Directive 21/2003/CT-TTg on enhancing the work of security transaction registration

DIRECTIVE

ON ENHANCING THE WORK OF SECURITY TRANSACTION REGISTRATION

After the Government's Decree No. 08/2000/ND-CP of March 10, 2000 on security transaction registration was issued, the activities of security transaction registration have initially got into a groove and achieved some important results. The registration of security transactions with a view to publicizing them has created favorable conditions for individuals and organizations to inquire into information on properties, and at the same time, formed a legal basis for the accurate determination of payment priority order when handling pledged, mortgaged or guaranteed properties. As a result, registration activities have contributed to enhancing the transparency of civil and economic transactions, making the investment environment healthy, synchronously formulating elements of a market economy and protecting the legitimate rights and interests of parties involved in the transactions as well as concerned individuals and organizations.

However, over the past period, the security transaction registration has not yet been implemented unevenly in localities, especially in the fields of registration of pledge and guarantee with land-use rights and properties affixed to land. The professional guidance and fostering on security transaction registration operations for registrars has not yet been provided in time. The registered security transactions constitute an important information source for involved parties to consider and decide on the investment and determine civil and economic transactions, especially in credit and banking activities as well as the State management over related types of properties of some agencies, but have not yet been thoroughly exploited and made full use of. Therefore, the activities of security transaction registration still fail to fully promote their practical significance and role.

With a view to overcoming these above-stated shortcomings and enhancing the work of management and registration of, and provision of information on, security transactions, step by step building a system of security transaction registries after the concentrated registration model, computerizing and linking the computer networks among registries and forming a national database on security transactions, the Prime Minister instructs:

1. The Ministry of Justice:

a/ To coordinate with the concerned ministries and branches in urgently reviewing legal documents on security transactions and security transaction registration so as to promptly amend or supplement them, promulgate new documents according to its competence or propose competent authorities to amend, supplement or promulgate them.

To take initiative in studying and amending regulations on litigious order and procedures and judgment execution according to its competence or proposing competent authorities to amend them along the direction of renovation on the basis of exploiting the legal value of security transaction registration.

To urgently formulate an ordinance on security transaction registration and a bill on real estate registration in order to create an efficient model for organization of registration activities along the direction of reducing the number of agencies performing the management and registration of property-ownership right and security transactions, thus meeting the requirements of administrative reform.

b/ To coordinate with the Ministry of Natural Resources and Environment in studying and formulating a scheme on experimenting the concentrated registration of security transactions, including pledge and guarantee with land-use right and properties affixed to land, and submitting it to the Prime Minister in the third quarter of 2004.

c/ To coordinate with the Ministry of Public Security, the Ministry of Communications and Transport, the Ministry of Aquatic Resources, the Ministry of Science and Technology, the Ministry of Construction and the Ministry of Natural Resources and Environment in studying and formulating a mechanism for information exchange among security transaction registries and agencies performing the registration and management of assorted properties and property rights, with a view to exploiting information on security transaction registration in service of the work of State management in the second quarter of 2004.

d/ To coordinate with the Ministry of Finance, the Ministry of Planning and Investment and the concerned ministries and branches in studying and carrying out the preparation of material-technical foundations for the system of national security transaction registries; to standardize the structure of data on security transactions with aircraft, sea-going vessels, land-use right and properties affixed to land in order to create conditions for the uniform formulation and management of national data on security transactions according to the Prime Minister's Decision No. 112/2001/QD-TTg of July 25, 2001 approving the scheme on computerization of the State administrative management in the 2001-2005 period.

e/ Periodically, to review the work of security transaction registration throughout the country so as to timely propose solutions to overcome existing problems and obstacles and to enhance the efficacy of State management over security transaction registration.

2. The Ministry of Communications and Transport:

a/ To enhance the direction and inspection of the registration of transactions of security with aircraft and sea-going vessels and ensure the provision of information to all organizations and individuals wishing to inquire thereinto according to current law provisions.

b/ To coordinate with the Ministry of Justice in finalizing laws on the registration of aircraft and/or sea-going vessel pledge or mortgage; to build a database on transactions of security with aircraft and sea-going vessels in compatibility with common criteria on data structure in order to ensure the uniform formulation and management of the national database on security transactions.

c/ To comply with the regime of biannual and annual reporting to the Ministry of Justice on the registration of transactions of security with aircraft and sea-going vessels.

3. The Ministry of Natural Resources and Environment shall have to assume the prime responsibility for, and coordinate with the Ministry of Justice in, propagating and disseminating laws on the registration of mortgage and pledge with land-use right and properties affixed to land.

4. The Ministry of Home Affairs shall have to assume the prime responsibility for, and coordinate with the Ministry of Justice, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance in, studying and formulating titles and criteria applicable to registrars of security transaction registries in the third quarter of 2004.

5. Vietnam State Bank shall have to urge and direct its provincial/municipal branches to inspect the observance of laws on security transaction registration by credit institutions under their management; to direct credit institutions to enhance the inquires into information on security transactions at agencies competent to register and provide information on security transactions before deciding to receive properties as loan security.

6. The provincial/municipal People's Committees:

a/ To arrange officials and working facilities for the provincial/municipal Natural Resources and Environment Services and the commune, ward and township People's Committees within their assigned payroll and annual State budget estimates for these agencies to well perform the tasks of registering and providing information on pledge and guarantee with land-use right and properties affixed to land according to their competence.

b/ To direct their professional bodies to inspect the registration of, and provision of information on, pledge and guarantee with land-use right and properties affixed to land; to comply with the regime of biannual and annual reporting to the Ministry of Justice on the registration of pledge and guarantee with land-use right and properties affixed to land in their respective localities.

c/ To coordinate with the Ministry of Justice and the Ministry of Natural Resources and Environment in providing professional fostering for cadres engaged in the work of registration of pledge and guarantee with land-use right and properties affixed to land.

7. The Ministry of Justice, Vietnam State Bank, the Ministry of Communications and Transport, the Ministry of Natural Resources and Environment and the provincial/municipal People's Committees shall have to take responsibility for the raising of knowledge about law on security transactions and security transaction registration for officials and employees working in the related domains; to coordinate with the Coordinating Councils for Law Dissemination and Education at various levels as well as concerned agencies and organizations in intensifying the dissemination of laws on security transactions as well as the purposes, significance and contents of the registration of, and provision of information on, security transactions among credit institutions, enterprises and people.

8. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the provincial/municipal People's Committees shall have to implement this Directive and report the implementation results to the Ministry of Justice.

The Ministry of Justice shall have to monitor, urge and inspect the implementation of this Directive and biannually report thereon to the Prime Minister