Cases of grouping of apartment buildings in Vietnam from August 1, 2024

Cases of grouping of apartment buildings in Vietnam from August 1, 2024 (Image from the internet)

On July 25, 2024, the Government of Vietnam issued Decree 98/2024/ND-CP providing detailed regulations for certain articles of the Housing Law concerning the renovation and reconstruction of apartment buildings in Vietnam.

Cases of grouping of apartment buildings in Vietnam from August 1, 2024

Article 37 of Decree 98/2024/ND-CP also regulates the grouping of apartment buildings in Vietnam as follows:

- Grouping several independent apartment buildings within the same ward-level area into one or two locations with apartment buildings eligible for grouping within that ward-level area.

- If the grouping within the same ward-level area cannot be implemented as per Clause 1, Article 37 of Decree 98/2024/ND-CP, then collect several apartment buildings in neighboring wards within the same district-level area.

- If the grouping within the same district-level area cannot be implemented as per Clause 2, Article 37 of Decree 98/2024/ND-CP, then collect several apartment buildings in neighboring district-level areas.

- If the grouping solution as prescribed in Clauses 1, 2, or 3, Article 37 of Decree 98/2024/ND-CP cannot be implemented, the provincial-level People's Committee shall advance funds from the local regular expenditure budget to relocate, compensate, support, and resettle the owners and users of the condominium and organize the auction of the land plot with the condemned condominium to reimburse the state budget. The investment in constructing works on the auctioned land plot shall be carried out according to the approved plan.

In case the approved plan requires the land plot with the condominium to be arranged for public works, compensation, clearance, demolition, and land recovery shall be carried out according to the land laws for implementation as per the plan.

Regulations on investment in renovation and reconstruction projects in cases of grouping of apartment buildings in Vietnam

- The selection of the investor for the renovation and reconstruction project in cases of grouping of apartment buildings shall be carried out through one of the forms specified in Articles 16, 17, or 18 of Decree 98/2024/ND-CP and the following provisions:

+ In cases where the investor agrees to transfer the land use rights with all condominium owners in grouping as per Article 16 of Decree 98/2024/ND-CP, this investor shall be approved by the competent authority to concurrently approve the investment policy and the investor as the project investor for the entire land area of all collected apartment buildings for which agreements have been made;

+ In cases where the investor is selected as per Article 17 of Decree 98/2024/ND-CP and the project does not meet the profit requirements as specified in Clause 1, Article 39 of Decree 98/2024/ND-CP, the approval for the investment policy and the investor as the project investor must clearly define the additional land area assigned to the investor to ensure the profit as prescribed;

+ In cases where the investor is selected as per Article 18 of Decree 98/2024/ND-CP and the project does not meet the profit requirements as specified in Clause 1, Article 39 of Decree 98/2024/ND-CP, the provincial housing management authority shall prepare a land grouping use plan to ensure the profit ratio as per regulations, which is attached to the dossier for approval of the investment policy to submit to the provincial-level People's Committee for consideration and approval; the investor selected in the decision approving the investor or in the decision winning the land-use project bidding is determined as the project investor for the entire additional collected land area.

- Approval or adjustment of the investment policy in renovation and reconstruction projects in cases of grouping of apartment buildings shall be carried out as prescribed in Articles 10, 11, 12, 13, or 14 of Decree 98/2024/ND-CP.

- Land recovery, land allocation, land lease, land-use conversion (if any) to carry out the project for grouping of apartment buildings in Vietnam cases shall comply with the provisions of Article 19 of Decree 98/2024/ND-CP.

- Compensation and resettlement plans for the owners and users of apartment buildings in renovation and reconstruction projects in grouping cases shall comply with the regulations in Chapter IV of Decree 98/2024/ND-CP.

(Article 38 of Decree 98/2024/ND-CP)

More details can be found in Decree 98/2024/ND-CP which comes into force in Vietnam from August 1, 2024.

Le Nguyen Anh Hao

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