Can real estate businesses that are not guaranteed by banks be investors in commercial housing projects in Vietnam?

Can real estate businesses that are not guaranteed by banks be investors in commercial housing projects in Vietnam?

Pursuant to Article 21 of the 2015 Housing Law as amended by Point a, Clause 1, Article 75 of the Investment Law 2020, investors in commercial housing projects must:

1. Be enterprises or cooperatives established and operated under Vietnamese regulations of law.

2. Having a capital deposit or a bank guarantee to execute each project in accordance with the law on investment.

3. Be licensed for real estate trading as prescribed.

Thus, according to current regulations in Vietnam, in case your business has met other conditions. However, without the Bank's agreement to guarantee this project, you are still not allowed to be the investor in commercial housing projects.

In what methods can investors in projects for commercial housing construction be selected in Vietnam?

According to Article 22 of the Law on Housing 2014 as amended by Points b, e, Clause 1, Article 75 of the Investment Law 2020, regulations on projects for commercial housing construction and investor selection are as follows:

1. Projects for commercial housing construction must be formulated, accessed, approved and executed as prescribed in regulations of this Law and law on construction.

2. The investors in projects for commercial housing construction shall be selected through the following methods:

a) Holding land auction prescribed in law on land;

b) Inviting bids for land-using projects;

c) Approving an investor in accordance with the Law on Investment. If multiple investors are approved, the investor shall be determined in accordance with the Law on Construction.

The Government shall elaborate this Point.

Best Regards!