Joint Circular No. 772/2001/TTLT-TCDC-NHNN guiding the procedures for the mortgage of the land use right value and assets affixed to land by foreign –invested enterprises at credit institution

THE IVIINISTRJES //VTER-1\;f/lVISTERl4L 1HEGENERALLANDADllf/lliJSTRA110iV- 11/E STATE BANK OF nETNAJI..J .JOINT-ClRCULAR No. 772/2001/TTLT TCDC-NHNN OF MAY 2L 2001 GUIDING THE PROCEDURES FOR THE MORTGAGE OF THE LAND USE RIGHT VALUE AND ASSETS AFFIXED TO LAND BY FOREIGN INVESTED ENTERPRISES AT CREDIT INSTITUTIONS Pursuant to the provisions in Clause 3. Article 92 of the Government ·s Decree No. 24/2000/ND-CP of July 3 I, 2000 detailing the implementation of the Lm on Foreign Investment in Vietnam and other law provisions. the General Land Administration ,md Vietnam State Bank hereby jointly guide the procedures for the rnm1gagc of the land use right Yaluc by foreign-invested enterprises (including joint-ve11turc enterprises and 100<% foreign-capital e11tqrprises) at credit institutions (including Viet11amese cm;lit institutions. foreign banks' branches operating in Vietnam and joinH cnturc banks between Viet11am and foreign countries operating under the Law on Credit Institutions) as follows: I. DOSSIERS OF MORTGAGE OF THE LAND USE RIGHT VALUE AND ASSETS AFFIXED TO LAND 1. For foreign-invested enterprises which ha\c been leased land by the State and already paid the land rents for the whole lease term or paid the land rnnts in ad,ance for many years. if the lease term remains for at least frn.: years. the mortgage dossiers shall include the folkming papers l I. The contract on the mcrtgagc of the land use nght value ·1 he content~ of a land use ·1gbt , al11c-morlgagmg c(•ntrnct shall be agreed upnn b, the im oh cd parties accmding lo law prm 1sion~. bnt thc,c must hl' space f:,Jr certification by the pru, n1c1al.111tmicrpal Land \dm111istr:1tic,n Sen 1cc ,;r L:md \drum~ir:itinn and Hm1smg \,:-1Thc ihcrcaltcr referred collcctl1ch tc as I .and .\d1nm1,1r :nion Sen 1cc) of the localit\ \\ here such land c,;ists. d 1hc land user land use papers. the current laml-usc ~nuation and mortgage registration. as \\Cl! as space for dclc:l!oll of rcgistr:nimL and changes 111 mortgage rcg1slrnl!o11 l 2. The land use right certificate (original): l J The extract map of the land plot (ccrti!kd and scaled b, the Land Admimstration Sen ice). for cases \,here the land use nght ccrtilicatc docs not include such map. l . -1- Voucher on the payment of land rents ( cop, certified b\ agcncv competent to make notarization and/ or authcnticauon\ 2. For ,101nt-vcnture enterprises to which the Vietnamese parties contribute their capital with the land use right value, if the duration of capital contribution \\ith the land use right value remains for at least foe vcars, the mortgage dossiers shall include the fo!lmving papers: 2 l Papers prescribed at Points 1. l, l 2 and I .3 of this Section: 2 2. Copy of the contract on capital contribution mth the land use right value, certified by agency competent to make notarization and/or authentication. 3. For foreign-invested enterprises which mortgage the land use right value and assets affixed to land (including machinery and equipment installed at workshops. construction works and other assets affixed to land), the mortgage dossiers shall include the follo\\'ing papers. 3. l . Papers prescribed at Points I or 2 of this Section: 3 2 Papers on the registration of the ownership over the assets. 3 .3 Papers e1 idcncing that the assets arc under the lawful O\ ership of such foreign-invested enterprises \\ hile the registration of the 0\\·11ership o,er such assets is nol , ct required bv ia\', as prescribed at Point l 3 of Joint-Circular No. J 2.·2ooorrTLT-NHNN-BTP-BTC TC:DC of Nm ember 22. 2000 of Vietnam State Bank. the t'..linistr, of Jusltcc. !he Ministn of Finance and the General Land Admm1strat1on t. \Vhcn mortgagrng the land use right , aluc ;l(.c,,rdm, 1 tu tliL pn111,;1< )1l~ rn this Circular. the ,:nmpe:tcnt Stew.: .1~1cn(:1c, shall not have tn issue \\TiUcn dcc'.i~!Cd,, t,, P~'\ mit the rnongagcrs to mortgage the1r iand use nght , ,due. but ,rnh earn nut thi.: pn,c~durc:c; therefor ,md make Ci:rt1ficH1c11 c,n the Lrnd u-;c 11ght \ alue-mortgagrng contracts 5. Each land plot may be mortgaged at ,mh one credit institution hccn~cd 10 operate m V1e1nam l n cases where a foreign-invested enterprise. which has a common land use right certificate for ~C\ cral land plots. \\·ishcs to mortgage its land use right , aluc at sc,cra! credit institutions, such fixeign-m,ested enterprise shall haYe to go to competent State agencies to carry out the procedures for ihc granting of separate land use right certificate for each land plot :iccording to the proYisrons of Circular No. l 4 J 7 il 999/TT-TCDC of September 18, J 9()9 of the General Land Administration 6. When being mortgaged, the land use right Hiluc shall be determined according to the land prices announced by the People's Committees of ihc pni,inccs and centrally-run cities where such land c,ists for application a1 the time of mortgage. For cases where land is leased by the Stale. the land use right value shall comprise: The land rents alread) paid in advance to the State minus the land rents already paid for the use duration: compensations for damage (if any): expenses for ground leveling and imprm emcnt (if any) II. ORDER FOR MORTGAGING THE LAND lJSE RIGHT VAllJE 1. Foreign-invested enterprises shat! subnut dossiers of mortgage of the land use right value as prm idcd for in Section I of this Circular to the provincial/municipal Land Administration Services. 2. Withrn l 5 days as fr(,m the date or recci,ing complete and valid mortgage dossiers. the Land Administration Services shall expertise such mortgage dossiers and make certification of fully meeting the law prescribed mortgage conditions on the land use nght ,aiue-mortgaging contracts: register the mortgage on the land use fluctuation-monitoring books and the register of secured transactions: then return the mortt1,agc dossiers to such foreign-imested enterprises. fn cases \\ here the forc1g11-invcstcd enterprises frnl to fulh meet the mnngag,: ccrnd1tions the Lrnd .l\drnmistrat1011 Sen ices shall return the dossiers and not11\ the ,,:ntcrpriscs or the rcasc,n, therefor J. Forc1gn-imcstcd cnlcrprisc\ and credit 1 n-:t1tutHm" ~:hail baY .. ~ to pa~: fc,;:;s :1cc0nJ 1ng, to Lt\\ prO\'f'-=,ions ;if( ;:,.: it lcir.:..;\~.n 1n\·,~.:.~tcd l ·ntcrpr1~1.: ind .:L . . •dil 1n~<t:Uil.l(Hl·:, reach t'.i~tt.'CTJlCnts ,: ;{h~·.T th~iri th~· 1rH-:.int:~; 111. OlHlER FOR UELETI.\G THE i<FCISTR \TIO'\J OF LAI\D LSE ,~u-;ur \.\ITE :vtORTG:\GE 1. \\/hen !'(·.1rc~1gn-n1,,cste.d .:ntcrr1nsc~ ndfdI t.bcn n·:.:nl llliligati,m unckr the cn.:dn cc,n11 JU~ , ,, the: land u·,c nghl \·aluc-mortg:igrnl': ,:( 1!ltr:t;;(s :ilr.:ctd' ·,, th-:\ •dull file t:ic land use rnd1Hno1 tg,H',l!l,' cl n,r:Jc'!s lo th;; pro,rnc1:il•nflJi!lc'lp,Ji f illld \dmim,tr:il1nn Scrnccs !c)r the.· Jckt1<111 ,1i'\hL· l:111Li 11,c l!Hlll L'.dg.: rcgiqrni1on. "l Tile pr<'\ mual. m1m1cipal Lmd . .\dH11n1stnt iou \.::,, 1 :c.c- ·-hall dckotc the mortgage rcgistn,ti,,n and affi\. <Lm1p 011 the land U:-,C nght valuc-mortgagrng ct,nl1 ad,. :,nd dckiv the nJ()rtgagc n::g1stralion in ihc !;ind u,-,L· 1111c1ua1 i,,n-monitonng books and the rcgiskr of scu1rcd 1r,111,<1ctH1n:; ac-.:ording to bw prm 1sion~ • J. J he ,cirlcm,,nt of the fll(lrtgagc:d land :hC ! it;lit dt,d :1,~c t~ ;i!fr,1.ed tc !and for dd,t rctric, al ,.,h;ill Ct•mpi v ,. 1th Ilic pnn i,IPllS or Jnint-Cirrn!ar ;\; i;:; }!iiij 1 TU ',.J !"-,'.'.-1-HP-BCA BTC-TCDC ufApnl :2 ·; .1 ool ui' \ 1,:tn.1111 \\ate Bank the M1nistr:-, ,,f .!u~tic·. , the \lrn1-.;tn uf h1hi1,· 'llcunt,. the 1\1i111str, t,!' FrnanL·. c111d !he (icnu:ii 1.,md \,innni:,tra!10n. \.,.:r ... 'ntrath ·-run cjti·c:> shali \\·tthtn, lh: d1nb1t ';)f th,~·u t:t~.L< and po·\\\.~rs have to organ11; rhc 1n1pJt,;ffk"nL1t lhts c···:rcuiat :'he pr,n 111-:ia! llH!llH:ip,d ,l 1,.l \d1;,n,, 11: , Sci, ,cc, :ind Land Adm,rn~tr;:it ,en- ,, 1 ·• the St·1tc Bank· s pro, inc!a! ·'1nunic ,pa! rir;,,n .:h ... :'.· ,ns'!Jtuttc;n~· .. i~:Jrc1gn~1n\:cstcd cnt,·:·rprr~:..::<: and ,.mil~ ihall ha, c to rmplcmcnt th1;; C1r,: 1.:L1r ill th,: CPlff~C i.)r llllpicmcn(ing ill!,; ( !r,:uL,, pr•,hkin, :u1c,c. the,: mu,;\ h.:; pr,,mptl\ rq,1 111,,.1 •.· (icnc:!ill Lmd ,\dmmistrahun :md Vi<.11:arn .\i;1\, , Ii!;, fur ~;uid;mcc ::md ,ctllcmcr,t For the General Director of land .Administration Depu~r General Director TRlEL V;\.N BE For the Governor o/ Vietnam State H,mk Deputy Um·enwr DLO:\GTHt: HI. O.'G