purpose of
the project in using the leased land, the authorized agency shall decide the
lease period which shall not exceed 50 years. Leases for over 50 years shall be
decided by the Prime Minister, but in any case shall not exceed 70 years.
Article 5.- State-owned
enterprises, enterprises of political and social organizations, defense and
security enterprises, joint-stock companies, limited liability companies,
private enterprises, and collective economic organizations which use land for
production and business outside agriculture, forestry, aquaculture or salt
production (except for special cases decided by the Prime Minister), shall
shift to leasing land from the State in the following forms:
1. If the organization, which
has not paid the State the fee for land use or has paid it with capital taken
from the State budget, shall now pay land lease to the State, starting from the
1st of January, 1995.
2. If it has paid the State its
land-use fee not from the State budget, the money shall now be accounted for as
land rent, starting from the 1st of January, 1995.
Chapter II
PROVISIONS ON VALUE OF THE LAND-USE RIGHT AS CAPITAL CONTRIBUTION TO
JOINT VENTURES, COLLATERAL AND IN TRANSFER OF PROJECTS ON LAND
Article 6.- State-owned
enterprises, enterprises of the political and social organizations, defense and
security enterprises, joint-stock companies, limited liability companies and
collective economic organizations, which are assigned land by the State for use
in agriculture, forestry, aquaculture and salt production, may, within the
period of their land assignment, use the value of their land-use right as
capital contribution to joint ventures in accordance with the following
provisions:
1. Joint venture with domestic
organizations and individuals:
a/In case the purpose of land
use is unchanged, the party having the land-use right shall continue to be
assigned with the land by the State. The People's Committee of the province or
city directly under the Central Government shall determine the value of the
land-use right to be contributed to the joint venture.
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2. The capital contribution with
the value of the land-use right to a joint venture with foreign organizations
and individuals must have the approval of the authorized State agency as
provided for in Decree No. 191-CP of the 28th of December 1994, of the
Government. The party which contributes capital in the form of the value of
land-use right, must shift to leasing the land, and be registered as owing to
the State budget an amount of money equal to its land rent during the period of
the joint venture. The value of the land-use right to be contributed to the
joint venture is equal to the land rent to be paid during the period of the
joint venture, which is set at the rent rate for foreign organizations and
individuals.
Article 7.- State-owned
enterprises, enterprises of political and social organizations, defense and
security enterprises, joint-stock companies, limited liability companies,
private enterprises and collective economic organizations, which use the
assigned land for agriculture, forestry, aquaculture and salt production, may
use the value of their land-use right as collateral, in association with their
other properties, at the Bank to borrow capital for their production and
business in accordance with the following provisions:
1. The value as collateral shall
be determined by the Bank, and shall not exceed the value of the existing
properties on that piece of land.
2. By the time the loan expires,
if the borrowing organization fails to pay it back, or if it is dissolved
before the payment term, the Bank has the right to request the authorized State
agency to auction the properties on the piece of land to recover the loan's principal
and interest, and assign the land to the purchaser of the properties for
continued use.
3. The placement and
displacement of the collateral must be registered at the Land Administration
Service.
Article 8.- Regarding
organizations which were assigned with land by the State prior to the 1st of
January, 1995 for use not in agriculture, forestry, aquaculture and salt
production, if they have built up projects with capital from the State budget,
when these projects are assigned along with the land-use right, they shall
remit the money earned from the assignment to the State budget. The price of
the assignment shall be determined by the authorized State agency.
Article 9.- Organizations, which
lease land from the State, may use the value of the land lease, in association
with their own properties which have been built on that piece of land, as
collateral at the Vietnamese Bank to borrow capital for production within the
lease tenure, in accordance with the following provisions:
1. The value of the collateral
shall be determined by the bank, and shall not exceed the combined value of the
properties and the land rent which has been paid.
2. By the time the loan expires,
or if the organization is dissolved before the payment deadline and the
borrowing party fails to pay back its loan, the Bank has the right to request
the authorized State agency to auction the properties located on the piece of
land to recover the loan's principal and interest; the authorized agency, which
leases the piece of land, shall provide the procedure to let the buyer of the
properties continue the lease.
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Chapter III
REGULATIONS FOR LAND-LEASING ORGANIZATIONS BUILDING INFRASTRUCTURE FOR
SUB-LEASE AT EXPORT-PROCESSING ZONES AND INDUSTRIAL PARKS
Article 11.- Organization, which
lease land from the State to build infrastructure works for sub-lease at
export-processing zones and industrial parks, include: State-owned enterprises,
joint-stock companies and limited liability companies established in accordance
with the provisions of law.
Article 12.- The land to be
leased for infrastructure construction must lie within the export-processing
zones and industrial parks already approved by the authorized State agency.
Article 13.- The People's Committees
of the provinces and cities directly under the Central Government shall decide
the leasing of land to organizations to build infrastructure by way of
tendering. The General Administration of Land, together with the Ministry of
Construction, shall issue the regulation on tendering.
The General Administration of
Land shall define the procedure for leasing land for infrastructure
construction and sub-lease in export-processing zones and industrial parks.
Article 14.- Organizations and
individuals, that have the need to sub-lease land plots with ready-built
infrastructure projects, must apply for the sub-lease in writing, complete with
the economic-technical blue-prints for use of the land and infrastructure, and
send them to the land-leasing organizations which will build the
infrastructure.
Article 15.- The organizations
which lease land to built infrastructure projects, shall sign contracts with
the sub-leasing parties, and register with the local Land Administration
Service.
The General Administration of
Land shall design the form of the land-lease contract and the procedure for
registration and maintenance of the sub-lease files.
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1. To use the value of lease of
the land plots which are not yet sub-leased, as collateral at the Vietnamese
Bank during the lease period, in order to borrow capital for construction in
accordance with the provisions of Article 7 of this Decree.
2. To sub-lease the land after
completing construction of the infrastructure for each plot, at mutually agreed
prices.
3. To make complaints or
denunciations when their land-use right is violated or their leased land is
affected.
4. To benefit from the utility
of public works during the process of investment in the construction and
utilization of infrastructure projects.
5. To be compensated for real
losses incurred by the State's recovery of the land before the expiry of the
lease tenure.
6. To benefit from the fruit of
labor and the results of the investment in the leased land; the organizations,
which lease land to build infrastructure projects in export-processing zones
and industrial parks, are entitled to preferential treatment in accordance with
the provisions of law.
Article 17.- The organizations,
which lease land from the State to build infrastructure projects, have the
obligations:
1. To maintain the
infrastructure projects during the whole period of the lease.
2. To pay the land rent in full
and in time, as provided for in the land-lease contract.
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4. To return the leased land and
the infrastructure on it to the State when the lease expires.
5. To carry out the retrieval
decision issued by the authorized State agency for defense and security
purposes, or for the national and public interests.
6. Not to harm the environment
or damage the land.
7. Not to do harm to the
interests of the other land users in the neighborhood.
8. To pay tax and land-use fee,
in accordance with the provisions of law.
Chapter IV
IMPLEMENTATION PROVISIONS
Article 18.- The organizations,
which are assigned land by the State, must register their use of land in
accordance with the provisions of the General Administration of Land.
Article 19.- This Decree takes
effect as from the 1st of January, 1995.
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Article 21.- The Minister of
Finance, the Minister of Construction, the Governor of the State Bank, the
General Director of the General Administration of Land and the Chairman of the
Pricing Committee of the Government shall, within the jurisdiction of their
service management functions, be responsible for guiding and monitoring the
implementation of this Decree.
The Presidents of the People's
Committees of the provinces and cities directly under the Central Government
shall organize the implementation of this Decree.
Article 22.- The ministers, the
heads of the agencies at ministerial level, the heads of the agencies attached
to the Government, the presidents of the People's Committees of the provinces
and cities directly under the Central Government, and the heads of the
land-using organizations are responsible for the implementation of this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Vo Van Kiet