05 funded sources of investment capital for renovation/reconstruction investment project in Vietnam

12:05, 01/11/2015

On October 20, 2015, the Government of Vietnam issued the Decree No. 101/2015/NĐ-CP on renovation and re-construction of apartment buildings.

đầu tư cải tạo, xây lại nhà chung cư được huy động, Nghị định 101/2015/NĐ-CP

According to Article 16 of the Decree No. 101/2015/NĐ-CP of the Vietnam’s Government, a real estate enterprise is the investor of a renovation/reconstruction investment project shall be funded from:

- The equity of the investor;

- Capital from capital contribution, investment cooperation, business cooperation, joint-ventures and associations of organizations, households and individuals;

- Payments for apartment lease/ rent and/or purchase of off-the-plan housing in the remaining of the area (after relocation) and business areas (if any) within the scope of the project;

- Loans granted by credit institutions and financial institutions operating in Vietnam;

- Loans granted by housing development funds and other local funding (if any).

Note: In case of an occupier who receives a new apartment must pay for the difference in area, this occupier is entitled to take loans from a credit institution, financial institution in Vietnam, housing development fund and other funding of the locality (if any) under regulations of laws on credit and laws on finance.

Moreover, the investor is permitted to do business in the remaining area (after relocation) and areas for business and/or services (if any) within the scope of the project according to the approved planning and investment decision issued by the competent authorities.

View more details at the Decree No. 101/2015/NĐ-CP of the Vietnam’s Government, effective from December 10, 2015.

Ty Na

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