What is a property lease? Regulations on terms of "thue khoan" in Vietnam

What are contracts for "thue khoan" of property? Regulations on terms of "thue khoan" in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are ontracts for "thue khoan" of property?

According to Article 483 of the Civil Code 2015, a contract for a package lease of an asset is an agreement between the parties whereby the lessor assigns the property to the lessee for the purpose of exploiting its utility and enjoying the benefits and profits obtained. from the package lease property and the lessee is obligated to pay the rent.

2. Subject matter of contracts for "thue khoan" of property in Vietnam

Subject matter of contracts for "thue khoan" of property under Article 484 of the Civil Code 2015 are as follows:

The subject matter of a contract for "thue khoan" may be land, forest, and water surfaces which have not been exploited, livestock, production and business facilities, and other means of production together with the equipment required to exploit the utility of such property and to enjoy the benefits and income derived therefrom, unless otherwise provided by law.

3. Terms of "thue khoan" in Vietnam

Article 485 of the Civil Code 2015 stipulates the terms of "thue khoan" as follows:

The term of a "thue khoan" shall be agreed by parties. If the parties do not reach an agreement and reach an unclear agreement on the term of “thue khoan”, such period shall be determined according to the production or business cycle appropriate to the nature of the subject matter of the "thue khoan".

4. Payment of "thue khoan" rent and method of payment in Vietnam

Payment of "thue khoan" rent and method of payment according to Article 488 of the Civil Code 20155 are as follows:

-  "Thue khoan" rent may be paid in kind or money, or by performance of acts.

- A "thue khoan" lessee must pay "thue khoan" rent in full even where the lessee does not exploit the utility of the "thue khoan" property.

- When entering into a contract for "thue khoan", parties may agree on conditions for a reduction in rent. If at least one third of the benefits or income is lost due to an event of force majeure, a "thue khoan" lessee may demand a reduction of or exemption from rent, unless otherwise agreed.

- Where a "thue khoan" lessee must pay in kind according to the season or cycle in the exploitation of the utility of the "thue khoan" property, payment must be made at the end of such season or cycle, unless otherwise agreed.

- Where a "thue khoan" lessee is required to perform an act, the "thue khoan" lessee must perform that particular act.

- Repayment term of “thue khoan” shall be agreed by the parties. If the parties have no agreement, the lessee has to pay on the last day of each month; in case the “thue khoan” follows the business cycle, the payment must be made at the end of the business cycle at the latest.

5. Taking care, maintenance and disposal of "thue khoan" property in Vietnam

Article 490 of the Civil Code 2015 stipulates taking care, maintenance and disposal of "thue khoan" property are as follows:

- During the period of exploitation of the "thue khoan" property, the "thue khoan" lessee must take care of and preserve the "thue khoan" property and any related equipment at its own expense, unless otherwise agreed.

If the "thue khoan" lessee loses or damages the "thue khoan" property or causes any loss or reduction in its value, the "thue khoan" lessee must compensate for damage. The "thue khoan" lessee shall not be liable for normal wear and tear due to the use of the "thue khoan" property.

- A "thue khoan" lessee may replace or improve "thue khoan" property if the parties so agree, but must preserve its value.

A "thue khoan" lessor must reimburse a "thue khoan" lessee for the reasonable expenses incurred in replacing or improving the "thue khoan" property as agreed.

- A "thue khoan" lessee may not sub-lease "thue khoan" property without the consent of the "thue khoan" lessor.

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