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THE STANDING COMMITTEE OF NATIONAL
ASSEMBLY
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No:
No number
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Hanoi,
October 14, 1994
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ORDINANCE
ON THE RIGHTS AND OBLIGATIONS OF THE
ORGANIZATIONS IN THE COUNTRY TO WHICH THE STATE ALLOCATES OR LEASES LAND
Pursuant to Articles 17, 18 and 91 of the 1992 Constitution of the
Socialist Republic of Vietnam; and
Pursuant to Article 3 of the Land Law;
This Ordinance defines the rights and obligations of the organizations in the country
to which the State allocates or leases land.
Chapter I
GENERAL PROVISIONS
Article 1.-
1- The organizations in the
country to which the State allocates land comprise:
a/ State agencies, political and
social organizations and units of the People's Armed Forces using land for the
construction of working offices and for defense and security purposes;
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c/ Businesses and companies
using land for public utility, such as transport routes, bridges, culverts,
pavements, water supply and drainage systems, rivers, lakes, dikes, dams,
schools, research institutes, hospitals, markets, parks, public gardens,
recreation centers for children, public squares, stadiums, airports, sea ports
and other public works as defined by the Government;
d/ State-owned businesses,
businesses of political and social organizations, defense and security
businesses, stock companies, limited liability companies, collective economic
organizations using land for agriculture, forestry, aquaculture and salt
production.
2- The economic organizations in
the country to which the State leases land comprise: State-owned businesses,
businesses of political and social organizations, defense and security
businesses, stock companies, limited liability companies, collective economic
organizations using land for production and business purposes other than
agriculture, forestry, aquaculture and salt production.
Article 2.- The bases for
determining the rights and obligations of the organizations in the country to
which the State allocates or leases land include:
1- Purposes of land use;
2- Duration of the land
allocation and lease;
3- Whether or not it has to pay
for the use of the land allocated by the State and the modalities for payment
when the State allocates or leases the land to it.
Chapter II
RIGHTS AND OBLIGATIONS OF
THE ORGANIZATIONS IN THE COUNTRY TO WHICH THE STATE ALLOCATES LAND
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Article 4.-
1- The State-owned businesses,
the businesses of political or social organizations, the defense and security
businesses, the stock companies, the limited liability companies and the
collective economic units, which are allocated land be the State for use in
agriculture, forestry, aquaculture and salt production, have the right:
a/ To contribute capital in the
form of the land use right in their joint ventures with the organizations and
individuals in the country and foreign organizations and individuals, for
continued land use in agriculture, forestry, aquaculture, salt production,
expansion of the processing and service industries aimed at developing
production as defined by the Government;
b/ To mortgage their land use
right together with the property under their ownership already built on that
land to the Vietnam Bank, in order to borrow capital for production and business,
in accordance with provisions of law,
2- The organizations defined in
Item 1 of this Article are allowed to transfer, assign or lease their land use
right.
Article 5.-
1- The State-owned businesses,
which are allocated land by the State for use in agriculture, forestry or
aquaculture, shall adopt the quota-based contract system in order to develop
the initiative of the households and make the fullest and most effective use of
the allocated land acreage.
The Government shall make
detailed provisions for the quota-based contract system in each State-owned
business which is allocated land for use in agriculture, forestry and
aquaculture.
2- When a business is allowed to
use part of the land allocated under Item I of this Article or to use the land
for salt production for other production and business purposes, it must
implement the land rent regime for this area as prescribed by law.
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Article 7.- The organization
which is allocated land by the State has the obligation:
1. To use the land for the right
purpose, in accordance with plan and the Land Law during the tenure;
2. To fulfill its financial
obligations, about land use, as prescribed by law;
3. To observe the provisions of
the Law on Environmental Protection and not to harm the legitimate interests of
the users of the surrounding lands;
4. To pay compensation to the
former user of the land which is retrieved and handed over to that organization
in accordance with prescriptions of law.
5. To return the unused or
wrongly used part of the land to the State;
6. To return the land whenever
the authorized State agency decides to retrieve it.
Article 8.- With regard to the
organization which is allocated land by the State for uses other than
agriculture, forestry, aquaculture and salt production, if it has erected on
the land constructions from capital not derived from the State budget when it
assigns these constructions together with the land use right, it has to pay to
the State budget the charge for land use right transfer as prescribed by the
Government.
Chapter III
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Article 9.- The economic organization, to which the State
leases land, is entitled to mortgage at the State Bank its land use right
together with the property under its ownership already built on this land in
order to borrow capital for production within the terms of the land tenure
prescribed by law. The evaluation of the land use right shall be determined by
the Government.
Article 10.- The State-owned
businesses, the businesses of political and social organizations and the
defense and security businesses are entitled, within the terms of the land
tenure, to contribute capital by the value of the land use right in their joint
ventures with organizations and individuals inside and outside the country as
prescribed by the Government.
Article 11.- The organization,
which is leased land by the State for investment in the building of
infrastructure and for re-lease at Export Processing Zones and in industrial
areas, is entitled to re-lease to investors the land on which infrastructure
constructions have been completed.
The Government shall make
detailed provisions for the interests and obligations of the organizations
engaged in the business of infrastructure constructions as well as the order
and procedures for renting and re-leasing the land stipulated at this Article.
Article 12.- The economic
organization, to which the State leases land, has the obligation:
1. To carry out the financial
obligations on land use as prescribed by law;
2. To use land for the right
purpose and in accordance with plan and the land legislation during the term of
land tenure;
3. To observe the regulations of
the Law on Environmental Protection and not to damage the legitimate interests
of the users of the surrounding lands; and
4. To return the land when the
authorized State agency decides to retrieve it.
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IMPLEMENTATION PROVISIONS
Article 13.- The head of the land use organization takes responsibility
before law in the execution of the rights and obligations defined in the land
legislation and this Ordinance.
Article 14.- The regulations of
this Ordinance concerning the limited liability and stock companies also apply
to the private business which have been registered under the Law on private
Business, when they are allocated or leased land by the State.
Article 15.- This Ordinance takes
effect as from the 1st of January, 1995. All earlier regulations
which are contrary to this Ordinance are now annulled.
Article 16.- The Government shall
make detailed provisions for the implementation of this Ordinance.
ON
BEHALF OF THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY
CHAIRMAN
Nong Duc Manh