Socialist Republic of Vietnam

NATIONAL ASSEMBLY

No. 10-1998-QH10 Hanoi, 2 December 1998


LAW ON AMENDMENT OF AND ADDITION TO A NUMBER OF ARTICLES OF THE LAW ON LAND


Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;

This Law amends and adds to a number of articles of the Law on Land passed by the National Assembly of the Socialist Republic of Vietnam on 14 July 1993.


Article 1

To amend and add to a number of articles of the Law on Land as follows:

1. Article 1 shall be amended and added to as follows:

"Land is the property of the people and is subject to unified administration by the State.

The State shall allocate land to economic organizations, units of the people's armed forces, State bodies, political and social organizations (hereinafter referred to as organizations), family households, and individuals for use on a stable and long term basis in the forms of land allocation without land use fee collection and land allocation with land use fee collection. The State shall also lease land to organizations, family households, and individuals. Organizations, family households and individuals being allocated or leased land by the State or receiving the right to use land from other people shall be referred to in this Law as land users.

The State shall lease land to foreign organizations and individuals."

2. Article 3 shall be amended and added to as follows:

"1. The State shall protect the legal rights and interests of land users.

2. Organizations, family households and individuals being allocated land or leased land by the State or receiving the right to use land from other people shall have the rights and obligations of land users in accordance with the provisions of this Law and other laws.

3. Any family household or individual being allocated land by the State shall have the right to exchange, transfer, lease out, bequeath, or mortgage the right to use land.

4. The rights and obligations of land users may only be exercised during the period for which the land is allocated or leased and in accordance with the purpose for which the land is allocated or leased pursuant to the provisions of this Law and other laws."

3. Article 19 shall be amended and added to as follows:

"The bases for decision regarding land allocation or lease shall be:

1. The zoning or land use planning approved by the authorized State body;

2. The demand for land use stated in the feasibility study and in the design already approved by the authorized State body or in the application for land allocation or land lease."

4. Article 20 shall be amended and added to as follows:

"The State shall allocate land to organizations, family households and individuals for use on a stable and long term basis.

The duration of land allocation for use on a stable and long term basis for planting annual trees and for aquaculture shall be twenty (20) years, and fifty (50) years for planting perennial trees. At the expiry of the duration, if the land user wishes to continue using the land and has strictly observed all laws relating to land during its period of occupancy, it shall continue to be allocated that land by the State for use.

The State shall allocate land to family households and individuals for long term use for the purpose of building residential houses and shall only recover the land from them in the circumstances stated in articles 26 and 27 of the Law on Land.

The duration of allocation of land in other categories for long term and stable use shall be stipulated by the Government.

The duration of land lease shall be determined in accordance with the projects approved by the authorized State body but shall not exceed fifty (50) years; in respect of projects which require a longer duration of land lease, the Government shall, depending on the provisions of the Standing Committee of the National Assembly, decide on the duration of land lease for each project, which shall not exceed seventy (70) years."

5. Article 22 shall be amended and added to as follows:

"The State shall allocate land and not collect land use fees in the following cases:

1. Family households and individuals directly engaged in, and living mainly on the income earned from, activities of agriculture, forestry, aquaculture, and salt production as certified by the people’s committee of the commune, ward or township in which such land is used for the purpose of agriculture, forestry, aquaculture, and salt production within the limits of land allocated by the State.

Family households currently using agricultural land exceeding such limits prior to the effective date of this Law shall be permitted to continue to use the excessive area of land for a duration which is equal to a half of the duration of land allocation and shall pay additional tax for such area of land in accordance with law; and shall convert to leasing such area after this period. Land users shall be required to lease areas of land exceeding the stipulated limits after the effective date of this Law.

2. Organizations using land for the purpose of planting and protection of protective forests and specialized forests.

3. State bodies, political organizations, socio-political organizations and units of the people's armed forces using land for the purpose of construction of working offices or for the purpose of national defence and security.

4. State bodies, political organizations, socio-political organizations and units of the people's armed forces using land for the purpose of construction of administrative works in the fields of economics, culture, social activities, science, technology and diplomacy.

5. Organizations using land for public purposes, such as construction of transportation roads, bridges, sluice gates, pavements, water drainage and supply systems, rivers, reservoirs, dykes, dams, schools, hospitals, markets, parks, public gardens, children's playgrounds, squares, stadiums, airports, ports and other public works as stipulated by the Government."

6. Article 22(a) shall be added as follows:

"1. The State shall allocate land and collect land use fees in the following cases:

(a) Family households and individuals wishing to use land for the purpose of building residential houses;

(b) Economic organizations investing in construction of residential houses for sale or lease;

(c) Economic organizations investing in construction of infrastructure for transfer or lease of the right to use land attached to such infrastructure;

(d) Land allocation with land use fee collection shall be applied in a number of cases in order to raise capital for construction of infrastructure in accordance with projects decided by the Government.

2. Land allocation with land use fee collection as stipulated in sub-clause (d) of clause 1 of this article must satisfy all of the following conditions:

(a) Land users must possess a feasibility study approved by the authorized State body;

(b) Land must be used in accordance with the zoning;

(c) Land users must satisfy conditions in relation to capital and technology.

The revenue earned from land allocation and monies earned from construction of works corresponding to the value of the right to use the allocated land shall be paid in full to the State Budget in accordance with law."

7. Article 22(b) shall be added as follows:

"The State shall lease land in the following cases:

1. Economic organizations using land for the purpose of production and business in accordance with projects approved by the authorized State body, except for State owned enterprises which have used land allocated by the State prior to the effective date of this Law for the purpose of agriculture, forestry, aquaculture, and salt production and which shall not be required to lease land.

The State shall recover land which has been allocated to State owned enterprises for use for the purpose of agriculture, forestry, aquaculture, and salt production and which has not been used, which has been used for other purposes, or which has been used inefficiently in order to allocate or lease it to other people in accordance with the provisions of this Law.

2. Family households and individuals wishing to use land for the purpose of production and business.

3. Family households and individuals wishing to use land in the public land fund, being five per cent of the total land area of each commune, ward or township; in the case of leases prior to the effective date of this Law, the duration of land lease shall be as provided for in the land lease contract; in the case of leases after the effective date of this Law, the duration of land lease shall not exceed five years."

8. Article 22(c) shall be added as follows:

"1. Organizations, family households and individuals being allocated land by the State and paying land use fees or leasing land from the State shall be entitled to reduction of or exemption from land use fees or land rent in the following cases:

(a) Implementation of projects in industries to which investment incentives are granted;

(b) Implementation of investment projects in regions with difficult economic and social conditions or especially difficult economic and social conditions;
(c) Implementation of policies on residential housing and residential land;

(d) Other cases as stipulated by law.

2. The Government shall make detailed provisions on reduction of and exemption from land use fees and land rent".

9. Article 78(a) shall be added as follows:

"1. Family households or individuals leasing land from the State and paying land rent on an annual basis shall have the following rights:

(a) To mortgage assets under their ownership attached to the leased land to any Vietnamese credit institution for the purpose of obtaining loans for business and production in accordance with the provisions of the law;

(b) To transfer assets under their ownership attached to the leased land; the transferee shall be permitted to continue to lease the land from the State and shall have the rights provided for in this clause.

2. Family households or individuals leasing land from the State and paying land rent for the whole duration of land lease shall have the following rights:

(a) To mortgage the right to use the leased land and assets under their ownership attached to the leased land to any Vietnamese credit institution during the duration of land lease for the purpose of obtaining loans for production and business in accordance with law;

(b) To transfer the right to use the leased land together with assets under their ownership attached to the leased land and to bequeath the right to use the leased land during the duration of land lease in accordance with law. The transferee or heir of the right to use the leased land shall have the rights provided for in this clause;

(c) To contribute capital in the form of the value of the right to use the leased land together with assets under their ownership attached to the leased land during the duration of land lease for the purpose of production or business co-operation with domestic organizations and individuals in accordance with law;

(d) To sub-lease the right to use land during the duration of land lease. The sub-lease of land shall only be carried out where investment in the land has been implemented in accordance with a project or an application for land lease and the sub-lessee must use the land for the stipulated purposes.

3. Where family households or individuals lease land from the State and pay land rent in advance for several years and the remaining duration of land lease for which land rent is already paid is no less than five years, they shall have the rights provided for in clause 2 of this article."

10. Article 78(b) shall be added as follows:

"1. Domestic organizations which are allocated land by the State and which do not pay land use fees shall have the right to use land in accordance with the purposes for which the land is allocated and shall not be permitted to transfer, assign or lease out the right to use land, to mortgage or contribute capital in the form of the value of the right to use land, except as provided for in clause 2 of this article.

2. Economic organizations which are allocated land by the State and which do not pay land use fees for use for agriculture, forestry, aquaculture, and salt production shall be permitted to mortgage assets under their ownership attached to the right to use that land to any Vietnamese credit institution for the purpose of obtaining loans for production and business; to contribute capital in the form of the value of the right to use land for the purpose of production and business co-operation with domestic or foreign organizations and individuals in order to continue to use the land for agriculture, forestry, aquaculture, salt production or for the purpose of expansion of processing and service industries in order to develop production in accordance with regulations of the Government."

11. Article 78(c) shall be added as follows:

"Economic organizations which are allocated land by the State and pay land use fees shall have the following rights:

1. To transfer the right to use land attached to structures or infrastructure works which are constructed on such land;

2. To lease out the right to use land attached to structures or infrastructure works which are constructed on such land;

3. To mortgage the value of the right to use land to any Vietnamese credit institution for the purpose of obtaining loans for production and business in accordance with law;

4. To contribute capital in the form of the value of the right to use land together with assets under their ownership for the purpose of production and business co-operation with domestic or foreign organizations and individuals in accordance with law".

12. Article 78(d) shall be added as follows:

"1. Economic organizations which lease land from the State and pay land rent on an annual basis shall have the following rights:

(a) To mortgage assets under their ownership attached to the leased land to any Vietnamese credit institution for the purpose of obtaining loans for production and business in accordance with the provisions of the law;

(b) To transfer assets under their ownership attached to the leased land; the transferee shall be permitted to continue to lease land from the State and shall have the rights provided for in this clause;

(c) In respect of State owned enterprises, to contribute capital in the form of the value of the right to use the leased land for the purpose of production and business co-operation with domestic and foreign organizations and individuals in accordance with regulations of the Government.

2. Economic organizations which lease land from the State and pay land rent for the whole duration of land lease shall have the following rights:

(a) To mortgage the right to use the leased land and assets under their ownership attached to the leased land to any Vietnamese credit institution during the duration of land lease for the purpose of obtaining loans for production and business in accordance with law;

(b) To transfer the right to use the leased land together with assets under their ownership attached to the leased land during the duration of land lease in accordance with law. The transferee shall have the rights provided for in this clause;

(c) To contribute capital in the form of the value of the right to use the leased land together with assets under their ownership attached to the leased land during the duration of land lease for the purpose of production or business co-operation with domestic or foreign organizations and individuals in accordance with the provisions of the law;

(d) To sub-lease the right to use land during the duration of land lease. The sub-lease of land shall only be carried out where investment in the land has been implemented in accordance with a project and the sub-lessee must use the land for the stipulated purposes.

3. Where economic organizations lease land from the State and pay land rent in advance for several years and the remaining duration of land lease for which land rent is already paid is no less than five years, they shall have the rights provided for in clause 2 of this article."

13. Article 78(dd) shall be added as follows:

"Procedures for exercise of the rights of organizations, family households and individuals provided for in articles 78(a), 78(b), 78(c) and 78(d) must be carried out at the authorized State body in accordance with the provisions of the law."

14. Article 78(e) shall be added as follows:

"Economic organizations which have been transferred the legal right to use land from other people or which have been allocated land by the State and pay land use fees not from the State Budget shall not have to lease land. These organizations shall have the rights provided for in article 78(c) of this Law.

In the case of being transferred farm land or forestry land, a change in the purpose of use of which has been permitted by the authorized State body, the duration of land use shall be calculated in accordance with the duration of the project approved by the authorized State body, but shall not exceed fifty (50) years".

Article 2

1. The Ordinance on Rights and Obligations of Domestic Organizations with Land Allocated by or Leased from the State promulgated by the Standing Committee of the National Assembly on 14 October 1994 and the Ordinance on Amendment of and Addition to a Number of Articles of the Ordinance on Rights and Obligations of Domestic Organizations with Land Allocated by or Leased from the State promulgated by the Standing Committee of the National Assembly on 27 August 1996 shall be repealed from the date on which this Law becomes effective.

2. This Law shall be of full force and effect as of 1 January 1999.

3. The Government shall amend and add to the legal instruments providing for the detailed implementation of the Law on Land in accordance with this Law.


This Law was passed by Legislature X of the National Assembly of the Socialist Republic of Vietnam at its 4th session on 2 December 1998.


Chairman of the National Assembly


NONG DUC MANH