Circular No. 20/2004/TT-BTC guiding the handling and reorganization of state-owned real estate in the city of Can Tho and the province of Hau Giang.

CIRCULAR

Guidelines for the handling and reorganization of state-owned real estate in the city of Can Tho and the province of Hau Giang

Implementing the Prime Minister's directive in Circular No. 1283/CP-CN dated September 23, 2003, which permits the People's Committee of Can Tho City (formerly Can Tho Province) and Hau Giang Province to apply Decision No. 80/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister to handle and reorganize state-owned real estate managed by agencies and units under the management of Can Tho City and Hau Giang Province;

The Ministry of Finance provides guidelines for the handling and reorganization of state-owned real estate in Can Tho City and Hau Giang Province as follows:

I. Scope and Applicability:

1- Implementation Scope:

All state administrative agencies (including communes and wards), public service organizations (collectively referred to as state-managed agencies), and state-owned enterprises (SOEs) located in Can Tho City and Hau Giang Province must conduct reviews and inspections to rearrange state-owned real estate according to the guidelines set forth in this Circular.

2- Subjects of Implementation:

All real estate (including land plots with attached buildings, land plots without buildings, and land plots currently under construction) owned by the state and managed and used by state-managed agencies and SOEs in Can Tho City and Hau Giang Province for purposes such as offices, teaching, learning, scientific research, medical treatment, cultural facilities, sports, warehouses, representative offices, production bases, business premises, housing for staff members, etc., that have not yet been transferred to local housing management organizations according to current housing policies.

3- Exempted Subjects from Handling and Reorganization:  Real estate leased or borrowed by state-managed agencies and SOEs that does not belong to the state.  Real estate managed by central-level state-managed agencies and SOEs located in Can Tho City and Hau Giang Province.

State-owned real estate managed and used by state-managed agencies and SOEs that has been contributed as capital to joint ventures with foreign organizations or individuals under the Law on Foreign Investment.

State-owned real estate used by state-managed agencies and SOEs in violation of laws and currently under investigation as evidence in criminal cases.

Real estate of SOEs that has been decided to be reclaimed by competent state authorities for national interests or public benefits.

Real estate of SOEs allocated or rented by competent state authorities for the construction of public works or to create investment capital for infrastructure projects according to approved plans.

Land leased by SOEs in industrial zones.

Land of SOEs that has been mortgaged to financial institutions and is now overdue and being auctioned by banks to recover loans.

Real estate of SOEs undergoing privatization, where the authorized body has determined the enterprise value and decided on the enterprise value for conversion into a joint-stock company; SOEs shall implement sales, leasing, or renting in accordance with Government Decree No. 103/1999/NĐ-CP dated September 1, 1999, regarding the transfer, sale, lease, and rental of state-owned enterprises.

II. Principles for Handling and Reorganization of State-Owned Real Estate in Can Tho City and Hau Giang Province:

1- For Real Estate of State Administrative Agencies:

1.1 - State administrative agencies with real estate must plan and reorganize the area of real estate they are using. If there is excess real estate, they should propose selling the property and transferring the land use rights. The sale and transfer of excess real estate to users must comply with provincial and municipal planning.

1.2 - State administrative agencies currently using office space that is too cramped or unsuitable for planning requirements may request competent state authorities to allow the sale and transfer of land use rights or exchange with other entities to move to a more suitable location in compliance with planning standards and the specific needs of the agency as stipulated by the Prime Minister and operational requirements.

1.3 - If state administrative agencies have surplus real estate but do not propose a resolution, the People's Committees of Can Tho City and Hau Giang Province will decide to reclaim it for allocation to state administrative agencies without office space or those lacking sufficient space according to standards or for general provincial use.

1.4 - State-owned real estate leased or lent out by state administrative agencies should be handled as follows:

If the leased or lent-out real estate is being used inefficiently or is inconsistent with planning, the leasing or lending agency must terminate the lease or loan agreement and reclaim the property for reorganization according to Clause 1.1 of Part II of this Circular.

1.5 - State-owned real estate used by state administrative agencies for housing staff members should be handled as follows:

If the real estate was allocated entirely or partially for housing staff members before 1995 and is now consistent with residential area planning, it can be converted to housing and sold or rented according to current regulations. If allocated after 1995, priority should be given to selling at market prices to families currently residing there, provided it aligns with planning.

If the real estate allocated for staff housing is inconsistent with planning or violates current state regulations, the managing state administrative agency must propose relocating the families to another location as required by law. Surplus or unused real estate can be sold and the land use rights transferred to users consistent with provincial planning.

1.6 - State-owned real estate used by state administrative agencies for production facilities, shall be handled as follows when arranged for housing for officials, workers, and employees:

If all or part of the land area has been arranged for housing for officials, workers, and employees before 1995, and can be separated between residential areas and work areas, and it is now consistent with the residential planning, such areas may be converted to housing and land for sale or lease according to current regulations. In cases where arrangements were made after 1995, priority should be given to selling designated houses to families currently residing there at market prices if they are consistent with the planning. may be separated between residential areas and workplaces) to be used as residential land for officials, workers, and employees prior to 1995, now in compliance with the residential area planning, may be converted to residential purposes,  residential land and and carry out sales or rental in accordance with current regulations. In cases arranged after 1995, priority shall be given to selling designated to households currently residing there at market prices, if in compliance with the planning.

If the arrangement for housing for officials, workers, and employees is now inconsistent with the planning and violates current state regulations, the management agency must propose a relocation plan for households to other locations in accordance with the law. The recovered land area  that is not needed or surplus may be sold and transferred to individuals or entities with appropriate needs in line with provincial planning.

1.6 - State-owned land that is currently being used by the management agency for production purposes, For state-owned enterprises (SOEs) that continue to use land and buildings for business, services, or allocate them for SOE use, if they still comply with the planning scheme, they are allowed to change their function and manage assets and land according to current regulations.

In cases where the area of land and buildings used for production, business, and service operations is intermixed with the area used for office space by administrative agencies, such areas must be rearranged to separate the working area from the production, business, and service facilities based on compliance with the planning scheme.

1.7- For guesthouses and rest houses, they must be re-planned to convert these facilities into commercial operations, subject to management regulations for guesthouses applicable only to those maintained by entities as specified by the Prime Minister.

1.8- State-owned land and building facilities managed and used by administrative agencies that have been illegally occupied in whole or in part by organizations or individuals must be reclaimed by the managing agency through cooperation with local authorities. If the reclaimed area is surplus or unused, it can be sold and transferred to users in accordance with the planning scheme.

2- Regarding land and buildings of SOEs:

2.1- Land and buildings used by SOEs for production and business purposes that are inconsistent with the planning scheme, scale of business, or technology must be relocated to another site and can be sold and transferred to users who meet the planning requirements.

2.2- Surplus land and buildings resulting from restructuring can be sold and transferred or leased out.

2.3- Unused land and buildings must be utilized effectively by SOEs. If there is no need for use, they can be sold and transferred or leased out.

2.4- In cases where SOEs lease or lend land and buildings consistent with the planning scheme, if the lessees or borrowers require continued use, they may purchase the buildings and acquire the right to use the land or lease rights.

If they are inconsistent with the planning scheme or leasing does not comply with Decree No. 103/1999/NĐ-CP dated September 1, 1999, issued by the Government regarding the transfer, sale, contracting, leasing of state-owned enterprises, then they must be reclaimed. The reclaimed area must be rearranged, and if surplus, can be sold and transferred or leased out.

2.5 - State-owned land and buildings currently allocated for housing by SOEs for cadres, workers, and employees shall be handled as stipulated in Point 1.5 of Part II of this Circular.

2.6- Land and buildings of SOEs that are currently being used inefficiently but could be used for other productive purposes in line with the enterprise's business functions, may be permitted to change their usage purpose according to the planning scheme.

2.7- Land and building facilities mortgaged to financial institutions, economic organizations, or individuals for production and business loans shall be executed according to the mortgage contracts signed.

2.8- Land and building facilities jointly operated with domestic organizations or individuals in accordance with the law shall be executed according to the joint venture contracts signed.

2.9- Surplus land and buildings for which SOEs have not proposed handling or reorganization plans shall be handled as stipulated in Point 1.3 of Part II of this Circular..

2.10- Land and building facilities that have been illegally occupied in whole or in part by organizations or individuals shall be handled as stipulated in Point 1.8 of Part II of this Circular.

3- State-owned land and building facilities approved by competent authorities for sale and transfer of land use rights (or lease rights) must be free of disputes and must comply with the following provisions:

3.1- Documents required to implement the sale and transfer of land use rights (or lease rights) include:       (a) Proof of ownership of the house and land use rights (if not available, a new file must be established and submitted to the competent authority for decision);

(b) A layout plan of the current status of the land and building area according to the regulations of relevant agencies (if not available, it must be remeasured);

(c) Written opinions of the Construction Department on the land use planning scheme approved by the competent authority;

The selling price of the house and transfer of land use rights (or lease rights) must be determined based on the prevailing market price for the transfer of land and buildings and implemented through public auction. The minimum price for public auction of land and building facilities eligible for sale and transfer of land use rights through public auction is approved by the Chairman of the People's Committee of Can Tho City and Hau Giang Province.

3.2- In special cases where public auction is not conducted (or only one organization or individual registers to purchase), the sale by designation shall be carried out. The designated selling price is determined based on the market price at the time of sale and approved by the Chairman of the People's Committee of Can Tho City and Hau Giang Province.

3.3- All organizations and individuals purchasing houses and attached structures, receiving the transfer of land use rights shall be granted certificates of land use rights and house ownership certificates in accordance with current laws.

4- For land and buildings converted for residential purposes, the administrative agencies and SOEs directly managing them shall hand over to the local functional management organizations.

5- The exchange of land and buildings shall be carried out according to the decision of the competent authority and the agreement between the parties.

III. Management and use of funds from the sale of houses and the transfer of land use rights (lease rights):

1- Funds obtained from the sale of houses and the transfer of land use rights from the exchange of land and buildings, and the conversion of land use purposes, after deducting costs for measuring land and buildings, costs for organizing the sale and transfer of land use rights, and related expenses, must be deposited into the State budget and used for the following purposes:

a) For administrative agencies, it can be used for relocating agencies, units, and households; for investment, renovation, repair, upgrading, or construction of new office premises for agencies and units according to approved projects by the competent authority.

a) For the management agency to use for relocating agencies, units, and households; for investment, renovation, repair, upgrading, or construction of new office premises for agencies and units in accordance with approved projects.  the right to approve in accordance with the current regulations on investment construction management.

b) For SOEs that are state capital invested in enterprises for use in: 

Investment in constructing production and business bases at new locations where relocation is required in line with planning, scale of business operations, or     technology;

As capital for expanding, renovating, or modernizing technology, deepening investment to enhance production and business capacity;

For SOEs that are loss-making but have effective production and business plans approved by competent authorities, additional capital for developing production and business activities may be supplemented. In cases where SOEs are continuously loss-making, unable to recover production and fall into bankruptcy as defined by the Enterprise Bankruptcy Law, all proceeds from selling houses and transferring land use rights or leasing land rights must be deposited into the state budget.

2- The State Treasury of Can Tho City and Hau Giang Province shall only carry out payments to agencies under the central government and SOEs or project management units (if any) in accordance with the current regulations on the management, allocation, and settlement of basic construction investment funds when the following conditions are met:

The plan for handling and reorganizing houses and land and the plan for using the proceeds have been approved by the competent authority.

The investment project has been approved by the competent authority in accordance with the current regulations on management and basic construction investment.

The State Treasury of Can Tho City and Hau Giang Province shall implement allocations and payments in accordance with the current State Budget Law.

3- During the implementation of projects, if there are changes in the allocation of investment capital exceeding the approved investment project, the departments and sectors in charge, and district-level People's Committees shall report to the Chairman of the People's Committee of Can Tho City and Hau Giang Province for decisions within the scope of revenue from the handling and reorganization of houses and land.

4- Upon completion of investment projects, based on the approved final accounts report in accordance with the current regulations on basic construction investment fund management, the agencies under the central government and SOs directly managing and using assets shall be responsible for reporting to their superiors to compile reports to the Department of Finance to increase asset values and asset value (capital increase) and implement asset management regulations in accordance with current provisions.

IV. Implementation Organization:

1- Based on the actual situation of the management and use of state-owned houses and land as guided in this Circular, the People's Committee of Can Tho City and Hau Giang Province shall be responsible for directing the implementation and deciding on the plans for handling and reorganizing state-owned houses and land of agencies under the central government and SOEs under their management in a suitable manner.

2- The Department of Finance of Can Tho City and Hau Giang Province shall be responsible for organizing the sale of houses and transfer of land use rights and leading the guidance on implementing decisions on handling made by the provincial and municipal People's Committees according to the guidelines in this Circular.

This Circular takes effect 15 days after its publication in the Official Gazette. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for guidance, amendment, and supplementation as appropriate./.