Key Updates on Vietnam’s New Residential Housing Law 2023
Key Takeaways
▪ Requirements for property developers have been updated to align with the new Law on Real Estate Business and the new Land Law.
▪ New incentives to attract developers of social housing.
▪ Developers must disclose the investment costs for building car parking lots.
▪ “Mini-apartments” will be granted House Ownership Certificates if they meet certain legal conditions.
On 27 November 2023, the National Assembly of Vietnam passed the new Residential Housing Law No. 27/2023/QH15 (the “Housing Law 2023”), which will take effect on 1 January 2025, replacing the Residential Housing Law 2014 (the “Housing Law 2014”). This legal update introduces several key features that impact property developers in the private sector, particularly regarding residential properties.
Requirements for Developers of Property Investment Projects
An enterprise may become a property project developer if it meets the following requirements:
▪ The enterprise is leased or allocated land from the State through winning a selection bid for investors in a land-use project or an auction for land use rights
▪ The enterprise has obtained investment approval along with the investor approval when it holds land use rights to the land applicable for property investment projects or through agreements on receiving land use rights. This aligns with the new Land Law 2024, which specifies that investors can only apply agreements on receiving residential land, not other types of land. Holders of residential and other types of land may propose property projects if these projects align with land use planning and are approved for a change in land use purpose.
For further information, please contact:
Pham Viet Tuan, Indochine Counsel
tuan.pham@indochinecounsel.com
