THE SOCIALIST REPUBLIC OF VIETNAM
Independence-Freedom-Happiness
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No.: /HDKT/SLICO Ho Chi Minh City,………………………
LAND LEASE
Based on the Law Order of Economic Contracts dated Sept. 25, 1989 by the State Council of the Socialist Republic of Vietnam;
Based on Decree No. 17/CP dated Jan. 16, 1990 by the Ministers’ Council regulating the implementation of the Law Order of Economic Contracts;
Based on certificate of Business Registration No. 5003000039 dated April 02, 2003 issued by the Service of Planning and Investment of Long An Province to Saigon-Long An Inductrial Park Infrastructure Investment Construction Trading Joint stock Company.
Based on Decision No. 2484/ QD-UB dated July 15, 2003 by Long An Province People’s Committee regarding the land lease to SLICO for investment to build I.P. infrastructures in Duc Hoa I.P. 3, Duc Hoa District, Long An Province.
The lessor (briefly called Party A) :
1. Company name :
SAIGON- LONG AN INDUSTIAL PARK INFRACTRUCTURE INVESTMENT CONSTRUCTION TRADING JOINT STOCK COMPANY
2. Prepresentiven : NGUYEN VAN TUAN - Title :
General director 3. Address : No.36 Tay Thanh, Tay Thanh ward, Tan Phu distirct, HCM City
4. Telephone : (84-8) 8.152.283 - Fax : (84-8) 8.152.757
5. Account in VND : 102010000532646 with Industrial and Commercial Bank of Viet Nam- Main Transaction Office II.
The Lessee (briefly called Party B) :
Both parties agree to sign a land with the following articles: Article 1 : Lease Contents 1.1 -Party A gives lease and party B agrees to take lease of ……………. Sq.m (say: …………………………………………) in Saigon-Long An I.P., Duc Hoa 3, Duc Lap Ha Village, Duc Hoa District, Long An Province whose infrastructures have been built including systems of communication, water supply & drainage, power supply under the adapted planning. 1.2 – Purpose: to build production factories under the investment licence or business registration of Party B. 1.3 - The location of subleased land is identified according to the map extract No……….. parcel No. …………….. 1.4 - The lease term is 49 years, beginning from …………….. to ……………….. Article 2 : Lease value – Mode of payment 2.1 –The lease rate is USD ……… /sq.m 2.2 - The lease value is …………... sq.m ´ USD ………… /sq.m =
Value Added Tax …………..% =
Total lease value =
Say: ……………………………………………………………
Paid in VN Dong at the exchange rate of Ho Chi Minh City Vietcombank at
the time of payment.
2.3 - Payment is in cash or by transfer, consisting of 8 steps as follows:
Step 1:
30% of contract value to be paid within 7 days of signing the land lease.
Equivalent to: USD ………………..Date of payment: ………………….
Step 2 : 30% of contract value to be paid after a month of the date step 1 payment.
Equivalent to: USD ………………..Date of payment: ………………….
Step 3 : 40% of contract value to be paid after 2 months of the date step 2 payment.
Equivalent to: USD ………………..Date of payment: ………………….
2.4 – Place of rent payment: Saigon- Long An Industial Park Infractructure Investment Construction Trading Joint Stock Company – No. 36 Tây Thạnh, Tây Thạnh ward, Tân Phú district, HCM city.
VND Account No. 102010000532646 with Industrial and Commercial Bank of Viet Nam- Main transaction office II.
Article 3 : Cost of management & Service
Besides the land rent Party B must also pay Party A for management cost, waste water treatment cost, garbage treatment cost and other costs of services used by or supplied to Party B.
Unit rate of management cost: USD 0.06/m2/month (VAT included), paid monthly.
Party B may be exempted from the management cost for the first year, and reduced by 50% for 01 subsequent year, from the date Party B is issued with the investment licence
Unit rate of waste water treatment cost: USD 0.3/m2/month (VAT included), paid monthly..
Other costs for garbage collection, water supply, power supply, telecommunication and public service at a unit rate regulated by functional authorities.
Article 4 : Party A’s responsibilities 4.1 -Party A must transfer at proper time, correct location and complete area of land which has been built with infrastructures together with the certificate of land use right to Party B. Failing to deliver the surface in due time, Party A shall be fined 2%/month on the total amount received from Party B from the date overdue for delivery. 4.2 - To fulfill the financial obligations required by the laws concerning the leased land area. 4.3 - To support Party B in performing loan procedures with Party B’s bank when over 50% of the contract value has been paid (if required) at the payment schedule of the land lease 4.4 - To issue a VAT invoice to Party B when the total lease value has been fully paid. 4.5 - To respect the ownership of Party B’s property built on the leased area. 4.6 - To carry out the service for Party B: Investment licence, certificate of land use right, construction licence completely free of charge 4.7 - To support Party B in entering into contracts to province public services. Article 5: Party B’s responsibilities 5.1 – To effect payment in full and in due time under the payment schedule as mentioned in Article 2.3. If Party B is late in payment, it shall be fined at an interest rate of 1.5%/month on the total amount of late payment in Vietnamese Dong, the maximum time for late payment is 02 months. If this period is over without Party A’s consent in writing, Party B is considered to have waived all its interest related to the leased land and the land lease will be liquidated. 5.2 –To ensure that the land is used in accordance with the purpose referred to in Article 1.2; to comply with the regulation on environment protection shall not violate the boundaries and interests of the surrounding land users. 5.3 –To build its factory as per the design and planning assessed and adopted by the state relevant agencies. 5.4 –To ensure that the project is commenced as per the time specified by the state, to bear itself all damages incurred if Party B is late in commencing the project. 5.5 – Nộp thuế trước bạ quyền sử dụng đất. 5.6 - To pay for the registration tax on land use right.
To provide all the documents as required by relevant agencies so that Party A may obtain the certificate of land use right for party B, such as:
Application for land lease
Certificate of business registration
Investment project
Extract of the cadastral map.
Land lease
Report on environment effects
5.7 – When transferring the lease to a third party it must obtain Party A’s approval. Party B must pay for the costs of transferring procedures and other related tax amounts and the third Party must carry out the regulations signed in the lease with Party A. Article 6: Termination of lease
The lease is terminated when 6.1 - Both parties have completed their obligations and responsibilities. 6.2 - When either party violates the lease provisions. 6.3 - In the case of forces majeures such as natural disasters, epidemic … causing either party to be unable operate, and a judgement by the Economic Court of Ho Chi Minh City.
Article 7 : Common commitments 7.1 – This lease becomes effective immediately when it has had complete signatures by both parties and Party A receives the payment of step 1 from Party B. 7.2 – Any change, supplementation to the signed lease shall be valid only if it is made into an appendix signed by both parties. 7.3 – If any dispute occurs and cannot be solved through amiable negotiation, both parties agree to choose the Economic Court of Ho Chi Minh City for settlement. Any costs relating to the hearing shall be borne completely by the party which is judged to be breach. The court’s judgement is final and effective for implementation. This lease is made into 06 copies, 02 copies are kept by each party, 01 copy is sent to the service of Environment & Resources of Long An Province, 01 copy is sent to the I.P Management Committee of Long An Province.
