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THE LAW ON REAL ESTATE TRADING IN VIETNAM

THE LAW ON REAL ESTATE TRADING IN VIETNAM

This content is quoted in Law No. 66/2014 / QH13 on Real Estate Trading in Vietnam issued by the National Assembly on November 25th, 2014 and takes effect from July 1st, 2015.

  1. Requirements in terms of organizations or individuals conducting real estate trading (Article 10, Chapter II)
    1. Any organizations or individuals wish to conduct real estate trading shall set up enterprises or cooperatives (hereinafter referred to as enterprises) and have legal capital not smaller than VND 20 billion, excluding cases prescribed in Clause 2 of this Article.
    2. Any organizations, households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed.
  2. Scope of real estate trading conducted by Vietnamese organizations, individuals, overseas Vietnamese or foreign-invested enterprises (Article 11, Chapter II)
    1. Any Vietnamese organizations and individuals may conduct real estate trading under following forms:
      1. Purchase buildings for sale, for lease, or for lease purchase;
      2. Rent buildings for sublease;
      3. Build houses on land which is allocated by the State for sale, for lease, or for lease purchase; transfer the land which is divided into smaller lots for sale as prescribed in law on land; build technical infrastructures of cemetery on that land for transfer of both the land and the technical infrastructures;
      4. Build houses on the land which is leased by the State for lease; build houses or constructions other than houses on such land for sale, for lease, or for lease purchase;
      5. Build houses on land which is recognized by the State for sale, for lease, or for lease purchase;
      6. Build buildings on land which is transferred from organizations, households or individuals for sale, for lease, or for lease purchase;
      7. Build buildings on land which is leased from organizations, households or individuals for lease according to proper land use.
      8. Receive total or a part of real estate project from investors to build buildings on it for sale, for lease, or for lease purchase;
      9. Receive or rent land from organizations, households or individuals to build technical infrastructures on it for transfer or lease of both the land and the infrastructure.
    2. Overseas Vietnamese may conduct real estate trading in the following forms:
      1. Forms prescribed in Point b, d, g and h Clause 1 of this Article;
      2. Build houses on land which is allocated by the State for sale, for lease, or for lease purchase;
      3. Build buildings on land which is leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.
    3. Foreign-invested enterprises may conduct real estate trading in the following forms:
      1. Forms prescribed in Point b, d, h Clause 1 and Point b Clause 2 of this Article;
      2. Build buildings on land which is leased out or transferred in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zone for trading for the proper land use.
  3. Entities entitled to purchase, receive, rent, or lease purchase real estate from real estate enterprises (Article 14, Chapter 2)
    1. Any Vietnamese organization or individual may purchase, receive, rent, or lease purchase real estate.
    2. Overseas Vietnamese or foreign entities may rent real estate for use; may purchase, rent, lease purchase houses as prescribed in laws on housing.
      Overseas Vietnamese or foreign-invested companies may purchase, lease purchase buildings for use for offices or business facilities according to their proper utilities.
    3. Overseas Vietnamese or real estate foreign-invested companies may purchase, receive, rent, or lease purchase real estate for business as prescribed in Article 11 of this Law.
  4. JJL’s evaluation of the potential of foreigners’ real estate trading in Vietnam

According to the Law on Real Estate Trading, foreigners and overseas Vietnamese can do real estate business like Vietnamese. The procedures are also simpler and easier than before.

Thereby, the law has created opportunities for foreign individuals and organizations to invest and trade real estate in Vietnam, promoting the development of the real estate market.