Socialist Republic of Vietnam

NATIONAL ASSEMBLY


ORDINANCE ON RIGHTS AND OBLIGATIONS OF DOMESTIC ORG.TIONS WITH LAND ALLOCATED OR LEASED FROM THE STATE



Pursuant to articles 17, 18 and 91 of the 1992 Constitution of the Socialist Republic of Vietnam;

Pursuant to article 3 of the Law on Land;

This Ordinance stipulates the rights and obligations of domestic organizations with land allocated or leased from the State.


CHAPTER I

General Provisions

Article 1

1. Domestic organizations with land allocated or leased from the State shall include:

(a) State bodies, political and social organizations, and units of the people armed forces which use land for the purposes of constructing establishments or for national security and defence;

(b) State bodies and other organizations which use land to build projects in economic, cultural, social, scientific, technical, or foreign relation areas;

(c) Enterprises and companies which use land for public purposes such as constructing roads, bridges, sewrages, pavements, water supply and drainage systems, waterways, ponds, dykes, dams, schools, scientific reasearch facilities, hospitals, markets, parks, gardens, playgrounds, squares, sport grounds, airports, ports, and other public projects in accordance with the provisions of the Government;

(d) State owned enterprises, enterprises of social and political organizations, enterprises of national defence and security, shareholding companies, limited liability companies, and collective economic organizations which use land for farming, forestry, breeding of marine products, or salt production.

2. Domestic economic organizations which are permitted to lease land from the State include State owned enterprises, enterprises of social and political organizations, enterprises of national defence and security, shareholding companies, limited liability companies, and collective economic organizations which use the land for other purposes beside farming, forestry, breeding of marine products, or salt production.

Article 2

The rights and obligations of domestic organizations with land allocated or leased from the State shall be determined on the following basis:

1. Purpose of land usage;

2. Duration of land allocation or lease period;

3. Whether payment of a fee is required upon being allocated with land from the State and the method of payment upon being allocated with land or upon leasing the land from the State.

CHAPTER II

Rights and Obligations of Domestic
Organizations with State Allocated Land

Article 3

Domestic organizations with State allocated land as stipulated in subclauses (a) (b) and (c) of clause 1 article 1 of this Ordinance shall have the right to use land in accordance with the purposes and duration prescribed for allocation, and shall be prohibited from any transfer, assignment, leasing, or mortgage of the right to use such land.

Article 4

1. State enterprises, enterprises of social and political organizations, enterprises of national defence and security, shareholding companies, limited liability companies, and collective economic organizations with State allocated land for farming, forestry, breeding of marine products, or salt production shall have the right to:

(a) contribute the value of the land use right as capital contributions in joint ventures with domestic or foreign organizations and individuals for the purpose of continuing with farming, forestry, marine products breeding, or salt production activities;

(b) mortgage the value of the land use right and all erected assets on the land at Vietnamese banks to obtain loans for business or production purposes in accordance with the provisions of the law.

2. Organizations stipulated in clause 1 of this article shall be prohibited from any transfer, assignment, or leasing of the right to use such land.

Article 5

1. State owned enterprises shall be permitted to allocate land for use in farming, forestry, or breeding of marine products in the form of lot size allotments for the purpose of encouraging self determination amongst family households and the effective utilization of the total area of land allocated.

The Government shall stipulate in detail provisions on the allotment of land by State owned enterprises for use in farming, forestry, and breeding of marine products.

2. Where an enterprise is permitted to use a portion of the allocated land as stipulated in clause 1 of this article and salt making land for other business production purposes, the enterprise must carry out the leasing procedure for that portion of the land in accordance with the provisions of the law.

Article 6


Collective economic organizations which are allocated with land from the State for purposes other than farming, forestry, breeding of marine products, and salt making shall have the right to mortgage at Vietnamese banks the value of the land use right and any asset errected on such land in order to obtain loans for business production in accordance with the provisions of the law with the objectives being industrialization and modernization of production facilities. Such organizations shall be prohibited from any transfer, assignment, or leasing of the right to use that land.

Article 7

Organizations allocated with land from the State shall have the following obligations:

1. To use the land in accordance with the usage purposes, zoning plan, and land laws during the period of land allocation;

2. To carry out all financial obligations in respect of land usage in accordance with the provisions of the law;

3. To comply with all provisions of the law on environmental protection; to avoid any activity which affects the legitimate rights of neighbouring land users;

4. To compensate any previous land user from whom the land was appropriated for allocation in accordance with the provisions of the law;

5. To return to the State any unused land or land which is used inconsistently with the registered purposes;

6. To return the land in cases where a competent State body issues a decision to appropriate the land.

Article 8

If an organization, which has been allocated with land from the State for purposes other than farming, forestry, breeding of marine products, or salt making, constructs a structure using capital which is not State funded on the land, then that organization must, upon transferring the errected structure and the right to use land, pay into the State Treasury transfer fees in accordance with the provisions of the Government.

CHAPTER III

Rights and Obligations of Domestic Economic
Organizations Which Lease Land From the State

Article 9

Economic organizations which are permitted to lease land from the State shall, during the lease period, have the right to mortgage at a Vietnamese bank the value of the right to use that land and the value of any asset which it owns on that land in order to obtain loans for business production in accordance with the provisions of the law. The Government shall stipulate the method for calculating the value of the right to use land.

Article 10

State owned enterprises, enterprises of social and political organizations, and enterprises of national defence and security shall, within the lease period, have the right use the value of the land use right as capital contributions in joint ventures with domestic and foreign organizations or individuals in accordance with the provisions of the law.

Article 11


Organizations which are permitted to lease land from the State for construction of infrastructure in export processing zones and industrial zones shall have the right to sub-lease the land with the completed infrastructure to investors.

The Government shall make detail the provisions on the rights and obligations of organizations which carry on the business of constructing infrastructure as well as provisions on the procedure for leasing and sub-leasing the land referred to in this article.

Article 12

Economic organizations which are permitted to lease land from the State shall have the following obligations:

1. Carry out all financial obligations in respect of land usage in accordance with the provisions of the law;

2. Use land in accordance with the purpose, zoning plan, and land laws during the lease period;

3. Comply with all provisions of the law on environmental protection and avoid any activity which has an adverse effect on neighbouring land users;

4. To return the land in cases where a competent State body issues a decision to appropriate the land.

CHAPTER IV

Implementation Provisions

Article 13

The head of the organization using the land shall be responsible before the law in respect of carrying out all rights and obligations stipulated in the land laws and this Ordinance.

Article 14

All provisions of this Ordinance which apply to limited liability companies and shareholding companies shall also apply to private enterprises registered under the Law on Private Enterprises which are allocated with land or permitted to lease land from the State.

Article 15

This Ordinance shall be of full force and effect as of 1 January 1995.

All previous provisions which are inconsistent with this Ordinance are repealed.

Article 16

The Government shall make detail the provisions on the implementation of this Ordinance.

On behalf of the Standing Committee
of the National Assembly
Chairman


Nong Duc Manh