Does the transfer of a portion of real estate project require the approval of competent agencies in Vietnam?

Does the transfer of a portion of real estate project require the approval of competent agencies in Vietnam?

Pursuant to Clause 3, Article 48 of the Law on Real Estate Business 2014, rules for transfer of all or a portion of real estate project are as follows:

3. The transfer of all or a portion of real estate project shall be approved in writing by competent agencies. The investor (transferee) may be granted the Certificate of land, ownership of land and property on land or may register the adjustments in the Certificated granted to the transferor as prescribed in law on land.

As such, your company needs to be approved in writing by competent agencies to decide on the investment (provincial People's Committee) to be able to transfer a portion of real estate project in Vietnam.

Requirements in terms of transfer of a portion of real estate project in Vietnam

Pursuant to Article 49 of the Law on Real Estate Business 2014, requirements in terms of transfer of all or a portion of real estate project are as follows:

1. The transferred real estate project shall meet the following requirements:

a) The project is approved by competent agencies; there is a specific planning 1/500 or general ground planning which is approved;

b) The compensation or site clearance of the transferred project or a portion of the transferred project has been finished. Regarding transfer of all infrastructure construction projects, the technical infrastructure must be completed equivalent to schedule as specified in the approved project;

c) The land in the project is not disputed or distrained by a competent agency

d) There is no decision on project or land revocation conducted by a competent agency; in case there is any violation during the progress of the project, the investor must abide by the decision on penalty.

2. The transferor has a Certificate of land regarding all or a portion of the transferred project.

3. The transferee must be a real estate enterprise, acquire financial competence and commit to keep conducting the business as prescribed in regulations of law and ensure that the project is conducted under proper progress and plan.

Best Regards!