|
DECREE NO. 11/CP
DATED 24 JANUARY, 1995 OF THE GOVERNMENT
Stipulating the detailed implementation of the ordinance on rights and
responsibilities of foreign organizations and individuals leasing land in
Vietnam
THE GOVERNMENT
Based on :
- The Law on Government Organization dated 30 September 1992;
- The Land Law dated 14 July 1993;
- The Foreign Investment Law in Vietnam dated 29 December 1987; The law on
amendments and addition to some articles of the Foreign Investment Law in
Vietnam dated 30 June 1990 and 23 December 1992;
- The Ordinance on rights and responsibilities of foreign organizations
and individual in Vietnam dated 14 October 1994;
- The proposal by the Director General of the Land Administration
Department.
DECREE
CHAPTER I: GENERAL PROVISIONS
Article 1. This Decree specifies the implementation of the rights and
responsibilities of foreign organizations and individuals leasing land in
Vietnam.
Article 2. Foreign organizations and individuals entitled to lease land in
Vietnam (hereinafter called lessee (s) include :
1. Diplomatic representative offices, consulates, other representatives
with diplomatic functions;
2. U.N representative offices in Vietnam, inter-governmental offices,
organizations and representative offices;
3. Foreign organizations and individuals, Vietnamese residents outside
Vietnam who invest in Vietnam under the Foreign Investment Law in Vietnam.
In case the Vietnamese Party contributes its capital to a joint venture or
to a business cooperation contract by the value of the right to use and, the
lessee is the Vietnamese Party.
Article 3. The lessee has to comply with the provisions of the Land Law,
the Ordinance on rights and responsibilities of foreign organizations and
individuals, this Decree and other applicable Laws of Vietnam on land
management and usage.
Article 4. The lessees specified in paragraphs 1 and 2 of Article 2 have
to sign leases in conformity with provisions of this Decree on the basis of
mutual agreements and the principle of mutual benefits. The lessee is
entitled to priorities and exemptions in the agreements signed by the lessees
and the Socialist Republic of Vietnam.
In case where no international agreements have been signed, the Vietnamese
Government will consider and sign each lease in conformity with the
Ordinance.
Article 5. The lessee has to pay the rental to the State of Vietnam ; the
land users will pay compensation to the occupants on the land site and the
land administration fee when the lease procedures are processed.
The Ministry of Finance shall determine prices for the lease of land
designated to foreign organizations and individuals.
Article 6. The Land Administration General Department will cooperate with
relevant ministries and branches to appraise the land site and will submit to
the State authority mentioned in Government Decree No. 1991/CP dated 28
December 1994 for decision to lease the land site.
CHAPTER II: PROVISIONS ON LEASE
Article 7. A lease is the document signed by the State authority and a
lessee in conformity with the provisions in Article 8 of this Decree.
Article 8. Based on the decision for lease by the State authority, the
provincial People Committee will authorized the local Land Administration
Department to sign contract with the lessee within 15 days.
Article 9. The main provisions of the Lease should include the following
details:
1. Name, nationality, address, authorized representative of the Lessee and
the Lessor.
2. Purpose of the land usage
3. Total area and the existing status of the land site
4. Land rental
5. Lease term
6. Payment method and schedule
7. Responsibilities of the Lessor and the Lessee in the implementation of
the lease.
8. Lease Effect
Based on provisions of the above mentioned Lease, the Land Administration
General Department will publish a standard lease to use in the whole country
and in conformity with the objectives of the lessees : business or
non-business.
Article 10. A lessee who wishes to extend a lease has to submit an
application to the relevant authorities at least 6 months before the terms
expiration. The lessor will notify its decision to the lessee within 3 months
after the date of receipt of the application.
Article 11. In cases where the lessee is permitted by the Vietnamese
Government to transfer the lease, the succeeding lessee has to re-sign the
lease.
Article 12. Upon the expiration of the lease, the lessor and the lessee
have to fulfill liquidation procedures.
In cases where transfer of the land site to the lessor is delayed, the
lessee has to pay rental for the delayed period and compensate losses caused
by the delay.
In such a case the lessor is entitled to request the lessee to pay the
land rental for the delayed period and the compensation of all losses caused
by the delay.
CHAPTER III: REGULATIONS ON MORTGAGE OVER THE VALUE OF THE RIGHT TO USE
LAND
Article 13. The lessor, as specified in Section 3, Article 2 of this Decree,
shall be entitled to mortgage its owned asset value attached to its right to
use land with a Vietnamese Bank in order to borrow capital for production
subject to the following stipulations :
1. The loan capital shall be agreed between the Bank and the Mortgagor.
2. On the due date, if the Mortgagor can not repay the loan, the Bank
shall be entitled to, either request the State authority to sell off assets
for recovering the capital and interest. The buyers of the assets shall be
entitled to lease land and use it for the right purposes subject to the
regulations, or the Bank can own the shares equal to the debt and can
transfer such shares to recover its capital.
3. In the event that the Mortgagor is liquidated prior the due date, the
Bank be entitled to request selling off the assets in order to recover the
capital and interest, and the asset buyer can lease the land site and use it
for the right purposes.
Article 14. The Mortgagor and the Bank have to sign a mortgage contract on
any mortgage.
The State Bank of Vietnam shall coordinate with the Land Administration
General Department to prepare a mortgage contract form.
Article 15. The mortgagor will register the mortgage over the right to use
land at the Land Administration Department. Upon the termination of the
mortgage, the Mortgagor should fulfill mortgage releasing procedures.
CHAPTER IV: REGULATIONS ON LAND LEASING FOR INVESTMENT IN INFRASTRUCTURE
CONSTRUCTION AND ON LAND RE-LEASING AT EXPORT PROCESSING ZONES AND INDUSTRIAL
ZONES
Article 16. The lease for infrastructure construction investment and
sub-lease shall be subject to the following stipulations :
1. The lessee of infrastructure construction investment should be licensed
by the State Committee for Cooperation and Investment.
2. The land site for infrastructure construction should be located in
export processing zones or industrial zones whose plan has been approved by
the relevant State authorities.
3. The Prime Minister shall have decision for the lease of land for the
infrastructure construction.
4. Investors shall be responsible for quality of the infrastructure
projects during its term of usage.
Article 17. Organizations or individuals who wish to sub-lease the land
site for infrastructure construction must submit the following documents :
1. Application for sub-leasing.
2. Feasible studies or investment project
These documents shall be sent to the relevant lessee of the infrastructure
construction.
Article 18. The sub-lease in the export processing zones or industrial
zones, shall be identified by the sub-lease contract between the sub-lessee
and the lessor.
Terms and relevant conditions for the two parties shall be specified in
the sub-lease contract and registered at the Land Administration Department.
The General Land Administration Department shall stipulate a standard form
of sub-lease contract.
Article 19. The sub-lease has to use the land site with the right
purposes, and he shall not be entitled to convert, transfer of sub-lease the
right to use the land which has been sub-leased to him.
Article 20. Foreign organizations or individuals who invest in v for
infrastructure construction in the export processing zones or industrial
zones must pay tax as required by the Laws of v when sub-leasing.
CHAPTER V: IMPLEMENTATION PROVISIONS
Article 21. This Decree shall come into effect from 1 January, 1995.
Article 22. The Minister of Foreign Affairs, the Minister-Chairman of the
State Committee for Cooperation and Investment, the Minister of Finance, the
Minister of Construction, the Governor of the State Bank of v, the General
Director of the Land Administration General Department shall be, within their
capacity and powers, responsible for the implementation of this Decree.
The Chairmen of the provincial/city People Committees shall organize the
implementation of this Decree.
Article 23. This Decree shall also be applicable to the Vietnamese
residents abroad who invests in Vietnam, to the Joint Venture Enterprise
whose legal capital includes the right to use land contributed by the
Vietnamese Party, to the joint venture enterprises who lease land in Vietnam.
Article 24. Ministers, heads of ministerial agencies, Heads of offices
under the Government, the Chairmen of the provincial/city People Committees
and the heads of the organizations who lease land as mentioned above, shall
be responsible for the implementation of this Decree.
FOR THE GOVERNMENT
PRIME MINISTER
VO VAN KIET
Source: Department of Ministry of Investment and Planning, HCM city,
Vietnam
Related news items Newer news items
Older news items |
