Joint Circular No. 14/2008/TTLT-BTC-BTNMT guiding the implementation of certain provisions of Government Decree No. 84/2007/NĐ-CP dated May 25, 2007 on additional regulations regarding issuance of Land Use Right Certificate, land recovery, exercise of land use rights, procedures and formalities for compensation, support, resettlement when the State recovers land, and resolution of land disputes.

JOINT CIRCULAR

Guidance on Implementation of Certain Provisions of Decree No. 84/2007/NĐ-CP dated May 25, 2007 of the Government on Additional Provisions Regarding Issuance of Land Use Right Certificates, Land Recovery, Exercise of Land Use Rights, Procedures for Compensation, Support, and Relocation when the State Recovers Land, and Resolution of Land Disputes supplementing the issuance of Land Use Right Certificate, and Procedures for Compensation, Support, and Relocation when the State Recovers Land procedures for compensation, support, and resettlement when the State recovers landand Resolution of Land Disputes

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Based on the Land Law dated November 26, 2003;

Pursuant to Decree No. 84/2007/NĐ-CP dated May 25, 2007 of the Government on Additional Provisions Regarding Issuance of Land Use Right Certificates, Land Recovery, Exercise of Land Use Rights, Procedures for Compensation, Support, and Relocation when the State Recovers Land, and Resolution of Land Disputes;

The Ministry of Finance and the Ministry of Natural Resources and Environment provide guidance on implementation of certain provisions of Decree No. 84/2007/NĐ-CP dated May 25, 2007 of the Government on Additional Provisions Regarding Issuance of Land Use Right Certificates, Land Recovery, Exercise of Land Use Rights, Procedures for Compensation, Support, and Relocation when the State Recovers Land, and Resolution of Land Disputes (referred to as Decree No. 84/2007/NĐ-CP) as follows:

I. PROCEDURES FOR RECORDING DEBT FOR LAND USE FEE AS PROVIDED IN ARTICLE 5

1. Cases Eligible for Recording Debt for Land Use Fee:

Households and individuals who have not yet the ability to pay the land use fee but wish to record debt shall be eligible to record debt for land use fee on the Land Use Right Certificate (referred to as the Certificate) in the following cases:

1.1. Households and individuals whose land use purpose has been changed, and who have been issued the Certificate and must pay the land use fee as provided in Article 6 and Article 8 of Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on Collection of Land Use Fees (referred to as Decree No. 198/2004/NĐ-CP).

1.2. Households and individuals who have been allocated land for relocation by the State.

2. Procedures for Recording Debt for Land Use Fee:

From July 2, 2007 (the date Decree No. 84/2007/NĐ-CP took effect), households and individuals who have not yet the ability to pay the land use fee as specified in Clause 1 of this Section, if they submit a request for recording debt for land use fee along with the application for issuance of the Certificate or the application for changing land use purpose or the application for allocation of land for relocation, shall be eligible to record debt for land use fee.

When issuing the Certificate or amending the Certificate, the Department of Natural Resources and Environment must record the content "debt for land use fee" on page 4 of the Certificate; sign and stamp to confirm the recorded content; notify in writing the tax authority about cases of recording debt for land use fee.

In cases where households and individuals have submitted an Application for Recording Debt for Land Use Fee and a complete and valid application for issuance of the Certificate or for changing land use purpose according to Clause 4 of Article 5 of Decree No. 17/2006/NĐ-CP dated January 27, 2006 of the Government on Amending and Supplementing Several Provisions of Decrees Guiding the Implementation of the Land Law and Decree No. 187/2004/NĐ-CP on the Transformation of State-Owned Enterprises into Joint Stock Companies (referred to as Decree No. 17/2006/NĐ-CP) before July 2, 2007 and have not yet received the Certificate, they will continue to be eligible for issuance of the Certificate and recording debt for land use fee on the Certificate according to Decree No. 17/2006/NĐ-CP and the guidance provided in Circular No. 70/2006/TT-BTC dated August 2, 2006 of the Ministry of Finance guiding amendments and supplements to Circular No. 117/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance guiding the implementation of Decree No. 198/2004/NĐ-CP (referred to as Circular No. 70/2006/TT-BTC).

II. DETERMINATION OF FINANCIAL OBLIGATIONS FOR CASES WHERE THE RIGHT TO USE LAND HAS BEEN TRANSFERRED BUT THE PROCEDURE FOR TRANSFERRING THE RIGHT HAS NOT YET BEEN COMPLETED AS PROVIDED IN CLAUSE 1 OF ARTICLE 11

Households and individuals currently using land with origins from transfer, inheritance, or gift of land use rights or houses attached to residential land use rights before July 1, 2004, who have not yet received the Certificate, and who do not have any of the documents stipulated in Clause 1 of Article 50 of the Land Law but have documents regarding the transfer of land use rights signed by the transferring party (including cases without confirmation by the competent state agency regarding the transfer), if now they are granted the Certificate by the competent state agency, they will not need to go through the procedure for transferring land use rights but must pay the land use fee as prescribed in Decree No. 198/2004/NĐ-CP and Decree No. 84/2007/NĐ-CP; and pay the stamp duty as prescribed by law.

The land price for calculating the land use fee and stamp duty is the land price issued by the People's Committee of the province or centrally governed city (referred to as the provincial People's Committee) according to the regulations of the Government that are effective at the time of submission of complete and valid documents.

III. ISSUANCE OF THE CERTIFICATE IN CASES WHERE THE LAND WAS ALLOCATED WITHOUT PROPER AUTHORITY BEFORE JULY 1, 2004 BUT THE LAND USER HAS PAID MONEY TO USE THE LAND AS PROVIDED IN ARTICLE 16

1. Documents proving payment of money to the agencies or organizations as provided in Article 16 of Decree No. 84/2007/NĐ-CP include one of the following types:

1.1. Receipts (payment vouchers, invoices) for payment to use land or compensation payments according to Decision No. 186/HĐBT dated May 31, 1990 of the Council of Ministers on compensation for losses of agricultural land and forested land when converted to other purposes.

1.2. Receipts (payment vouchers, invoices) for payment according to Circular No. 60/TC-TCT dated July 16, 1993 of the Ministry of Finance on additional guidance on reduction or exemption of agricultural land use taxes.

1.3. Receipts (payment vouchers, invoices) for payment of land fees as stipulated by the People's Committee of the district or commune or by the agencies or organizations allocating land without proper authority, which have been issued to households or individuals by those agencies or organizations.

2. In the case where land has been transferred beyond authority and the land use fee has been paid but the relevant documents are only kept at the agency or organization that collected the money or another related agency or organization, such agency or organization shall be responsible for providing the documents they hold to enable the land user to complete the application for issuance of the Land Certificate.

IV. PROCEDURES FOR SETTLING FINANCIAL OBLIGATIONS RELATING TO LAND IN THE CASE OF A JOINT ECONOMIC ORGANIZATION BECOMING AN ENTIRELY FOREIGN CAPITALIZED ECONOMIC ORGANIZATION AS PROVIDED FOR IN ARTICLE 23

When a joint economic organization between domestic investors and foreign investors becomes an entirely foreign capitalized economic organization, the area of land contributed to the joint venture must be converted to the form of state leasing of land, with the option to pay the land lease fee either in one lump sum or annually.

1. The handling of the value of the land use rights contributed to the joint venture by the Vietnamese party shall be carried out as follows:

1.1. Pay to the state budget the portion of the state budget capital calculated based on the value of the land use rights according to the term of capital transfer from the time of using the land use rights for contribution to the joint venture until the time of transferring the capital, with the area of land contributed and the rental price per unit area stipulated in the Debt Repayment Contract with the financial authority (for cases where the debt repayment value of the capital contribution was made through land use rights according to Circular No. 70 TC/QLCS dated October 7, 1997 of the Ministry of Finance guiding the payment of land lease fees and joint venture contributions through the value of land use rights of domestic organizations under Decree No. 85/CP dated December 17, 1996 of the Government) or the Receipt (document) of capital receipt (for cases where the capital receipt was made according to Article 28 of Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government implementing the Law Amending and Supplementing Certain Provisions of the Land Law 1998 and Circular No. 35/2001/TT-BTC dated May 25, 2001 of the Ministry of Finance guiding the payment of land lease fees and joint venture contributions through the value of land use rights of domestic organizations, households, and individuals) or Investment License (for cases where the debt repayment or capital receipt with the state had not yet taken place).

1.2. Pay to the state budget the amount of state budget capital permitted to contribute to the joint venture as follows:

a) For Vietnamese enterprises that have not yet received debt repayment or capital receipt and have not yet paid the capital utilization fee to the state budget, the payment of the capital utilization fee shall be carried out as follows:

- From the date of using the land for contribution until December 31, 2000, the payment rate is 3% per year based on the value of the land use rights contributed.

- From January 1, 2001 to January 1, 2002, the payment rate is 1.8% per year based on the value of the land use rights contributed.

b) For enterprises (Vietnamese side) that have already completed debt repayment or capital receipt and have paid the capital utilization fee to the state budget, they must pay the capital utilization fee for the period not yet paid up to December 31, 2001.

1.3. After paying the state budget the portion of the state budget capital equivalent to the value of the land use rights contributed to the joint venture according to Point 1.1 Clause 1 Section herein (for cases where the competent authority has decided to increase the state capital by the value of the land use rights contributed to the joint venture), the Vietnamese enterprise may reduce its state capital.

1.4. For the value of the land use rights contributed to the joint venture by the Vietnamese party originating from land allocated with land use fees, or land use rights transferred where the land use fees or transfer fees have not originated from the state budget, the Vietnamese enterprise does not need to pay the state budget the capital contribution equivalent to the value of the land use rights transferred and the capital utilization fee as stipulated in Points 1.1 and 1.2 Clause 1 Section herein.

2. An entirely foreign capitalized economic organization receiving the transfer of the Vietnamese party's capital contribution through the value of the land use rights must go through the procedures for leasing land and does not need to pay the land lease fee for the period during which the Vietnamese party had transferred the capital contribution through the value of the land use rights. Upon expiration of the period for receiving the transfer of the Vietnamese party's capital contribution through the value of the land use rights, the entirely foreign capitalized economic organization must pay the land lease fee according to the laws in effect at the time of payment.

3. Procedures, documents, and procedures for paying the state budget for the amounts that domestic investors must pay according to Point 1.1 and 1.3 Clause 1 Section herein shall be implemented according to Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing the implementation of certain provisions of the Tax Administration Law.

4. After the parties have completed the procedures for transferring land use rights and fulfilled their financial obligations, the Department of Natural Resources and Environment shall be responsible for issuing a decision terminating the Land Lease Contract for domestic economic organizations; and submit to the People's Committee of the province for a decision allowing the entirely foreign capitalized economic organization to lease land according to the provisions of the Land Law.

V. TRANSFERRING INVESTMENT PROJECTS USING LAND AS PROVIDED FOR IN ARTICLE 24

1. Procedures and formalities for transferring investment projects using land:

1.1. In the case where domestic economic organizations are granted land with payment for land use rights by the State, acquire transfer of land use rights; or lease land from the State before July 1, 2004, have paid rent for the entire lease period or prepaid rent for several years, and the remaining lease term for which rent has been paid is at least five (05) years, and the amount of land use fee paid, the amount of transfer price of land use rights paid, and the amount of rent paid do not originate from the State budget, then after the investment project transfer contract involving land use has been notarized, the transferring party shall submit the investment project transfer contract and the Certificate of Land Use Right to the Land Registration Office under the Department of Natural Resources and Environment where the land is located to carry out the transfer of land use rights according to Article 127 of the Land Law and Article 148 of Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on the implementation of the Land Law (referred to as Decree No. 181/2004/NĐ-CP). In cases of transferring investment projects within economic zones or high-tech zones, the transfer contracts are not notarized but must be confirmed by the Management Board of the economic zone or high-tech zone.

After the parties involved in the project transfer complete their financial obligations as prescribed by law, the Department of Natural Resources and Environment shall be responsible for submitting to the People's Committee of the province to decide on leasing land, issuing new Certificates of Land Use Rights for partial transfers of investment projects using land, or amending Certificates of Land Use Rights for full transfers of investment projects using land; the Department of Natural Resources and Environment shall enter into a land lease contract with the transferee of the investment project using land.

1.2. In the case where domestic economic organizations are granted land with payment for land use rights, acquire transfer of land use rights, or lease land from the State before July 1, 2004, have paid rent for the entire lease period or prepaid rent for several years, and the remaining lease term for which rent has been paid is at least five (05) years, and the amount of land use fee paid, the amount of transfer price of land use rights, and the amount of rent paid originate from the State budget or lease land with annual rent payments, or land granted by the State without payment for land use rights to contribute capital through land use rights, then after the investment project transfer contract involving land use has been notarized, the transferring party shall submit the investment project transfer contract and the Certificate of Land Use Right to the Land Registration Office under the Department of Natural Resources and Environment to proceed as if selling assets attached to land according to Article 158 of Decree No. 181/2004/NĐ-CP. In cases of transferring investment projects within economic zones or high-tech zones, the transfer contracts involving land use are not notarized but must be confirmed by the Management Board of the economic zone or high-tech zone.

1.3. After the parties involved in the project transfer complete their financial obligations as prescribed by law, the Department of Natural Resources and Environment shall submit to the People's Committee of the province to decide on reclaiming land from the transferring party and deciding on leasing land; terminate the land lease contract (for the case where the transferring party was leased land by the State); submit to the People's Committee of the province to issue Certificates of Land Use Rights to the transferee; sign a Land Lease Contract with the transferee.

2. The value of the investment project transfer contract includes the investment value and the value of land use rights in the case where the transferring party uses land as stipulated in Point 1.1 Clause 1 Section of this Article.

VI. PROCEDURES FOR RECEIVING TRANSFER OF LAND USE RIGHTS TO IMPLEMENT INVESTMENT PROJECTS AS PROVIDED FOR IN ARTICLE 28

1. The procedures for receiving transfer of land use rights along with changing the purpose of land use that requires permission to change the purpose of land use to implement investment projects by economic organizations, households, individuals (referred to as investors) shall be carried out as follows:

1.1. Before receiving the transfer of land use rights along with changing the purpose of land use to implement investment projects, the investor must send a written request to the competent People's Committee for permission to change the purpose of land use to obtain approval for the investment proposal. Based on the land use plan, urban planning, or detailed construction plan for rural residential areas approved by the competent state authorities, the competent People's Committee shall be responsible for responding in writing to the investor regarding the approval or disapproval of the investment proposal; in cases of disapproval, the reasons must be clearly stated.

1.2. If the competent People's Committee approves the investment proposal, the investor shall submit one (01) set of documents to the Land Registration Office under the Department of Natural Resources and Environment (if the transferring party is an economic organization); or to the Land Registration Office under the District Office of Natural Resources and Environment (if the transferring party is a household or individual); the documents include:

a) Land use right transfer contract;

b) Application for changing the purpose of land use (specifying the plot number, total area of land, and method of paying land use fees or rent);

c) Approval document for the investment proposal as stipulated in Point 1.1 Clause 1 of this Article;

d) Certificate of Land Use Right or one of the types of documents concerning land use rights specified in Clauses 1, 2, and 5 of Article 50 of the Land Law (if applicable);

đ) Investment project as prescribed by laws on investment (for economic organizations).

1.3. The Land Registration Office shall carry out the transfer of land use rights as provided for in Points a and b Clause 2 Article 148 of Decree No. 181/2004/NĐ-CP and transfer the documents to the competent authority for natural resources and environment to approve the change of land use purpose to implement the change of land use purpose according to Article 134 of Decree No. 181/2004/NĐ-CP before amending or issuing new Certificates of Land Use Rights; transfer the cadastral data of the type of land after the change of land use purpose to the Department of Finance to serve as the basis for calculating land use fees.

2. Investors must fulfill their financial obligations related to the transfer of land use rights and the change of land use purpose as follows:

2.1. After completing the land valuation review for the land transfer price paid by the investor, the Department of Finance shall submit to the provincial People's Committee for a decision on the land price that the investor has paid to acquire the land use right transfer.

2.2. The payment of land use fees and land lease fees shall be carried out as follows:

a) In the case where the investor chooses the form of land allocation with payment of land use fee, they must pay the land use fee equal to the difference between the land use fee calculated according to the type of land after changing its purpose and the land use right transfer price decided by the provincial People's Committee as stipulated in Point 2.1 of this Clause but not exceeding the maximum compensation and support amount corresponding to the situation when the State recovers the land.

b) In the case where the investor chooses the form of land lease, the land use right transfer price decided by the provincial People's Committee as stipulated in Point 2.1 of this Clause shall be deducted from the land lease fee payable according to Point b, Clause 2, Clause 3, and Clause 5, Article 28 of Decree No. 84/2007/NĐ-CP but not exceeding the maximum compensation and support amount corresponding to the situation when the State recovers the land.

In the case where the investor hires consulting services to determine the land transfer price to deduct from the land lease fee payable according to Clause 5, Article 28 of Decree No. 84/2007/NĐ-CP, the land price for determining the rental rate must also be determined by the consulting service, reviewed by the Department of Finance, and submitted to the provincial People's Committee for a decision.

VII. SUPPORT FOR INTERSPERSED AGRICULTURAL LAND IN URBAN AREAS AND ADJACENT GARDEN AND POND LANDS WITH RESIDENTIAL LAND IN URBAN AREAS AS PROVIDED IN ARTICLE 43

1. The area eligible for support as provided in Clause 1, Article 43 of Decree No. 84/2007/NĐ-CP includes the entire area of agricultural land; garden and pond land within the same plot containing residential buildings but not recognized as residential land within the following areas:

a) Within the administrative boundaries of a ward;

b) Within the urban residential area of a town or rural residential area where the boundaries of the residential area have been shown on the detailed land use planning map of the commune or town approved by the competent state agency; in cases where the residential area of a town or rural residential area does not have a detailed land use planning map approved, the boundaries are determined based on the outermost plot containing a residential building in the residential area.

2. The area eligible for support as provided in Clause 3, Article 43 of Decree No. 84/2007/NĐ-CP for agricultural plots without residential buildings shall not exceed five (05) times the maximum residential land allocation limit for each household or individual as stipulated in Clause 2, Article 83 and Clause 5, Article 84 of the Land Law.

3. For intermixed agricultural plots in urban areas and garden and pond land within the same plot containing residential buildings in an area being expropriated that borders multiple plots with different prices, the land price for calculating compensation is the average price of adjacent residential plots; if the adjacent plots are not residential land, the residential land price for calculating compensation is the price of the nearest residential plot or the average price of the nearest residential plots.

VIII. EXPENSES FOR PREPARING THE LAND ADMINISTRATIVE DOCUMENTS FOR THE EXPROPRIATED LAND AS PROVIDED IN CLAUSE 3, ARTICLE 50

1. Expenses for amending land administrative maps, extracting land administrative maps, conducting land surveys, and copying land administrative files performed by the Natural Resources and Environment Agency or the Land Registration Office when the State expropriates land for project implementation shall be borne by the project investor and settled from the project investment capital.

2. In cases where the State expropriates land according to the announced land use plan without a specific investment project, the expenses mentioned in Clause 1 of this Section shall be borne by the Land Development Fund and settled from the fund's operational budget; for localities without a Land Development Fund, the Natural Resources and Environment Agency or the Land Registration Office shall settle from the allocated budget of the unit.

IX. ESTABLISHING, REVIEWING, AND APPROVING THE OVERALL COMPENSATION, SUPPORT, AND RELOCATION PLAN AS PROVIDED IN ARTICLE 51 AND ESTABLISHING, REVIEWING, AND APPROVING THE COMPENSATION, SUPPORT, AND RELOCATION PLAN AS PROVIDED IN ARTICLE 56

1. The organization responsible for compensation and clearance shall prepare the overall compensation, support, and relocation plan and submit one (01) set of documents to the Department of Finance in cases where the State expropriates land involving two (02) districts, counties, towns, or cities under provinces or higher levels and those compensation, support, and relocation plans approved by the provincial People's Committee; submit to the District Finance Office for plans approved by the district People's Committee.

2. The Finance Department shall lead and coordinate with the Natural Resources and Environment Department and relevant agencies at the same level to review the overall compensation, support, and relocation plan and the compensation, support, and relocation plan transferred by the organization responsible for compensation and clearance for submission to the same-level People's Committee for approval.

If necessary, the Chairman of the People's Committee with authority may approve the overall compensation, support, and relocation plan and the compensation, support, and relocation plan by establishing a Review Board chaired by the head of the Finance Department.

3. The content of reviewing the overall compensation, support, and relocation plan includes the applied compensation, support, and relocation policies; the resettlement arrangement plan and the budget estimate for implementing the plan.

The content of reviewing the compensation, support, and relocation plan includes the specific application of compensation, support, and relocation policies; the pricing of land and assets for compensation calculation; the support items; the resettlement arrangement plan and the budget for paying compensation, support, and relocation specifically for the project.

4. The costs for preparing and reviewing the overall compensation, support, and resettlement plan and the compensation, support, and resettlement plan of the project shall be funded from the budget allocated for organizing and implementing compensation, support, and resettlement when the State expropriates land as stipulated in Article 48 of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State expropriates land, Clause 6 of Article 4 of Decree No. 17/2006/NĐ-CP, and the guidance provided in Section VII of Circular No. 116/2004/TT-BTC dated December 7, 2004 of the Ministry of Finance guiding the implementation of Decree No. 197/2004/NĐ-CP, Section 4 of Circular No. 69/2006/TT-BTC dated August 2, 2006 of the Ministry of Finance amending and supplementing Circular No. 116/2004/TT-BTC, and Circular No. 126/2007/TT-BTC dated October 30, 2007 of the Ministry of Finance guiding the preparation of budgets, utilization, and settlement of costs for organizing and implementing compensation, support, and resettlement for construction projects of transportation works in administrative units within difficult areas.

X. EFFECTIVE DATE OF THE PROVISIONS OF ARTICLE 67

Projects and components that have completed compensation, support, and resettlement before July 2, 2007 (the date Decree No. 84/2007/NĐ-CP took effect) shall not apply or adjust according to the provisions of Decree No. 84/2007/NĐ-CP.

For projects and components where the Compensation, Support, and Resettlement Plan has been approved but not yet implemented or not yet fully implemented for compensation, support, and resettlement before the effective date of Decree No. 84/2007/NĐ-CP, if the land price is higher than the approved land price, only the adjustment of land price shall be carried out in accordance with Clause 4 of Article 58 of Decree No. 84/2007/NĐ-CP; other provisions on compensation, support, and resettlement stipulated in Decree No. 84/2007/NĐ-CP shall not be applied.

XI. IMPLEMENTATION

1. This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

2. Abolish the provisions guiding the implementation of Clause 6 and Clause 8 of Article 8, Article 41, Article 42, Article 47, Article 49, and paragraph 2 of Clause 2 of Article 50 of Decree No. 197/2004/NĐ-CP in Circular No. 116/2004/TT-BTC and in Circular No. 69/2006/TT-BTC.

3. Provincial People's Committees and Municipal People's Committees directly under the Central Government shall be responsible for implementing this Circular. During the implementation process, if there are difficulties, they should promptly report to the Ministry of Natural Resources and Environment and the Ministry of Finance for coordination in resolving them./.