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27 November 2009
Presentation on the
Real Property Investment in Vietnam
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Topic
A. Residential housing ownership of
A. Overseas VietnameseB. Foreign individuals
C. Foreign organisations
B. Procedures and requirements
C. Rights and obligations
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Relevant Legislation
Law on Land No. 13/2003/QH11 passed by the National Assembly of Vietnam on 26November 2003;
Law on Residential Housing No. 56/2005/QH11 passed by the National Assemblyof Vietnam on 29 November 2005;
Law on Amendment to Article 126 of the Law on Residential Housing andArticle 121 of the Law on Land No. 34/2009/QH12 passed by the NationalAssembly of Vietnam on 18 June 2009;
Resolution No. 19/2008/QH12 on pilot scheme permitting foreign organisations andindividuals to purchase and own residential houses in Vietnam passed by theNational Assembly of Vietnam on 3 June 2008 (Resolution No. 19); and
Decree No. 51/2009/ND-CP of the Government dated 3 June 2009 providingregulations for implementation of Resolution No. 19.
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Residential housing ownership of Overseas Vietnamese
A. An Overseas Vietnamese (Vietkieu), who is permitted to reside in Vietnam for 3 monthsor more and meeting any of the below criterion:
has a Vietnamese nationality;
has a Vietnamese origin and returns for a direct investment in Vietnam;
has a Vietnamese origin and his/her work has contributed to the country;
is a scientist, cultural activist or a person with special skills required by a Vietnameseorganisation and is working in Vietnam; or
whose spouse is a Vietnamese citizen and lives in Vietnam,is entitled to own a residential housing without limitation.
B. A Vietkieu who does not meet the above criteria but has a visa exemption certificate andpermitted to reside in Vietnam for 3 months or more is entitled to own one separate
residence or one apartment in an apartment block.
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Residential housing ownership of Foreign IndividualsA foreign individual who does not have a Vietnamese nationality but meets any of the
following:
has a direct investment in Vietnam;
is hired by and holds a managerial position in an enterprise that is currently operating inVietnam;
whose contribution to Vietnam has been rewarded by the President or the Prime Minister ofVietnam;
with a university or higher equivalent qualification and works in the socio-economic sector orwith special technical knowledge and technical skills that Vietnam requires; or
whose spouse is a Vietnamese citizen,
and satisfy the following conditions:
must be currently living in Vietnam;
has a permanent or temporary residence card and/or a document permitting residence inVietnam for 12 months or more; and
not being persons entitled to diplomatic or consular immunity and privilege,
is permitted to own at any one time only one apartment in an apartment block inVietnam for a period of 50 years as from the date of issuance of the residential house
ownership certificate.
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Residential housing ownership of Foreign Organisations
A foreign organisation, which is an enterprise with foreign owned capital currently operating inVietnam, must meet the following conditions:
is established by a foreign investor in order to conduct foreign investment activities inVietnam;
is a Vietnamese enterprise in which a foreign investor purchases shareholdings, merges oracquires to directly manage the business pursuant to the law of Vietnam;
is not undertaking real property business; and
has a need for a residential housing for its staff or employees,is permitted to own one or a number of apartments in an apartment building(s) for aperiod in accordance with the duration stipulated in its investment certificate includingany extended duration.
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Resolution 19
Article 1.2 of Resolution 19/2008/QH12 of the National Assembly of Vietnam dated 3 June2008 states that:
Residential houses which foreign organisations and individuals are eligible to purchase andown pursuant to this Resolution mean apartments in apartment buildings of projects fordevelopment of commercial residential housing, and which are not in an area in whichforeigners are restricted or prohibited from residence and movement.
A foreign individual or organisation is entitled to purchase apartments from: a real property business enterprise that conducts investment and
construction pursuant to a project for commercial development of housingapproved by the competent body, in order to sell or lease the apartments atmarket price; and
an individual whose apartment is available and was previously purchasedfrom a project for commercial development of housing and was issued with ahousing ownership certificate in accordance with the law.
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Procedures and RequirementsA. Viet Kieu
1. An application for issuance of a residential housing ownership certificate;
2. An original copy of the contract for sale and purchase, donation to, or document on
inheritance of a residential house in accordance with Vietnamese law;3. A document evidencing that the applicant is entitled to own a residential house;
4. Plan of the residential house and residential land;
5. Request for issuance of housing ownership and residential land use right certificate inEnglish and Vietnamese languages on standard form;
6. Original copy of the contract for purchase and sale or donation of the apartment or
document on inheritance of the apartment as prescribed by the law of Vietnam.
7. Certified copy of foreign passport and one of the documents proving eligibility andsatisfaction of conditions by foreign individuals and organisations to purchase, inherit orreceive a donation of and own housing in Vietnam.
8. Procedures for purchase of the apartment via a trading floor must be conducted andthere must be an original document certifying that the purchase and sale of the
apartment was in fact conducted via a real property trading floor if purchasing theapartment from a real property business enterprise.
9. Receipts for payment of tax and registration fees in accordance with law.
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Procedures and Requirements
B. Foreign individual
A Foreign individual who meets any of the following criteria would be required tosubmit the corresponding documents:a. has a direct investment in Vietnam (Direct Investor);
b. is hired by and holds a managerial position in an enterprise that iscurrently operating in Vietnam (Manager);
c. whose contribution to Vietnam has been rewarded by the President or thePrime Minister of Vietnam (Awardee);
d. with a university or higher equivalent qualification and works in the socio-economic sector or with special
e. technical knowledge and technical skills that Vietnam requires (SkilledProfessional); or
f. whose spouse is a Vietnamese citizen (Spouse),
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a marriage certificateissued by thecompetent Vietnameseor foreign authority,together with theVietnamese passportor residents householdregistry and personal
identity card of thespouse beingVietnamese citizen.
a certificate ofengineeringqualifications or abachelor or higherdegree issued by thecompetent Vietnameseor foreign authority,together with one of
the followingdocuments whichshould be issued bythe competentVietnamese authority:
a work permit; or
a practising
certificate for his/herspecialty in Vietnam.
a decoration or medalpresented by thePresident of theSocialist Republic ofVietnam;
a certificate from theministerial level bodyresponsible for thesector in which theforeigner made suchspecial contribution,which certificate shallbe sent to the Ministryof Construction for itsconsideration and
submission to thePrime Minister of theGovernment to issue aletter of permission.
a contract stating suchindividual is holding amanagerial position; or
a decision appointingthe foreigner to suchposition in Vietnameselanguage.
an investmentcertificate specifyingthe name of the foreignindividual with aresidual term of validityof one year or more; or
a document provingmembership of theboard of managementor managerial board ofan enterprise currentlyoperating in Vietnam.
Permanent residency or temporary residence card or a document permitting residence in Vietnam from 12 months or moreissued by the immigration body under the Ministry of Public Security
Passport issued by the competent foreign authority
SpouseSkilledProfessional
AwardeeManagerDirect Investor
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Procedures and Requirements
C. Foreign Organisation
An investment certificate with a residual term of validity of one year or more issued bythe competent Vietnamese authority.
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Procedures and Requirements
Applicant submits
one valid set of the application file
Department of Construction (DOC)
in the placewhere the apartment exists
DOC shall provide a written response
to the applicant specifying thereason for the application failing
to satisfy the conditions
DOC will issue a housing ownership and
Residential land use right certificate within
30 days from receipt
ApproveReject
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Rights and Obligations
A. Viet Kieu
To transfer the residential land use right when selling, donating, bequeathing orconverting the house to a domestic organization or individual, or to a Vietnameseresiding overseas who is entitled to own a house in Vietnam to live in; or whendonating the house together with the land use right to the Vietnamese State, to acommunity of citizens or as a charity house;
To mortgage the house on residential land with credit institutions licensed to operate inVietnam;
To be paid compensation in accordance with the law of Vietnam if the VietnameseState recovers the land; and
To lease out and/or to authorise others to manage the house in the period that he/shedoes not use the house.
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Rights and Obligations
B. Foreign Individuals or organisations
Rights:
To sell or donate their residential house after 12 months from the date ofissuance of the ownership certificate.
To mortgage their residential house to a credit institution authorised tooperate in Vietnam.
To bequeath their residential house in accordance with the law of Vietnam
on bequests. To delegate authority to other people to manage the residential house.
To maintain and improve the residential house and to use its space inconformity with master planning on construction and architecture and inaccordance with the law of Vietnam.
To be paid compensation for loss if the residential house must bedemolished and the site cleared pursuant to the law of Vietnam.
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Rights and Obligations
B. Foreign Individuals or organisations
Obligations
To use the residential house only for residential purposes, and not to leaseit or use it as an office or for any other purpose.
To manage, use, maintain, improve or demolish the residential house inaccordance with the law of Vietnam but without adversely affecting orcausing loss or damage to the interests of the State, to the public interest,
or to the lawful rights and interest of others. To pay taxes, fees and charges as stipulated by the law of Vietnam on the
purchase or sale, donation, mortgage or bequest of the residential house,and on request for new issuance, issuance of an exchanged, or re-issuance of an ownership certificate or for certification of changes aftersuch issuance.
To comply with any decision of a competent State body of Vietnam ondealing with a breach or on resolving a complaint or denunciationregarding the residential house; on site clearance, on payment ofcompensation, on assistance, resettlement, or demolition of the residentialhouse; or on requisition, compulsory purchase or advanced purchase of
the residential house.
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An introduction to Frasers
Frasers incorporates Freehills practice inVietnam (20 years of experience)
First foreign law firm to be granted a foreign
law company licence in Vietnam
One of the largest law firms in Vietnam with
cross-practice expertise
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Why clients appoint Frasers
Frasers incorporates practice in Vietnam and
as an associated office of Freehills we are able toprovide our clients with top commercial Vietnameseand international legal advice, with the resources andexpertise of more than 1000 lawyers, across South-East
Asia and Australia. Our primary objective is to be recognised as the premier
commercial law firm in Vietnam. With that in mind, weprovide our clients with commercial expert advice at thehighest international standards of practice.
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Why clients appoint Frasers
We have an understanding of local business practices and
the legal, political and regulatory issues that are involvedwhich is fundamental to the success of any venture.
Full service law firm - we aim to provide a comprehensivelegal serviceto help clients navigate these complex issues
to achieve outstanding business outcomes: International legal advice
Vietnamese legal advice
Industry relationships and extensive contacts on adomestic and international level.
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Ho Chi Minh City Office10th floor, Saigon Centre65 Le Loi BoulevardDistrict 1
Ho Chi Minh City
Phone 848 3824 2733Fax 848 3824 2736
Frasers Law Company
e-mail: [email protected]
Hanoi Office12th Floor, Pacific Place83B Ly Thuong Kiet StreetHoan Kiem District
Hanoi
Phone 844 3934 6239Fax 844 3934 6238