Is a Land Use Right Certificate Considered an Asset?

According to Clause 8, Article 6 of the Law on the State Bank of Vietnam 2010, valuable papers are evidence confirming the debt repayment obligation between the issuing organization of valuable papers and the holder of such valuable papers within a specific period, along with interest payment conditions and other conditions.

According to Official Dispatch 141/TANDTC-KHXX of 2011 from the Supreme People's Court, valuable papers include:

- Demand drafts, promissory notes, checks, and other negotiable instruments as stipulated in Article 1 of the Law on Negotiable Instruments 2005;

- Government of Vietnam bonds, corporate bonds, promissory notes, stocks stipulated in point c, clause 1, Article 4 of the Ordinance on Foreign Exchange 2005;

- Treasury bills, drafts, bonds, public debts, and other instruments causing debt repayment obligations as stipulated in point 16, Article 3 of the Law on Public Debt Management 2009;

- Various types of securities (stocks, bonds, fund certificates; share purchase rights, warrants, call options, put options, futures contracts, stock groups, or stock indices; Investment capital contribution contracts; and other types of securities as prescribed by the Ministry of Finance) stipulated in clause 1, Article 6 of the Law on Securities 2006 (as amended and supplemented in 2010);

- Corporate bonds as stipulated in Article 2 of Decree 52/2006/ND-CP dated May 19, 2006, of the Government of Vietnam on “Issuance of Corporate Bonds”…

This Official Dispatch also specifies that certificates of ownership rights to assets (Land Use Rights Certificate; House Ownership Certificate, Motorcycle, Motorbike Registration Certificate; Car Registration Certificate…) are not considered "valuable papers."

==> Therefore, the land use right certificate is not a valuable paper and should not be considered an asset.

We hope our consultation will help resolve your concerns.

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