Joint Circular No. 01/2010/TTLT-BTNMT-BNV-BTC guiding the functions, tasks, powers, organizational structure and financial mechanism of land fund development organizations

Issue nos 11.12JJamuary 2010 (Gong BaD nos 5%'OIJanuary 31,2010) OFFICIAL GAZETTE 51 THI~ MINISTRIES THE MINISTRY OF NATURAL RESOURCES AND EN\IlRONMENT -THE MINISTRY OF HOME AFFAIRS - THE MINISTRYOF FINANCE Joint Circular No. 01l2010/TTLT· BTNMT-BNV-BTC of January 8, 2010, guiding the functions, tasks, powers, organizational structure and financial mechanism of land fund development organizations Pursuant to the Government's Decree No. 251 20081ND-CP of March 4, 2008, defining the junctions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment; Pursuant to the Government's Decree No. 481 2008/ND-CP of April 17, 2008, defining the functions, tasks, powers and organizational structure of the Ministry ofHome Affairs; Pursuant to the Government's Decree No. 11812008/ND-CPofNovember 27,2008, defining the [unctions, tasks powers and organizational structure of the Ministry of Finance; Pursuant to the Government's Decree No. 69/ 20091ND-CP of August 13, 2009, additionally providing for land use planning, land prices, land recovery, compensutio n, support and resettlement, The Ministry of Natural Resources and Environment, the Ministry ofHome Affairs and the Ministry of Finance jointly guide the functions, tasks, powers, organizational structure and financial mechanism of land fund development organizations as follows: Chapter I FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE Article 1. Position ami functions 1. Land fund development organizations are estahlished in provinces and centrally run cities (below referred to as provincial level) and rural and urban districts, towns and provincial cities (below referred to as district level), which function to organize compensation, support and resettlement; create land areas for auction of land use rights to serve socio-economic development and stabilize the real estate market; buy land use rights; develop resettlement areas; build infrastructure on land; auction land Wie rights; bid land-using projects; manage recovered, sold, created and developed land areas; and provide services related to compensation and ground clearance. 2. Provincial-level land fund development organizations are units attached to provincial level Natural Resources and Environment Departments and established under decisions of provincial-level People's Committees at the proposal of directors of provincial-level Natural Resources and Environment Departments and Home Affairs Departments, District-level land fund development organizations are units attached to district-level People's Committees and established under decisions of provincial level People's Committees at the proposal of chairperson s of di strict-level People's Committees and directors of provincial-level Home Affairs Departments. 3. Land fund development organizations are © VIETNAM LAW & LEGAL FORUM 52 OFFICIAL GAZETTE Issue nos 11·12/January 2010 (Gong BaD nos 59·6OJJanuary 31. 2010) income-generating non-business units which ensure part or all operation expenses themselves. have the legal entity status. head offices and own seals; and may open accounts at the State Treasury and credit institutions for operation under law. Article 2. Tasks and powers A land fund deve lopment organ ization has the following tasks: aJ To organize compensation, support and resettlement when the State recovers land; blTo create and develop land funds to auction land use. rights; serve socio-economic development; education and training. vocational training, bealthcare, culture, physical training and sports and environment, and meet other needs of localities; and stabilize the real estate market; cl To buy land use rights from organizations, households and individuals under law; dI To develop resettlement areas, points and houses in service of land recovery for projects; el To build infrastructure for auction on land areas assigned to it for management; ff To manage land areas which have been cleared. bought, created and developed; houses built for resettlement: and land areas recovered under Clauses 2 thru 12, Article 38 of the Land Law in urban areas and areas which have been planned for urban development but have not been assigned with investment projects or have not had their land use rights auctioned; gl To auction land use rights and bid land using projects under law: hi To elaborate plans to use land areas assigned to it for management and plans, schemes and investment projects to create and develop land funds and submit them to competent authorities for decision; i/To provide services related to compensatinn and ground clearance; to provide information on investment sites, land prices and land funds for organizations and individuals upon request; jI To perform tasks under programs, plans, projects and schemes and provide services relevant to its assigned tasks and professional operations; kf To coordinate with concerned agencies, organizations and individuals in performing its assigned tasks: ]j To perform other tasks under decisions of competent authorities. 2.A land fund development organization has the following powers: aJ To be provided with documents on policies and laws of tile State and other documents related to its assigned tasks. bl To provide consultancy and services in area" relevant to its assigned functions and tasks for organizations and individuals; cl To enter into joint ventures, partnership or cooperation with economic organizations or individuals to perform tasks or provide services under decisions of competent authorities; dl To hire consultants for the performance of jobs within its assigned functions and tasks. Article 3. Organizational structure 1. A land fund development organization has a Director and no more than two Deputy Directors. The Director and Deputy Directors shall be appointed and relieved from duty under the personnel management decentralization of provincial-level People's Committees according to criteria and titles prescribed by law. © VIETNAM LAW & LEGAL FORUM Issue nos11·12lJanruary 201 0 (GOng BaD nos 59-6iQlJanuary 31, 2010) OFFICIAL GAZETTE 53 2.A land fund development organization may establish no more than three profesxional divisions. The number of these divisions shall be based on the characteristics of each locality and the tasks of tile land fund development organization. The director of the provincial-level Natural Resources and Environment Department shall specify the tasks, powers and organizational structure of a provincial-level land fund development organization after reaching agreement with the director of tile provincial-level Home Affairs Department. The chairperson of the district-level People's Committee shall specify the tasks, powers und organizational structure of a district-levelland fund development organization at the proposal of the director of the land fund development organization and the head of the district-level Home Affairs Division. Article 4. Payroll The payroll of a land fund development organizati on is the non-business one to be decided by the provincial-level People's Committee. The management and employment of staff on the land fund development organization's payroll comply with the Government's Decrees No. 112/2004/ND-f'P of April 8. 2004. prescribing the mechanism for management of payroll of state non-business units: and No. 43/Z006/ND-CPof AprilZ5, 2006, on public non-business units' autonomy and accountability in task performance. organiza tional apparatus, payroll and finance, and documents guiding these decrees. Chapter II FINANCIAL MECHANISM Article 5. Financial sources 1. State budget funds. which are allocated in compliance with Article 14 of the Government's Decree No. 43/2006/ND-CP of April 25, 2006, on public non-business units' autonomy and accountability in task performance, organiza tional apparatus, payroll and finance, and guiding documents. 2. Revenues from non-business activities, including: aJ Funds for the organization of compensa tion, support and resettlement under Article 26 of the Government's Decree No. 69/2009/ND CP of August 13, 2009. additionally providing for land use planning, land prices, land recovery. compensation. support and resettlement. bl Funds for the management of construction investment projects under the Government's Decree No. 112/2009/ND-CP of December 14, 2009, on management of work construction investment expenses; c/ Funds for the management of land areas which have been recovered, bought, created am} developed and land areas and houses which have been built for resettlement according to cost estimates decided or approved by competent state agencies; <11 Auction charges, proceeds from (he sale of dossiers for auctioning the right to use land (including land with attached assets) under current lawand specific regulations ofprovincial. level People's Committees; ef Bidding charges. proceeds from the sale of bid dossiers for land-using projects under the Planning and Investment Ministry's Circular No. 03/2009rrT-BKH of April 16,2009, guiding the selection of investors of land-using projects, and specific regulations of provinciai-Icvel People's Committees; © VIETNAM LAW &LEGAL FORUM 54 OFFICIAL GAZETTE Issue nos 11·12lJanuary 2010 (Cong Baanos 59·60IJanuar; 31, 2010) fl Shared profits from joint ventures and partnership: interests from savings deposits at credit institutions; gl Revenues from service provision under signed contracts or under law; hI Revenues from other non-business activities under law. 3. Advances from the state budget or the Land Development Fund for task performance under decisions of provincial-level People's Committees. 4. Loans trom credit institutions. 5. Funds from joint ventures or partnership to implement approved programs. plans, projects and schemes. 6. Aid and funding sources and other sources under law. Artich~ 6. Spending contents 1.Regular spending, which complies with the Government's Decree No. 43/2006/ND-CP of April 25, 2006, on public non-business units' autonomy and accountability in task performance, organizational apparatus, payroll and finance, and guiding documents. 2. Irregular spending, inclnding: aJ Spending for scientific and technological tasks; cadres and civil servant training; national target programs; domestic capital in foreign funded projects under regulations; irregular tasks assigned by competent authorities; payroll streamlining under state regulations (if any); capital construction investment, equipment procurement, overhaul of fixed assets upon implementation of approved projects; foreign aided projects and joint venture and partnership activities under current regulations; bl Spending for the organization of compensation. support and resettlement creation and development of land funds; bUY1ng of land use rights; management of recovered, bought. created and developed land areas; management of houses and land areas for resettlement; land use right auction; bidding of land-using projects; infrastructure con struction, construction at resettlement areas, points and houses and other infrastructure works under approved programs. plans, projects, schemes and cost estimates; cl Other spending under law. Article 7. Management and payment of advanced or raised funds 1. Funds advanced from the state budget to perform the tasks specified at Points a, b, C, d and e, Clause 1, Article 2 of this Circular shall be managed, paid and returned under the state budget law. 2. Funds advanced from the Land Develop ment Fund to perform the tasks specified at Points a, b, c, d and e, Clause 1, Article 2 of this Circular comply with regulations on management and use of local Land Development Funds. 3. Loans from credit institutions comply with lending regulations ot credit institutions. 4. Capital from joint ventures or partnership complies with decisions or provincial-level People's Committees and signed joint-venture or partnership contracts. 5. Usc of funds advanced from the state budget or Land Development Fund for purposes outside assigned functions and tasks is prohibited. Article 8. Use of earnings and financial statements © VIETNAM LAW & LEGAL FORUM Issue nos 11-12/January2010 (Gong Beonos S9·60IJanuary 31,2010) OFFICIAL GAZETTE 55 1. Quarterly and annually after paying expenses, taxes and other remittances under regulations (if any), earnings shall be distributed as follows: to set aside at least 25% of the earnings for the non-business development fund; to pay additional incomes to employees; and set aside funds fUJ reward, welfare and iucuine stabilization provision under the Government's Decree No. 43/2006/ND-CP of April 25, 2006, on public non-business units' autonomy and accountability in task performance, organiza tional apparatus, payroll and finance, and guiding documents. 2. The estimation and assignment of funds, making of financial statements, and examination and settlement of financial sources comply with current law. Chapter III IMPLEMENTATIONPROVISIONS Article 9. Effect 1. This Circular takes effect on February 22, 2010. 2. To annul provisions of Section II of December 31,2004 Joint Circular No. 3812004/ TTLT-BTNMT-BNV of the Ministry of Natural Resources and Environment and the Ministry of Home Affairs, guiding the functions, tasks, powers and organizational structure of land use right registries and land fund development organizations. Article 10. Organization of implementation Pursuant to this Joint Circular, provincial level People's Committees shall direct the consolidation of provincial- and district-level land fund development organizations to meet practical requirements in their localities and concurrently define implementation and coordination responsibilities of provincial-level departments, sections, branches and district- and commune-level People's Committees and other concerned local organizations in performing their tasks and settling related matters to ensure effective operati on of local land fund development organizations., Provincial-level People's Committees should promptly report any problems arising in the course of implementation to the Ministry of Natural Resources and Environment. the Ministry of Home Affairs and the Ministry of Finance for consideration and settlement. For the Minister ofHome Affairs Deputy Minister NGUYEN DUY THANG For the Minister ofFinance Deputy Minister NGUYEN HUU em For the Minister ofNatural Resources and Environment Deputy Minister NGUYEN MANH HIEN © VIETNAM LAW & LEGAL FORUM