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THE NATIONAL ASSEMBLY'S THE SOCIALIST REPUBLIC Of VIETNAM
STANDING COMMITTEE Independence-freedom-Happiness
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Hanoi, October 14th, 1994.
Article 1:
1- Domestic organizations to which land is allocated or leased by the State include:
a) State agencies, socio-political organizations, units of the people's armed forces using land for office construction, for national defense, security purposes;
b) State agencies, other agencies using land for construction of projects belonging to economic, cultural, social, scientific, technical, diplomatic fields and sectors;
c) Enterprises companies using land for public purposes to construct transport roads, bridges, sluices, pavements, water supply and drainage system, rivers, lakes, dike, dams, schools, scientific research institutions, hospitals, markets, par ks, gardens, recreation places for children, squares, stadium, airports, ports, and other public projects in accordance with stipulations of the Government;
d) State-owned enterprises, enterprises belonging to socio-political organizations, enterprises of national defense and security sectors, joint stock companies, limited liability companies, collective economic organizations using land for agricultural production, forestry, aquatic cultivati on and salt making.
2- Domestic organizations to which land is leased by the State include State-owned enterprises, enterprises of socio-political organizations, enterprises of the national defense and security sectors, joint stock companies limited liabili ty companies, collective economic organizations using land for production and business purposes other than agriculture, forestry, aquatic cultivation and salt making.
Article 2:
Basis with which to establish the rights and obligations of domestic organizations to which land is allocated or leased by the State include:
1. Purpose of land use;
2. Term during which land is allocated or leased by the State;
3. Whether to pay or not for the use of land allocated by the Sate and method of payment at a time of land allocation or leasing.
Chapter II RIGHTS AND OBLIGATIONS Of DOMESTIC ORGANIZATIONS TO WHICH LAND IS ALLOCATED BY THE STATE
Article 3:
Domestic organizations to which land is allocated by the Sate as stipulated in points a, b and c, item 1 of Article 1 of this Ordinance are entitled to use the land in conformity with the purpose and term for which the land is allocated, an d are not entitled to converse, transfer, lease and mortgage the land use right.
Article 4:
1- State-owned enterprises of socio-political organizations, enterprises belonging to the national defense, security sectors, joint stock companies, limited liability companies, collective economic organizations to which land is allocated by the State for the purpose of agriculture, forestry, aquatic cultivation and salt making shall have the rights:
a/ To contribute in term of the right to use land to the capital of joint ventures with domestic and foreign organizations and individuals for continued use of the land for the purpose of agricultural production, forestry, aquatic cult ivation, salt making, broadening of processing industry and services with a view to boosting production in accordance with the stipulations of the Government;
b/ To mortgage the right to use land coupled with the property of their own built thereon at the State Bank of Vietnam in order to ask for loan capital for production, business in accordance with provisions of laws.
2- No organizations referred to in item 1 of this Article have the right to converse, transfer, lease the land use right.
Article 5:
1- State-owned enterprises to which land is allocated by the State to use for the purpose of agricultural production, forestry, aquatic cultivation shall apply contractual quota method to bring into full play household's autonomy in order to make the effective use of the whole land fund allocated to them. The Government shall stipulate the details of contractual quota allocations by State-owned enterprises to which land is allocated to use for the purpose of agriculture, forestry, aquatic cultivation.
2- In case enterprises are permitted to use part of the land allocated as stipulated in Item 1 of this Article and land for salt making for other production, business purpose, they shall be obliged to follow land leasing system with regard to that land under provisions of laws.
Article 6:
Collective economic organizations to which land is allocated by the State to use for purpose other than agricultural production, forestry, aquatic cultivation and salt making shall be entitled to mortgage the value of the land use right co upled with property of their own built thereon at the State Bank of Vietnam in order to ask for loan capital for production, business in accordance with provisions of laws with a view to boosting production along the direction of indus trialization, modernization; they are not permitted to converse, transfer, lease the land use right.
Article 7:
Organizations to which land is allocated by the State have the obligations:
1- To use the land in conformity with the purpose for which the land is allocated, with the zoning plan and the laws on land during the land allocation term;
2- To fulfill financial obligations on land use in accordance with provisions of laws;
3- To observe provisions of laws on environmental protection, to cause no harm to the legitimate interest of users of the surrounding land;
4- To compensate for people whose land is retrieved for allocation to the organizations in accordance with provisions of laws;
5- To give back to the State the land unused or used improperly;
6- To give back land to the State when the competent State agency decides to take it back.
Article 8:
If organizations to which land is allocated by the State to use for purposes other than agricultural production, forestry, aquatic cultivation, salt making already built projects with capital resources other than the State budget, then they at the transfer of these projects together with the land use right shall deposit to State budget the moneys from the transfer of land use right in accordance with stipulations of the Government.
Chapter III RIGHTS AND OBLIGATIONS Of DOMESTIC ECONOMIC ORGANIZATIONS TO WHICH LAND IS LEASED BY THE STATE
Article 9:
Economic organizations to which land is leased by the State are entitled to mortgage the right to use land coupled with property of their own build thereon at the State Bank of Vietnam in order to ask for loans in accordance with laws. Th e calculation of the land use right shall be determined by the Government.
Article 10:
State-owned enterprises, enterprises of socio-political organizations, enterprises of national defense and security sectors shall during the land leasing term be entitled to make capital contribution in term of the value of the land use right for joint venture with domestic, foreign organizations, individuals in accordance with the stipulations of the Government.
Article 11:
Organizations to which land is leased by the State to build infrastructures at export processing zones, industrial estates and to re-lease them are entitled to re-lease land with completed infrastructures to investors. The Government shall stipulate the details on the rights, obligations of organizations trading, building infrastructures and the procedures, formalities of land leasing referred to in this Article.
Article 12:
Economic organizations to which land is leased by the State shall have the following obligations:
1- To fulfill financial obligations on land use in accordance with the provisions of laws;
2- To use land in conformity with the purpose for which the land is allocated, with the zoning plan. laws on land during the land leasing term;
3- To observe legal stipulations on environmental protection, cause no harm to the legitimate interest of the users of surrounding land;
4- To give back land to the State when competent State agency decides to take it back.
Chapter IV PROVISIONS fOR IMPLEMENTATION
Article 13:
The heads of the organizations using land shall take responsibility before laws for the implementation of the rights and obligations stipulated by laws on land and this Ordinance.
Article 14:
Provisions of this Ordinance with regards to limited liability companies, joint stock companies shall apply to private enterprises registered under the Law on Private Enterprises to which land is allocated, leased by the State.
Article 15:
This Ordinance shall take effect as from January 1st, 1995. All previous provisions contrary to this Ordinance shall be repealed.
Article 16:
The Government shall stipulate the detailed implementation of this Ordinance.
for the National Assembly
Chairman
NONG DUC MANH
(Signed)