Vietnam: From January 1, 2025, what are the forms of social housing development under the Housing Law 2023?
From January 1, 2025, what are the forms of social housing development in Vietnam under the Housing Law 2023?
Forms of social housing development in Vietnam are specified in Article 80 of the Housing Law 2023 as follows:
- The Government invests in social housing construction using public investment in order to lease and lease-purchase.
- The Government invests in social housing construction using funding sources under Point b Clause 1 Article 113 of the Housing Law 2023 in order to sell, lease-purchase, and lease.
- Enterprises, cooperatives, and joint cooperatives invest in social housing construction in order to sell, lease-purchase, and lease to entities under Clause 1 Article 77 of the Housing Law 2023.
- The Vietnam General Confederation of Labor acts as presiding authority of social housing investment and construction projects using union funding for employees and workers eligible for renting social housing.
- Foreign-invested business organizations participate in social housing development in form of capital investment or construction of social housing or business cooperation with domestic enterprises, cooperatives, joint cooperatives in executing social housing development projects in order to sell, lease-purchase, and lease in accordance with this Law, land laws, real estate trading laws, and other relevant law provisions.
- Individuals build social housing to lease to entities under Clause 1 Article 77 of the Housing Law 2023.
What are the type and area standards of social housing in Vietnam?
Under the provisions of Clause 1, Article 82 of the Housing Law 2023, the type and area standards of social housing in Vietnam are specified as follows:
- Social housing in form of apartment buildings shall be built in projects, conform to approved detail construction planning. If social housing investment and construction projects take place in communes in ethnic minority regions and mountainous regions according to regulations of the Prime Minister, construction of single-family houses is allowed;
- Social housing in form of dwelling units in apartment buildings shall be designed and built in accordance with national technical regulations on apartment building and area standards of social housing;
- Social housing in form of single-family houses shall be designed and built in accordance with construction laws and area standards of social housing;
- If individuals build social housing in accordance with Clause 6 Article 80 of the Housing Law 2023, they may build multi-storey and multi-unit houses or single-family houses in accordance with Housing Law 2023.
What are the rights of house owners that are foreign organizations or individuals in Vietnam?
Under the provisions of Article 20 of the Housing Law 2023, the rights of house owners that are foreign organizations or individuals in Vietnam are stipulated as follows
Rights of house owners that are foreign organizations or individuals
1. Foreign-invested business organizations under Point a Clause 1 Article 17 hereof shall exercise rights under Article 10 hereof or only the right to lease houses that are built on rented land.
2. Foreign organizations, individuals under Point b and Point c Clause 1 Article 17 of this Law shall have ownership rights similar to those of Vietnamese nationals and comply with requirements below:
a) They may only purchase, lease-purchase, receive gifted, inherit, and own houses to the maximum number stipulated under Article 19 hereof and obtain certificate for these houses;
b) If foreign organizations, individuals receive or inherit houses that are not specified under Point b Clause 2 Article 17 hereof or own more than the maximum number of houses under Article 19 hereof or own houses in areas with strict national defense and security requirements under Article 16 hereof, they shall only benefit from value of these houses;
c) Foreign individuals may own houses in accordance with agreement via purchasing, lease-purchasing, gifting, inheriting houses for up to 50 years from the date on which the certificate is issued and request extension once for up to 50 years. Duration of ownership shall be specified in the certificate.
Foreign individuals marrying Vietnamese nationals and living in Vietnam may own houses and exercise rights of house owners similar to those of Vietnamese nationals.
Foreign individuals marrying overseas Vietnamese permitted to enter Vietnam may own houses and exercise rights of house owners similar to those of overseas Vietnamese;
d) Foreign organizations may own houses in accordance with agreement in purchase, lease purchase, gift, inheritance without exceeding the time limit, including extended time limit, in investment certificate issued to the organizations; time limit for housing ownership shall start from the date on which certificate is issued to the organizations and shall be specified on such certificate;
dd) Prior to expiry of time limit for housing ownership according to this Law, owners may, by themselves or by authorizing other organizations and individuals, to exercise the right to gift or sell these houses to entities eligible for housing ownership in Vietnam; if owners fail to sell or gift houses that they own before the expiry of time limit for housing ownership, the houses shall be public property.
If parties gifted with or purchasing houses are entities specified under Point a and Point b Clause 1 Article 8 of this Law, they shall have the rights detailed under Clause 1 Article 10 hereof.
Thus, the rights of house owners that are foreign organizations or individuals in Vietnam shall comply with the above regulations. Specifically, the above rights are clearly defined for following two entities:
- Foreign-invested business organizations building houses in projects in Vietnam under Housing Law 2023 and relevant law provisions.
- Business organizations with foreign investment, branches, representative offices of foreign enterprises, foreign investment funds, and foreign bank branches operating in Vietnam and foreign individuals allowed to enter Vietnam.
The Housing Law 2023 will come into force from January 1, 2025.
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