Official: Law on Housing 2023 available in Vietnam

The Law on Housing 2023 was passed in the 15th session, the 6th session on November 27, 2023. The Law on Housing 2023 will take effect on January 1, 2025.

The Law on Housing 2023 provides for ownership, development, management, operation, and use of houses, trading of houses, and state management of houses in Vietnam, except for cases of ransaction, lease purchase, leasing of residential real estates of enterprises, cooperatives, joint cooperatives engaging in real estate trading, transfer of housing purchase agreement shall conform to real estate trading laws.

Official: Law on Housing 2023 available in Vietnam (Internet image)

General regulations on housing development, management, and use policies and general requirements regarding housing management and use are specified in the Law on Housing 2023:

Housing development, management, and use policies in Vietnam

- The Government is responsible for implementing housing development policies, allowing everyone to afford accommodations by promoting diverse form of housing, including houses for sale, lease purchase, rent depending on demand and financial capability of individuals and families, subsidizing renovation and reconstruction of houses; the Government shall invest public investment in part or in whole (hereinafter referred to as “public investment”) in construction of social houses for lease and lease purchase.

- The Government is responsible for creating residential land fund by approving land use planning, land use plans, construction planning, urban planning, and functioning zone construction planning.

- The Government shall promulgate regulations and policies on planning, land, finance, credit, research, application of new science, technology, construction materials to encourage types of ownership to participate in housing development investment and encourage organizations and individuals to participate in housing development for sale, lease purchase, and lease in accordance with market mechanisms.

- The Government shall promulgate long-term incentive regulations and policies regarding finance, land, credit with preferential interests, other incentive financial regulations, and subsidy from state fundings in order to implement social housing, apartment building renovation and reconstruction policies.

- The Government shall develop policies incentivizing research and issuance of model design, type design of houses appropriate to area, zone, region; develop policies incentivizing development of energy-efficient housing.

- People’s Committees of provinces and central-affiliated cities (hereinafter referred to as “provincial People’s Committees”) shall be responsible for planning, allocating land area, investing in social housing construction in accordance with this Law and other relevant law provisions.

- The Government shall develop policies on housing management and use in order to ensure efficiency, safety, purposeful use and compliance with occupancy.

General requirements regarding housing management and use in Vietnam

- Suit housing demands of entities and socio-economic conditions of the nation, administrative divisions, regions, and zones from time to time.

- Conform to the national strategy for housing development, land use planning, land use plan, construction planning, urban planning, housing development programs and plans from time to time, ensure equal development of technical infrastructure and social infrastructure; develop houses on the basis of efficient use of resources; improve housing construction management.

- Comply with housing laws; satisfy standards, technical regulations, construction quality of houses as per the law, conform to fire safety, architectural, scenery, hygiene, environmental, and safety requirements during construction as per the law; capable of responding to natural disasters and climate change; use energy and land resources efficiently.

- In respect of urban areas, housing development shall be implemented primarily in form of projects and consist of housing type, area appropriate to market demand. In respect of remaining areas, depending on specific local areas, provincial People’s Committees shall stipulate locations and areas for housing development in form of projects. In respect of class 1 urban areas or wards, districts, cities in special urban areas, development shall focus on apartment buildings.

- In respect of wards, districts, cities in special, class I, class II, and class III urban areas, developers of housing investment and construction projects shall develop houses for sale, lease purchase, and lease. In respect of other areas, provincial People’s Committees shall, depending on local conditions, determine areas where developers of housing investment and construction projects develop houses for sale, lease purchase, or lease or transfer land use right in form of land subdivision to allow buyers to build their own houses; if developers of housing investment and construction projects are allowed to transfer land use right to enable individuals to build houses, they shall conform to real estate trading and land laws; if land use right is auctioned for housing investment and construction projects in accordance with Land Law, developers of housing investment and construction projects shall develop houses for sale, lease purchase, and/or lease.

- Depending on housing demands and local conditions, competent authority approving planning shall allocate land fund for social housing development for people with low income, poor households, near-poor households in urban areas, employees in economic zones, industrial parks, export-processing zones, hi-tech zones in accordance with the Law on Housing 2023.

- In respect of rural areas, mountainous regions, border areas, and islands, housing development shall conform to new rural development programs, customs, traditions of ethnicities, natural conditions of the regions and areas; gradually eliminate shifting cultivation, develop rural areas in a sustainable development; encourage housing development in form of projects and multi-storey housing development.

- Management and use of houses shall serve the right purposes, occupancy, satisfy fire safety, hygiene, environmental, social security, order requirements and conform to regulations on housing dossier management, maintenance, preservation, renovation, and demolition of houses and other housing management and use regulations.

- Satisfy other requirements according to the Law on Housing 2023 in respect of housing development.

Mai Thanh Loi

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