Ordinance on 14Oct94 on Leasing Land by Foreign Individuals...
STANDING COMMITTEE
Ordinance Hanoi, 14 October 1994
ORDINANCE ON RIGHTS AND OBLIGATIONS OF FOREIGN INDIVIDUALS AND ORGANIZATIONS LEASING LAND IN VIETNAM
Pursuant to articles 17, 18, and 91 of the 1992 Constitution of the Socialist Republic of Vietnam;
Pursuant to article 80 of the Law on Land;
This Ordinance stipulates the rights and obligations of foreign individuals and organizations leasing land in Vietnam.
CHAPTER I
General Provisions
Article 1
Foreign individuals and organizations permitted by the Government of Vietnam to lease land as stipulated in this Ordinance include:
1. Foreign diplomatic representative offices, consulates, and other foreign representative offices which assume diplomatic functions;
2. Representative offices of United Nations organizations, inter-governmental offices and organizations, and representative offices of inter-governmental organizations operating in Vietnam;
3. Foreign individuals and organizations investing in Vietnam in accordance with the Law on Foreign Investment in Vietnam.
Article 2
Land shall be leased in accordance with international treaties to which the Socialist Republic of Vietnam is a signatory or participant, and in accordance with any investment licence, the land use purpose, and the period of operation as provided for by the law of Vietnam.
Article 3
Foreign individuals and organizations leasing land in Vietnam must comply with the provisions of the law of Vietnam on the management and usage of land. Foreign individuals and organizations leasing land in Vietnam shall be protected by the State of Vietnam in cases where their lawful rights and interests are violated by third parties. In cases where such individuals or organizations commit a breach, they shall be dealt with in accordance with the laws of Vietnam.
In cases where international treaties to which the Socialist Republic of Vietnam is a signatory or participant contain provisions which are inconsistent with this Ordinance, such provisions shall prevail.
Article 4
Foreign individuals and organizations leasing land in Vietnam must do so in the form of a land leasing contract.
The Government shall stipulate the procedure for preparing a land leasing contract and the content of such contract.
Article 5
In cases where the Government, for the purposes of national interest or national defence or security, appropriates the land leased to a foreign individual or organization stipulated in clauses 2 and 3 of article 1 of this Ordinance prior to the expiry of the lease period, such individual or organization shall be compensated in accordance with the provisions of the laws of Vietnam, except in cases where the appropriation prior to the expiry of the lease period is the direct result of such foreign individual or organization breaching the laws of Vietnam on the management and usage of land.
CHAPTER II
Rights of Foreign Individuals and Organizations
Leasing Land in Vietnam
Article 6
The foreign organizations permitted by the Government of Vietnam to lease land as stipulated in clauses 1 and 2 of article 1 of this Ordinance shall have the following rights:
1. To use the land in accordance with the purpose of the lease and for the duration of the lease;
2. To construct projects on the leased land in accordance with permits issued by competent State bodies of Vietnam;
3. To own the constructed projects on the leased land during the lease period. The ownership of such projects upon the expiry of the lease period shall be determined by the provisions of the land leasing contract;
4. To have their lawful rights to use the land protected by the State of Vietnam;
5. To lodge complaints, or to notify authorities in respect of any breach or violation of their lawful rights to use land.
In addition to the rights referred to above, foreign organizations shall also be entitled to any other rights stipulated in international treaties to which the Government of Vietnam and the government of the relevant country of origin are signatories, or any other rights provided for in the land leasing contract pursuant to the laws of Vietnam.
Article 7
The foreign individuals and organizations investing in Vietnam pursuant to the Law on Foreign Investment in Vietnam and permitted by the Government of Vietnam to lease land shall have the following rights:
1. To enjoy the fruits of their investments on the leased land;
2. To mortgage at a Vietnamese bank the right to use the leased land and the value of any asset on that land which they themselves have invested in or constructed during the lease period, in accordance with the provisions of the laws of Vietnam;
3. In cases where foreign organizations or individuals are permitted to invest in the construction of infrastructure in export processing zones and industrial zones, such organizations or individuals shall have the right to sub-lease the land on which the completed infrastructure is constructed in accordance with the provisions of the Government of Vietnam;
4. To be entitled to the benefits of public works in respect of land protection and improvement;
5. To enjoy protection of their legal rights to use land by the State of Vietnam;
6. To lodge complaints, or to notify authorities in respect of any breach or violation of their lawful rights to use land;
7. To be given priority upon review of the continuation of the lease when the lease period expires (if they so request).
CHAPTER III
Obligations of Foreign Individuals and Organizations
Leasing Land in Vietnam
Article 8
Foreign individuals and organizations leasing land in Vietnam shall have the following obligations:
1. To use the land in accordance with the purposes stated in the land leasing contract and other relevant provisions;
2. To carry out all financial obligations related to the leasing of the land in accordance with the provisions of the laws of Vietnam;
3. To comply with all provisions of the laws of Vietnam in respect of construction and environmental protection, and to avoid carrying out any activity which is against the interests of the State of Vietnam and which has adverse effects on surrounding land users, and to comply with all inspections of land usage carried out by competent State bodies of Vietnam;
4. To not damage the land or devalue the land;
5. To return to the Government of Vietnam any unused land in accordance with the provisions of the laws of Vietnam and any agreement reached between the Government of Vietnam and the lessee;
6. Representative offices of organizations of the United Nations operating in Vietnam, inter-government establishments and organizations, representative offices of inter-government organizations, and foreign individuals or organizations investing in Vietnam pursuant to the Law on Foreign Investment in Vietnam permitted by the Government of Vietnam to lease land must comply with decisions of the Government of Vietnam in respect of land appropriation in accordance with the provisions of article 26 of the Law on Land and article 5 of this Ordinance.
Article 9
Upon expiry of the lease period, the lessee must submit to the Government of Vietnam an application for an extension of the lease period if it wishes to continue using the land.
The Government shall stipulate the procedure for extending the lease period in respect of each individual entity leasing land.
Where an enterprise with foreign owned capital is permitted by a competent body of Vietnam to extend its period of operation, the lease period in respect of the land leased shall also be extended accordingly.
CHAPTER IV
Implementing Provisions
Article 10
The provisions of this Ordinance shall also apply in cases where the investor is an overseas Vietnamese, where the Vietnamese party in a joint venture with a foreign party contributes capital in the form of the value of the right to use land and where the joint venture with a foreign party leases land in Vietnam.
Article 11
This Ordinance shall be of full force and effect as of 1 January 1995.
All previous provisions which are inconsistent with this Ordinance are hereby repealed.
Article 12
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
