THE GOVERNMENT

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No.: 11/2013/ND-CP

SOCIALIST REPUBLIC OF VIET NAM

Independence - Freedom – Happiness

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Ha Noi, January 14, 2013

 

DECREE

ON INVESTMENT MANAGEMENT OF URBAN DEVELOPMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Construction dated November 26, 2003; Law No. 38/2009/QH12 of 2009 on amending and supplementing a number of articles of the law relating to the investment in capital construction dated June 19, 2009;

Pursuant to the Law on Real Estate Business dated June 29, 2006;

Pursuant to the Law on urban planning dated June 17, 2009;

At the proposal of the Minister of Construction;

Government issued Decree on the investment management of urban development;

Chapter 1.

GENERAL REGULATION

Article 1. Scope of adjustment and subject of application

1. Scope of adjustment:

This Decree regulates activities related to urban development investment including: urban planning; formulating and publishing plans to deploy the areas of urban development; performing investment in construction and operation and transfer of investment in urban development projects.

2. Subjects of application

This Decree applies to organizations and individuals in the country and abroad involving in activities related to the investment in urban development.

Article 2. Explanation of terms

In this Decree, the terms are construed as follows:

1. Urban development area is an area identified for urban development investment in a certain period. The urban development areas include: new urban development area, expanded urban development area, renovation area, conservation area, urban reconstruction area and specific functional area.

Urban development area may include one or more urban functional areas. The urban development area may be within the administrative boundaries of one or more provinces or cities. The urban growth area may include one or more urban development investment projects.

2. New urban development area is an area expected to be formed a new urban center in the future under urban planning approved by the competent authority, and invested in new construction synchronizing with the urban infrastructure.

3. Expanded urban development area is the urban development area including the existing urban area and new urban area with a synchronous connection with the urban infrastructure.

4. Urban improvement area is the urban development area which is invested in construction to improve the quality of existing urban center, but does not alter the basic urban structure.

5. Urban conservation area is the urban development area in order to preserve and refurbish urban historical and cultural values.

6. Urban reconstruction area is the urban development area which is newly built on the floor of the old buildings demolished of the existing urban center.

7. Specific functional area is an urban development area to form specific functional areas such as economic, tourist and resort areas, college campuses, etc.

8. Urban development investment project is the construction investment project of a building or a complex of buildings in an urban development area decided and published by the competent authority.

Urban development investment project including project of urban center construction and building construction investment project in urban centers.

9. Urban center construction investment project is a construction investment project of buildings (which may include: housing, infrastructure, public buildings, etc.) on an assigned land area in the urban development area under the planning approved by the competent authority.

Urban center construction investment project includes the following types:

a) New urban center construction investment project is a construction investment project of a new construction urban center on a land area converted from other land types to urban construction land;

b) Urban reconstruction project is a project which shall build new architectural buildings and infrastructure on the floor of current buildings demolished under the urban planning which hectaress been approved by the competent authority;

c) Urban renovation and refurbishment project is the upgrading and renovation of  exterior side or building structure in the existing urban areas without any Change of more than 10% of the land use criteria of the area;

d) Urban preservation and refurbishment project is the preservation and refurbishment of cultural, historical and architectural values of the buildings and landscape in the area of urban cultural heritage;

e) Project construction is mixed urban construction projects in urban areas thectarest can include newly-constructed building, renovated and refurbished buildings.

10. Building construction investment project in urban center is the new construction investment project; either expanding or renovating and refurbishing of architectural buildings and infrastructure.

11. Investor is organization or individual with capital or person assigned to manage and use capital in order to invest in urban development projects.

12. Level 1 investor is the person assigned by the State to implement the urban development investment project. The level 1 investor may be:

a) Functional State management agencies;

b) Management Board of construction investment assigned by the competent state agencies 

c) Enterprises of all economic sectors, cooperatives;

d) Political and socio-professional organizations qualified as prescribed by law.

13. Secondary investor is the level 2 investor or investor of subsequent levels involved in urban development investment project through the lease, assignment or transfer of land use right with infrastructure under the urban development investment project for investment in building construction.

14. Urban services are public services provided in urban areas such as: management, operation and maintenance of the system of technical infrastructure; hygiene and environmental protection; park and tree management; urban lighting, water supply and drainage; condominium management; funeral services, waste treatment; public transport; protection of order and security in the urban development area; health, education, commerce, entertainment, sports and other public services.

Article 3. Principle of urban development investment 

1. Ensuring the consistent master plan of socio-economic development of localities and nation, complying with construction planning, urban planning, urban development deployment plans, law on construction investment and related laws.

2. Ensuring the uniform development of technical infrastructure, social infrastructure, urban landscape and architecture in association with national security.

3. Ensuring the exploitation and use of resources economically and efficiently; environmental protection and response to climate Change, natural disasters aimed at sustainable development.

4. Making a good living environment for urban residents; protecting the interests of the community in hectaresrmony with the interests of the State and the investors.

5. Preserving and promoting the national cultural identity, preserving and refurbishing cultural and historical remains.

Article 4. Land reserved for urban development 

1. Provincial People's Committee shall assign Service of Construction as the focal agency to develop the urban development programs for the whole province and each urban center for submission to the provincial-level People's Committee for approval.

2. Provincial-level People's Committee based on urban planning and urban development programs, plans for urban development area implementation, land use plan approved by the competent authority, is responsible for directing organizations to provide land for urban development investment projects in the urban development area which hectaress been published.

3. Provincial and district-level People's Committee as decentralized shall organize the implementation or guide the investor to carry out the compensation, assistance and resettlement upon land recovery as prescribed by regulations of the law on land.

4. The allocation or lease of land for urban development investment is made based on the results of selection of investors via the forms of appointment, bidding, land allocation for construction of public housing or auction as prescribed by law.

5. The recovery of the whole or part of the land allocated or leased for urban development investment projects which hectaresve not been implemented or are due to slow progress is made under the provisions of the law on the land.

6. Land for construction of public housing and resettlement housing must be identified as soon as formulating and approving the subdivision planning scheme and detailed planning.

7. Provincial-level People's Committees shall specify the areas permitted to execute the transfer of land use right with the complete infrastructure investment for people to build their own houses under detailed planning of the project which hectaress been approved, after having the written consent of the Ministry of Construction.

Article 5. Investment capital for urban development

1. Investment capital for urban development areas include: the state budget, official development aid (ODA) and capital from other economic sectors.

2. Provincial-level People's Committees are entitled to use existing investment funds (including: local development investment fund, land development fund infrastructure development fund, housing development funds, etc.) to create investment funds for urban development areas.

Article 6. Encouragement, supporting and incentive for investment in urban development projects

1. The State hectaress policies to encourage, support and favor the urban development investment projects with one or more of the following criteria:

a) Investing in construction framework technical infrastructure, social infrastructure to serve the public interest without capital recovery and not in the list of the buildings in which the investors are required to invest;

b) Investing in public housing, relocation housing and renovating and rebuilding residential areas, old condominiums in accordance with the law;

c) Investing in housing construction for lease;

d) Investing in construction of buildings with application of new technologies which are environmentally friendly.

2. The State has supporting policies including:

a) Promptly publishing and providing free of charge information on the planning and deployment plan of urban development area.

b) Supporting the investment in projects to strengthen the capacity of public services to the area.

3. Other incentive cases as prescribed by law.

Chapter 2.

URBAN DEVELOPMENT AREA

Article 7. Requirements for the preparation, appraisal and approval of urban planning

1. The formulation, appraisal and approval of construction planning, urban planning are implemented as prescribed by the Law on Construction, Law on Urban Planning and related guiding documents.

2. For urban areas are expected for expansion of the boundaries or urban development areas with the anticipated population size equivalent to the level I urban center or more, the provincial-level People's Committees shall hectaresve to submit tasks and general scheme to be appraised by the Ministry of Construction and submitted to the Prime Minister for approval.

3. Within 30 days after the general scheme is approved, the provincial-level People's Committee shall direct the subdivision planning for approval as prescribed.

4. For the subdivision scheme with the population size equivalent to grade IV or more at special urban centers, level 1 urban centers and the centers with the scale determined in the master plan approved equivalent to level-1 urban center, the provincial-level people's Committee shall consult the Ministry of Construction before the approval of the competent agency;

5. The time limit the Ministry of Construction shall consider and give opinion on subdivision scheme specified in Clause 4 of this Article shall not exceed 15 working days from the date of receipt of the written consultation and dossier of planning scheme.

Article 8. Responsibility for preparation of dossier to propose urban development areas

Based on the master plan for socio-economic development, regional construction planning, general urban planning, subdivision planning, urban development program, the provincial-level People's Committee shall prepare proposal dossier of the urban development areas for submission to the Prime Minister or make a decision on urban development areas under the authority specified in Article 9 of this Decree.

Article 9. Authority to decide on urban development areas

1. The Prime Minister shall decide on the following urban development areas after obtaining the appraisal opinion of the Ministry of Construction on the contents specified in Clause 3 of this Article:

a) Urban development areas in the urban centers with the general planning scheme under the approval authority of the Prime Minister;

b) Urban development areas within the administrative boundaries of two or more provinces;

c) Urban development areas in order to form a new urban center with the population size equivalent to level IV or more under the approved plan;

d) Urban development areas hectaresve important implication on security and national defense.

2. Provincial-level People's Committee shall decide on the remaining urban development areas.

3. Appraisal contents to propose the urban development areas:

a) The conformity with the master plan of socio-economic development, orientation of master plan of national urban systems, planning and development strategies of other sectors associated with national security;

b) Conformity with the master plan, subdivision planning and urban development programs which hectaresve been approved;

c) The feasibility of implementation plan for urban development area

4. The number of dossier proposing the urban development areas sent to the Ministry of Construction for appraisal is 10 sets.

5. The time for appraisal of proposal dossier shall not exceed 30 working days.

6. Content of the Draft of Decision on approval of the urban development area shall comply with the form in the Appendix attached to this Decree.

Article 10. Content of proposal dossier of urban development areas

1. Report

2. Summary report on urban development area is expected to include

a) Name of urban development area

b) Location and boundaries of the urban development area (with schematic illustration);

c) Describing the current state of urban development area;

d) Explanation about the foundation of urban development areas;

e) Nature / main functions of the area

g) Introduction of the basic content of the approved urban master plan;

h) Implementation plan for urban development area;

i) Estimated time limit of implementation

k) Preliminary estimates and expected investment resources for urban development;

l) Proposal of the form of management or establishment of the Management Board of urban development area as prescribed in Article 13 of this Decree. New establishment or use of Management Board of urban development area available to manage each urban development area;

Article 11. Content of implementation plan of urban development area;

1. Determining the list of projects in the urban development area on the basis of the subdivision planning for level IV urban city or higher, the master plan for level V urban cities and specific functional areas.

2. Determining the order of construction, implementation progress of urban development investment projects to ensure the implementation of the framework technical infrastructure projects and some urgent social infrastructure works of the area before implementing the component projects.

3. Relocation and resettlement.plan

4. Capital plan and capital mobilization model.

5. Organization of management and implementation under capital mobilization models.

Article 12. Publication of urban development area and implementation plan.

1. Within 30 days after the decision on approving the urban development areas, the provincial-level People's Committees shall publicize the urban development areas and implementation plans; providing information and creating favorable conditions for investors to invest in urban development projects.

2. The publication of urban development areas and the implementation plans are carried out through mass media and other means in accordance with local conditions.

3. The publication includes the main content of the Decision on approving the urban development area and implementation plan for urban development area for the investors to know, choose and make decision on investment in projects.

Article 13. Management Board of urban development area

1. Location, function of the Management Board of urban development area:

a) Depending on local conditions, the Chectaresirman of the provincial-level People's Committee shall decide to set up the Management Board of urban development area in accordance with the provisions of Clause 2 of this Article, the Management Board of urban development area is the non-business unit under the provincial People's Committee, Having legal status and seal, subject to the direction and management on the organization and operation of the provincial People's Committee, subject to the direction, professional instruction of the Service of Construction and the local Services of specialized management;

b) The Management Board of urban development area hectaress the functions to help the provincial-level People's Committee implement a number of tasks of urban development investment management in the area of urban development area including: Managing and supervising the process of urban development investment as planned; ensuring synchronous connection and managing the system of framework technical infrastructure, technical infrastructure connection between projects in the construction investment phectaresse; directly managing projects using state budget capital assigned by the provincial-level people's Committees; performing some other tasks on implementing urban development areas assigned by the provincial people's Committee.

2. Cases of establishment or dissolution of the Management Board of urban development area:

a) The urban development areas must hectaresve Management Board of urban development area including: urban development area in the urban centers with the general planning scheme under the planning authority of the Prime Minister; the urban development areas are specified in Clauses 2, 5, 6, 7, Article 2 of this Decree;

b) Except for the urban development areas which must hectaresve Management Board of urban development area specified at Point a, Clause 2 of this Article, for the remaining urban development areas, the Chectaresirman of provincial-level People's Committee shall base on the local urban development needs to decide on the establishment or non-establishment of Management Board of urban development area;

c) Depending on the needs of urban development, scale and importance of the urban development area and the conditions for local socio-economic development, a province may establish one or more of the Management Board of urban development area; one Management Board of urban development area can also be assigned to manage one or more urban development areas;

d) For urban development areas of the two provinces or more, the Ministry of Construction in collaboration with People's Committees of provinces concerned to establish a coordination Board of urban development area to direct and support the local Management Board of urban development area to synchronously implement the investment process of urban development;

e) Chectaresirman of the provincial People's Committee shall decide to dissolve the Management Board of urban development area after the Management Board of urban development area hectaress completed its assigned tasks in accordance with the law, or those tasks are transferred to the another Management Board of urban development area.

3. Duties and power of Management Board of urban development area

a) Assuming the prime responsibility and coordinating with relevant agencies to build the five-year and annual plan to implement urban development areas for the submission to the provincial-level People's Committee for approval and implementation;

b) Organizing activities to promote investment in the urban development area; studying and suggesting preferential policies, specific mechectaresnism applied to the construction investment activities in the urban development area;

c) Planning the selection of investor of projects of urban development for the submission to the provincial-level People's Committee for decision; guiding and assisting investors in the process of investment preparation and implementation of investment projects of urban development;

d) Organizing the management or implementing investor function for projects in the urban development area with the use of state budget assigned by the provincial-level People’s Committee;

e) Monitoring and supervising the implementation of urban development investment projects to ensure the conformity with the planning and progress in accordance with the contents of project approved; summarizing, proposing and coordinating with the competent agencies to hectaresndle problems and difficulties arising in the course of investment implementation;

g) Assuming the prime responsibility and coordinating with other agencies, service providers, investors to ensure the synchronous connection and management of framework technical infrastructure, technical infrastructure connection between the projects in the construction investment phectaresse until the completion of the hectaresndover to urban authorities;

h) Building the database system, providing information on urban development area; summarizing and making report to the provincial-level People's Committee and the Ministry of Construction every 6 months, annually or irregularly on the implementation situation of investment projects and deployment plan of urban development area assigned for management;

i) Performing other duties and powers on management of investment and construction and urban development within the urban development area assigned or authorized by the provincial-level People's Committee as prescribed by law.

4. The operating expenses of the Management Board of urban development projects are partially guaranteed from the budget, the cost of management of projects assigned and from the service revenue as prescribed by law.

Chapter 3.

URBAN DEVELOPMENT INVESTMENT PROJECT

SECTION 1. URBAN AREA CONSTRUCTION INVESTMENT PROJECT

Article 14. Detailed planning of project

1. The formulation, appraisal and approval of the detailed planning of urban area construction investment project shall comply with regulations of the law on urban planning.

2. The adjustment of the detailed planning of the project must comply with the regulations of the law on urban planning and must not exceed the satisfaction ability of the urban infrastructure system determined in the scheme of urban planning approved without adversely affecting the urban landscape or reducing the quality of life of residents in the area.

3. The preparation and adjustment of the detailed planning of urban development projects must identify technical infrastructure construction space of common use to layout lines, technical tanks, trenches and tunnels.

Article 15. Management of construction investment implementation 

The formulation, appraisal, approval and management of implementation of the urban center construction investment project shall comply with the regulations of the law on construction, this Decree and relevant laws.

Article 16. Conditions as being project investor.

1. For investor as state agency:

a) Having functions in accordance with the implementation of the project;

b) Having rational proposal of project in accordance with the planning and urban development area deployment plan.

2. For investor as enterprise:

a) Having registered business under the provisions of the Enterprise Law in accordance with the implementation of projects and eligible under the provisions of the Law on real estate business (if the project has business products);

b) Having investment capital in its own not less than 15% of the total investment of the project of land use scale less than 20 hectares, not less than 20% of the total investment of the project of land use scale from 20 hectares or more for urban area investment construction projects;

c) Having investment capital in its own not less than 20% of the total investment of project for the remaining projects.

Investment capital owned by investors specified at Points b and c said above must be the real capital of the investor as of the year preceding the year the investor hectaress implemented the urban development investment projects and presented in the financial statements of the investor and must be certified by an independent auditor. Where enterprises and cooperatives are newly established, there must be a written confirmation of the competent authority as prescribed by law.

d) Having rational proposal of project in accordance with the planning and urban development area implementation plan.

e) Having management staff and qualified and experienced human resources and committing to ensure the implementation of the content and progress of projects approved.

3. For investor as political, socio-political, professional-social organization;

a) Having function in accordance with the implementation of project;

b) Having rational proposal of project in accordance with the planning and urban development area implementation plan.

c) Only implementing project within the scope of land use assigned by the competent state agencies for management and use in service of activities under functions and tasks assigned. 

Article 17. Obligations of level 1 investor.

1. Making detailed planning (if the project area does not hectaresve the approved detailed planning), urban design and urban center construction investment project for the submission to the competent authority for approval and complying with the detailed planning which hectaress been approved.

2. Implementing the construction investment of works in accordance with the detailed planning and progress of the project which hectaress been approved.

3. Investing in construction of technical infrastructure works and social infrastructure to ensure the synchronization with the infrastructure system of the surrounding area and in conformity with the progress of project implementation approved.

4. Ensuring temporary connection between the technical infrastructure in the project area with the technical infrastructure systems outside the scope of the project in the event the technical infrastructure system outside the scope of the project hectaress not been invested in accordance with the planning approved.

5. Implementing the requirements of the provincial-level People's Committee on the contribution for the area infrastructure development and delivery of land area with the infrastructure to create fund to build social housing under the provisions of the law on housing.

6. Organizing activities to provide housing management services, technical infrastructure system and other urban services within the scope of the project pending the hectaresndover.

7. Managing the operation and ensuring the quality of the works which are not transferred or haven’t been transferred to local authorities.

8. Monitoring the implementation of the construction investment of the secondary investors (if any) in accordance with the detailed planning and progress of the project which hectaress been approved.

9. Guiding procedures and coordinating with the secondary investors (if any) to perform the procedures for the transfer of land with the technical infrastructure or other products of the project in accordance with the regulations of the law.

10. Other obligations as prescribed by law.

Article 18. Obligations of secondary investor

Secondary iInvestor shall hectaresve the obligations stipulated in Clauses 1 through 8, Article 17 of this Decree.

2. Secondary investors shall be subject to the management of the level 1 investor in the construction process, ensuring the compliance with the detailed planning which hectaress been approved, carrying out the construction investment in accordance with contract signed between the two parties, the regulations of the law on construction and related laws.

3. Other obligations as prescribed by law.

Article 19. Change of investor

1. Change of investor is the investor transfers the entire urban development investment project to another investor.

2. The change of investor must not alter the objectives of the project and must ensure the interests of customers and other parties concerned, comply with the regulations of the law on the management of budget-funded projects (if any), law on investment and real estate business and other relevant laws.

3. The change of level 1 investor must be approved in writing by the competent state agency. The competent agency making decision on selection or assigning the investor to carry out the project is the agency having the authority to approve the Change of investor. The investor shall send a report and the related legal documents (05 sets) on the Change of investor to the competent state agency said above. The response time by competent state agency shall not exceed 30 days from the date of receipt of dossier from the investor.

4. The new investor must ensure to meet the conditions as prescribed in Article 16 of this Decree.

Article 20. Investment approval

1. The selection of investor is implemented in the form of land use right auction, project bidding or application of form of direct appointment under the provisions of the law on land, housing and relavant laws. The provincial-level People's Committee shall make a decision on the selection of investor based on the results of bidding, auction or on assignment to investor in case of direct appointment.

2. As for the budget-funded projects, the person with the authority to make decision on investment is the person with authority to select the investor. 

3. Once selected, the project investor shall prepare dossier to propose the investment approval under the provisions of Article 26 of this Decree, present it to the provincial-level People's Committee for consideration of investment approval or submission to the competent authority to decide on investment approval of the project in accordance with the provisions of Articles 21, 22, 23, 24 and 25 of this Decree.

4. The decision on investment approval by the competent authority is the legal foundation for the investor to present it to the competent agencies for assessment, approval and implementation of project.

Article 21. Authority to approve investment for project of new urban center construction investment

1. The Prime Minister shall decide on investment approval after obtaining the appraisal opinion of the Ministry of Construction for the following cases:

a) Project with the scale of land use from 100 hectares or more;

b) Project within the administrative boundaries of two or more provinces or area Having important implications on security and national defense.

2. Provincial-level People's Committee shall decide on investment approval for the projects with the land use scale from 20 hectares to less than 100 hectares after obtaining written consent of the Ministry of Construction.

3. Provincial-level People's Committee shall decide on investment approval of the remaining projects.

Article 22. Authority to approve investment for urban area reconstruction project.

1. The Prime Minister shall decide on investment approval after obtaining the appraisal opinion of the Ministry of Construction for the projects with the land use scale of 50 hectares or more and the projects located in the area with important implications security and national defence.

2. Provincial-level People's Committee shall decide on investment approval after obtaining the written consent of the Ministry of Construction for the projects with the scale of land use from 10 hectares to 50 hectares; projects in the area with restricted development or historical inner city (identified in the general planning schemes) of special grade urban center; projects under the scope of protection of the remains which are recognized as national, special national-level heritage.

3. Provincial-level People's Committee shall decide on investment approval for the remaining projects.

Article 23. Authority to approve investment for conservation and refurbishment project of urban area.

1. Provincial-level People's Committee shall decide on investment approval after obtaining the written consent of the Ministry of Construction for the following cases:

a) Projects in the area having important implications on security and national defence, national-level and special national-level remains areas recognized by the competent authorities in urban centers;

b) Project in the area with restricted development or historical inner city (identified in the general planning scheme) of special grade urban center.

2. Provincial-level People's Committee shall decide on investment approval for the remaining projects.

Article 24. Authority to approve investment for renovation and refurbishment project of urban area.

Provincial-level People's Committee shall decide on investment approval for the above projects regardless of size under regulation of the law on construction, this Decree and relevant laws.

Article 25. Authority to approve investment for mixed urban area construction investment projects

1. Following the regulations applicable to urban reconstruction project if the project boundary includes:

a) Area of reconstruction of project has scale of land use from 10 hectares or more.

b) Area of reconstruction of project is located in: area with important implication on security and national defence; area with restricted development or historical inner city (identified in general planning scheme) of special grade urban center, urban center with remains recognized as national-level or special national-level heritage by the competent authority.

2. Implementing under regulations as for new urban area construction investment project for the remaining projects.

3. Additionally implementing regulations as for conservation and refurbishement projects in Article 40 of this Decree if in the project boundary includes works identified as cultural heritage by competent authorities.

Article 26. Dossier to propose investment approval

Dossier includes:

1. Written proposal for investment approval of project implementation.

2. Decision on approving the result of the selection of investor or decision on investor appointment or documents certifying the use land right in case the investor is the owner of the land area of the project.

3. Project dossier is specified in Article 32 (excluding: miniature model of the project area as specified in Clause 3 of Article 32).

4. Attached legal documents: Decision on approval of urban development area and implementation plan for urban development area; dossier of detailed planning; dossier to prove investor’s financial capacity, appropriate investment experience and management for project implementation and other relevant legal documents.

Article 27. Time limit for appraisal of dossier to propose and decide on investment approval

1. For projects under the authority to decide on investment approval of the provincial-level People's Committee without consulting the Ministry of Construction, the provincial-level People's Committee shall appraise and decide on investment approval, the time limit is 45 working days maximally from the date of receipt of valid 10 dossiers from investor as specified in Article 26 of this Decree.

2. For projects under the authority to decide on investment approval of the provincial-level People's Committee with the consultation from the Ministry of Construction: Within 07 days from the date of full receipt of 16 sets of valid dossier as specified in Article 26 of this Decree, the provincial-level People's Committee shall send written consultation together with 01 dossier to the Ministry of Construction. Within 15 working days from the date of receipt of official dispatch for consultation, the Ministry of Construction shall reply in writing to the provincial-level People's Committee under the contents specified in Article 28 of this Decree. In case of necessity, the Ministry of Construction shall consult the Ministries, sectors concerned. For projects in this case, the time limit for reply in writing from the Ministry of Construction shall not exceed 30 working days from the date of receipt of official dispatch for consultation. The time limit for decision of provincial-level People's Committee is 15 working days from the date of receipt of written reply from the Ministry of Construction.

3. For projects under the decision authority of the Prime Minister, the provincial-level People's Committee shall send 10 sets of dossier to propose investment approval to the Ministry of Construction for appraisal. The Ministry of Construction shall receive, check the dossier and send it for consultation to the Ministries and sectors concerned within 07 days from the date of full receipt of valid dossier as specified in Article 26 of this Decree. Within 15 working days from the date of receipt of official dispatch for consultation, the Ministries and sectors responsible shall give response. Within 20 working days of receipt of response dispatches from the Ministries and sectors concerned, the Ministry of Construction shall submit written appraisal to the Prime Minister as specified in Article 29 of this Decree. The Prime Minister shall decide to assign the investor to carry out the project within 30 working days from the date of receipt of written appraisal from the Ministry of Construction.

Article 28. Content of consultation on proposal of investment approval for project implementation.

1. The compliance with urban planning, urban development programs, urban development area and implementation plan for urban development area have been approved by the competent authority; the compliance with the regulations of the relevant laws.

2. The factors ensure the feasibility and effectiveness of the project, including: the need for investment; project progress; social and economic efficiency of the projects associated with security and national defence.

Article 29. Appraisal content of proposal for investment approval for project implementation

1. Factors ensuring the compliance of the project with the urban planning, program for urban development, investment development area and implementation plan for urban development area have been approved by the competent authority, the consistency with limits on the size of the population of the project area, the compliance with the regulations of relevant laws.

2. Factors ensuring the feasibility of project include: Demand for land use, natural resources (if any); factors affecting projects such as national defense, security and environment.

3. Factors ensuring the effectiveness of the project include: the need for investment; project progress; socio-economic efficiency of the project.

Article 30. Content of Decision on investment approval

Decision on investment approval has the main contents as follows:

1. Name of project and investor;

2. Location, boundaries, land area of the entire project;

3. Objectives of the project;

4. Investment form;

5. Preliminary content of the project (work, products, etc.);

6. Estimated total investment;

7. Investment capital;

8. Time and progress for expected implementation; investment phases (if any);

9. Method of allocation or lease of land, transfer of land use right (if any);

10. Land for construction of social housing, rental housing or financial contributions (if any);

11. Infrastructural works are transferred to the State;

12. Provisions for the parties involved in construction management, operations, sales and transfer of works;

13. Decisions on support, incentives of the State for the project as prescribed;

14. Obligations of investors to the State and locality;

15. Estimated administrative unit for the project, regulations on coordination of administrative management, administrative transfer, security and public services between investor and local agencies involved in the implementation process until the completion of the project.

Article 31. Foundation to set up project

1. General planning, subdivision planning and detailed planning;

2. Implementation plan for urban development area.

3. Decision on approval for the result of the selection of investor or decision on investor appointment, or documents certifying the land use right in case the investor is the owner the land lot of the project.

4. Other relevant legal documents

Article 32. Dossier of project

1. Explanation about project with the main contents as follows:

a) Necessity and legal foundation of the project;

b) Form of investment and investor;

c) Size, area, surface boundary and the current conditions of the land lot;

d) Plan for site clearance and resettlement and vocational training support, job search for workers in the site clearance area;

e) The number and percentage of different types of houses, apartments, plans for product consumption; solutions and plans for the implementation of public services and other urban services;

g) Explanation about economic and technical investment, the business plans for capital recovery; total investment; effectiveness of social and economic investment; Specifying the allocation and transfer of land use right, land lease or use of land fund to generate capital to build infrastructure to determine the source of capital for stages of investment and business;

g) Explanation about capacity and experience of investor about finance, investment and appropriate management for project implementation;

h) Method of implementation

- Form of project management;

- Investment phase, progress and method of implementation.

2. Dossier of basic design of the project.

3. Dossier of urban design and miniature model of project area.

4. Dossier of component project in service of resettlement and site clearance (if any).

5. Coordinating contents between investor and local authority as follows:

a) Investment in building infrastructure projects outside the fence and technical infrastructure of the State through the project area;

b) Investment in building administrative offices and social infrastructure (if any);

c) Infrastructural items transferred without compensation (if any) and the progress of the transfer;

d) Responsibility for providing public services and other urban services;

e) Determination of the obligations, responsibilities and relationships between the investor of the project with relevant subjects in the above coordination contents;

g) Proposals for support and incentives for the project;

g) Proposal for administrative management, new administrative units and plan to for transfer of administrative management to the local authorities (if any).

Article 33. Adjustment of project

1. Where investors have request for change and addition of one of the following contents: objectives, scale, land-use functions, product structure, there must be a report together with 05 sets of dossier of project adjustment for submission to the competent agency for investment approval.

2. The competent agency for investment approval of the project shall have the authority to consider and give written reply to the change and addition of contents of the project specified in Clause 1 of this Article. The time limit for consideration and reply in writing is within 30 working days from the date of receipt of dossier of project.

3. For projects subject to consultation or appraisal by the Ministry of Construction, before submission to the competent authority for consideration and approval, the investor must submit 03 sets of dossier to the Ministry of Construction for consultation. The time limit for consideration and reply of the Ministry of Construction shall not exceed 15 working days from the date of receipt of documents and dossier of the project from the investor. In case the Ministry of Construction must consult the relevant Ministries and sectors, the total review time to answer shall not to exceed 30 working days from the date of receipt of documents and dossier of the project from the investor.

4. The adjustment, appraisal and approval of the project after adjustments are made under regulations of the law on construction and relevant laws.

Article 34. Progress of project implementation.

1. The organization of the project implementation shall ensure the progress of the project and progress of the general implementation of the whole urban development area.

2. Where the investor has proposal to adjust the project progress leading to slowly put it into operation, use, the investor must have a written explanation and be approved in writing by the provincial-level People's Committee. The time limit for consideration and reply of the provincial-level People's Committee shall not exceed 30 working days from the date of receipt of the written proposal and explanation of the investor.

3. The handling of the case of violation of the progress of the project shall comply with the regulations of the law on construction, land and related laws.

Article 35. Investment in building social infrastructure

1. Investors must build comprehensive social infrastructure, with the schedule in line with the housing building, ensuring quality of service to meet the needs of the people to live.

2. Where the local government directly invests in the construction of social infrastructure in urban centers with funds from the State budget, the unit assigned by the State to be the investor of works construction must implement the construction of these works in line with progress of the approved project and ensure the consistency of the overall project as secondary investor.

3. Where the local government can not allocate budget to build this project in accordance with the original plan of the project, the investor shall implement the construction construction investment of these works in appropriate form (such as BT, BOO ...).

Article 36. Completing, transferring and putting works into operation and use

1. Procedures for works completion:

a) The acceptance of completed works shall comply with the regulations of the law on quality management of construction works;

b) The filing of the work is done in accordance with the law for storage, law on construction law and other relevant laws.

2. Investors must complete the procedures for recognition of land use right and ownership of the works in accordance with the law for works completed to put it into operation and use.

3. Transferring and operating technical infrastructure and social infrastructure

a) For works of technical infrastructure and social infrastructure completed, the investor shall be entitled to operate or transfer it to the receiving party to manage and operate in accordance with the original objectives of the project.

The investor shall take responsiblity for the quality of works and must guarantee the transferred works in accordance with the law. For works used, before the transfer, conduct assessment of the quality, value and complete the necessary maintenance work.

b) For works of technical infrastructure and social infrastructure not transferred or not yet transferred, the investor is responsible for management and ensure quality of operation.

c) The receiving party of transfer is responsible for managing and operating works in accordance with the function and maintaining works under the regulations of the law on construction.

For works of which the receiving party of transfer has been identified in the content of project, that party has the right and obligation to manage the quality and accept the works during the construction until it is completed, transferred and put into operation.

d) The procedures for works transfer shall comply with regulations of law together with as-built dossier and estimate of works construction investment.

4. For works which need the transfer of administrative management to the local authorities, the investor must plan and implement the transfer of administrative management to the local authorities under the provisions of Article 38 of this Decree. While it is not possible to make the transfer of the entire project, the investor must coordinate with the local administrative management units to deal with the administrative procedures for households moving in.

Article 37. Urban services

1. Investor of project shall organize the operation and supply of urban services, ensure to serve the needs of moving-in residents in accordance with the objectives of the project until it is transferred to the government or other organizations and enterprises managing professional services.

2. Local authorities are responsible for preparing the necessary conditions and direct the transfer of the management and operation of urban services to organizations, business managing professional services.

Article 38. Transfer of administrative management 

1. Based on the progress of the investment, construction and business of the project, the investor shall coordinate with the local government to make plan to transfer administrative management in the project area, submitting it to the competent authorities for approval so that the parties concerned can implement it, including:

a) The coordination of administrative management between the investor with administrative management unit in the period of no transfer identified in the Decision on investment approval.

b) Transfer of management upon completion of works construction and operation and use as prescribed.

c) Transfer of administrative management upon completion of the entire project.

2. The Service of Home Affairs and the district-level People's Committee shall direct the transfer of administrative management at the request of the investor and the approved plan. The order and procedures for transfer of administrative management shall comply with the regulations of the law on the organization and operation of local government.

3. Transfer deadline is no later than 3 months after the end of the project by the investor as well as completion of other responsibilities as prescribed by law.

4. Administrative management units must notify the head office and organize the structure consistent with the transferred management scale to implement administrative management to ensure the rights of moving-in residents.

Article 39. Capital mobilization and product business of project

1. Investors may mobilize capital as prescribed by law in order to implement the project in accordance with the content and progress of the project approved.

2. Products of the project include: land with infrastructure, housing (villas, attached houses, apartments), infrastructural works and other works. 

3. The business of the project products must comply with the provisions of this Decree, the law on real estate business, law on housing and the relevant laws.

SECTION 2. URBAN WORKS CONSTRUCTION INVESTMENT PROJECT

Article 40. Management and implementation of construction investment for urban works construction investment projects

1. The urban works construction investment projects are implemented as prescribed by law on construction.

2. For special urban centers: the works construction investment projects in areas with restricted development or historical inner city (identified in the general planning scheme), before the approval of project from the competent authority, the provincial-level People's Committee shall take the written consent of the Ministry of Construction on the contents specified in Clause 3 of this Article.

3. Consultation contents of the Ministry of Construction

a) The compliance with urban planning, urban development area and implementation plan for urban development area has been approved by the competent authority; the compliance with the regulations of relevant laws;

b) Factors ensuring the feasibility and effectiveness of the project include: the need to invest; objectives and progress of the project; socio-economic efficiency of the project.

4. For projects specified in Clause 2 of this Article, within 7 days from the date of receipt of official dispatch from the investors and 15 sets of dossier of the project (specified by law on the management of works construction investment projects), the provincial-level People's Committee shall send written consultation (accompanied by 01 set of dossier of the project), to the Ministry of Construction. Within a maximum of 15 working days from the date of receipt of the official dispatch for consultation, the Ministry of Construction has written reply to the provincial-level People's Committees in accordance with the contents specified in Clause 3 of this Article. The provincial-level People's Committees shall have the written approval so that the investor can carry out the project within a maximum of 15 days from the date of receipt of the written consent of the Ministry of Construction.

5. For conservation and refurbishment project of cultural heritage works

a) The project implementation does not absolutely change or damage the value of cultural, architectural and historical…values of original works;

b) The preparation, appraisal, approval and development of implementing conservation and refurbishment projects in the urban development area shall comply with the regulations of the law on cultural heritage, law on construction, this Decree and relevant laws;

c) For conservation and refurbishment projects for works ranked as national remains and special national remains, within 7 days from the date of receipt of the report submission and 10 sets of dossier of investor, the provincial-level People's Committee shall seek the written consent of the Ministry of Construction before the agency with authority to approve the project. Within a maximum of 15 working days from the date of receiving the official dispatch for consultation, the Ministry of Construction is responsible for response of the contents specified in Clause 3 of this Article;

d) For conservation and refurbishment projects ranked as provincial-level remains, the investors should consult the Services: Planning and Architecture, Construction, Culture, Sports and Tourism for the submission to the competent authorities before approval of the project. Within a maximum of 15 working days from the date of receiving the official dispatch for consultation and the project dossier, the Services said above shall reply in writing.

Chapter 4.

RESPONSIBILITIES OF STATE MANAGEMENT AGENCY

Article 41. Ministry of Construction

1. Uniformly managing the urban development nation-wide.

2. Building orientation, strategies, master plans for development of national urban systems, programs, national key projects of urban development, objectives in the field of urban development in the task of socio-economic development of the country in each period for the submission to the Prime Minister for approval and implementation.

3. Developing and submitting to the competent authorities for promulgation or promulgating under the authority the mechanism, policies, legal documents on management of urban development investment, policies, management solution of urbanization process, urban development management models and guidance and inspection of the implementation.

4. Assuming the prime responsibility and coordinating with relevant ministries and sectors and localities to control the urban development process to ensure the compliance with the master plan for development of national urban system, urban planning and urban development plans approved by the competent authority.

5. Assuming the prime responsibility and coordinating with relevant ministries and sectors to appraise the planning schemes under the approval authority of the Prime Minister specified in Clause 2, Article 7 of this Decree.

6. Having the consent in writing for the approval of subdivision planning schemes from the provincial-level People's Committee as specified in Clause 4, Article 7 of this Decree.

7. Assuming the prime responsibility and coordinating with relevant ministries and sectors to appraise the proposal for urban development areas under the decision authority of the Prime Minister specified in Clause 1, Article 9 of this Decree.

8. Assuming the prime responsibility and coordinating with relevant ministries and sectors to appraise the proposal for urban development investment projects under the approval authority of the Prime Minister in accordance with Clause 1 Article 21, Clause 1, Article 22 of this Decree; have consent in writing for the investment approval of urban development projects from the provincial-level People's Committee as specified in Clause 2, Article 21, Clause 2, Article 22 and Clause 1, Article 23 of this Decree.

9. Having the consent in writing for the investment approval of urban works construction investment projects from the provincial-level People's Committee as specified in Clause 2, Article 40 of this Decree.

10. Organizing the building and management of database system, providing information on urban development nationwide.

11. Guiding, examining, inspecting, and settling complaints and denunciations and handling violations in the field of urban development under the authority.

12. Performing other tasks on the management of urban development investment assigned or authorized by the Government or the Prime Minister.

Article 42. Ministry of Planning and Investment

1. Assuming the prime responsibility and coordinating with the Ministry of Construction, the Ministry of Finance to plan the allocation of capital for construction of investment projects of urban development invested by the central budget; ODA mobilization for programs and projects to support the urban development, renovation of upgrading.

2. Assuming the prime responsibility and coordinating with the ministries and sectors concerned in guiding the localities to implement the investment incentives for the urban development investment projects.

Article 43. Ministry of Finance

Assuming the prime responsibility and coordinating with the ministries and sectors concerned in building and guiding the implementation of incentives relating to the policies of finance and tax for the urban development investment projects.

Article 44. Ministry of Natural Resources and Environment

1. Inspecting, urging and guiding localities on the review, adjustment, addition of planning, land use plan and preparing land for building urban development investment projects.

2. Specifically guiding the use of land for urban development, minimum resettlement portion and guiding the implementation of land incentives for urban development investment projects.

Article 45. Ministries and sectors concerned

1. Preparing and managing sector planning by functions and tasks assigned by the Government as a basis for urban development.

2. Implementing the State management function under the authority for urban development investment projects.

Article 46. Provincial-level People’s Committee

1. Uniformly managing urban development in the area; building apparatus capable to meet state management requirements consistent with actual urban development.

2. Directing the review and assessment and identifying urban development areas, planning the implementation of urban development area, establishing management Board of urban development area; ensuring a reasonable and effective transition in the short term period and sustainable urban development in the future; calling for investment for urban development investment projects at localities.

3. Conducting the site clearance in accordance with the law; and establishing management organization and developing urban land fund.

4. Setting up housing relocation and temporary housing fund for the clearance of the budget-funded projects as well as projects using other funding sources.

5. Building technical infrastructure outside the project boundary to ensure synchronous link with the urban framework technical infrastructure.

6. Directing the receipt of transfer and organizing the administrative apparatus upon receiving the transfer of urban development projects.

7. Building and managing information systems for urban development at locality, making report on assessing the situation of local urban development, making biannual report on the results to the Ministry of Construction for summarizing and making report to the Prime Minister.

8. Assuming the prime responsibility and coordinating with the Ministry of Natural Resources and Environment, Ministry of Construction to review, adjust or supplement the planning and land use plans to allocate land for urban development.

9. Specifying mechanism of encouragement and incentives to call for economic sectors to invest in urban development.

10. Inspecting, examining and handling violations under the authority.

Chapter 5.

TRANSITIONAL PROCESSING

Article 47. General principle

The transitional processing of regulations on management of urban development investment is implemented made from the effective date of this Decree and in accordance with the following principles:

1. Re-establishing order in the urban development: Investment in construction in accordance with the orientation of national urban development, general planning, subdivision planning approved and ensuring the synchronous connection of the projects in each urban development area;

2. Ensuring the implementation of urban development investment projects in according with the plan for implementation of urban development area approved, overcoming the spontaneous and redundant development causing waste of land and social resources;

3. Limiting the impacts to affect the progress and effectiveness of the project, the legitimate rights and interests of the parties concerned.

Article 48. Transitional processing of regulations on urban planning and identification of urban development area

1. Where the urban cities have approved urban master plan but no subdivision planning, detailed planning and urban design, urban development program from the effective date of this Decree, the provincial-level People’s Committee must direct the subdivision planning, detailed planning, urban design, regulation on architectural planning management and urban development program for approval in accordance with the law on urban planning and as a basis for determining the urban development area and making implementation plans as specified in Article 8 of this Decree.

2. Where the urban centers already have general planning, subdivision planning and urban development programs approved but not yet identifying the urban development area from the effective date of this Decree, the provincial-level People's Committees shall direct the determination of urban development area; approving under the authority or submitting to the competent authorities for decision in accordance with the provisions of Article 9 and setting up management Board of urban development area in accordance with the provisions of Article 13 of this Decree.

Article 49. Transitional processing for projects assigned on the basis of compliance with general planning and subdivision planning approved by the competent authority

1. Provincial-level People's Committee shall direct the review and addition of project to the list of projects of urban development area, ensure the projects comply with the implementation plan for urban development area and the provisions in this Decree.

2. For investment projects to build housing urban area: the provincial-level People's Committees shall direct the review and adjustment to ensure the projects comply with the rate of land area for social housing under the regulations on housing and the relevant laws.

Article 50. Transitional processing for projects assigned prior to general planning, subdivision planning approved by the competent authority.

Provincial-level People's Committee shall direct the review, classification and implementation of the transition processing for each case as follows:

1. Projects in accordance with the general planning and subdivision planning approved: Follow the provisions of Article 49 of this Decree.

2. Projects not in accordance with the general planning and subdivision planning approved:

a) Where the project without implementation of construction investment or with a portion of technical infrastructure: the provincial-level People's Committees shall direct review and adjustment of the project to fit with the general planning, subdivision planning and manage the implementation of project investment under the provisions of this Decree and relevant laws;

b) Where the project has completed the construction of technical infrastructure: the provincial-level People's Committees shall direct the review and inspection of the connection of infrastructure; adjust the project to suit the general planning, subdivision planning and ensure the connection to the common infrastructure of the area; adjust the project schedule according to the implementation plan for urban development area;

c) Where the project has completed the construction of technical infrastructure and is implementing the works construction investment: the provincial-level People's Committees shall direct the review and adjustment of the portions of area with unrealized implementation of construction investment to fit with the general planning, subdivision planning; housing structural adjustment of the projects according to market demand; adjust the progress of the project according to the implementation plan for urban development area;

d) Where the project has been completed with the crude building: the provincial-level People's Committee shall direct the review and require the investors to focus on improving the social infrastructure and other works to put the project into operation and use.

3. For projects in the urban centers with general planning under the approval authority of the Prime Minister, when adjusting the projects specified at Points a, b and c, Clause 2 of this Article, before submitting the project to the competent authority for approval, the investor must submit 03 sets of adjusted project dossier to the Ministry of Construction to have the consent in writing of the following contents: the compatibility with urban planning, urban development area and implementation plan for urban development area approved by the competent authority; the compliance with the relevant regulations of relevant laws. The time limit to review and reply in writing shall not exceed 30 working days from the date of receipt of the written consultation, adjusted project dossier and relevant legal documents.

4. In case of projects of urban housing construction investment, the provisions in Clause 2, Article 49 of this Decree shall be implemented at the same time.

Article 51. Transitional processing for projects under the provisions of Clause 1 and 2 of Article 21, 22; Clause 1, Article 23; Clause 2, Article 40

For projects subject to the scope mentioned above whose investment has been approved prior to the effective date of this Decree, in case the project is adjusted with the contents specified in Clause 1, Article 33, prior to approval of adjust project, the investor shall submit 03 sets of dossier of adjusted project to the Ministry of Construction to have the consent in writing of the following contents: the compatibility with urban planning, urban development area and implementation plan for urban development area approved by the competent authority; compliance with the regulations of relevant law. The time limit for consideration and reply from the Ministry of Construction shall not exceed 15 working days from the date of receiving the written consultation, adjusted project dossier and relevant legal documents.

Chapter 6.

IMPLEMENTATION PROVISION

Article 52. Implementation organization

The Ministers, heads of ministerial-level agencies, the heads of the agencies under the Government, Chairman of the People's Committees of centrally-affiliated provinces and cities, heads of political, socio-political organizations, social-political-professional organizations and other relevant organizations and individuals shall implement this Decree.

Article 53. Effect

1. This Decree takes effect from March 1, 2013.

2. This Decree replaces Decree No. 02/2006/ND-CP dated January 05, 2006 of the Government.

3. The provisions of the Government on the investment activities of urban development have been issued prior to the effective date of this Decree, if they are different from the provisions of this Decree, the provisions of this Decree shall apply./.

 

 

 

ON BEHALF OF THE GOVERNMENT
 PRIME MINISTER

 

 

Nguyen Tan Dung