CIRCULAR

GUIDING THE LEASING OF LAND FOR THE EXECUTION OF FOREIGN INVESTMENT PROJECTS IN VIETNAM

Pursuant to the Land Law of July 14, 1993;
Pursuant to the Law on Foreign Investment in Vietnam of November 12, 1996;
Pursuant to the Ordinance on the Rights and Obligations of Foreign Organizations and Individuals Renting Land in Vietnam of October 14, 1994;
Pursuant to the Ordinance on the Rights and Obligations of the Domestic Organizations with Land Assigned or Leased by the State of October 14, 1994; the Ordinance on the amending and supplementing of a number of Articles of the Ordinance on the Rights and Obligations of Domestic Organizations with Land Assigned or Leased by the State of August 27, 1996;
Pursuant to Decree No.11-CP of January 24, 1995 of the Government detailing the implementation of the Ordinance on the Rights and Obligations of Foreign Organizations and Individuals Renting Land in Vietnam;
Pursuant to Decree No.85-CP of December 17, 1996 of the Government stipulating the implementation of the Ordinance on the Rights and Obligations of the Domestic Organizations with Land Assigned or Leased by the State;
Pursuant to Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam;
Pursuant to Decree No.34-CP of April 23, 1994 of the Government on the function, tasks, powers and organizational structure of the General Land Administration.
The General Land Administration guides the land lease for the execution of foreign investment projects in Vietnam, as follows:

I. GENERAL PROVISIONS

Article 1.- A land lessee stated in this Circular includes:

1. Enterprises with 100% foreign investment capital;

2. Joint venture enterprises;

3. The Vietnamese party to a joint venture with a foreign investor, which is entitled to contribute capital in the form of the value of land use right.

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1. The competence to decide the land lease shall comply with Article 44 of Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

2. The General Land Administration shall submit the land lease to the Prime Minister for decision in cases where such land lease falls within the competence of the Prime Minister.

3. The provincial/municipal Land Administration Services shall submit the land lease to the Peoples Committees of the provinces and cities directly under the Central Government (hereafter commonly referred to as the provincial Peoples Committee) for decision in cases where such land lease falls within the competence of the provincial Peoples Committee.

Article 3.- After the issuance of the land lease decision, the lessee shall sign a land lease contract with the provincial/municipal Land Administration Service and shall be granted a certificate of land use rights by the provincial Peoples Committee (particularly in cases where the Vietnamese party is entitled to contribute capital in form of the value of land use right to a joint venture with a foreign party, such certificate of land use right shall be granted to the joint venture enterprise).

II. THE ORDER FOR MAKING DOSSIER OF APPLICATION FOR LAND LEASE

Article 4.- A dossier of application for land lease shall be made together with the dossier of application for investment license in two stages:

Stage 1. Determining the location where the project is to be constructed

1. Before drawing up the project, the land lessee shall consult the local provincial Peoples Committee on the location for the construction of the project. After the provincial Peoples Committee approves the location for the construction of the project, the land lessee shall proceed with the following:

a/ To contact the provincial/municipal Land Administration Service of the locality where the land is situated to obtain guidance for drafting the land lease dossier and drawing an administrative map of the land lot.

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b/ Working out the plan for compensation and ground clearance

The land lessee shall consult the local commission for compensation and ground clearance before drafting the plan for compensation and ground clearance.

c/ After working out the plan for compensation and ground clearance, the land lessee shall file its application for the land lease, together with such plan to the provincial/municipal Land Administration Service.

2. Within 30 days from the date of receiving the documents specified in Point c, Clause 1, Stage 1 of this Article, the provincial/municipal Land Administration Service shall: determine the status-quo of the land lot to be leased and submit to the provincial Peoples Committee a report on the leased land area, land lease price and duration, and plan for compensation and ground clearance.

3. Within 20 days from the date of receiving the report of the provincial/municipal Land Administration Service, the provincial Peoples Committee shall give its comments in writing on the following issues:

a/ The location and area of land in use;

b/ The land lease price;

c/ The land lease duration;

d/ The plan for compensation and ground clearance (clearly specifying the subjects, list and compensation unit price).

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Stage 2. Making and submitting for approval the land lease application dossier

1. After the project is granted the investment license, the land lessee shall submit to the provincial/municipal Land Administration Service the following documents:

a/ A notarized copy of the investment license;

b/ The administrative map of the land lot (excerpt or measurement excerpt);

2. After receiving the documents prescribed in Clause 1, Stage 2 of this Article, the provincial/municipal Land Administration Service shall:

a/ Examine and certify the administrative map of the land lot;

b/ Make a record of examination of the land dossier.

3. The provincial/municipal Land Administration Service shall make two sets of the land lease application dossier in accordance with provisions of Article 5 of this Circular, and then submit them to the General Land Administration (in cases where the land lease decision falls within the competence of the Prime Minister); or to the provincial Peoples Committee (in case where the land lease decision falls within the competence of the provincial Peoples Committee) for consideration and approval of the land lease.

Article 5.-

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a/ The application for land lease;

b/ A copy of the investment license;

c/ The administrative map of the land lot;

d/ The plan for compensation and ground clearance;

e/ The record of examination of the land dossier made by the provincial/municipal Land Administration Service;

f/ The report submitted by the provincial Peoples Committee to the Prime Minister on the land lease (in cases where the land lease falls within the competence of the Prime Minister).

2. For land already assigned for use to the Vietnamese party to a joint venture with a foreign investor, the dossier of application for land lease shall include only the documents prescribed in Points a, b and c of Clause 1 of this Article.

Article 6.- The land lease decision shall be executed as follows:

1. Payment of compensation for ground clearance.

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a/ For enterprises with 100% foreign investment capital that seek to lease land, the provincial Peoples Committee shall direct the compensation for ground clearance;

b/ For joint venture enterprises, the Vietnamese party shall organize the payment of compensation for ground clearance.

2. After the land lease decision is issued by the competent level, the land lessee shall contact the provincial/municipal Land Administration Service in order to proceed with:

a/ Receiving the on-the-site hand-over of boundaries of the land lot;

b/ Signing a land lease contract.

3. After completion of the tasks prescribed in Clause 2 of this Articles, the provincial/municipal Land Administration Service shall assist the land lessee complete the land registration at the local Peoples Committee of the commune (ward, township) and submit it to the provincial People�s Committee for issuance of a certificate of land use right.

III. REGULATIONS ON THE SUBLEASE OF LAND IN INDUSTRIAL ZONES AND EXPORT PROCESSING ZONES

Article 7.- Organizations and individuals wishing to sublease land in industrial zones and export processing zones must file an application for land sublease with the organization to which the State has leased land for construction and operation of the infrastructure works (land sublessor).

The land sublease in industrial zones and export processing zones shall be effected by a land sublease contract signed between the sublessor and the sublessee.

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1. Within 10 days from the date of signing the land sublease contract, the land sublessor shall send to the provincial/municipal Land Administration Service the following documents:

- The land sublease contract;

- The certificate of land use right;

- The excerpt of the map of the subleased land.

2. Within seven (7) days from the date of receiving all the documents prescribed in Clause 1 of this Article, the provincial/municipal Land Administration Service shall:

a/ Register the land sublease in the land administration book (kept at the Service), record the land sublease on the certificate of land use right already granted and request the People�s Committee of the commune where the land is situated to make an update in its land administration book;

b/ Granting certificate of land sublease registration to the land sublessee.

The certificate of land sublease registration shall be issued by the General Land Administration and shall uniformly apply throughout the country.

3. After completing the procedures set forth in Clause 2 of this Article, the provincial/municipal Land Administration Service shall return the documents already submitted as prescribed in Clause 1 of this Article to the organizations that had submitted them.

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Article 9.- For foreign-invested enterprises which have already been granted investment licenses, and are using land without certificates of land use right or certificates of land sublease registration (in cases of subleased land in industrial zones and export processing zones), the local Land Administration Service shall guide such enterprises in completing land lease application dossier to be granted certificates of land use right or certificates of land sub-lease registration.

Article 10.- The ministries, the ministerial-level agencies, the agencies attached to the Government, the Peoples Committees of the provinces and cities directly under the Central Government shall guide the implementation of this Circular.

The Land Administration Services of the provinces and cities directly under the Central Government shall rely on the provisions of this Circular to: organize the processing of land lease application dossiers; manage the land leases in their respective localities; and make quarterly reports to the General Land Administration on the lease of land to foreign investment projects.

This Circular replaces the earlier provisions on land leases for the execution of investment projects under the Law on Foreign Investment in Vietnam in Circular No.1124-TT/DC of September 8, 1995 of the General Land Administration.

This Circular takes effect from the date of its signing.

FOR THE GENERAL DIRECTOR OF THE GENERAL LAND ADMINISTRATION
DEPUTY GENERAL DIRECTOR




Chu Van Thinh