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Legal Update

New Regulations Restricting Households Or Individuals From Receiving Agricultural Land

22 October 2007
Mayer Brown Legal Update

Summary

On 21 June 2007, the National Assembly Standing Committee issued Resolution No. 1126/2007/NQ-UBTVQH11 ("Resolution 1126") specifying restrictions upon the transfer of agricultural land use rights which have been or are transferred to households or individuals for agricultural purposes. Resolution 1126 took effect on 1 July 2007.  Below is a short summary of the resolution.

Full Update

1.  General

Resolution 1126 specifies restrictions on land use rights transferred to households and individuals for agricultural purposes in the form of land use right transfer-receipts or donation-receipts, or arising from the handling of contractual debts, e.g. the mortgage or guarantee of land use rights. The restrictions apply to land under annuals or perennials, land with production forests as plantation forests and land under aquaculture or salt making.

2.  Restrictions

Pursuant to Resolution 1126, restrictions upon the receipt of the rights to use land are specified as follows:

(a)  Land under annuals, aquaculture or salt making:

(i) Not more than six (06) hectares for provinces and centrally run cities in the south-eastern Vietnam region and the Mekong Rive Delta region;
(ii) Not more than four (04) hectares for other delta communes, wards and townships;

(b)  Land under perennials:

(i) Not more than twenty (20) hectares for delta communes, wards and townships;
(ii) Not more than fifty (50) hectares for midland and mountain communes, wards and townships;

(c)  Land with production forests as plantation forests:

(i) Not more than fifty (50) hectares for delta communes, wards and townships;
(ii) Not more than one hundred (100) hectares for midland and mountain communes, wards and townships.

(d)  Transfers are subject to a limit for land located in many provinces or centrally run cities, i.e. a maximum area of land of each type may be transferred in such provinces or centrally run cities where a limit upon receipt of the transferred land use rights are applied.

(e)  When a household or an individual receives the transferred rights to use agricultural land of many purposes the limit for receipt of the transferred rights to use agricultural land of the household or individual is determined depending on each type of land specified in Clauses 2(a), 2(b) and 2(c) of this article.

3.  Others

Households and individuals using agricultural land in excess of the limits specified in Article 2 of Resolution 1126, but within their respective land use rights transfer contracts or under documents notarised or authenticated before the effective date of this Resolution, may continue using excessive land areas like agricultural land within the limits for receipt of the transferred rights.


Author: Tra Nguyen

For further information, please contact:

Name: Dao Nguyen
Phone: +84 8 3822 8860
Fax: +84 8 3822 8864

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