Socialist Republic of Vietnam

GOVERNMENT

No. 04-2000-ND-CP Hanoi, 11 February 2000 (as amended 28 September 2001)


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

The Government

Pursuant to the Law on the Organization of the Government dated 30 September 1992;

Pursuant to the Law on Land dated 14 July 1993 and the Law on Amendment of and Addition to a Number of Articles of the Law on Land dated 2 December 1998;

On the proposal of the Director of the General Department of Land Administration;

Decrees:

CHAPTER I

General Provisions

Article 1 Governing scope

This Decree shall make provisions for the implementation of the Law on Amendment of and Addition to a Number of Articles of the Law on Land dated 2 December 1998 and the Law on Amendment of and Addition to a Number of Articles of the Law on Land dated 29 June 2001 (collectively hereinafter referred to as the Law on Land).

Article 2 Authority to allocate and lease land

The authority to allocate and lease land shall be provided for as follows:

1. The authority to allocate and lease land to use for purposes not being agricultural, forestry and salt production shall be implemented in accordance with articles 23 and 80 of the Law on Land as follows:

(a) The Government shall make decisions on land allocation in the following cases:

- Land allocation with collection of land use fees in order to generate capital for construction of infrastructure facilities under projects;

- Land allocation to use for purposes of national security and defence.

(b) People's committees of provinces and cities under central authority shall make decisions on land allocation and land leasing to the following subjects:

- Organizations using land;

- Households and individuals using land within cities and towns;

- Diplomatic representative offices, consulates and other representative offices with diplomatic functions of foreign countries in Vietnam; representative offices of United Nations organizations; inter-governmental offices and organizations; representative offices of inter-governmental organizations in Vietnam;

- Foreign organizations and individuals and Vietnamese residing overseas investing in Vietnam.

(c) People's committees of districts, towns and cities belonging to provinces shall make decisions on land allocation and land leasing to households and individuals, except in the cases stipulated in sub-clause (b) above.

2. The authority to allocate and lease land to use for purposes being agricultural, forestry and salt production shall be implemented in accordance with article 24 of the Law on Land as follows:

(a) People's committees of provinces and cities under central authority shall make decisions on land allocation and land leasing to economic organizations using land;

(b) People's committees of districts, towns and cities belonging to provinces shall make decisions on land allocation and land leasing to households and individuals;

(c) People's committees of communes, wards and townships shall lease land belonging to the public welfare land fund of the commune, ward or township.

3. In cases where an organization, household or individual uses land for which there was a decision on allocation or lease prior to 1 October 2001 by the authorized State body and there is an amendment or addition, then the body to amend or add to the decision on allocation or lease shall be implemented in accordance with the authority to allocate and lease land stipulated in clauses 1 and 2 of this article.

Article 2a Authority to approve location and area of land for investment projects not using funds from the State Budget as stipulated in article 19 of the Law on Land

The body with authority to approve the location and area of land for investment projects not using funds from the State Budget in order to provide the basis for a decision on allocation or lease shall be the authorized State body for allocation and lease of land as stipulated in article 2.

Article 3 Issuance of certificates of land use rights

1. Organizations, households and individuals using land, having one of the documents stipulated in article 3.2 of Decree 17-1999-ND-CP of the Government dated 29 March 1999 on procedures for conversion, assignment, leasing, sub-leasing, and capital contribution of the value of land use rights (hereinafter abbreviated as Decree 17-1999-ND-CP of the Government), shall be granted certificates of land use rights.

With respect to those organizations, households and individuals using land referred to in this clause, if the land is the subject of construction planning approved by the authorized State body but no decision has been made on the recovery of land for the implementation of such planning, the certificate of land use rights shall still be issued but regulations on construction shall be strictly complied with. When the State recovers land for the implementation of construction planning, organizations, households and individuals shall comply with the decision on land recovery by the authorized State body and shall be paid compensation for any losses incurred in terms of land and assets on that land in accordance with law.

2. Organizations, households and individuals using land, not having any of the documents referred to in clause 1 of this article, shall be considered for the issuance of certificates of land use rights provided that the people’s committee at the commune level acknowledges that the land is not the subject of dispute.

Organizations, households and individuals using land, not having any of the documents referred to in clause 1 of this article shall not be granted certificates of land use rights if such land is the subject of construction planning approved by the authorized State body.

3. People's committees of provinces and cities under central authority shall issue certificates of land use rights to the following subjects:

(a) Domestic organizations using land;

(b) Pagodas, churches and religious buildings;

(c) Foreign organizations and individuals using land in Vietnam.

4. People's committees of districts, towns and cities belonging to provinces shall issue certificates of land use rights to the following subjects:

(a) Households and individuals using land;

(b) Public communities using land with construction works, such as communal houses, temples, shrines, small pagodas, ancestral temples and family worship houses, or other construction works servicing the public welfare of communities;

(c) Vietnamese residing overseas who are permitted to purchase housing with land use rights attached in Vietnam.

Article 4 Land used for public purposes

1. Land used for public purposes as stipulated in sub-clause 5 of article 1.5 of the Law on Amendment of and Addition to a Number of Articles of the Law on Land shall include land for construction of transportation roads, bridges, sewers, pavements, water supply and drainage systems, rivers, lakes, dykes, dams, schools, hospitals, markets, parks, flower gardens, children’s parks, squares, stadiums, airports and sea ports.

2. Land used for construction of other public works shall include land for construction of power plants, power transformer stations, hydro-power reservoirs, communication transmission lines, power transmission lines, petrol and oil pipelines, gas pipelines, hydro-meteorological stations, observatory stations in support of research and public service, irrigation works, wharves, bus stations, ferry stations, railway stations, national parks, sanatoriums, nurturing centres for children with difficulties, sports and games practising and training establishments, rehabilitation centres for disabled children, vocational centres, post offices and social cultural locations, monuments, memorial statues, clubs, theatres, museums, exhibitions, cinemas, circuses, drug rehabilitation centres, re-education camps, moral rehabilitation centres, cemeteries, waste treatment zones and dumping sites.

Article 5 Duration of land allocation and land leasing, duration of land use upon assignment of land use rights

1. Duration of land allocation and land leasing:

(a) The duration of land allocation and land leasing for use by households and individuals for planting annual and perennial crops, aquaculture and salt production shall be in accordance with the provisions of clauses 3 and 5 of article 1 of Decree 85-1999-ND-CP of the Government.

The duration of land allocation and land leasing to organizations, households and individuals for forestry use shall be in accordance with the provisions of article 14 of Decree 163-1999-ND-CP.
(b) The duration of land allocation to households and individuals for the construction of residential housing shall be on a stable and long-term basis and recovery by the State shall only be in the circumstances stipulated in articles 26 and 27 of the Law on Land.

(c) The duration of land allocation to economic organizations for generation of capital for the purpose of infrastructure construction shall be on a stable and long-term basis and recovery by the State shall only be in the circumstances stipulated in articles 26 and 27 of the Law on Land.

(d) The duration of land allocation to economic organizations for the construction of infrastructure facilities involving assignment or leasing of land use rights associated with such infrastructure facilities shall be in accordance with the project duration approved by the authorized State body, and shall not exceed fifty (50) years. With respect to projects requiring a longer duration of land use, a decision shall be made by the Prime Minister and shall not exceed seventy (70) years; after the expiry of such duration, if the organization still needs to continue to use the land, procedures shall be carried out for a determination by the authorized State body.

2. The duration of land use upon assignment shall be in accordance with the following stipulations:

(a) In cases where residential land and land for special use is assigned to households and individuals; residential land and land for special use is assigned to economic organizations by households and individuals and the monies paid at the time of assignment do not originate from the State Budget: the duration of use of such assigned land shall be on a stable and long-term basis.

(b) In the case where economic organizations, households and individuals have been assigned land use rights for a stipulated duration of use and they do not change the intended purpose of use, the duration of land use shall be the remaining period of the duration of use of such land; after the expiry of such duration, if such organizations, households and individuals wish to continue to use the land, they shall carry out procedures for a determination by the authorized State body.

(c) In the case where economic organizations, households and individuals have been assigned the right to use agricultural land and land for aquaculture, forestry and salt production and are allowed by the authorized State body to change the intended purpose of land use, the duration of land use shall be calculated in accordance with the duration of the project approved or accepted by the authorized State body but shall not exceed fifty (50) years. In special cases where households and individuals have been assigned the right to use agricultural land and forestry land and are allowed by the authorized State body to change the purpose of land use to residential or special use, the duration of land use shall be on a stable and long-term basis.

In the case of households using areas of agricultural land exceeding the limits as a consequence of an assignment of land use rights as stipulated in article 22 of the Law on Land, the duration of land lease shall be implemented in accordance with the land lease contract but shall not exceed twenty (20) years in the case of agricultural land for planting annual crops and land for aquaculture, and fifty (50) years in the case of agricultural land for planting perennial crops.

Article 6 Residential land for households and individuals

1. Residential land for households and individuals means land for construction of residential housing and other facilities servicing daily life, such as kitchens, water wells, bathrooms, toilets, passages, stables for cattle, pens for poultry, stores for animal feed and fuel, and carparks.

2. Limit on land allocation to households and individuals for housing construction:

(a) Limit on land allocation to households and individuals for housing construction in rural areas:

On the basis of local land reserves, provincial people’s committees shall make the decision on the limit on land allocation to each household and individual in accordance with the following stipulations:

- Communes in the plains: not exceeding 300m2;

- Communes in the midlands and highlands, and on islands: not exceeding 400m2;

- In regions where the local custom is for members of several generations to live together in the same household or where there are special natural conditions, a larger area of land may be allocated, but the maximum shall not exceed twice the limit which applies to that region.
(b) The limit on land allocation to households and individuals for residential housing in urban areas implemented under a housing investment and construction project for the purpose of sale or leasing out shall be approved by the authorized State body.

In cases where conditions have not yet been met for land allocation under a project, people's committees at all levels shall, on the basis of land reserves within their locality, decide on the limit on land allocation to each family household and individual to build their own home strictly in accordance with urban planning and prescribed standards for urban construction design and planning.

3. The limits on land allocation stipulated in clause 2 of this article shall only apply to new cases of land allocation for residential housing and shall not apply to cases of land use prior to the date of effectiveness of this Decree.

Article 7 Subjects of land allocation without collection of land use fees

1. Organizations to which the State allocates land and from which it does not collect land use fees shall include:

(a) Organizations assigned to manage forest areas and land for forestry in order to protect river sources, wind barrier areas, anti-soil erosion areas and sea walls and barriers and to protect the ecological environment. Organizations assigned by the State to manage national parks, nature reserves, and cultural, historical and environmental forest areas.

(b) State owned enterprises using land which the State allocated prior to 1 January 1999 for the purpose of agriculture, forestry, aquaculture and salt production.

(c) State owned bodies, political organizations, socio-political organizations and units of the People's Armed Forces using land for the purposes of construction of their working headquarters, national defence and security, or construction of projects in the following branches and sectors, namely, the economy, culture, society, science, technology, foreign affairs. Organizations assigned to manage land with construction projects concerning historical and cultural sites which have already been classified.

(d) Organizations using land for public purposes as referred to in article 4 of this Decree.

2. Households and individuals directly working in agriculture, forestry, aquaculture and salt production and using land for the purposes of agriculture, forestry, aquaculture and salt production within the limits as provided in the laws on land.
3. Religious organizations using land.

Article 8 Subjects of land allocation with collection of land use fees

1. Households and individuals allocated land by the State for construction of residential housing.

2. Economic organizations which invest in the construction of residential housing for the purpose of sale or leasing out.

3. Economic organizations which invest in the construction of infrastructure for the purpose of assignment or leasing of land use rights attached to such infrastructure.

4. Economic organizations which pay land use fees for land which they have been allocated in order to generate capital for the purpose of infrastructure construction in accordance with a project on which the Prime Minister of the Government has made a decision.

Article 9 Subjects of land leasing by the State

1. Households and individuals with land use requirements for production and business.

2. Households and individuals using agricultural land in excess of the limits stipulated in clause 1 of article 1.5 of the Law on Amendment of and Addition to a Number of Articles of the Law on Land.

3. Economic organizations using land for production and business.

4. Economic organizations which invest in the construction of infrastructure for the purpose of assignment or leasing of land use rights attached to such infrastructure in industrial zones, export processing zones and high-technology zones.

Article 10 Exemptions from and reductions of land use fees and land rent

1. Land users shall be entitled to an exemption from land use fees in the following circumstances:

(a) Land use for construction of welfare housing;

(b) Land use for construction of high-rise hostels for sale or lease or for construction of dormitories;

(c) Land use on islands, in border areas, or in mountainous, inaccessible or remote areas for construction of residential housing;

(d) Land use for construction of residential housing to relocate victims of natural disasters;

(dd) People using garden land or ponds which the authorized State body has permitted to be changed to residential land within the limit on land allocation, as consistent with planning.

2. People with revolutionary merit who now use residential land shall be exempt from, or entitled to a reduction of, land use fees in accordance with a decision of the Prime Minister of the Government.

3. Exemption from or reduction of land rent:

(a) Organizations, households and individuals leasing land after suffering from a natural disaster or fire which interrupts their production and business operations;

(b) Organizations, households and individuals leasing land in order to implement projects falling within the fields of special investment as stipulated by the laws on promotion of domestic investment, or leasing land in order to invest in development of vacant land, bare hills and mountainous areas.

4. Enterprises which have factories or businesses located in urban areas or towns and which, in accordance with planning, transfer them to industrial zones shall be exempt from, or entitled to a reduction of, land use fees and land rent.

Article 11 Management and use of deserted land and unused land

In respect of communes, wards and townships where there are areas of excavated land and land left unused for a long time, unused river pools, canals, irrigation ditches, dykes, dams, traffic paths, drying yards, warehouses, factories, farms and other types of special use land not in fact used, newly-accreted estuarine or coastal land, deserted land and unused land, the people's committee at the commune level shall be responsible to manage such areas of land in order to bring them into use in accordance with land use master planning and plans.

The authority to allocate land and lease such land for production, business and residential purposes shall be implemented in accordance with article 2; the duration of land use shall be determined according to the investment project or the application for land allocation or land lease.

CHAPTER II

Rights and Obligations of Organizations, Households
and Individuals Allocated Land by the State
Without Collection of Land Use Fees

SECTION I

In respect of Organizations

Article 12 Rights of organizations allocated land by the State without collection of land use fees

1. Organizations to which the State allocates land without collection of land use fees shall be entitled to all rights stipulated in clauses 1, 2, 4, 5, 6 and 8 of article 73 of the Law on Land. In respect of economic organizations using land as stipulated in article 7.1(d) of this Decree, they shall also have the right to mortgage and provide guarantees using assets under their ownership which are attached to the land use rights in order to borrow loans from credit institutions licensed to operate in Vietnam.

2. In respect of State owned enterprises using land for the purpose of agriculture, forestry, aquaculture and salt production which the State allocated prior to 1 January 1999, they shall, in addition to all rights stipulated in clause 1 of this article, also have the right to mortgage the assets under their ownership which are attached to the land use rights with credit institutions licensed to operate in Vietnam in order to borrow loans for production and business; and to contribute capital in the form of land use rights for business and production co-operation with both domestic and foreign organizations and individuals in order to continue to use the land for the purposes of agriculture, forestry, aquaculture and salt production and expanding their processing activities and services aimed at developing production.

Article 13 Obligations of organizations allocated land by the State without collection of land use fees

1. Organizations to which the State allocates land without collection of land use fees shall have the obligations stipulated in clauses 1, 2, 3, 4, 6 and 7 of article 79 of the Law on Land.

2. Organizations using land for public purposes and organizations to which the State allocated land for the purpose of agriculture, forestry, aquaculture and salt production prior to 1 January 1999 must, when such organizations are permitted by the authorized State body to use that land for a different purpose, convert to the form of leasing land or to the form of land allocation with payment for land use.

SECTION II

In respect of Households and Individuals

Article 14 Rights of households and individuals allocated land by the State without collection of land use fees

Households and individuals allocated land by the State without collection of land use fees shall be entitled to all rights stipulated in clauses 1, 2, 4, 5, 6 and 8 of article 73 of the Law on Land and shall have the right to exchange, transfer, lease out, sub-lease, bequeath, mortgage or provide guarantees using the land use rights in accordance with the laws on land; and in addition shall have the right to contribute capital in the form of the value of land use rights within the duration of allocation of the land to them for the purpose of production and business co-operation with domestic organizations and individuals. In the case of capital contribution in the form of the value of land use rights in order to co-operate in production and business with domestic organizations and individuals where the purpose of land use is changed, permission must be granted by the authorized State body stipulated in article 24a of the Law on Land and fees for changing the purpose of land use must be paid, without converting to leasing land; if fees for changing the purpose of land use are not paid, then they must convert to leasing land.

Article 15 Obligations of households and individuals allocated land by the State without collection of land use fees

Households and individuals allocated land by the State without collection of land use fees shall have the obligations stipulated in clauses 1, 2, 3, 4, 6 and 7 of article 79 of the Law on Land and clause 1 of article 1.5 of the Law on Amendment of and Addition to a Number of Articles of the Law on Land.


CHAPTER III

Rights and Obligations of Economic Organizations
Allocated Land by the State With Collection of Land Use Fees

Article 16 Rights of economic organizations allocated land by the State with collection of land use fees

Economic organizations allocated land by the State with collection of land use fees shall be entitled to all rights stipulated in clauses 1, 2, 4, 5, 6 and 8 of article 73 of the Law on Land. In addition, they shall have the following rights:

1. To assign land use rights attached to architectural works and infrastructure works already constructed on that land;

2. To lease land use rights attached to architectural works and infrastructure works already constructed on that land;

3. To mortgage or provide guarantees using the value of land use rights and assets under their ownership which are attached to such land use rights with credit institutions licensed to operate in Vietnam;

4. Right to contribute capital in the form of the value of land use rights together with assets under their ownership which are attached to that land for the purpose of production and business co-operation with domestic and foreign organizations and individuals in accordance with law.

Article 17 Obligations of economic organizations allocated land by the State with collection of land use fees

Economic organizations allocated land by the State with collection of land use fees shall have the obligations stipulated in article 79 of the Law on Land. In addition, they shall have the following obligations:

1. To strictly implement all provisions of the laws on management of investment and construction;

2. To return the land to the State upon expiry of the period of land use.


CHAPTER IV

Allocation of Land for Investment in Construction of Residential Housing for Purpose of Sale or Leasing or for Generation of Capital for Construction of Infrastructure Facilities

SECTION I

Allocation of Land for Investment in Construction of
Residential Housing for Purpose of Sale or Leasing

Article 18 Land use planning for construction of residential housing

Land used for construction of residential housing for the purpose of sale or leasing must be within the development planning for a residential zone or urban area which the authorized State body has already approved.

Article 19 Preparation of application files for land allocation, procedures for approval of application files for land allocation

1. An application file for land allocation shall include:

(a) Application form for land allocation;

(b) Decision of the authorized State body approving the investment project for construction of residential housing for sale or lease;

(c) Plan for payment of compensation and site clearance;

(d) Extracts of the cadastral map or extracts of the site survey or site map identifying the boundaries and area of the site as certified by the Department of Land Administration or the Department of Housing and Land Administration where the site is located.

The application file for land allocation shall be made in two sets where it falls within the authority for land allocation of provincial people's committees or made in four sets where it falls within the authority for land allocation of the Government and shall be forwarded to the Department of Land Administration or the Department of Housing and Land Administration where the site is located.

2. Procedures for approval of application files for land allocation:

(a) Within twenty (20) days from the date of receipt of a complete and proper application file, the Department of Land Administration or the Department of Housing and Land Administration shall fulfil the following tasks:

· Carry out an on-site verification, prepare minutes of appraisal of the application file for land allocation;

· Prepare a proposal and submit the application file for land allocation to the provincial people's committee for consideration and decision.

(b) Within ten (10) days from the date of receipt of a complete and proper application file submitted by the Department of Land Administration or the Department of Housing and Land Administration, the provincial people's committee shall issue a decision on land allocation where it falls within its authority or shall draft a proposal for submission to the Prime Minister of the Government and forward it enclosing two sets of the application for land allocation to the General Department of Land Administration where it falls within the authority for land allocation of the Government.

(c) Within ten (10) days from the date of receipt of a complete and proper application file forwarded by the provincial people's committee, the General Department of Land Administration shall appraise the application file for land allocation and shall submit it to the Prime Minister of the Government for his decision.

Article 20 Organization of implementation of decisions on land allocation

The organization of implementation of decisions on land allocation shall be regulated as follows:

1. After obtaining a decision on land allocation from the authorized State body, an economic organization which has been allocated with land shall pay compensation to the persons from whom the land is recovered in accordance with the plan for compensation approved by the authorized State body and shall pay land use fees as provided for by law.

2. The provincial people's committee shall be responsible to organize the payment of compensation and site clearance within the locality under its control.

3. The Department of Land Administration or the Department of Housing and Land Administration shall have the main responsibility for on-site hand-over of the land, in co-ordination with the Division of Land Administration and the people's committee at the commune level, in accordance with the decision on land allocation issued to the economic organization by the authorized State body.
Article 21 Assignment of land use rights attached to infrastructure

The assignment of land use rights attached to infrastructure shall be carried out in accordance with the provisions of articles 13 and 14 of Decree 17-1999-ND-CP of the Government dated 29 March 1999. Assignees shall be granted a certificate of land use rights by the State.

SECTION II

Allocation of Land for Generation of Capital for Construction of Infrastructure Facilities under Projects

Article 22 Formulation and submission of projects for using land reserves to generate capital for construction of infrastructure facilities

Provincial people's committees shall, on an annual basis, prepare and submit the following to the Prime Minister of the Government for his approval:

1. A list of projects which are permitted to use land reserves to generate capital for construction of infrastructure facilities;

2. Plans for using land reserves to generate capital for construction of infrastructure facilities.

Article 23 Procedures for implementation of projects using land reserves to generate capital for construction of infrastructure facilities

1. Provincial people's committees shall have the following responsibilities:

(a) To direct the preparation of, and submit for approval to the authorized authority, projects for construction of infrastructure facilities which have been permitted by the Prime Minister of the Government;

(b) To organize a tender to select an investor for implementation of a project where many units participate. Where only one unit applies for the implementation of a project, appointment of a contractor shall be permitted;

(c) To make submissions to the Government on land allocation for the purpose of construction of infrastructure facilities or for implementation of investment projects using the land fund in order to generate capital for construction of infrastructure facilities;
(d) To organize consideration and determination of the value of investment in construction of infrastructure facilities as provided for by law;

(dd) To estimate the price of the site to be paid to any investors which have already paid out capital for construction of the infrastructure facilities;

(e) To provide guidance for the preparation of investment projects on land sites in respect of which payment shall be made to investors in accordance with the approved master planning, and submit them to the Government to allocate land to the investors.

2. Proceeds earned from land allocation and monies used for construction of projects shall be fully reflected in the State Budget as stipulated in the laws on the Budget.

Article 24 Rights and obligations of economic organizations allocated land by the State to generate capital for infrastructure construction

1. Economic organizations allocated land by the State to generate capital for construction of infrastructure facilities shall have the rights specified in article 16 of this Decree.

2. Economic organizations allocated land by the State to generate capital for construction of infrastructure facilities shall have the obligations specified in article 79 of the Law on Land. In addition, they shall be responsible to comply with all provisions relating to construction of projects approved by the competent authority.


CHAPTER V

Dealing with Cases of Land Allocated or Leased by the State
and Assignment of Land Use Rights

Article 25 Rights and obligations of households and individuals using land for special uses

For households and individuals currently using land for special uses other than land leased by the State, the duration of their land use shall be stable and long-term and they shall have the same rights and obligations as households and individuals allocated land by the State with collection of land use fees.
Article 26 Households and individuals changing purpose of land use from agriculture, forestry, aquaculture, salt production

Households and individuals using land for the purposes of agriculture, forestry, aquaculture, or salt production shall, where permitted by the authorized State body to change the land use purpose, not be required to convert to leasing land but must pay fees for changing the purpose of land use in accordance with law; if fees for changing the purpose of land use are not paid, then they must convert to leasing land.

The level of fees for changing the purpose of land use from agriculture, forestry, aquaculture and salt production to special use shall be as prescribed in article 6.1(a) and (b) of Decree 38-2000-ND-CP of the Government dated 23 August 2000 on collection of fees for land use of the whole of the land area where use purpose is permitted to be changed.

Article 27 Economic organizations to which land use rights have been assigned

1. Economic organizations to which rights to use residential land or land for special uses have been lawfully assigned from others, where the fees paid for such assignment did not originate from the State Budget, shall be entitled to stable and long-term use of such land and shall not be required to convert to leasing land.

2. Economic organizations to which rights to use land for the purpose of agriculture, forestry, aquaculture and salt production have been assigned, where the fees paid for acceptance of such assignment did not originate from the State Budget, shall, when the authorized State body permits a change of the purpose of use to special use, not be required to convert to leasing land but fees for changing the purpose of land use must be paid in accordance with law; if fees for changing the purpose of land use are not paid, then they must convert to leasing land. The duration of land use shall be calculated according to the project duration approved by the authorized State body but shall not exceed fifty (50) years.

3. Economic organizations using land as stipulated in clauses 1 and 2 of this article and economic organizations allocated land by the State with collection of land use fees shall, when they contribute capital in the form of the value of land use rights to joint ventures with foreign organizations and individuals, not be required to convert to the form of leasing land.
4. Economic organizations to which the State has allocated land without collection of land use fees for purposes of agriculture, forestry, aquaculture or salt production shall, when a provincial people's committee permits them to change to another use:

(a) Pay land use fees in accordance with law if they construct residential housing for sale and lease;

(b) Convert to leasing land if they engage in production and business, and the lease duration shall be in accordance with the investment project duration as approved by the authorized State body but shall not exceed fifty (50) years, except in the case of change to a public purpose use as stipulated in article 4 of this Decree.

Article 28 State owned enterprises leasing land to contribute as capital to joint ventures with foreign parties

1. State owned enterprises leasing residential land from the State may use the value of land rent to contribute to joint ventures with foreign parties.

The value of land rent shall be regarded as capital funded from the State Budget to the enterprises. The enterprises shall not be required to acknowledge the debt and shall not be required to repay the land rent, but must pay tax on assets as provided by law.

2. The Ministry of Finance and the General Department of Land Administration shall provide detailed guidelines on recording of an increase in capital of an enterprise referred to in clause 1 of this article.

Article 29 Organizations already allocated land by the State, or already assigned land use rights, where the fees paid originated from the State Budget

Organizations already allocated with land by the State, or already assigned land use rights, where the fees paid originated from the State Budget, shall convert to the form of leasing land for the duration of the project, which shall not exceed fifty (50) years.

Article 30 Organizations and individuals sub-leasing land in export processing zones, industrial zones or high technology zones

1. Organizations and individuals sub-leasing land in export processing zones, industrial zones or high technology zones shall be granted a certificate of land use rights. With respect to the portion of the land area for which a certificate of land use rights has been issued to the organization or individual sub-leasing the land, the Department of Land Administration or the Department of Housing and Land Administration shall make appropriate adjustments to the certificate of land use rights already issued to the organization conducting infrastructure business.

2. The duration of sub-leasing land in export processing zones, industrial zones or high technology zones shall correspond to the duration of the investment projects approved by the authorized State body.

3. Organizations and individuals sub-leasing land for which land rent has been paid for the whole duration of the sub-leasing of the land, or for which land rent has been paid in advance for several years and the remaining duration is under five years, shall have the rights:

(a) To mortgage or provide guarantees using the value of the rights to use the sub-leased land and assets under their ownership located thereon with credit institutions licensed to operate in Vietnam in order to borrow loans for production and business in accordance with law;

(a) To assign the value of the rights to use the sub-leased land and assets under their ownership located thereon for the duration of sub-leasing of the land;

(b) To contribute capital in the form of the value of the rights to use the sub-leased land for the purpose of business co-operation with domestic and foreign organizations and individuals in accordance with law;

(c) In addition to the rights stipulated in sub-clauses (a), (b) and (c) of this clause, individuals sub-leasing land in export processing zones, industrial zones or high technology zones shall have the right to bequeath the land use rights for the duration of the sub-lease.

4. Organizations and individuals sub-leasing land in export processing zones, industrial zones or high technology zones and paying rent on an annual basis shall only have the right to transfer and mortgage assets under their ownership which are attached to the rights to use the sub-leased land.


CHAPTER VI

Implementing Provisions

Article 31 Responsibilities of ministries, ministerial equivalent bodies, Government bodies, people's committees at all levels and land users

Ministers, heads of ministerial equivalent bodies, Government bodies and people's committees at all levels, and land users shall be responsible for implementation of this Decree.

Article 32 Effectiveness

This Decree shall be of full force and effect after fifteen (15) days from the date of its signing. All previous provisions which are inconsistent with this Decree are hereby repealed.


For the Government
The Prime Minister


PHAN VAN KHAI








Phillips Fox Note: Decree 66-2001-ND-CP of the Government dated 28 September 2001 also provides:

Article 2 Responsibilities of the General Department of Land

The General Department of Land shall provide guidelines on the files and procedures for land allocation and lease; for conversion of use purpose; for conversion of rice-growing land to aquaculture and perennial crops, or for conversion of land from perennial crops to annual crops.