JOINT CIRCULAR

 GUIDING THE FUNCTIONS, TASKS, POWERS, ORGANIZATIONAL STRUCTURE AND FINANCIAL MECHANISM OF LAND FUND DEVELOPMENT ORGANIZATIONS

THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT -THE MINISTRY OF HOME AFFAIRS - THE MINISTRY OF FINANCE

Pursuant to the Governments Decree No. 25/2008/ND-CP of March 4, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;
Pursuant to the Government's Decree No. 48/ 2008/ND-CP of April 17, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Home Affairs;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27,2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Governments Decree No. 69/2009/ND-CP of August 13, 2009, additionally providing for land use planning, land prices, land recovery, compensation, support and resettlement.
The Ministry of Natural Resources and Environment, the Ministry of Home 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 STRUCT! J RE

Article 1. Position and functions

1. Land fund development organizations are established 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 use rights; bid land-using projects; manage recovered, sold, created and developed land areas; and provide services related to compensation and ground clearance.

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3. Land fund development organizations are income-generating non-business units which ensure pan 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

Aland fund development organization has the following tasks:

a/ To organize compensation, support and resettlement when the Stale recovers land;

b/ To create and develop land funds to auction land use rights; serve socio-economic development; education and training, vocational training, healthcare, culture, physical training and sports and environment, and meet other needs of localities; and stabilize the real estate market;

c/ To buy land use rights from organizations, households and individuals under law;

d/ To develop resettlement areas, points and houses in service of land recovery for projects;

e/To build infrastructure for auction on land areas assigned to it for management;

f/ 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;

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h/ To elaborate plans to use land areas assigned to ii 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 compensation and ground clearance; to provide information on investment sites, land prices and land funds for organizations and individuals upon request;

j/ To perform tasks under programs, plans, projects and schemes and provide services relevant to its assigned tasks and professional operations;

k/ To coordinate with concerned agencies, organizations and individuals in performing its assigned (asks;

l/ To perform other tasks under decisions of competent authorities.

2. A land fund development organization has the following powers:

a/ To be provided with documents on policies and laws of the State and other documents related to its assigned tasks;

b/ To provide consultancy and services in areas relevant to its assigned functions and tasks for organizations and individuals;

c/ To enter into joint ventures, partnership or cooperation with economic organizations or individuals to perform tasks or provide services under decisions of competent authorities;

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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.

2. A land fund development organization may establish no more than three professional divisions. The number of these divisions shall be based on the characteristics of each locality and the tasks of the 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 the provincial-level Home Affairs Department. The chairperson of the district-level People's Committee shall specify the tasks, powers and organizational structure of a district-level land 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 organization is trie 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-CP of April 8, 2004, prescribing the mechanism for management of payroll of state non-business units; and 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 documents guiding these decrees.

Chapter II

FINANCIAL MECHANISM

Article 5. Financial sources

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2. Revenues from non-business activities, including:

a/ Funds for the organization of compensa­tion, support and resettlement under Article 26 of the Government's Decree No. (-9/2O09/ND-CP of August 13, 2009. additionally providing for land use planning, land prices, land recovery, compensation, support and resettlement,

b/ 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 and developed and land areas and houses which have been built for resettlement according to cost estimates decided or approved by competent state agencies;

d/ Auction charges, proceeds from die sale of dossiers for auctioning the right to use land (including land with attached assets) under current law and specific regulations of provincial-level People's Committees;

e/ Bidding charges, proceeds from the sale of bid dossiers for land-using projects under the Planning and Investment Ministry's Circular No. 03/2009/TT-BKH of April 16,2009, guiding the selection of investors of land-using projects, and specific regulations of provincial-level People's Committees;

f/ Shared profits from joint ventures and partnership; interests from savings deposits at credit institutions;

g/ Revenues from service provision under signed contracts or under law;

h/ Revenues from other non-business activities under law.

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4. Loans from 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.

Article 6. Spending contents

1. Regular spending, which complies with the Governments 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, including:

a/ 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;

b/ Spending for the organization of compensation, support and resettlement; creation and development of land funds; buying 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 construction, construction of resettlement areas, points and houses and other infrastructure works under approved programs, plans, projects, schemes and cost estimates;

c/ Other spending under law.

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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 Develop­ment 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 of credit institutions.

4. Capital from joint ventures or partnership complies with decisions of provincial-level People's (Committees and signed joint-venture or partnership contracts.

5. Use 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

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 for reward, welfare and income 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, organiza­tional 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

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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. 38/2004/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 operation 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 OF HOME AFFAIRS
DEPUTY MINISTER






Nguyen Duy Thang

FOR THE MINISTER OF FINANCE
DEPUTY MINISTER






Nguyen Huu Chi

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