September Legal Update: New Regulations on Land Law and Petroleum Resources

1. Decree No. 102/2024/ND-CP: Detailed regulations on the implementation of certain provisions of the Land Law

The Decree’s scope includes provisions on land management, transfer of land use rights, land recovery, and compensation when the State recovers land.

According to this Decree, land support for ethnic minority individuals is implemented as follows: if there is no more residential land, individuals will be allocated new residential land or converted to residential land and exempted from land use fees within the residential land allocation limit as prescribed by the Provincial People's Committee. In case of a shortage of residential land compared to the limit, individuals will also be converted and exempted from corresponding land use fees. For agricultural land, if there is no more or the usable area is less than 50% of the limit, individuals will be allocated additional agricultural land within the limit.

Regarding land recovery due to violations of the law, if the violation requires administrative sanctions, the recovery will be carried out within 30 days after receiving the recommendation of the competent authority, if the land user continues to violate. For violations that do not require administrative sanctions, land recovery will only be carried out after the conclusion of the inspection and examination agency.

2. Decree No. 104/2024/ND-CP: Regulations on the Land Development Fund

The Land Development Fund is a provincial-level, non-profit financial entity established by the provincial People's Committee, operating independently from the state budget, non-profit, and having legal status.

The Land Development Fund is responsible for advancing funds as directed by authorities, with a focus on timely recovery of these funds. If there is misuse or delayed repayment, the Fund has the authority to suspend or recover the funds. Additionally, the Fund monitors the use of its resources and reports regularly to the relevant authorities.

The Fund may operate either independently or under a trust model. Its capital comes from two main sources: charter capital allocated from local budgets and surpluses, and additional legally mobilized funds such as aid and sponsorships from both domestic and international entities. The Fund uses its capital to advance funds for state-funded projects related to compensation, resettlement, and land development. It also supports the creation of land for resettlement and auctions to contribute to the state budget, along with funding policies aimed at helping ethnic minorities and other legally mandated tasks.

3. Circular No. 13/2024/TT-BCT: Regulations on classification and reporting of petroleum resources and reserves

This Circular, effective from October 1, 2024, replaces Circular No. 38/2016/TT-BCT. Its aim is to enhance the management and exploitation of petroleum resources in Vietnam, in line with international standards.

According to this Circular, petroleum resources and reserves are classified into four categories: prospective resources, contingent resources, recoverable reserves, and proven reserves.

Articles 7 and 8 of the Circular outline the procedures for preparing reports on petroleum resources and reserves, including the collection, analysis, and processing of geological, geophysical, and technical data to ensure the accuracy and consistency of the reports. Organizations and individuals involved must be responsible for the accuracy and reliability of the data provided.

Article 9 emphasizes the responsibility of organizations and individuals to comply with technical requirements and warns of penalties for any violations or inaccuracies in the reports.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.