Circular No. 26/2013/TT-BTNMT guides the determination of land area to be excluded from the enterprise value as stipulated in Article 31 of Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on the conversion of state-owned enterprises with 100% state capital into joint-stock companies.

CIRCULAR

Guidelines for determining the area of land to be excluded from the enterprise value as stipulated in Article 31 of Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on transferring state-owned enterprises with 100% state capital to joint-stock companiesđể thành lập công ty cổ phần

______________

Based on the Land Law dated November 26, 2003;

Pursuant to Decree No. 89/2013/NĐ-CP dated August 6, 2013 of the Government detailing implementation of certain provisions of the Price Law on appraisal;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

At the proposal of the Director General of the National Land Administration and the Head of the Legal Department;

The Minister of Natural Resources and Environment issues this Circular guiding the determination of the area of land to be excluded from the enterprise value as stipulated in Article 31 of Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on transferring state-owned enterprises with 100% state capital to joint-stock companies.

Article 1. Scope of Regulation

This Circular guides the determination of the area of land to be excluded from the enterprise value when transferring state-owned enterprises with 100% state capital to joint-stock companies as stipulated in Point b Clause 2 Article 31 of Decree No. 59/2011/NĐ-CP dated July 18, 2011 of the Government on transferring state-owned enterprises with 100% state capital to joint-stock companies (hereinafter referred to as Decree No. 59/2011/NĐ-CP).

For the area of land used for public works with safety protection zones as prescribed by laws on land, state-owned enterprises currently using such land when implementing equitization shall be considered for exclusion according to the decision of the Prime Minister.

Article 2. Applicability

1. State management agencies; specialized agencies on natural resources and environment and organizations and individuals related thereto.

2. Enterprises subject to equitization as stipulated in Article 2 of Decree No. 59/2011/NĐ-CP (hereinafter referred to as equitization enterprises).

Article 3. Area of land to be excluded from the value of equitization enterprises

The area of land to be excluded from the value of equitization enterprises as stipulated in Point b Clause 2 Article 31 of Decree No. 59/2011/NĐ-CP is the area of land granted by the State without payment of land use fees as prescribed by laws on land for use in activities producing and supplying public services and products, welfare facilities, and public utilities, specifically as follows:

1. The area of land used for research, experimentation, and trial purposes in agriculture, forestry, aquaculture, and salt production.

2. The area of land for constructing housing for resettlement pursuant to state projects.

3. The area of land for constructing parking lots not intended for business purposes.

4. The area of land used for constructing non-business facilities in cultural, health care, education and training, sports and physical culture fields serving public interests, including:

a) The area of land used for constructing headquarters of news agencies, press, radio stations, television stations, parks, flower gardens, entertainment areas, clubs, cultural houses, postal and cultural centers at commune level, museums, exhibition halls, libraries, cinemas, circus theaters, theaters, literary creation bases, artistic creation bases, art exhibition venues, and performance venues of artistic groups; land for monuments and memorial tablets approved by competent state authorities;

b) The area of land for constructing hospitals, medical examination and treatment facilities, maternity homes, rehabilitation centers, functional recovery centers, nursing homes, HIV/AIDS treatment centers, and other healthcare facilities approved by competent state authorities to operate (excluding the area of land for commercial purposes such as high-quality medical examination and treatment rooms, drug stores, hotels, restaurants, dedicated parking lots with charges);

c) The area of land for constructing educational and training facilities including kindergartens, primary schools, secondary schools, vocational training centers, colleges, universities, training centers, vocational training centers (including dormitories for students and trainees) approved by competent state authorities to operate (excluding the area of land for commercial purposes such as hotels, restaurants, dedicated parking lots with charges);

d) The area of land used for constructing sports grounds, training and competition venues for sports and physical culture approved by competent state authorities to operate (excluding the area of land for ticket sales, souvenir sales, sports equipment sales, hotels, guesthouses, restaurants, dedicated parking lots with charges);

đ) The area of land used for constructing elderly care facilities, disabled care facilities, children's care facilities in difficult circumstances, rehabilitation camps, drug rehabilitation centers, funeral homes;

e) The area of land containing historical and cultural relics, scenic spots, and famous landscapes that have been classified or decided to be protected by provincial People's Committees (hereinafter collectively referred to as provincial People's Committees) (excluding the area of land for ticket sales, hotels, guesthouses, restaurants, souvenir shops, dedicated parking lots with charges, and other facilities serving tourism, entertainment, and leisure activities with charges);

g) The area of land used for waste disposal sites, garbage dumps, and community waste treatment facilities.

5. The area of land for constructing common infrastructure in industrial zones according to approved projects.

6. The area of land used for public purposes within urban development projects, residential areas, and production and business zones with multiple land uses but not industrial zones, economic zones, or high-tech zones, including:

a) The area of land used for roads that connect to the public transportation system and are not separated by barriers or any means to restrict access within the project or investment area;

b) The area of land used for parks, recreational areas, educational and training facilities, healthcare, cultural, and sports and physical culture facilities or other forms of use not for business purposes and available for shared use by people both inside and outside urban and rural residential areas.

Article 4. Determination of the area of excluded land not included in the value of the enterprise for shareholding reform

1. When formulating the land use plan, the enterprise undergoing shareholding reform must determine the area of excluded land not included in the value of the enterprise according to the provisions of Article 3 of this Circular. The determination of the area of excluded land shall be carried out according to the Appendix attached to this Circular and must be reflected on the extract of the cadastral map or the cadastral survey for areas without a cadastral map.

2. The enterprise undergoing shareholding reform shall submit the land use plan along with the statistics of the area of excluded land not included in the value of the enterprise according to the provisions of Clause 1 of this Article to the Department of Natural Resources and Environment where the land is located for examination and submission to the People's Committee of the province for approval.

3. Within a period not exceeding fifteen days from the date of receipt of complete and valid documents, the Department of Natural Resources and Environment shall take the lead and coordinate with relevant departments and sectors to review and issue a document to the People's Committee of the province for approval of the area of excluded land not included in the value of the enterprise undergoing shareholding reform.

4. Within a period not exceeding five working days from the date of receipt of the proposal document of the Department of Natural Resources and Environment, the People's Committee of the province shall be responsible for approving the area of excluded land not included in the value of the enterprise undergoing shareholding reform in the land use plan.

Article 5. Responsibilities for Implementation

1. The People's Committee of the province shall be responsible for directing the Department of Natural Resources and Environment to take the lead and coordinate with relevant departments and sectors to review the area of excluded land not included in the value of the enterprise; approve the area of excluded land not included in the value of the enterprise undergoing shareholding reform in the land use plan.

2. The National Land Management Agency shall monitor, supervise, and urge the implementation of this Circular.

3. The Provincial Department of Natural Resources and Environment shall be responsible for:

a) Guiding enterprises undergoing shareholding reform to determine the area of excluded land not included in the value of the enterprise in the land use plan;

b) Taking the lead and coordinating with relevant departments and sectors to review the area of excluded land not included in the value of the enterprise undergoing shareholding reform in the land use plan.

4. State-owned enterprises implementing shareholding reform according to Decree No. 59/2011/NĐ-CP shall be responsible for determining the area of excluded land not included in the value of the enterprise according to the guidance provided in this Circular.

5. For enterprises undergoing shareholding reform that have already had their shareholding reform plans approved by competent authorities before the effective date of this Circular and have determined the area of excluded land according to the provisions of Article 3 of this Circular, they shall implement the approved shareholding reform plan.

For enterprises undergoing shareholding reform that have had their shareholding reform plans approved but have incorrectly determined the area of excluded land according to the provisions of Article 3 of this Circular and have not yet sold shares, they must adjust and reannounce the value of the enterprise undergoing shareholding reform.

Article 6. Effectiveness

This Circular takes effect from November 11, 2013.

During the implementation process, if there are difficulties or obstacles, organizations and individuals are requested to promptly report in writing to the Ministry of Natural Resources and Environment for consideration and decision./.