Decision No. 146/2005/QĐ-TTg On the policy for reclaiming agricultural land from farms and forest farms to allocate to poor ethnic minority households

Pursuant to …;

Regarding the policy on reclaiming production land from agricultural farms and forestry farms,

 to transfer to ethnic minority households living in poverty,

_____________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

WHEREAS, Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on the implementation of the Land Law;

At the proposal of the Minister of Finance

DECISION:

Article 1.Issuing the policy on reclaiming production land from agricultural farms and forestry farms (including perennial orchards and planted forests) to transfer to ethnic minority households living in poverty pursuant to Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Government on certain support policies for production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions.

Article 2.The reclamation of production land, perennial orchards, and planted forests from agricultural farms and forestry farms shall only be carried out after conducting an inventory of current land use status and adjusting the land use plan of the agricultural and forestry farms approved by competent state authorities according to Decision No. 264/2003/QĐ-TTg dated December 16, 2003 of the Prime Minister on certain management and utilization measures for land in state-owned agricultural and forestry farms.

Article 3.The People's Committee of provinces and centrally governed cities (hereinafter referred to collectively as the provincial People's Committee) decides to reclaim production land from agricultural and forestry farms and transfer it to the People's Committee of districts, counties, cities, and towns within the province (hereinafter referred to collectively as the district-level People's Committee) to transfer to poor ethnic minority households. Compensation for land and assets shall be implemented as follows:

1. On land:

a) Production land of agricultural and forestry farms that was allocated before January 1, 1999; when reclaimed, no compensation shall be provided;

b) Production land of agricultural and forestry farms that has been converted to leasehold land or granted leasehold land by the State after January 1, 1999, and has paid rent for multiple years or paid rent for the entire lease period, when the State reclaims such land, compensation shall be provided for the remaining investment costs in the land (including: remaining prepaid rent, land leveling costs, and other directly related costs proven to have been invested in the land but not yet recovered at the time of State land reclamation).

The prepaid rent for the remaining lease period shall be determined based on the remaining prepaid rent multiplied by the rental price of the type of land currently being used (production land) at the time of land reclamation as stipulated by the provincial People's Committee according to the regulations of the Government, multiplied by the area of leased land.

2. On perennial orchards and planted forests on reclaimed land.

a) Perennial orchards and planted forests of agricultural and forestry farms including industrial trees, fruit trees, timber trees, leaf trees, and forest trees formed from borrowed capital or from household and individual investment capital contracted from agricultural and forestry farms, when the State reclaims the land, compensation shall be provided based on the current value of the orchard; this value does not include the value of land use rights. The value of perennial orchards and planted forests shall be determined according to the provisions of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State reclaims land;

b) Perennial orchards and planted forests of agricultural and forestry farms formed from other sources not covered under point a of this clause, when the State reclaims the land, no compensation shall be provided;

c) Regenerated forest trees and planted forest trees from state budget funds (including from funds of forest development projects) that agricultural and forestry farms have contracted to households and individuals to plant, encircle, protect, and regenerate forests, when the State reclaims the land, compensation shall be provided for the planted forest trees on the land. The level of compensation shall be equivalent to the share of products as stipulated by the Ministry of Finance and the Ministry of Agriculture and Rural Development in Decision No. 178/2001/QĐ-TTg dated November 12, 2001 of the Prime Minister on the benefits and obligations of households and individuals contracted, leased, or assigned forests and forest land.

3. On houses and other attached construction works:

a) Houses and other attached construction works and other assets attached to the land of agricultural and forestry farms invested and constructed directly for the production of the plot (parcel) of land being reclaimed, where the investment capital for these assets is formed from borrowed capital or household and individual investment capital contracted from agricultural and forestry farms, when the State reclaims the land, compensation shall be provided according to the provisions of Decree No. 197/2004/NĐ-CP dated December 3, 2004 of the Government on compensation, support, and resettlement when the State reclaims land;

b) Houses and other attached construction works... invested from other sources not covered under point a of this clause, when the State reclaims the land, no compensation shall be provided.

Article 4.The source of funds for compensation as stipulated in Article 3 of this Decision includes:

1. The central government budget ensures funding for compensation payments at an average rate of 5,000,000 VND/hectare (five million dong per hectare).

2. The provincial People's Committee deciding to reclaim land from agricultural and forestry farms and transfer it to poor ethnic minority households must ensure that the local government budget funds are not less than 20% of the central government budget funds guaranteed.

3. Legal sources of funds as stipulated in Clause 2, Article 5 of Decision No. 134/2004/QĐ-TTg dated July 20, 2004 of the Prime Minister on certain support policies for production land, residential land, housing, and drinking water for poor ethnic minority households with difficult living conditions.

Article 5.Revaluation of the value of orchards and planted forests for transfer.

1. Establish a committee to revalue the value of perennial orchards and planted forests, determine the value of property such as houses and other constructions (if any). Members of the committee include: the leader of the Department of Finance as the Chairman of the Committee, members representing the Department of Natural Resources and Environment, the Department of Agriculture and Rural Development, and other members appointed by the Chairman of the provincial People's Committee as appropriate to the actual situation in the locality.

The provincial People's Committee may hire state organizations with the function of valuing assets to revalue the value of orchards and planted forests, and determine the value of property such as houses and other construction works (if any).

2. The basis for reassessing the value of orchards and planted forests is the current status of orchards and planted forests calculated based on their selling price in the local market at the time of transfer, while also considering the actual investment value in orchards and planted forests up to the time of transfer.

Article 6. Poor ethnic minority households receiving production land from sources recovered from agricultural farms and forestry farms shall be decided by the Chairman of the People's Committee of the district based on the proposal of the Chairman of the People's Committee of the commune and taking into account the opinions of the Vietnam Fatherland Front at the district level and relevant functional agencies of the district.

Article 7.Transfer production land, orchards, and planted forests to poor ethnic minority households.

1. The transfer shall be directly carried out between the agricultural farm or forestry farm with production land being recovered and the People's Committee of the district and the poor ethnic minority household.

2. Production land, orchards, and planted forests that have not been invested with borrowed funds from organizations, households, individuals, or invested with funds from households or individuals who have taken over management contracts (including land development costs, investments in land, planting, and caring for orchards and forests) shall be transferred according to the decision of the competent state agency.

3. Production land, orchards, and planted forests that have been invested with borrowed funds from organizations, households, individuals, or invested with funds from households or individuals who have taken over management contracts, when recovering the land, compensation must be implemented according to the provisions of Articles 3 and 5 of this Decision; simultaneously transferring production land, orchards, and planted forests to poor ethnic minority households according to the decision of the People's Committee of the district.

4. The contents of the handover record for production land include:

a) The parties handing over and receiving, and representatives of local functional agencies;

b) Location, area, type of land, duration of land use (extracts from maps);

c) Current status of orchards and planted forests;

d) Total asset value, including the value of orchards and planted forests handed over to households, which includes:

- The value of orchards and planted forests reassessed;

- The value of assets such as houses and other construction works attached to production land.

e) Other related information.

Article 8.Increasing or decreasing assets shall be carried out as follows:

1. Agricultural farms or forestry farms with production land recovered by the State shall record the reduction of assets: houses, other construction works (if any), long-term orchards, planted forests handed over according to the land recovery decision and reduce the state budget capital according to the value recorded in accounting books.

2. Local budgets shall pay compensation for prepaid land rental fees for the remaining lease period; compensate for temporary buildings, long-term orchards, and planted forests invested with borrowed funds or invested with funds from households or individuals who have taken over management contracts as stipulated in Clause 3, Article 7 of this Decision.

Article 9.Rights and obligations of poor ethnic minority households receiving production land recovered from agricultural farms and forestry farms.

1. Regarding rights:

a) Regarding production land: have the right to use land and other benefits as prescribed by laws on land;

b) Regarding orchards and planted forests: manage and care for them and enjoy benefits from orchards and planted forests.

2. Regarding obligations:

a) Regarding production land: use land according to its designated purpose when allocated or permitted to change the land use purpose along with changing crop and livestock structures according to plans approved by competent state agencies;

b) Comply with state regulations on land management and use, financial obligations regarding land, and laws on forest protection and forestry.

3. Not allowed to convert or transfer orchards and planted forests allocated by the State within ten years from the date of allocation. In case there is no need to continue using the allocated production land, orchards, and planted forests, the State will recover them without compensation.

Article 10.Responsibilities of state agencies.

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Natural Resources and Environment and the Ministry of Agriculture and Rural Development:

a) To compile reports from provincial People's Committees on the implementation and results of this Decision;

b) To guide and inspect the implementation by localities and agricultural farms and forestry farms;

c) To coordinate with the Ministry of Planning and Investment to allocate and combine funds for programs and objectives to ensure sufficient funding for implementing this Decision.

2. The Chairman of the Provincial People's Committee shall base decisions on the review of current land use status and adjustment of land use plans of agricultural farms and forestry farms; results of restructuring and developing state-owned agricultural farms as stipulated in Decree No. 170/2004/NĐ-CP dated September 22, 2004 of the Government on restructuring, reform, and development of state-owned agricultural farms and Decision No. 264/2003/QĐ-TTg dated December 16, 2003 of the Prime Minister on some measures for managing and using land in state-owned agricultural and forestry farms, and local land use plans approved by competent state agencies to:

a) Decide on the recovery of production land from agricultural farms and forestry farms;

b) Establish a committee to assess asset values or entrust functional units or agencies to determine asset values for assessing asset values when recovering production land from agricultural farms and forestry farms;

c) Receive, manage, and use central government funds allocated under Clause 1, Article 4 of this Decision;

d) Regularly report every six months on the implementation of production land recovery from agricultural farms and forestry farms, to be submitted to the Prime Minister, the National Ethnic Council, the Ministry of Finance, and the Ministry of Agriculture and Rural Development.

3. The Ministry of Agriculture and Rural Development and the Ministry of Natural Resources and Environment shall, based on their functions and responsibilities, guide relevant localities and organizations to implement this Decision.

Article 11.EFFECTIVE DATE

The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.