Circular No. 83/2001/TT-BTC guides the implementation of the handling and reorganization of state-owned real estate in Ho Chi Minh City.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 83/2001/TT-BTC DATED OCTOBER 4, 2001 GUIDING THE IMPLEMENTATION OF THE DISPOSITION AND REORGANIZATION OF STATE-OWNED REAL ESTATE IN HO CHI MINH CITY

Pursuant to Decision No. 80/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister on the disposition and reorganization of state-owned real estate in Ho Chi Minh City, after reaching consensus with the People's Committee of Ho Chi Minh City, the Ministry of Defense, the Ministry of Public Security, and the Ministry of Finance hereby guides the disposition and reorganization of state-owned real estate in Ho Chi Minh City as follows:

I. SCOPE AND OBJECTS SUBJECT TO THE DISPOSITION AND REORGANIZATION OF STATE-OWNED REAL ESTATE IN HO CHI MINH CITY:

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.

All administrative agencies at all levels (including communes and wards), educational and training institutions, healthcare facilities, cultural centers, social welfare organizations, sports facilities, scientific research institutes, economic enterprises; agencies and units under the Ministry of Defense and the Ministry of Public Security; political organizations; political-social organizations, social organizations, and occupational social organizations (collectively referred to as administrative-state agencies); state-owned enterprises including independent state-owned enterprises, representative offices, branches, and member enterprises of state-owned enterprises that are State Corporations or Companies (collectively referred to as state-owned enterprises) directly managing and using state-owned real estate in Ho Chi Minh City must conduct a review and inspection to arrange and reorganize their headquarters, production, and business bases according to Decision No. 80/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister and the guidance provided in this Circular.

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.

All state-owned real estate (including land plots with attached buildings, land plots without buildings, and land plots currently under construction) managed and used by administrative-state agencies and state-owned enterprises for office work, teaching, learning, scientific research, medical treatment, cultural facilities, sports facilities, warehouses, representative offices; production and business bases... which have been allocated entirely or partially for housing for officials and employees, and which have not yet been transferred to the management of the city’s real estate sector according to current housing and land policies.

3. The objects not required to implement the disposition and reorganization include:

- The area of real estate rented or borrowed by administrative-state agencies and state-owned enterprises that does not belong to the state.

- The area of real estate used for detention camps, rehabilitation centers, and correctional facilities of the public security sector.

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

- The area of state-owned real estate used by administrative-state agencies and state-owned enterprises in violation of the law and currently under investigation as evidence in a case.

- The area of state-owned real estate of administrative-state agencies and state-owned enterprises that has been decided to be reclaimed by competent state authorities for use in serving national interests and public benefits.

- The area of state-owned real estate of state-owned enterprises that has been assigned or leased by competent state authorities for the construction of public works or to create investment capital for infrastructure development projects.

- The area of state-owned real estate of state-owned enterprises leased in industrial zones, export processing zones, and high-tech parks.

- The area of state-owned real estate of state-owned enterprises that has been mortgaged to banks and is now overdue and unable to repay, with banks selling off to recover loaned funds.

- The area of state-owned real estate of state-owned enterprises undergoing shareholding conversion, where the competent authority has determined the enterprise value and decided on the enterprise value to convert ownership into a joint-stock company; state-owned enterprises implementing the sale, lease, or transfer of management rights according to Decree No. 103/1999/NĐ-CP dated September 1, 1999 of the Government on the transfer, sale, lease, and management of state-owned enterprises.

II. PRINCIPLES FOR THE DISPOSITION AND REORGANIZATION OF STATE-OWNED REAL ESTATE IN HO CHI MINH CITY:

1. For real estate of administrative-state agencies:

1.1 - Administrative-state agencies with multiple real estate bases must plan and reorganize the area of real estate they are currently using; if there is excess real estate, they may propose selling the property and transferring land use rights. The sale of property and the transfer of excess land use rights to suitable users in accordance with the city's planning can be carried out for the entire or part of the office premises.

1.2 - Administrative-state agencies currently using office space that is too cramped or unsuitable for planning and operational requirements may propose to competent state authorities to sell the property and transfer land use rights or exchange with organizations or individuals to move to another location suitable for the city's planning, meeting the standards and quotas for office space usage set by the Prime Minister and the operational needs of the agency.

1.3 - For excess real estate where administrative-state agencies do not propose a disposal plan, the People's Committee of Ho Chi Minh City will decide to reclaim (for real estate under city management) or coordinate with the Ministry of Finance to report to the Prime Minister for decision to reclaim (for real estate under central management) to arrange and reorganize working spaces for central and local administrative-state agencies in Ho Chi Minh City that do not have office space or have insufficient office space compared to standards and quotas, or manage it to meet the common needs of the city.

1.4 - For state-owned real estate that administrative-state agencies lease or lend, the Steering Committee for the Disposition and Reorganization of State-Owned Real Estate in Ho Chi Minh City (hereinafter referred to as the Steering Committee 80) will inspect and handle as follows:

- If the real estate being leased or lent is currently being used in accordance with the planning scheme and the lessee or borrower has a need for use, the house may be sold and the land use rights transferred.

- If the real estate being leased or lent is currently being used inefficiently and does not comply with the planning scheme, the leasing or lending agency must terminate the lease or loan contract and reclaim the area of real estate to rearrange and reassign it according to the provisions of Point 1.1 Part II of this Circular.

1.5- State-owned real estate that state agencies have arranged for officials, workers, and employees to reside in shall be handled as follows:

- If the entire or part (which can be separated between residential areas and workplaces) of the real estate was allocated for housing and residential land for officials, workers, and employees before 1995 and now complies with the city's residential area planning scheme, it may be converted to housing and residential land and sold or leased according to the regulations of the City People's Committee.

- If the area of real estate allocated for housing for officials, workers, and employees no longer complies with the city's residential area planning scheme, violates current national regulations, or falls within the planning scheme of the agency, the state agency managing the real estate must propose a relocation plan for households to other locations according to current laws. If the reclaimed area of real estate is not needed or is surplus, the house may be sold and the land use rights transferred to users who meet the city's planning requirements.

1.6- State-owned real estate that state agencies are using for production, business, service purposes, or have been assigned to SOEs for use, and which still comply with the planning scheme, may be allowed to change its function and manage assets and lease land use rights according to current regulations.

In cases where the area of real estate used for production, business, and service purposes is interwoven with the area used for office space by state agencies, it must be rearranged to separate the working area from the production, business, and service facilities based on compliance with the city's planning scheme.

1.7- State-owned real estate bases that state agencies are renting from the city's real estate sector but have not yet been handed over to financial agencies for management according to Directive No. 45/CT-UB-QLĐT dated August 26, 1995 of the City People's Committee must be rearranged according to Decision No. 80/2001/QĐ-TTg and the guidelines in this Circular.

1.8- For guesthouses and rest houses, they must be re-planned to convert them to commercial operations, applying guesthouse management regulations only to those maintained by the Government as stipulated by the Prime Minister.

Guesthouses and rest houses that do not meet the conditions to establish enterprises or do not comply with the planning scheme shall be rearranged and handled according to this Circular.

1.9- State-owned real estate bases handed over to state agencies for management and use that have been illegally occupied in whole or in part by organizations or individuals, the state agency directly managing the real estate must work with the city's competent authorities to reclaim the area of real estate. If the reclaimed area of real estate is not needed or is surplus, the house may be sold and the land use rights transferred to users who meet the planning requirements.

1.10- For the portion of real estate retained for office use, the state agency must redraw the current floor plan and register it with the financial authority to obtain a certificate of management and use of the office premises according to Decision No. 20/1999/QĐ-BTC dated February 25, 1999 of the Minister of Finance.

2- Regarding real estate of SOEs:

2.1- Real estate used by SOEs for production and business purposes that do not comply with the city's planning scheme, business scale, or technology must be relocated to another location and may be sold and the land use rights transferred or sold and the land use rights leased to users according to the planning scheme.

2.2- Surplus real estate of SOEs due to restructuring may be sold and the land use rights transferred or the land use rights leased.

2.3- Unused real estate bases must be effectively utilized by SOEs through a utilization plan. If there is no need for use, the house may be sold and the land use rights transferred or the land use rights leased.

2.4- If SOEs without the function of leasing office space or warehouses have real estate bases being leased or lent that comply with the planning scheme, and if the lessees or borrowers have a need for use, the house may be sold and the land use rights transferred or the land use rights leased.

If it does not comply with the planning scheme or if leasing is not conducted according to Decree No. 103/1999/NĐ-CP dated September 1, 1999 of the Government on the transfer, sale, contracting, and leasing of state-owned enterprises, it must be reclaimed. The reclaimed area of real estate must be rearranged, and if surplus, the house may be sold and the land use rights transferred or the land use rights leased.

2.5- State-owned real estate that SOEs have arranged for housing for officials, workers, and employees shall be handled according to the provisions of Point 1.5 Part II of this Circular.

2.6- State-owned real estate currently used inefficiently by SOEs, if used for other productive business purposes consistent with the enterprise's business functions and is effective, may be allowed to change its purpose of use according to the planning scheme.

2.7- State-owned real estate of SOEs mortgaged at banks, credit organizations, economic organizations, or individuals for production and business loans shall be implemented according to the mortgage contracts signed.

2.8- Real estate bases that have been joint-ventured with domestic organizations or individuals according to the law shall be implemented according to the joint venture contracts signed.

2.9- For surplus real estate areas of SOEs that have not proposed handling or rearrangement plans, they shall be handled according to the provisions of Point 1.3 Part II of this Circular.

2.10- For real estate bases of SOEs that have been illegally occupied in whole or in part by organizations or individuals, they shall be handled according to the provisions of Point 1.9 Part II of this Circular.

3\. The real estate bases that are permitted by competent authorities to sell houses and transfer land use rights; transfer leased land use rights are state-owned real estate bases without disputes.

In cases where the real estate bases have not been established as state property, the management agencies of state-owned enterprises and state corporations must complete procedures to establish state ownership according to the regulations of the People's Committee of Ho Chi Minh City.

4\. The proceeds from selling houses and transferring land use rights; transferring leased land use rights; exchanging real estate shall be used for purposes specified in Article 5 of Decision No. 80/2000/QĐ-TTg, specifically:

a\. State administrative agencies with excess real estate due to reorganization or relocation of their headquarters to another location may use the proceeds from selling houses and transferring land use rights to invest, renovate, repair, upgrade, or construct new office premises for their agencies or units according to investment projects approved by competent authorities in accordance with current regulations on basic construction management and standards for office premises usage prescribed by the Prime Minister; expenses for relocating households residing within the agency premises before 1995 (if applicable).

b\. State-owned enterprises with houses sold and land use rights transferred; leased land use rights transferred may be used for the following purposes if there are approved projects by competent authorities:

- Investing in constructing production and business facilities at new locations for state-owned enterprises using real estate that does not comply with the city's planning, business scale, or technology requiring relocation to other sites;

- Using as capital for expanding or deepening investments to increase production and business capacity and recorded as increased state budget capital;

- For state-owned enterprises suffering losses but having effective production and business plans approved by competent authorities, this capital can be used for developing production and business activities. For state-owned enterprises suffering prolonged losses and unable to recover production (with potential bankruptcy), the proceeds must be submitted to the state budget after deducting reasonable expenses as stipulated in Articles 38 and 39 of the Bankruptcy Law.

III\. PROCEDURES FOR REVIEWING AND CHECKING TO REARRANGE STATE-OWNED REAL ESTATE AND AUTHORITY TO DECIDE ON DISPOSAL MEASURES:

1\. Each state administrative agency and state-owned enterprise directly managing and using state-owned real estate in Ho Chi Minh City shall base their reports on the results of reviewing and checking to rearrange office premises, production and business facilities; assigned business sectors, functions, tasks, approved staffing levels; office premises usage standards prescribed by the Prime Minister, and disposal principles set out in Part II of this Circular. They shall prepare a report on the current status of the real estate they manage and use, while proposing disposal and rearrangement measures for each real estate base and the use of proceeds from selling houses and transferring land use rights; transferring leased land use rights; exchanging real estate in accordance with the forms and guidelines provided by Steering Committee 80.

2\. Reports shall be prepared for each real estate base and made in three copies:

- One copy retained by the unit;

- One copy sent to ministries, agencies equivalent to ministries, government agencies, central agencies of mass organizations, provincial people's committees under the central government, and provincial-level cities, and general companies established by the Prime Minister's decision (for central agencies and units in other provinces and cities); departments, branches, district and county people's committees, and general companies established by the Ho Chi Minh City People's Committee's decision (for city agencies and units);

- One copy sent to Steering Committee 80 (the permanent working group located at the Department of Finance and Price Control, Ho Chi Minh City, at address 142 Nguyen Thi Minh Khai Street, District 3, Ho Chi Minh City).

For agencies and units directly managed by the Communist Party of Vietnam and those under the Ministry of Defense and the Ministry of Public Security, reports shall be sent to the Central Financial Management Board, the Ministry of Defense, and the Ministry of Public Security for review and rearrangement.

3\. Reports of state administrative agencies and state-owned enterprises must fully reflect the following contents:

- Current area of real estate; area used for work, schools, hospitals, cultural, sports facilities; area of real estate belonging to the offices of state administrative agencies currently used for production and business operations or leased to state-owned enterprises; office space, production and business facilities, warehouses; housing for staff; rented, lent, other uses, unused, encroached upon, unnecessary; organizational structure and staffing of cadres; business sectors;

- Copies of relevant documents related to the reported real estate bases (if available);

- Proposals for disposal measures such as: area of real estate to retain for office use, production and business facilities; area of real estate proposed for selling houses and transferring land use rights; transferring leased land use rights; reallocating to other organizations or individuals; returning to the state; changing the purpose of use to residential or production and business facilities; area of real estate to be reclaimed; area of housing needed for relocating households outside the office premises (if applicable)...

- Proposals for the use of proceeds from selling houses and transferring land use rights; transferring leased land use rights; exchanging real estate for purposes such as investing, renovating, repairing, upgrading, or constructing new office premises; relocating households to other places; investing in constructing new production and business facilities; expanding or deepening investments; using as capital for developing production and business activities...

4. The ministries, agencies at the ministerial level, central agencies of mass organizations, provincial People's Committees under the direct jurisdiction of the central government, other provincial-level cities directly under the central government, state-owned corporations established by the Prime Minister’s decision, and district and county-level departments, state-owned corporations established by the Ho Chi Minh City People's Committee shall base their review and examination of the proposed handling and reorganization plans for each property of each agency and unit under their management on reports from subordinate agencies and units, and provide written opinions to the Steering Committee 80.

5. Authority to decide on the handling and reorganization plans for state-owned properties:

- The Steering Committee 80 shall base its report to the Chairman of the Ho Chi Minh City People's Committee for decision within its authority or coordinate with the Ministry of Finance to submit to the Prime Minister for decision beyond its authority on the handling and reorganization plans based on reports from state agencies and SOEs directly managing and using the properties and the handling proposals of the competent ministries and sectors.

- For surplus properties after reorganization belonging to agencies and units under the Communist Party of Vietnam system, the Central Financial Management Board shall decide within its authority or report to the competent authority for decision according to current laws.

- For surplus properties after reorganization belonging to agencies and units under the Ministry of National Defense and the Ministry of Public Security, the Ministry of National Defense and the Ministry of Public Security shall cooperate with the Steering Committee 80 to handle them according to this Circular.

IV. METHODS OF SELLING HOUSES AND TRANSFERRING LAND USE RIGHTS OR ASSIGNING LEASED LAND USE RIGHTS:

1. After receiving the decision on the plan to sell houses and transfer land use rights; assign leased land use rights from the competent authority, state agencies and SOEs directly managing and using the properties must redraw the area of the properties according to the approved plans to hand over the management files to the Valuation Council and State-Owned Factory Sale Committee of Ho Chi Minh City to conduct public auctions according to regulations stipulated by the city.

2. For properties converted for residential purposes, the state agencies and SOEs currently managing them shall hand them over to the city's housing sector to process according to the current housing policy.

3. Property exchanges shall be carried out according to the decisions of the competent authority and the mutual agreement between the parties.

4. Selling houses and transferring land use rights; assigning leased land use rights must be valued according to market prices for house and land transfers and implemented through the Valuation Council and State-Owned Factory Sale Committee of Ho Chi Minh City for organizations and individuals who need to use surplus properties of state agencies and SOEs according to planning.

5. Regarding legal procedures: all organizations and individuals purchasing houses and attached constructions, transferring land use rights shall be issued certificates of land use rights; certificates of ownership of houses and land use rights; certificates of ownership of houses and land use rights according to current laws by competent state agencies.

V. MANAGEMENT AND USE OF FUNDS RECEIVED FROM THE SALE OF HOUSES AND TRANSFER OF LAND USE RIGHTS, ASSIGNMENT OF LEASED LAND USE RIGHTS:

1. Funds received from the sale of houses and transfer of land use rights; assignment of leased land use rights; exchange of properties of state agencies and SOEs, after deducting costs for surveying houses and lands, costs for selling houses and transferring land use rights; assignment of leased land use rights, remaining value of property assets (for SOEs) shall be deposited into a temporary account at the Ho Chi Minh City Treasury, detailed to the accounts of ministries, agencies at the ministerial level, agencies under the Government, central agencies of mass organizations, provincial People's Committees under the direct jurisdiction of the central government, other provincial-level cities directly under the central government, state-owned corporations established by the Prime Minister’s decision, and district and county-level departments, state-owned corporations established by the Ho Chi Minh City People's Committee having state agencies and SOEs selling houses and transferring land use rights; assigning leased land use rights; exchanging properties.

2. The Ho Chi Minh City Treasury shall only make payments to state agencies and SOEs based on the Steering Committee 80's decision on investment projects decided by the competent authority according to the contents stipulated in Point 4, Part II of this Circular and the construction progress.

3. If the funds received exceed the approved project budget, they must be deposited into the state budget. If the funds are insufficient after being used for investment projects decided by the competent authority, the agency or unit must report to the Steering Committee 80 for consideration and replenishment from the funds received.

4. State agencies selling houses and transferring land use rights, if they need initial funding for projects, shall report to the ministry, sector, central agency of mass organizations (for central state agencies) or the Ho Chi Minh City People's Committee (for city state agencies) for consideration of advance payment from the temporary account at the Ho Chi Minh City Treasury (account according to Point 1, Section V of this Circular); or from their own state budget funds and will be reimbursed immediately upon receipt of funds from the sale of houses and transfer of land use rights deposited into the temporary account at the Ho Chi Minh City Treasury.

5. Costs for organizing the reorganization of state-owned properties (costs for surveying houses and lands, costs for selling houses and transferring land use rights...) shall be temporarily borrowed from the annual budget funds (for state agencies) or fund sources (for SOEs) permitted to be used and will be deducted from the proceeds of the sale of houses and transfer of land use rights; assignment of leased land use rights, exchange of properties to repay.

In cases where units do not have houses for sale and transfer of land use rights; transfer of leased land use rights, exchange of houses and land, the costs to organize the handling and rearrangement of state-owned houses and land shall be arranged within the budget allocated to state administrative agencies; for state-owned enterprises, such costs shall be arranged and accounted for as part of the production and business expenses of the unit.

VI- IMPLEMENTATION:

1- To implement Decision No. 80/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister, the People's Committee of Ho Chi Minh City shall take the lead in coordinating with the Ministry of Finance to establish a Steering Committee for the handling and rearrangement of state-owned houses and land in Ho Chi Minh City (referred to as the Steering Committee 80), consisting of: The Chairman of the People's Committee of Ho Chi Minh City as the Chair, the Vice Chairman of the People's Committee of Ho Chi Minh City as the Deputy Chair in charge, a Deputy Minister of Finance as a Deputy Chair, and members being the Directors of relevant departments and sectors appointed by the People's Committee. The Steering Committee will have a permanent working group comprising staff from the aforementioned agencies, led by the Department of Finance and Price Control, and working at the Department of Finance and Price Control of Ho Chi Minh City.

a) The Steering Committee 80 shall have the following tasks:

- Organizing training and guidance for ministries, sectors, state administrative agencies, and state-owned enterprises to implement the review and inspection work to rearrange state-owned houses and land.

- Monitoring, urging, and directing the implementation of Decision No. 80/2001/QĐ-TTg dated May 24, 2001 of the Prime Minister according to the specified targets and guidelines. Promptly addressing any difficulties arising during the implementation process. Organizing publicity, press conferences, and reporting progress through mass media.

- Inspecting and reviewing the actual management and use of state-owned houses and land by state administrative agencies and state-owned enterprises to report to the People's Committee of Ho Chi Minh City for decision-making on handling measures within their authority, or submitting proposals to the Prime Minister for decision-making on handling measures exceeding their authority.

- Implementing decisions on handling houses and land made by competent authorities.

b) The funding for the activities of the Steering Committee 80 shall be arranged and organized by the People's Committee of Ho Chi Minh City.

2- State administrative agencies and state-owned enterprises directly managing and using houses and land shall be responsible for:

- Organizing reviews and inspections to rearrange state-owned houses and land under their own agency or unit and submitting reports on the results of implementation to the relevant ministries and sectors within the prescribed time frame.

- Cooperating with related agencies to implement decisions on handling houses and land made by competent authorities.

- Being accountable under the law for the truthfulness of reports on the results of reviews and inspections to rearrange state-owned houses and land under their own agency or unit.

3- Ministries, agencies equivalent to ministries, government agencies, central bodies of social organizations, People's Committees of provinces and centrally-administered cities, General Directors of State-owned Corporations established by the Prime Minister, Departments, bureaus, sectors, People's Committees of districts and counties, General Directors of State-owned Corporations established by the People's Committee of Ho Chi Minh City shall be responsible for:

- Directing and urging state administrative agencies and state-owned enterprises under their management to implement reviews and inspections to rearrange state-owned houses and land and submit reports within the prescribed time frame.

- Reviewing and providing comments in writing on proposals for handling and rearranging houses and land from agencies and units under their management to the Steering Committee 80 within the prescribed time frame.

This Circular shall take effect fifteen days from the date of signature. Previous regulations contrary to this Circular are hereby abolished. Any difficulties encountered during implementation should be reported to the Ministry of Finance for consideration and resolution.