Decree No. 17/1999/ND-CP On procedures for converting, transferring, leasing, subleasing, inheriting land use rights and mortgaging, contributing capital with the value of land use rights

DECREE

Regarding the procedures for converting, transferring, leasing, subleasing, inheriting land use rights, and mortgaging, contributing capital with the value of land use rights

________________________

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Land Law dated July 14, 1993, and the Law Amending and Supplementing Certain Provisions of the Land Law dated December 2, 1998;

||| Based on the Civil Code dated October 28, 1995;

At the proposal of the Director General of the Land Administration General Department,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree stipulates the procedures for converting, transferring, leasing, subleasing, inheriting land use rights, and mortgaging, contributing capital with the value of land use rights of organizations, households, and individuals within the country.

2. The provisions of this Decree shall not apply to cases of leasing communal land for 5% of the area of villages, towns, and wards.

Article 2. Delegation of authority to exercise land users' rights

1. The person authorized by the head of a household must be a member of the household and represent the household in exercising the rights to convert, transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

2. The person authorized by an individual represents the individual in exercising the rights to convert, transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

3. The person authorized by the head of an organization represents the organization in exercising the rights to transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

4. The delegation of authority to representatives to exercise the rights specified in Clauses 1, 2, and 3 of this Article must be in writing.

For households and individuals, the delegation of authority must be certified by the People's Committee of the commune, ward, or town where they reside.

Article 3. Documents required to exercise land users' rights

1. When exercising their rights, land users must have a certificate of land use rights issued by a competent state agency. The certificate of land use rights may be issued by the former General Department of Land Management or the former General Department of Cadastre.

2. A person currently using land who possesses one of the following documents shall proceed with the procedure to obtain a certificate of land use rights and exercise the rights as prescribed in this Decree:

b) Documents issued by competent state agencies during the implementation of land policies in different periods of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, and the Socialist Republic of Vietnam, which the persons allocated or leased land have continuously used since then without dispute;

b) Documents issued by a competent state agency granting land or leasing land during the implementation of land policies at different periods of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, and the Socialist Republic of Vietnam, provided that the person granted or leased the land has continuously used it from then until now;

d) Documents issued by authorities under the previous regime for land users that the users have continuously used from then until now without dispute;

đ) Documents on inheritance, gift, or transfer of houses attached to land confirmed by the People's Committee of the commune, ward, or town and the land is without dispute;

d) Documents concerning inheritance of real estate; gifts or transfers of real estate confirmed by the People's Committee of the commune, ward, or town, and the land in question is not in dispute;

h) Documents on land transfer and house sale accompanied by land use right transfer confirmed by the People's Committee of the commune, ward, or town as the land is without dispute and confirmed by the People's Committee of the district, town, or city directly under a province on the result of the verification by the People's Committee of the commune, ward, or town.

3. Households and individuals when transferring or inheriting property attached to their land use rights must have a certificate of land use rights or one of the types of documents specified in Point 2 of this Clause.

h) Documents on the transfer of land, sale of houses accompanied by the transfer of land use rights, which have been reviewed by the People's Committee of the commune, ward, or town to confirm that there is no dispute over the land, and the results of such review are confirmed by the People's Committee of the district, town, or city under a province;

3. Economic organizations that have legally acquired the transfer of land use rights from another party or have been granted land by the State with payment for land use, where the funds are not derived from the State budget, may exercise the rights stipulated in this Decree without having to establish a land rental file with the State.

4. The competent state agency responsible for issuing certificates of land use rights must issue such certificates within 15 days for rural land and 30 days for urban land.

Article 4. Purpose and duration of land use when exercising rights

After completing the transfer, assignment, lease, sublease, inheritance of land use rights, and mortgage, contribution with the value of land use rights, the land must be used for the intended purpose and within the allocated or leased period.

Chapter 2:

TRANSFER OF LAND USE RIGHTS

Article 5. Conditions for transferring agricultural land use rights, forestry land use rights, residential land use rights of households and individuals

Households and individuals using agricultural land, forestry land, and residential land may transfer their land use rights to each other if they meet the following conditions:

1. Convenience for production and living;

2. After transferring the land use rights, the land must be used for the intended purpose and within the period specified when the State allocates the land.

Article 6. Documents for transferring land use rights

5. Article 7 is amended and supplemented as follows

1. Land use right transfer contract according to Model No. 1 issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town where the land is located).

Article 7. Procedure for transferring land use rights

The documents for transferring land use rights shall be submitted to the People's Committee of the commune, ward, town where the transferred land is located.

2. Within seven days from the date of receiving complete valid documents, the People's Committee of the commune, ward, town shall review the documents, confirm in Part II (part recorded by the state agency) of the Land Use Right Transfer Contract for cases eligible for transfer and record in the land change tracking book; if not eligible for transfer, return the documents and inform the parties of the reasons for not being able to transfer the land use rights.

3. The People's Committee of the commune, ward, town shall submit to the People's Committee of the district, town, city under province to issue certificates of land use rights for cases that have completed the transfer.

Chapter 3:

ASSIGNMENT OF LAND USE RIGHTS

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 8. Conditions for assigning land use rights of households and individuals

1. Households and individuals using agricultural land, forestry land for planting forests may assign their land use rights if they meet one of the following conditions:

a) Moving to another place of residence for living or business;

b) Changing to another profession;

c) No longer capable of direct labor.

2. Households and individuals using residential land, specialized land may assign their land use rights when moving to another place or no longer needing to use the land.

3. Households and individuals who have been leased land by the State and have paid rent for the entire lease period or prepaid rent for several years, with the remaining lease period still at least five years, may assign their leased land use rights.

Article 9. Conditions for accepting the assignment of agricultural land use rights

Households and individuals accepting the assignment of agricultural land use rights must meet the following conditions:

1. Need to use the land;

2. Do not yet have land or are currently using land below the limit prescribed by the law on land.

In the case of transferring paddy field land use rights, the transferee must be a household or individual directly engaged in agricultural production.

For households accepting the assignment of land use rights exceeding the limit, the excess area must be converted to leased land according to Point 1 Clause 5 Article 1 of the Law amending and supplementing some articles of the Land Law.

Article 10. Documents for assigning land use rights

Documents for assigning land use rights include:

1. Land use right assignment contract according to Model No. 2 issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town);

3. Sketch map of the land plot (extract from the land plot map or measured on-site);

4. Receipts for land rent payment.

Article 11. Procedure for assigning land use rights

1. Documents for assigning land use rights shall be submitted to the People's Committee of the commune, ward, town where the land is located.

2. Within five days from the date of receiving complete valid documents, the People's Committee of the commune, ward, town shall review the documents, confirm in Item 1 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract for cases meeting the assignment conditions and send the documents to the District Land Administration Office, town, city under province; if not eligible for assignment, return the documents and inform the parties of the reasons.

3. Within five days from the date of receiving complete valid documents, the District Land Administration Office shall examine the documents, record the review content in Item 2 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract and submit it to the People's Committee of the district, town, city under province.

4. Within three days from the date of receiving complete valid documents submitted by the District Land Administration Office, the People's Committee of the district, town, city under province shall complete the confirmation of eligibility for assignment in Item 2 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract.

5. After being confirmed eligible for assignment by the People's Committee of the district, town, city under province, the District Land Administration Office shall notify the assignor to pay the land transfer tax and the assignee to pay the stamp duty according to the law.

6. After both parties have completed the payment of the land transfer tax and stamp duty, the District Land Administration Office shall update the land change tracking book and return the documents to the parties. The assignee shall be issued a certificate of land use rights according to the law on land.

PART 2: REGARDING ORGANIZATIONS

Article 12. CONDITIONS FOR TRANSFERRING THE RIGHT TO USE LAND BY ECONOMIC ORGANIZATIONS

Economic organizations may transfer the right to use land if they meet one of the following conditions:

1. The land was granted by the State with payment for land use rights.

2. The land is acquired through a lawful transfer of land use rights;

3. The land was leased by the State where the lease fee has been paid for the entire lease period or prepaid for several years, and the remaining lease term for which the lease fee has been paid is at least five years.

Article 13. Documents for assigning land use rights

Documents for transferring land use rights include:

1. Land use right assignment contract according to Model No. 2 issued together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map for the transferred land;

4. Proof of payment for land use rights or lease fees (certified copy by notarized public).

Article 14. Procedure for assigning land use rights

1. Documents for transferring the right to use land shall be submitted to the Department of Land Administration or the Department of Land Administration - Real Estate of the provincial or centrally-administered municipal People's Committee.

2. Within fifteen days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the documents and confirm in Section 3 Part II (section recorded by state agencies) of the Land Use Right Transfer Contract for cases eligible for transfer; if not eligible for transfer, return the documents and notify the organization of the reasons for not being able to transfer the right to use land.

3. The Department of Land Administration or the Department of Land Administration - Real Estate shall notify the transferring party to pay the land transfer tax and the transferee to pay the stamp duty according to the provisions of the law.

4. After both parties have completed the payment of the land transfer tax and the stamp duty, the Department of Land Administration or the Department of Land Administration - Real Estate shall submit to the provincial or centrally-administered municipal People's Committee for issuance of the certificate of land use right to the transferee.

5. The transferee of the right to use land shall register the right to use land with the People's Committee of the commune, ward, or town where the land is located.

Chapter 4:

LEASING LAND, SUBLEASING LAND

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 15. CONDITIONS FOR LEASING LAND

1. Households and individuals using agricultural land for annual crop cultivation or aquaculture may lease land when meeting one of the following conditions:

a) Family circumstances are lonely and difficult;

b) Changing to another occupation but not yet stable;

c) Lack of labor force.

The term of leasing agricultural land for annual crop cultivation or aquaculture shall be agreed upon by the parties but shall not exceed three years. In cases of special difficulties confirmed by the People's Committee of the commune, ward, or town, the lease term may be extended but shall not exceed ten years.

2. Households and individuals may lease residential land or specialized-use land.

Article 16. CONDITIONS FOR SUBLEASING LAND

Households and individuals who are leased land by the State may sublease land when meeting the following conditions:

1. Have paid the lease fee for the entire lease period or prepaid the lease fee for several years, and the remaining lease term for which the lease fee has been paid is at least five years;

2. The land has been developed according to the purpose stated in the project or in the application for leasing land.

Article 17. DOCUMENTS FOR LEASING AND SUBLEASING LAND

Documents for leasing land, subleasing land include:

1. Lease contracts and sublease contracts according to Model No. 3a, 3b issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town);

3. Sketch map of the land plot (extract from the land plot map or measured on-site);

4. Proof of payment for lease fees (certified copy by notarized public or certified by the People's Committee of the commune, ward, or town).

Article 18. PROCEDURE FOR LEASING AND SUBLEASING LAND

1. Procedure for leasing land:

a) Leasing documents shall be submitted to the People's Committee of the commune, ward, or town where the land is located;

b) Within seven days from the date of receiving complete and valid documents, the People's Committee of the commune, ward, or town shall examine the documents and record the examination results in Section 1 Part II (section recorded by state agencies) of the Land Lease Contract for cases eligible for leasing and in the land change tracking book; if not eligible for leasing, return the documents and notify the parties of the reasons;

c) After confirmation of eligibility for leasing land, the lessor must register the leasing of land with the People's Committee of the commune, ward, or town where the land is located.

2. Procedure for subleasing land:

a) Subleasing documents shall be submitted to the People's Committee of the district, county, town, or city under the province if the land was leased by the People's Committee of the district, county, town, or city under the province; submitted to the Department of Land Administration or the Department of Land Administration - Real Estate if the land was leased by the People's Committee of the province or centrally-administered municipal People's Committee;

b) Within ten days from the date of receiving complete and valid documents, the agency specified in point a, Clause 2 of this Article shall examine the documents and confirm in Part II (section recorded by state agencies) of the Sublease Contract for cases eligible for subleasing; if not eligible for subleasing, return the documents and notify the parties of the reasons for not being eligible for subleasing;

c) After confirmation of eligibility for subleasing land, the sublessor must register the subleasing of land with the People's Committee of the commune, ward, or town where the land is located.

PART 2: REGARDING ORGANIZATIONS

Article 19. Conditions for leasing state land and subleasing state land by economic organizations

1. An economic organization shall be entitled to lease state land when it meets the following conditions:

a) The land is allocated by the State with payment of land use fee; land acquired through lawful transfer of land use rights;

b) The leased land has been invested in constructing architectural works and infrastructure.

2. An economic organization shall be entitled to sublease state land when it meets the following conditions:

a) The land is leased by the State and the lessee has paid the land rent for the entire lease period or has prepaid the land rent for several years, with at least five years remaining on the lease term for which rent has been paid;

b) The subleased land has been invested according to a project.

Article 20. DOCUMENTS FOR LEASING AND SUBLEASING LAND

Documents for leasing land, subleasing land include:

1. Lease contracts and sublease contracts according to Model No. 3a, 3b issued together with this Decree;

2. Certificate of Land Use Right (a certified copy by a notarized public authority);

3. Extract from the land plot map;

4. Proof of payment for land use rights or lease fees (certified copy by notarized public).

Article 21. Procedures for Leasing and Subleasing State Land

1. Applications for leasing and subleasing state land shall be submitted to the Department of Land Administration or the Department of Land Administration - Real Estate.

2. Within fifteen days from the date of receipt of complete and valid applications, the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the applications, confirm in Section 2 Part II (the section recorded by the state agency) of the Land Lease Contract or Sublease Contract for cases where leasing or subleasing is permitted; if leasing or subleasing is not permitted, the application shall be returned along with notification of the reasons for non-permission to lease or sublease.

3. After confirmation of permission to lease or sublease, the lessor or sublessor shall register the leasing or subleasing of land with the People's Committee of the commune, ward, or town where the land is located.

Chapter 5:

INHERITANCE OF LAND USE RIGHTS

Article 22. Persons entitled to inherit land use rights

1. The following persons are entitled to inherit land use rights:

a) Individuals using agricultural land for annual crop cultivation, perennial crop cultivation, aquaculture, forestry land for afforestation, residential land, specialized-use land;

b) Members of a household using agricultural land for perennial crop cultivation, forestry land for afforestation, residential land, specialized-use land;

c) Individuals who have been granted land leases by the State and have paid the land rent for the entire lease period or have prepaid the land rent for several years.

2. In households that have been allocated agricultural land for annual crop cultivation, aquaculture by the State, if a member of the household dies, such member shall not be entitled to inherit land use rights, while other members of the household shall continue to use the area of land previously used by the deceased member.

Article 23. Procedures for Inheriting Land Use Rights

1. A person entitled to inherit land use rights shall submit a will, a record of inheritance distribution, or a court judgment or decision resolving disputes over the inheritance of land use rights, together with the certificate of land use right, to the People's Committee of the commune, ward, or town where the land is located.

If the person entitled to inherit land use rights is the sole heir, they shall bring the inherited land use right certificate to the People's Committee of the commune, ward, or town to declare and register the land use right.

2. Within five days from the date of receipt of the documents specified in Clause 1 of this Article, the People's Committee of the commune, ward, or town shall examine the application, confirm the right of inheritance of land use rights, and register it in the land registry book.

Chapter 6:

PLEDGING THE VALUE OF LAND USE RIGHTS

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 24. Conditions for Mortgaging the Value of Land Use Rights

1. Households and individuals using agricultural land or forestry land that have been assigned by the State or legally acquired land use rights may mortgage the value of their land use rights with Vietnamese credit institutions to borrow funds for production and business activities.

2. Households and individuals who lease land from the State and have paid the full lease fee for the entire lease period, or have prepaid the lease fee for several years, provided that the remaining lease term for which the lease fee has been paid is at least five years. The value of the land use right that can be mortgaged in the case of leased land includes compensation for losses when the State leases the land (if applicable), the lease fee already paid to the State after deducting the lease fee for the period already used, and the value of assets attached to the land (if any).

3. Households and individuals leasing land from the State on an annual payment basis may mortgage assets owned by them and attached to the leased land with Vietnamese credit institutions to borrow funds for developing production and business activities.

4. Households and individuals using residential land or specialized land may mortgage the value of their land use rights with economic organizations, credit institutions, and individuals within Vietnam.

Article 25. Documents for Mortgaging the Value of Land Use Rights

The documents for mortgaging the value of land use rights include:

1. A mortgage contract for the value of land use rights according to Model No. 4 issued together with this Decree;

2. Certificate of land use rights;

3. A plot map (extract from the cadastral map or measured on-site);

4. Receipts for land rent payment.

Article 26. Procedure for Implementing the Mortgage of the Value of Land Use Rights

The mortgagor and the mortgagee shall sign a mortgage contract according to Model No. 4 issued together with this Decree. After signing the contract, the mortgagor must register it with the People's Committee of the commune, ward, or town where the land is located. Upon completion of registration, the mortgagee will lend money according to the agreement in the contract.

PART 2: REGARDING ORGANIZATIONS

Article 27. Conditions for Mortgaging the Value of Land Use Rights

Economic organizations may mortgage the value of land use rights with Vietnamese credit institutions if they meet one of the following conditions:

1. The land is granted by the State with payment;

2. The land is acquired through a lawful transfer of land use rights;

3. Land leased from the State for which the full lease fee for the entire lease period has been paid, or the lease fee for several years has been prepaid, provided that the remaining lease term for which the lease fee has been paid is at least five years. The value of the land use right that can be mortgaged in the case of leased land includes compensation for losses when the State leases the land (if applicable), the lease fee already paid to the State after deducting the lease fee for the period already used, and the value of assets attached to the land;

4. In cases where economic organizations are assigned land by the State without paying land use fees for agricultural, forestry, aquaculture, or salt-making purposes, or leased land from the State on an annual payment basis, they may only mortgage assets owned by them and attached to the land.

Article 28. Documents for Mortgaging the Value of Land Use Rights

The documents for mortgaging the value of land use rights include:

1. A mortgage contract for the value of land use rights according to Model No. 4 issued together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map;

4. Proof of payment of land lease fees (certified copy by notarization).

Article 29. Procedure for Implementing the Mortgage of the Value of Land Use Rights

1. The mortgagor declares the contents specified in Part I (part recorded by the parties) of the Mortgage Contract and submits the mortgage application to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within seven days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate reviews the documents, confirms the eligibility for mortgage in Item 2 Part II (part recorded by the state agency) of the Mortgage Contract; if not eligible for mortgage, return the documents and inform the organization of the reasons for non-eligibility.

3. After confirmation of eligibility for mortgage by the Department of Land Administration or the Department of Land Administration - Real Estate, the mortgagor and the mortgagee sign the mortgage contract.

4. The mortgagor registers the mortgage with the Department of Land Administration or the Department of Land Administration - Real Estate.

SECTION 3: CANCELING THE PLEDGE, HANDLING THE RIGHT TO USE THE PLEDGED LAND FOR DEBT RECOVERY

Article 30. CANCELING THE PLEDGE

1. When the pledgor fulfills the obligation to repay the debt to the pledgee, the pledgee shall cancel the pledge according to the provisions set forth in Part III of the Mortgage Contract.

2. The pledgor shall submit the mortgage contract to cancel the registration of the pledge according to the following procedures:

a) If the pledgor is a household or individual, they shall submit to the People's Committee of the commune, ward, or town where the pledge was registered.

b) If the pledgor is an economic organization, they shall submit to the Department of Land Administration or the Department of Land Administration - Real Estate.

3. The People's Committee of the commune, ward, or town; the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the mortgage file to cancel the registration of the pledge in the land mortgage registry book.

Article 31. HANDLING THE RIGHT TO USE THE PLEDGED LAND FOR DEBT RECOVERY

1. When the pledgor fails to perform or performs incorrectly the obligation to repay the debt according to the mortgage contract, the right to use the pledged land shall be handled according to the agreement in the contract; if it cannot be handled according to the agreement recorded in the contract, it shall be resolved according to the provisions of the law.

2. After completing the handling of the right to use the pledged land for debt recovery, the pledgor shall go to the agency specified in Clause 2 of Article 30 of this Decree to cancel the registration of the pledge.

3. The person who receives the right to use the land according to this provision shall be issued a certificate of land use rights.

Chapter 7:

CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 32. CONDITIONS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Households and individuals may contribute capital with the value of the right to use the land to cooperate in production and business with domestic organizations and individuals when they meet one of the following conditions:

1. The land has been granted by the State;

2. The land has been legally received the right to use;

3. The land has been leased by the State and the lease payment has been paid for the entire lease period or prepaid for several years, with at least five years remaining in the lease term.

Article 33DOCUMENTS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Documents for contributing capital with the value of the right to use the land include:

1. A form for contributing capital with the value of the right to use the land according to Model No. 5a promulgated together with this Decree;

2. Certificate of land use rights;

3. A plot map (extract from the cadastral map or measured on-site);

4. Proof of payment of land lease fees (a certified copy by a notary public or certified by the People's Committee of the commune, ward, or town where the land is located).

Article 34. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

1. The parties contributing capital with the value of the right to use the land shall submit the contribution documents to the People's Committee of the commune, ward, or town where the land is located.

2. Within five days from the date of receiving complete and valid documents, the People's Committee of the commune, ward, or town shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form; if not eligible for contribution, the documents will be returned and the party will be informed of the reasons.

3. After obtaining confirmation of eligibility for contribution from the People's Committee of the commune, ward, or town, the parties contributing capital shall complete investment procedures according to the law.

In cases where a new legal entity is formed to use the land, that new legal entity must register the right to use the land and obtain a certificate of land use rights.

In cases where no new legal entity is formed to use the land, the land remains under the right to use of the contributor. The contributor must register the contribution of capital with the value of the right to use the land with the People's Committee of the commune, ward, or town where the land is located.

PART 2: REGARDING ORGANIZATIONS

Article 35. CONDITIONS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Economic organizations using land may contribute capital with the value of the right to use the land to cooperate in production and business with domestic organizations and individuals, and foreign organizations and individuals when they meet one of the following conditions:

1. The land has been granted by the State without payment of land use fee for agricultural, forestry, aquaculture, or salt-making purposes;

2. The land has been granted by the State with payment of land use fee;

3. The land has been legally transferred the right to use;

4. The land has been leased by the State and the lease payment has been paid for the entire lease period or prepaid for several years, with at least five years remaining in the lease term;

5. The land has been leased by the State to state-owned enterprises with annual lease payments. If contributing capital with the value of the right to use the land to form a joint venture with foreign organizations and individuals, it must be approved by the Prime Minister.

Article 36. DOCUMENTS FOR CONTRIBUTING CAPITAL

Documents for contributing capital with the value of the right to use the land include:

1. A form for contributing capital with the value of the right to use the land according to Model No. 5a promulgated together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map;

4. Receipts for land rent payment.

Article 37. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND WITH DOMESTIC ORGANIZATIONS AND INDIVIDUALS

1. The contributor shall submit the contribution documents to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within ten days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form; if not eligible for contribution, the documents will be returned and the organization will be informed of the reasons.

3. After obtaining confirmation of eligibility for contribution with the value of the right to use the land, the parties contributing capital shall complete investment procedures according to the law.

In cases where a new legal entity is formed to use the land, that new legal entity must register the right to use the land and obtain a certificate of land use rights.

In cases where no new legal entity is formed to use the land, the land remains under the right to use of the contributor. The contributor must register the contribution of capital with the value of the right to use the land with the People's Committee of the commune, ward, or town where the land is located.

Article 38. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND TO FORM A JOINT VENTURE WITH FOREIGN ORGANIZATIONS AND INDIVIDUALS

1. The contributor shall submit the documents to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within fifteen days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form.

For cases where state-owned enterprises contribute capital with the value of the right to use the land leased by the State with annual lease payments, the Department of Land Administration or the Department of Land Administration - Real Estate shall report to the People's Committee of the province or centrally-administered city for approval by the Prime Minister.

3. After obtaining approval from the competent authority, upon confirmation of eligibility for contribution with the value of the right to use the land, the parties involved in the joint venture contract shall complete investment procedures according to the law.

4. Upon obtaining an investment license, the joint venture enterprise must register the right to use the land with the People's Committee of the commune, ward, or town where the land is located and obtain a certificate of land use rights.

PART 3: TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

Article 39. TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

Contribution by the value of land use rights shall terminate in the following cases:

1. Expiration of the contribution period by the value of land use rights;

2. At the request of one party or all parties; in the case of joint venture with foreign organizations or individuals, it must be approved by the competent state agency;

3. By decision of the competent state agency due to serious violations of laws on land;

4. Due to bankruptcy declaration;

5. Due to dissolution;

6. In the event of death of an individual who concluded a capital contribution contract, or if the legal entity or other subjects that must perform the capital contribution contract cease to exist.

Article 40. DISPOSITION OF LAND USE RIGHTS UPON TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

The disposition of land use rights upon termination of contribution by the value of land use rights shall be carried out as follows:

1. For the cases stipulated in Clause 1 and 2 of Article 39 of this Decree, the contributor by the value of land use rights shall continue to use the land for the remaining duration of the land use right.

If the land use term has expired, the State shall reclaim the land according to the provisions of the law on land; if the land user still wishes to continue using the land, they may be considered for continued use according to the law.

2. For the case stipulated in Clause 3 of Article 39 of this Decree, the State shall reclaim the land.

3. In the event of bankruptcy of a joint venture enterprise, the disposition of the land use rights contributed shall be handled according to the Bankruptcy Declaration Decision of the People's Court.

When the recipient of land use rights and attached assets is an organization or individual within the country, they shall continue to use the land for its intended purpose and for the remaining duration of the land allocation or lease.

When the recipient of land use rights and attached assets is a foreign organization or individual, the State shall lease the land to them and they must use the land for its intended purpose according to the law.

In the absence of a recipient of land use rights and attached assets, the State shall reclaim the land.

4. In the event of the death of an individual who concluded a capital contribution contract, the land use rights contributed shall be inherited according to the law.

5. In the event of dissolution, the disposition of the land use rights contributed shall be handled according to the agreement of the parties.

Chapter 8:

IMPLEMENTATION

Article 41. RESPONSIBILITIES OF LAND USERS

Organizations, households, and individuals using land when exercising the rights of conversion, transfer, leasing, subleasing, inheritance of land use rights, mortgage, and contribution by the value of land use rights must comply with the provisions of this Decree and fulfill financial obligations as prescribed by law.

Article 42. RESPONSIBILITIES OF THE LAND ADMINISTRATION COUNCIL AND THE MINISTRY OF FINANCE

The Land Administration Council and the Ministry of Finance shall specify the rates of land administration fees when implementing the rights of conversion, transfer, leasing, subleasing, inheritance of land use rights, mortgage, and contribution by the value of land use rights.

The Land Administration Council shall guide the procedures and formalities for requesting land allocation or lease for joint venture contribution with domestic organizations or individuals, and with foreign organizations or individuals.

Article 43. Handling Violations

1. Any person engaging in fraudulent acts, forgery of documents, failure to comply with the provisions of this Decree, or non-compliance with state regulations on financial obligations when exercising the rights of land users as stipulated in this Decree, shall be subject to administrative penalties or criminal prosecution depending on the severity of the offense.

2. Any person taking advantage of their position or authority, exceeding their permitted powers, transferring land use rights contrary to the provisions of this Decree, causing difficulties or hindrances to land users in exercising their rights, or shielding persons who violate land laws, shall be subject to disciplinary action or criminal prosecution depending on the severity of the offense.

3. Any person violating the provisions of this Decree and causing damage to others, in addition to being subject to penalties as provided in Clauses 1 and 2 of this Article, shall also be liable for compensation to the damaged party.

Article 44. Effectiveness

This Decree shall take effect fifteen days after its signing date. Previous regulations contrary to this Decree shall be abolished.

Article 45. Implementation organization

The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of provincial and municipal People's Committees directly under the Central Government, within the scope of their duties and authority, shall be responsible for organizing the implementation of this Decree.DECREE

Regarding the procedures for converting, transferring, leasing, subleasing, inheriting land use rights, and mortgaging, contributing capital with the value of land use rights

________________________

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Land Law dated July 14, 1993, and the Law Amending and Supplementing Certain Provisions of the Land Law dated December 2, 1998;

||| Based on the Civil Code dated October 28, 1995;

At the proposal of the Director General of the Land Administration General Department,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree stipulates the procedures for converting, transferring, leasing, subleasing, inheriting land use rights, and mortgaging, contributing capital with the value of land use rights of organizations, households, and individuals within the country.

2. The provisions of this Decree shall not apply to cases of leasing communal land for 5% of the area of villages, towns, and wards.

Article 2. Delegation of authority to exercise land users' rights

1. The person authorized by the head of a household must be a member of the household and represent the household in exercising the rights to convert, transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

2. The person authorized by an individual represents the individual in exercising the rights to convert, transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

3. The person authorized by the head of an organization represents the organization in exercising the rights to transfer, lease, sublease land use rights, and mortgage, contribute capital with the value of land use rights.

4. The delegation of authority to representatives to exercise the rights specified in Clauses 1, 2, and 3 of this Article must be in writing.

For households and individuals, the delegation of authority must be certified by the People's Committee of the commune, ward, or town where they reside.

Article 3. Documents required to exercise land users' rights

1. When exercising their rights, land users must have a certificate of land use rights issued by a competent state agency. The certificate of land use rights may be issued by the former General Department of Land Management or the former General Department of Cadastre.

2. A person currently using land who possesses one of the following documents shall proceed with the procedure to obtain a certificate of land use rights and exercise the rights as prescribed in this Decree:

b) Documents issued by competent state agencies during the implementation of land policies in different periods of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, and the Socialist Republic of Vietnam, which the persons allocated or leased land have continuously used since then without dispute;

b) Documents issued by a competent state agency granting land or leasing land during the implementation of land policies at different periods of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, and the Socialist Republic of Vietnam, provided that the person granted or leased the land has continuously used it from then until now;

d) Documents issued by authorities under the previous regime for land users that the users have continuously used from then until now without dispute;

đ) Documents on inheritance, gift, or transfer of houses attached to land confirmed by the People's Committee of the commune, ward, or town and the land is without dispute;

d) Documents concerning inheritance of real estate; gifts or transfers of real estate confirmed by the People's Committee of the commune, ward, or town, and the land in question is not in dispute;

h) Documents on land transfer and house sale accompanied by land use right transfer confirmed by the People's Committee of the commune, ward, or town as the land is without dispute and confirmed by the People's Committee of the district, town, or city directly under a province on the result of the verification by the People's Committee of the commune, ward, or town.

3. Households and individuals when transferring or inheriting property attached to their land use rights must have a certificate of land use rights or one of the types of documents specified in Point 2 of this Clause.

h) Documents on the transfer of land, sale of houses accompanied by the transfer of land use rights, which have been reviewed by the People's Committee of the commune, ward, or town to confirm that there is no dispute over the land, and the results of such review are confirmed by the People's Committee of the district, town, or city under a province;

3. Economic organizations that have legally acquired the transfer of land use rights from another party or have been granted land by the State with payment for land use, where the funds are not derived from the State budget, may exercise the rights stipulated in this Decree without having to establish a land rental file with the State.

4. The competent state agency responsible for issuing certificates of land use rights must issue such certificates within 15 days for rural land and 30 days for urban land.

Article 4. Purpose and duration of land use when exercising rights

After completing the transfer, assignment, lease, sublease, inheritance of land use rights, and mortgage, contribution with the value of land use rights, the land must be used for the intended purpose and within the allocated or leased period.

Chapter 2:

TRANSFER OF LAND USE RIGHTS

Article 5. Conditions for transferring agricultural land use rights, forestry land use rights, residential land use rights of households and individuals

Households and individuals using agricultural land, forestry land, and residential land may transfer their land use rights to each other if they meet the following conditions:

1. Convenience for production and living;

2. After transferring the land use rights, the land must be used for the intended purpose and within the period specified when the State allocates the land.

Article 6. Documents for transferring land use rights

5. Article 7 is amended and supplemented as follows

1. Land use right transfer contract according to Model No. 1 issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town where the land is located).

Article 7. Procedure for transferring land use rights

The documents for transferring land use rights shall be submitted to the People's Committee of the commune, ward, town where the transferred land is located.

2. Within seven days from the date of receiving complete valid documents, the People's Committee of the commune, ward, town shall review the documents, confirm in Part II (part recorded by the state agency) of the Land Use Right Transfer Contract for cases eligible for transfer and record in the land change tracking book; if not eligible for transfer, return the documents and inform the parties of the reasons for not being able to transfer the land use rights.

3. The People's Committee of the commune, ward, town shall submit to the People's Committee of the district, town, city under province to issue certificates of land use rights for cases that have completed the transfer.

Chapter 3:

ASSIGNMENT OF LAND USE RIGHTS

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 8. Conditions for assigning land use rights of households and individuals

1. Households and individuals using agricultural land, forestry land for planting forests may assign their land use rights if they meet one of the following conditions:

a) Moving to another place of residence for living or business;

b) Changing to another profession;

c) No longer capable of direct labor.

2. Households and individuals using residential land, specialized land may assign their land use rights when moving to another place or no longer needing to use the land.

3. Households and individuals who have been leased land by the State and have paid rent for the entire lease period or prepaid rent for several years, with the remaining lease period still at least five years, may assign their leased land use rights.

Article 9. Conditions for accepting the assignment of agricultural land use rights

Households and individuals accepting the assignment of agricultural land use rights must meet the following conditions:

1. Need to use the land;

2. Do not yet have land or are currently using land below the limit prescribed by the law on land.

In the case of transferring paddy field land use rights, the transferee must be a household or individual directly engaged in agricultural production.

For households accepting the assignment of land use rights exceeding the limit, the excess area must be converted to leased land according to Point 1 Clause 5 Article 1 of the Law amending and supplementing some articles of the Land Law.

Article 10. Documents for assigning land use rights

Documents for assigning land use rights include:

1. Land use right assignment contract according to Model No. 2 issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town);

3. Sketch map of the land plot (extract from the land plot map or measured on-site);

4. Receipts for land rent payment.

Article 11. Procedure for assigning land use rights

1. Documents for assigning land use rights shall be submitted to the People's Committee of the commune, ward, town where the land is located.

2. Within five days from the date of receiving complete valid documents, the People's Committee of the commune, ward, town shall review the documents, confirm in Item 1 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract for cases meeting the assignment conditions and send the documents to the District Land Administration Office, town, city under province; if not eligible for assignment, return the documents and inform the parties of the reasons.

3. Within five days from the date of receiving complete valid documents, the District Land Administration Office shall examine the documents, record the review content in Item 2 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract and submit it to the People's Committee of the district, town, city under province.

4. Within three days from the date of receiving complete valid documents submitted by the District Land Administration Office, the People's Committee of the district, town, city under province shall complete the confirmation of eligibility for assignment in Item 2 Part II (part recorded by the state agency) of the Land Use Right Assignment Contract.

5. After being confirmed eligible for assignment by the People's Committee of the district, town, city under province, the District Land Administration Office shall notify the assignor to pay the land transfer tax and the assignee to pay the stamp duty according to the law.

6. After both parties have completed the payment of the land transfer tax and stamp duty, the District Land Administration Office shall update the land change tracking book and return the documents to the parties. The assignee shall be issued a certificate of land use rights according to the law on land.

PART 2: REGARDING ORGANIZATIONS

Article 12. CONDITIONS FOR TRANSFERRING THE RIGHT TO USE LAND BY ECONOMIC ORGANIZATIONS

Economic organizations may transfer the right to use land if they meet one of the following conditions:

1. The land was granted by the State with payment for land use rights.

2. The land is acquired through a lawful transfer of land use rights;

3. The land was leased by the State where the lease fee has been paid for the entire lease period or prepaid for several years, and the remaining lease term for which the lease fee has been paid is at least five years.

Article 13. Documents for assigning land use rights

Documents for transferring land use rights include:

1. Land use right assignment contract according to Model No. 2 issued together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map for the transferred land;

4. Proof of payment for land use rights or lease fees (certified copy by notarized public).

Article 14. Procedure for assigning land use rights

1. Documents for transferring the right to use land shall be submitted to the Department of Land Administration or the Department of Land Administration - Real Estate of the provincial or centrally-administered municipal People's Committee.

2. Within fifteen days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the documents and confirm in Section 3 Part II (section recorded by state agencies) of the Land Use Right Transfer Contract for cases eligible for transfer; if not eligible for transfer, return the documents and notify the organization of the reasons for not being able to transfer the right to use land.

3. The Department of Land Administration or the Department of Land Administration - Real Estate shall notify the transferring party to pay the land transfer tax and the transferee to pay the stamp duty according to the provisions of the law.

4. After both parties have completed the payment of the land transfer tax and the stamp duty, the Department of Land Administration or the Department of Land Administration - Real Estate shall submit to the provincial or centrally-administered municipal People's Committee for issuance of the certificate of land use right to the transferee.

5. The transferee of the right to use land shall register the right to use land with the People's Committee of the commune, ward, or town where the land is located.

Chapter 4:

LEASING LAND, SUBLEASING LAND

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 15. CONDITIONS FOR LEASING LAND

1. Households and individuals using agricultural land for annual crop cultivation or aquaculture may lease land when meeting one of the following conditions:

a) Family circumstances are lonely and difficult;

b) Changing to another occupation but not yet stable;

c) Lack of labor force.

The term of leasing agricultural land for annual crop cultivation or aquaculture shall be agreed upon by the parties but shall not exceed three years. In cases of special difficulties confirmed by the People's Committee of the commune, ward, or town, the lease term may be extended but shall not exceed ten years.

2. Households and individuals may lease residential land or specialized-use land.

Article 16. CONDITIONS FOR SUBLEASING LAND

Households and individuals who are leased land by the State may sublease land when meeting the following conditions:

1. Have paid the lease fee for the entire lease period or prepaid the lease fee for several years, and the remaining lease term for which the lease fee has been paid is at least five years;

2. The land has been developed according to the purpose stated in the project or in the application for leasing land.

Article 17. DOCUMENTS FOR LEASING AND SUBLEASING LAND

Documents for leasing land, subleasing land include:

1. Lease contracts and sublease contracts according to Model No. 3a, 3b issued together with this Decree;

2. Certificate of land use rights (certified copy by state notary or certified by the People's Committee of the commune, ward, town);

3. Sketch map of the land plot (extract from the land plot map or measured on-site);

4. Proof of payment for lease fees (certified copy by notarized public or certified by the People's Committee of the commune, ward, or town).

Article 18. PROCEDURE FOR LEASING AND SUBLEASING LAND

1. Procedure for leasing land:

a) Leasing documents shall be submitted to the People's Committee of the commune, ward, or town where the land is located;

b) Within seven days from the date of receiving complete and valid documents, the People's Committee of the commune, ward, or town shall examine the documents and record the examination results in Section 1 Part II (section recorded by state agencies) of the Land Lease Contract for cases eligible for leasing and in the land change tracking book; if not eligible for leasing, return the documents and notify the parties of the reasons;

c) After confirmation of eligibility for leasing land, the lessor must register the leasing of land with the People's Committee of the commune, ward, or town where the land is located.

2. Procedure for subleasing land:

a) Subleasing documents shall be submitted to the People's Committee of the district, county, town, or city under the province if the land was leased by the People's Committee of the district, county, town, or city under the province; submitted to the Department of Land Administration or the Department of Land Administration - Real Estate if the land was leased by the People's Committee of the province or centrally-administered municipal People's Committee;

b) Within ten days from the date of receiving complete and valid documents, the agency specified in point a, Clause 2 of this Article shall examine the documents and confirm in Part II (section recorded by state agencies) of the Sublease Contract for cases eligible for subleasing; if not eligible for subleasing, return the documents and notify the parties of the reasons for not being eligible for subleasing;

c) After confirmation of eligibility for subleasing land, the sublessor must register the subleasing of land with the People's Committee of the commune, ward, or town where the land is located.

PART 2: REGARDING ORGANIZATIONS

Article 19. Conditions for leasing state land and subleasing state land by economic organizations

1. An economic organization shall be entitled to lease state land when it meets the following conditions:

a) The land is allocated by the State with payment of land use fee; land acquired through lawful transfer of land use rights;

b) The leased land has been invested in constructing architectural works and infrastructure.

2. An economic organization shall be entitled to sublease state land when it meets the following conditions:

a) The land is leased by the State and the lessee has paid the land rent for the entire lease period or has prepaid the land rent for several years, with at least five years remaining on the lease term for which rent has been paid;

b) The subleased land has been invested according to a project.

Article 20. DOCUMENTS FOR LEASING AND SUBLEASING LAND

Documents for leasing land, subleasing land include:

1. Lease contracts and sublease contracts according to Model No. 3a, 3b issued together with this Decree;

2. Certificate of Land Use Right (a certified copy by a notarized public authority);

3. Extract from the land plot map;

4. Proof of payment for land use rights or lease fees (certified copy by notarized public).

Article 21. Procedures for Leasing and Subleasing State Land

1. Applications for leasing and subleasing state land shall be submitted to the Department of Land Administration or the Department of Land Administration - Real Estate.

2. Within fifteen days from the date of receipt of complete and valid applications, the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the applications, confirm in Section 2 Part II (the section recorded by the state agency) of the Land Lease Contract or Sublease Contract for cases where leasing or subleasing is permitted; if leasing or subleasing is not permitted, the application shall be returned along with notification of the reasons for non-permission to lease or sublease.

3. After confirmation of permission to lease or sublease, the lessor or sublessor shall register the leasing or subleasing of land with the People's Committee of the commune, ward, or town where the land is located.

Chapter 5:

INHERITANCE OF LAND USE RIGHTS

Article 22. Persons entitled to inherit land use rights

1. The following persons are entitled to inherit land use rights:

a) Individuals using agricultural land for annual crop cultivation, perennial crop cultivation, aquaculture, forestry land for afforestation, residential land, specialized-use land;

b) Members of a household using agricultural land for perennial crop cultivation, forestry land for afforestation, residential land, specialized-use land;

c) Individuals who have been granted land leases by the State and have paid the land rent for the entire lease period or have prepaid the land rent for several years.

2. In households that have been allocated agricultural land for annual crop cultivation, aquaculture by the State, if a member of the household dies, such member shall not be entitled to inherit land use rights, while other members of the household shall continue to use the area of land previously used by the deceased member.

Article 23. Procedures for Inheriting Land Use Rights

1. A person entitled to inherit land use rights shall submit a will, a record of inheritance distribution, or a court judgment or decision resolving disputes over the inheritance of land use rights, together with the certificate of land use right, to the People's Committee of the commune, ward, or town where the land is located.

If the person entitled to inherit land use rights is the sole heir, they shall bring the inherited land use right certificate to the People's Committee of the commune, ward, or town to declare and register the land use right.

2. Within five days from the date of receipt of the documents specified in Clause 1 of this Article, the People's Committee of the commune, ward, or town shall examine the application, confirm the right of inheritance of land use rights, and register it in the land registry book.

Chapter 6:

PLEDGING THE VALUE OF LAND USE RIGHTS

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 24. Conditions for Mortgaging the Value of Land Use Rights

1. Households and individuals using agricultural land or forestry land that have been assigned by the State or legally acquired land use rights may mortgage the value of their land use rights with Vietnamese credit institutions to borrow funds for production and business activities.

2. Households and individuals who lease land from the State and have paid the full lease fee for the entire lease period, or have prepaid the lease fee for several years, provided that the remaining lease term for which the lease fee has been paid is at least five years. The value of the land use right that can be mortgaged in the case of leased land includes compensation for losses when the State leases the land (if applicable), the lease fee already paid to the State after deducting the lease fee for the period already used, and the value of assets attached to the land (if any).

3. Households and individuals leasing land from the State on an annual payment basis may mortgage assets owned by them and attached to the leased land with Vietnamese credit institutions to borrow funds for developing production and business activities.

4. Households and individuals using residential land or specialized land may mortgage the value of their land use rights with economic organizations, credit institutions, and individuals within Vietnam.

Article 25. Documents for Mortgaging the Value of Land Use Rights

The documents for mortgaging the value of land use rights include:

1. A mortgage contract for the value of land use rights according to Model No. 4 issued together with this Decree;

2. Certificate of land use rights;

3. A plot map (extract from the cadastral map or measured on-site);

4. Receipts for land rent payment.

Article 26. Procedure for Implementing the Mortgage of the Value of Land Use Rights

The mortgagor and the mortgagee shall sign a mortgage contract according to Model No. 4 issued together with this Decree. After signing the contract, the mortgagor must register it with the People's Committee of the commune, ward, or town where the land is located. Upon completion of registration, the mortgagee will lend money according to the agreement in the contract.

PART 2: REGARDING ORGANIZATIONS

Article 27. Conditions for Mortgaging the Value of Land Use Rights

Economic organizations may mortgage the value of land use rights with Vietnamese credit institutions if they meet one of the following conditions:

1. The land is granted by the State with payment;

2. The land is acquired through a lawful transfer of land use rights;

3. Land leased from the State for which the full lease fee for the entire lease period has been paid, or the lease fee for several years has been prepaid, provided that the remaining lease term for which the lease fee has been paid is at least five years. The value of the land use right that can be mortgaged in the case of leased land includes compensation for losses when the State leases the land (if applicable), the lease fee already paid to the State after deducting the lease fee for the period already used, and the value of assets attached to the land;

4. In cases where economic organizations are assigned land by the State without paying land use fees for agricultural, forestry, aquaculture, or salt-making purposes, or leased land from the State on an annual payment basis, they may only mortgage assets owned by them and attached to the land.

Article 28. Documents for Mortgaging the Value of Land Use Rights

The documents for mortgaging the value of land use rights include:

1. A mortgage contract for the value of land use rights according to Model No. 4 issued together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map;

4. Proof of payment of land lease fees (certified copy by notarization).

Article 29. Procedure for Implementing the Mortgage of the Value of Land Use Rights

1. The mortgagor declares the contents specified in Part I (part recorded by the parties) of the Mortgage Contract and submits the mortgage application to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within seven days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate reviews the documents, confirms the eligibility for mortgage in Item 2 Part II (part recorded by the state agency) of the Mortgage Contract; if not eligible for mortgage, return the documents and inform the organization of the reasons for non-eligibility.

3. After confirmation of eligibility for mortgage by the Department of Land Administration or the Department of Land Administration - Real Estate, the mortgagor and the mortgagee sign the mortgage contract.

4. The mortgagor registers the mortgage with the Department of Land Administration or the Department of Land Administration - Real Estate.

SECTION 3: CANCELING THE PLEDGE, HANDLING THE RIGHT TO USE THE PLEDGED LAND FOR DEBT RECOVERY

Article 30. CANCELING THE PLEDGE

1. When the pledgor fulfills the obligation to repay the debt to the pledgee, the pledgee shall cancel the pledge according to the provisions set forth in Part III of the Mortgage Contract.

2. The pledgor shall submit the mortgage contract to cancel the registration of the pledge according to the following procedures:

a) If the pledgor is a household or individual, they shall submit to the People's Committee of the commune, ward, or town where the pledge was registered.

b) If the pledgor is an economic organization, they shall submit to the Department of Land Administration or the Department of Land Administration - Real Estate.

3. The People's Committee of the commune, ward, or town; the Department of Land Administration or the Department of Land Administration - Real Estate shall examine the mortgage file to cancel the registration of the pledge in the land mortgage registry book.

Article 31. HANDLING THE RIGHT TO USE THE PLEDGED LAND FOR DEBT RECOVERY

1. When the pledgor fails to perform or performs incorrectly the obligation to repay the debt according to the mortgage contract, the right to use the pledged land shall be handled according to the agreement in the contract; if it cannot be handled according to the agreement recorded in the contract, it shall be resolved according to the provisions of the law.

2. After completing the handling of the right to use the pledged land for debt recovery, the pledgor shall go to the agency specified in Clause 2 of Article 30 of this Decree to cancel the registration of the pledge.

3. The person who receives the right to use the land according to this provision shall be issued a certificate of land use rights.

Chapter 7:

CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

PART 1: FOR HOUSEHOLDS AND INDIVIDUALS

Article 32. CONDITIONS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Households and individuals may contribute capital with the value of the right to use the land to cooperate in production and business with domestic organizations and individuals when they meet one of the following conditions:

1. The land has been granted by the State;

2. The land has been legally received the right to use;

3. The land has been leased by the State and the lease payment has been paid for the entire lease period or prepaid for several years, with at least five years remaining in the lease term.

Article 33DOCUMENTS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Documents for contributing capital with the value of the right to use the land include:

1. A form for contributing capital with the value of the right to use the land according to Model No. 5a promulgated together with this Decree;

2. Certificate of land use rights;

3. A plot map (extract from the cadastral map or measured on-site);

4. Proof of payment of land lease fees (a certified copy by a notary public or certified by the People's Committee of the commune, ward, or town where the land is located).

Article 34. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

1. The parties contributing capital with the value of the right to use the land shall submit the contribution documents to the People's Committee of the commune, ward, or town where the land is located.

2. Within five days from the date of receiving complete and valid documents, the People's Committee of the commune, ward, or town shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form; if not eligible for contribution, the documents will be returned and the party will be informed of the reasons.

3. After obtaining confirmation of eligibility for contribution from the People's Committee of the commune, ward, or town, the parties contributing capital shall complete investment procedures according to the law.

In cases where a new legal entity is formed to use the land, that new legal entity must register the right to use the land and obtain a certificate of land use rights.

In cases where no new legal entity is formed to use the land, the land remains under the right to use of the contributor. The contributor must register the contribution of capital with the value of the right to use the land with the People's Committee of the commune, ward, or town where the land is located.

PART 2: REGARDING ORGANIZATIONS

Article 35. CONDITIONS FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND

Economic organizations using land may contribute capital with the value of the right to use the land to cooperate in production and business with domestic organizations and individuals, and foreign organizations and individuals when they meet one of the following conditions:

1. The land has been granted by the State without payment of land use fee for agricultural, forestry, aquaculture, or salt-making purposes;

2. The land has been granted by the State with payment of land use fee;

3. The land has been legally transferred the right to use;

4. The land has been leased by the State and the lease payment has been paid for the entire lease period or prepaid for several years, with at least five years remaining in the lease term;

5. The land has been leased by the State to state-owned enterprises with annual lease payments. If contributing capital with the value of the right to use the land to form a joint venture with foreign organizations and individuals, it must be approved by the Prime Minister.

Article 36. DOCUMENTS FOR CONTRIBUTING CAPITAL

Documents for contributing capital with the value of the right to use the land include:

1. A form for contributing capital with the value of the right to use the land according to Model No. 5a promulgated together with this Decree;

2. Certificate of land use rights;

3. Extract from the land plot map;

4. Receipts for land rent payment.

Article 37. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND WITH DOMESTIC ORGANIZATIONS AND INDIVIDUALS

1. The contributor shall submit the contribution documents to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within ten days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form; if not eligible for contribution, the documents will be returned and the organization will be informed of the reasons.

3. After obtaining confirmation of eligibility for contribution with the value of the right to use the land, the parties contributing capital shall complete investment procedures according to the law.

In cases where a new legal entity is formed to use the land, that new legal entity must register the right to use the land and obtain a certificate of land use rights.

In cases where no new legal entity is formed to use the land, the land remains under the right to use of the contributor. The contributor must register the contribution of capital with the value of the right to use the land with the People's Committee of the commune, ward, or town where the land is located.

Article 38. PROCEDURE FOR CONTRIBUTING CAPITAL WITH THE VALUE OF THE RIGHT TO USE THE LAND TO FORM A JOINT VENTURE WITH FOREIGN ORGANIZATIONS AND INDIVIDUALS

1. The contributor shall submit the documents to the Department of Land Administration or the Department of Land Administration - Real Estate where the land is located.

2. Within fifteen days from the date of receiving complete and valid documents, the Department of Land Administration or the Department of Land Administration - Real Estate shall review the documents and confirm the eligibility for contribution in Part II (the section recorded by the state agency) of the Contribution Form.

For cases where state-owned enterprises contribute capital with the value of the right to use the land leased by the State with annual lease payments, the Department of Land Administration or the Department of Land Administration - Real Estate shall report to the People's Committee of the province or centrally-administered city for approval by the Prime Minister.

3. After obtaining approval from the competent authority, upon confirmation of eligibility for contribution with the value of the right to use the land, the parties involved in the joint venture contract shall complete investment procedures according to the law.

4. Upon obtaining an investment license, the joint venture enterprise must register the right to use the land with the People's Committee of the commune, ward, or town where the land is located and obtain a certificate of land use rights.

PART 3: TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

Article 39. TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

Contribution by the value of land use rights shall terminate in the following cases:

1. Expiration of the contribution period by the value of land use rights;

2. At the request of one party or all parties; in the case of joint venture with foreign organizations or individuals, it must be approved by the competent state agency;

3. By decision of the competent state agency due to serious violations of laws on land;

4. Due to bankruptcy declaration;

5. Due to dissolution;

6. In the event of death of an individual who concluded a capital contribution contract, or if the legal entity or other subjects that must perform the capital contribution contract cease to exist.

Article 40. DISPOSITION OF LAND USE RIGHTS UPON TERMINATION OF CONTRIBUTION BY THE VALUE OF LAND USE RIGHTS

The disposition of land use rights upon termination of contribution by the value of land use rights shall be carried out as follows:

1. For the cases stipulated in Clause 1 and 2 of Article 39 of this Decree, the contributor by the value of land use rights shall continue to use the land for the remaining duration of the land use right.

If the land use term has expired, the State shall reclaim the land according to the provisions of the law on land; if the land user still wishes to continue using the land, they may be considered for continued use according to the law.

2. For the case stipulated in Clause 3 of Article 39 of this Decree, the State shall reclaim the land.

3. In the event of bankruptcy of a joint venture enterprise, the disposition of the land use rights contributed shall be handled according to the Bankruptcy Declaration Decision of the People's Court.

When the recipient of land use rights and attached assets is an organization or individual within the country, they shall continue to use the land for its intended purpose and for the remaining duration of the land allocation or lease.

When the recipient of land use rights and attached assets is a foreign organization or individual, the State shall lease the land to them and they must use the land for its intended purpose according to the law.

In the absence of a recipient of land use rights and attached assets, the State shall reclaim the land.

4. In the event of the death of an individual who concluded a capital contribution contract, the land use rights contributed shall be inherited according to the law.

5. In the event of dissolution, the disposition of the land use rights contributed shall be handled according to the agreement of the parties.

Chapter 8:

IMPLEMENTATION

Article 41. RESPONSIBILITIES OF LAND USERS

Organizations, households, and individuals using land when exercising the rights of conversion, transfer, leasing, subleasing, inheritance of land use rights, mortgage, and contribution by the value of land use rights must comply with the provisions of this Decree and fulfill financial obligations as prescribed by law.

Article 42. RESPONSIBILITIES OF THE LAND ADMINISTRATION COUNCIL AND THE MINISTRY OF FINANCE

The Land Administration Council and the Ministry of Finance shall specify the rates of land administration fees when implementing the rights of conversion, transfer, leasing, subleasing, inheritance of land use rights, mortgage, and contribution by the value of land use rights.

The Land Administration Council shall guide the procedures and formalities for requesting land allocation or lease for joint venture contribution with domestic organizations or individuals, and with foreign organizations or individuals.

Article 43. Handling Violations

1. Any person engaging in fraudulent acts, forgery of documents, failure to comply with the provisions of this Decree, or non-compliance with state regulations on financial obligations when exercising the rights of land users as stipulated in this Decree, shall be subject to administrative penalties or criminal prosecution depending on the severity of the offense.

2. Any person taking advantage of their position or authority, exceeding their permitted powers, transferring land use rights contrary to the provisions of this Decree, causing difficulties or hindrances to land users in exercising their rights, or shielding persons who violate land laws, shall be subject to disciplinary action or criminal prosecution depending on the severity of the offense.

3. Any person violating the provisions of this Decree and causing damage to others, in addition to being subject to penalties as provided in Clauses 1 and 2 of this Article, shall also be liable for compensation to the damaged party.

Article 44. Effectiveness

This Decree shall take effect fifteen days after its signing date. Previous regulations contrary to this Decree shall be abolished.

Article 45. Implementation organization

The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of provincial and municipal People's Committees directly under the Central Government, within the scope of their duties and authority, shall be responsible for organizing the implementation of this Decree.