Two land registration systems the land law of Việt Nam and of Sweden

FACULTY OF LAW LAW UNIVERSITY OF University of Lund Hồ Chí Minh Author ĐẶNG ANH QUÂN TWO LAND REGISTRATION SYSTEMS THE LAND LAW OF VIỆT NAM AND OF SWEDEN Field of study: Comparative Law Code: 62 38 60 01 THE DOCTORAL DISSERTATION OF LAW Swedish Supervisor Vietnamese Supervisor Prof. Hans-Heinrich Vogel Prof. Phạm Hữu Nghị 2011 2 TABLE OF CONTENTS ACKNOWLEDGEMENTS .................................................................................... 6 LIST OF ABBREVIATIONS ................................................................................. 7 CHAPTER 1. INTRODUCTION ........................................................................... 8 1.1. Background .................................................................................................... 8 1.2. Purpose..........................................................................................................13 1.3. Delimitation...................................................................................................14 1.4. Method ..........................................................................................................16 1.4.1. Legal dogmatics ......................................................................................17 1.4.2. Comparison ............................................................................................18 1.4.3. Methodology of dialectical and historical materialism ............................19 1.5. Materials........................................................................................................21 1.6. Outline...........................................................................................................22 CHAPTER 2. INTRODUCTION TO LAND REGISTRATION .........................24 2.1. The need for a land registration system ..........................................................24 2.2. The central concept and important elements of a system of land registration ..27 2.2.1. The concept of a system of land registration............................................27 2.2.2. Important elements of a system of land registration.................................35 2.3. The benefits of a system of land registration ..................................................45 2.3.1. For the land owner/user and related subjects ..........................................47 2.3.2. For the State ...........................................................................................48 2.3.3. For society ..............................................................................................50 2.4. The requirements of a system of land registration ..........................................51 2.4.1. Accuracy and security .............................................................................52 2.4.2. Clarity and simplicity ..............................................................................53 2.4.3. Timeliness ...............................................................................................54 2.4.4. Fairness and accessibility .......................................................................55 2.4.5. Low cost or cheapness ............................................................................56 2.4.6. Sustainability ..........................................................................................58 SUMMARY ........................................................................................................59 CHAPTER 3. THE SYSTEM OF LAND REGISTRATION IN SWEDEN – RESEARCH AND EVALUATION .......................................................................61 3 3.1. Outline of the system of land registration in Sweden......................................63 3.1.1. The process of setting up the system of land registration .........................63 3.1.2. Important reforms to the system of land registration in Sweden...............68 3.1.2.1. Land amalgamation to overcome land fragmentation .......................68 3.1.2.2. Computerization and other new technologies in the system of land registration ...................................................................................................70 3.1.2.3. Unification of the authority managing the system of land registration .....................................................................................................................75 3.2. The organization of the system of land registration in Sweden .......................76 3.2.1. The machinery and the staff ....................................................................76 3.2.1.1. The machinery..................................................................................76 3.2.1.2. The staff ...........................................................................................80 3.2.2. The procedures for land registration .......................................................83 3.2.3. Model and content of registered land information in Sweden ..................90 3.3. Evaluation of the system of land registration in Sweden.................................95 SUMMARY ..........................................................................................................105 CHAPTER 4. THE LAND REGISTRATION SYSTEM AND ITS RELATION TO THE LAND LAW OF VIỆT NAM ...............................................................107 4.1. Outline of land registration system in Việt Nam...........................................108 4.1.1. Land registration in the former regimes in Việt Nam.............................109 4.1.1.1. In feudal periods ............................................................................109 4.1.1.2. In the French colonial period .........................................................114 4.1.1.3. In the South of Việt Nam from 1954 to 1975 ...................................116 4.1.2. Land registration established by revolutionary power (since 1945 in the North and from 1975 in the whole) .................................................................118 4.1.2.1. Before 1980....................................................................................118 4.1.2.2. From 1980 to 1988 .........................................................................120 4.1.2.3. From 1988 up to the present...........................................................121 4.2. Organizing the system of land registration ...................................................126 4.2.1. The machinery and the staff ..................................................................126 4.2.1.1. The machinery................................................................................126 4.2.1.2. The staff .........................................................................................133 4.2.2. Land registration procedures ................................................................135 4 4.2.2.1. Registration unit.............................................................................135 4.2.2.2. Circumstances for land use right registration and persons responsible to register land use right .............................................................................137 4.2.2.3. General procedures for land registration .......................................138 4.2.3. Construction and management of land information after land registration .......................................................................................................................145 4.2.3.1. Contents of land information ..........................................................145 4.2.3.2. Land information management .......................................................151 4.2.3.3. Land information supply.................................................................154 4.3. Evaluation of the Vietnamese land registration system.................................156 4.3.1. The machinery ......................................................................................156 4.3.1.1. An agency with unstable unification ...............................................156 4.3.1.2. An unstable organization for the implementation of land registration activity ........................................................................................................160 4.3.2. The staff ................................................................................................163 4.3.3. Land registration procedures and land information ..............................177 4.3.3.1. General procedures for land registration .......................................177 4.3.3.2. The land information system...........................................................181 4.4. Assessment of activities regarding land registration .....................................187 4.4.1. Land use planning.................................................................................187 4.4.2. Issue of land use right certificates .........................................................199 4.4.3. Determination of land prices.................................................................219 SUMMARY ..........................................................................................................231 CHAPTER 5. HOW VIỆT NAM CAN IMPROVE ITS LAND REGISTRATION SYSTEM BY STUDYING AND THEN COMPARING ITSELF TO THE SWEDISH LAND REGISTRATION SYSTEM .................................................234 5.1. The comparison of land registration system between Vietnamese and Swedish legal frameworks ................................................................................................234 5.2. Some recommendations for improving the Vietnamese land registration system ...........................................................................................................................243 5.2.1. A general recommendation ...................................................................243 5.2.2. Some recommendations for improvement of the land registration system .......................................................................................................................251 5.2.2.1. For the administrative machinery ...................................................251 5 5.2.2.2. For the staff....................................................................................256 5.2.2.3. Computerizing the land database and land information system.......262 5.2.3. Reorganizing some activities relating to land registration .....................270 5.2.3.1. Promulgation of the Law on registration of land use rights and ownership of real property ..........................................................................270 5.2.3.2. Land use planning ..........................................................................273 5.2.3.3. Issue of land use right certificates ..................................................279 5.2.3.4. Determination of land price............................................................282 CONCLUSION.....................................................................................................287 APPENDIX A .......................................................................................................294 APPENDIX B. ......................................................................................................325 APPENDIX C .......................................................................................................347 APPENDIX D .......................................................................................................353 REFERENCES .....................................................................................................361 6 ACKNOWLEDGEMENTS I would like to express my deepest gratitude to my supervisors, Professor Hans-Heinrich Vogel (Faculty of Law, Lund University, Sweden) and Professor Phạm Hữu Nghị (The Editorial Director of the State and Law Magazine, the Institute of State and Law, Việt Nam), who guided and instructed me throughout the course of this research. Their insightful instructions and comments helped me to narrow down and adjust the scope of my research at the beginning so that I could finish the research in an appropriate time. Particularly, I thank them for their patience and enthusiasm to me through our frequent meetings, discussions and their careful correction of each content of my research although both Professors were very busy. I always respect them for this. It is also one of motivities which promote me to do my research with all my best. I am especially grateful to SIDA (the Swedish International Development Agency), with its project “Strengthening Legal Education in Việt Nam”, which sponsored my research. I thank particularly Professor Mai Hồng Quỳ (the Principal of Law University of Hồ Chí Minh city), who gave me favourable conditions in my work so that I could focus on my research. I also cannot forget the kindness of all professors of the Faculty of Law, Lund University and all favourable conditions that my friends and I received from the Faculty for our research. Especially I express my gratitude to Professor Christina Moell, who always listened to me, understood and gave helpful advices to me when I felt vacillatory and wanted to stop my research. I greatly appreciate Professor Bengt Lundell, who was usually very busy, but always ready to help and resolve both my questions and suggestions in this program. Last but not least, I am sincerely grateful to my English teacher, Mr. Philip Horowitz, who checked and corrected carefully the language of my dissertation. I thank the Law Faculty of ChiengMai University for receiving me at your faculty as a visiting scholar and for your hospitality. I thank my colleagues for their share of work so that I could have enough time to do my research. I really appreciate all ! Needless to say, in spite of these above acknowlegements, I undertake responsibility for the content presented in this dissertation. I warmly welcome feedbacks in order to make my research improved. 2011 Đặng Anh Quân 7 LIST OF ABBREVIATIONS UN-ECE United Nations Economic Commission for Europe FIG International Federation of Surveyors SEMLA A joint program between Việt Nam and Sweden on Strenthening Environmental Management and Land Administration DONRE Department of Natural Resources and Environment PC People’s Committee LURRO Land Use Right Registration Office LURC Land Use Right Certificate 8 CHAPTER 1 INTRODUCTION 1.1. Background Based on the implementation of the “open-door” policy and the concurrent acceptance of the market economy, Việt Nam has in recent years achieved much both in terms of joining the world market and in improving social life. Under the impact of the process of industrialization and modernization, there has been a major change in the use of major resources such as capital, land and labour with the focus being on industry and services. The open-door policy was implemented by the Communist Party and the Vietnamese State at the end of 1986 in accordance with the Communist Party’s guidelines as laid down in the 6th nationwide representatives’ assembly1. At this assembly, besides the recognition of mistakes and defects in earlier guidelines and policies, the Communist Party made an innovative change in its economic thinking. It established entirely new guidelines for developing a multi-sector commodity-based economy coupled with an extension of international cooperation. Some typical quotes are: “regarding the economy with its multi- sector structure as a special characteristic of the transitional period”, “The direction for renewing the mechanism of economic management was by way of the abolition of the system based on administrative subsidies”, “needed to have policies on extending the exchange of goods and abolishing both the closed-door policy and the partition of the market”, “enlarging and enhancing the effects of the international economy”, “trying to establish economic relations with developed countries, international organizations and foreign individuals”, “encouraging foreign investments, need to have policies and methods in order to create favourable conditions for foreigners and overseas Vietnamese doing business in Việt Nam”2. This opened a period of renewal in Vietnamese history. On July 28, 1995, Việt Nam officially became the seventh member of the Association of South-East Asian Nations (ASEAN). At the beginning of March, 1996, Việt Nam participated in the Asia – Europe Meetings (ASEM) from their establishment. On November 14, 1998, Việt Nam took part in the Asia – Pacific Economic Cooperation (APEC). And on November 7th, 2006, the General Council of the World Trade Organization (WTO) approved the Protocol (WT/ACC/VNM/48) on the Accession of Việt Nam by way of a unanimous vote 1 The 6th nationwide representative’s assembly of the Communist Party took place between the 15th and the 18th, December, 1986. 2 Cited from the Documents of the 6th nationwide representative’s assembly. 9 of all 149 members of WTO, finishing the eleven-year process of negotiation regarding Việt Nam’s accession. On November 29, 2006, the National Assembly of Việt Nam ratified the Protocol3. Living conditions have improved. The average per capita income increased from below 200 USD/person in 1990 to 1024 USD/person in 2008. The number of poor households (according to the national standard) decreased from over 60% in 1990 to 13,8% in 20084. The rules that relate to land have, after a series of amendments, become crucial to the above process. Land users now have greater rights to land. Land use rights and the properties attached to land have become a huge source of capital that the State and the people use for investing, developing businesses, enlarging co-operative relationships and attracting foreign investment to Việt Nam. However, as the State has had not much experience in managing this new market, the real estate market in general and the market in land use rights in particular has developed spontaneously and outside the State’s control, leading to some negative impacts on the socio-economic situation. Many changes are occurring, but the State has not properly regulated them yet. Within no more than fifteen years, the real estate market, especially the undeveloped land and residential housing markets, passed through three waves of “boom” (the price of land and residential housing increased continuously; many transactions were engaged in, pushing land prices higher and higher in a way that the State could not control) and relative “slump” (the real estate market became quiet even though land and residential housing prices did not decrease) : "boom" from the end of 1993 to 1996, from the end of 2000 to 2004 and from the end of 2006 to 2008; “slump” from 1997 to 1999, from the end of 2004 to 2006 and from 2008 up to the present, this last being mainly due to the world economic crisis. Although real estate transactions take place all over the country, most of them are illegal, thus creating an unofficial market that is outside the State’s control. This is for many reasons, including the following: the documentation 3 The Resolution No.71/2006/QH11 of the National Assembly dated November 29, 2006 on ratifying the Protocol of Việt Nam’s Accession to WTO. 4 The Government’s Periodic Report on the implementation of human rights in Việt Nam, Information Portal of the Vietnamese Government, dated April 24, 2009, HD_CUACHINHPHU/NAM2009/THANG04/BAO%20CAO%20NHAN%20QUYEN.HTM. Retrie