Regulations on project developers and eligibility of project developers of housing investment and construction projects in Vietnam as of January 1, 2025

Regulations on project developers and eligibility of project developers of housing investment and construction projects in Vietnam as of January 1, 2025 (Internet image) 

Regarding this matter, LawNet would like to answer as follows:

On November 27, 2023, the National Assembly officially passed the Housing Law 2023.

Regulations on project developers and eligibility of project developers of housing investment and construction projects in Vietnam as of January 1, 2025

According to Article 35 of the Housing Law 2023, regulations on project developers and eligibility of project developers of housing investment and construction projects in Vietnam are as follows:

- Developers of housing investment and construction projects include:

+ Cooperative enterprises, joint cooperatives, foreign-invested business organizations established and operating under Vietnamese laws, engaging in real estate trading (hereinafter referred to as “real estate enterprises”), and satisfy requirements under Clause 2 of Article 35 of the Housing Law 2023;

+ Organizations investing and building houses using funding sources under Clause 5 Article 112, Clause 1 Article 113 of the Housing Law 2023 and satisfy requirements under Clause 3 of Article 35 of the Housing Law 2023.

- In respect of cases under Point a Clause 1 of Article 35 of the Housing Law 2023, developers of housing investment and construction projects shall:

+ have equity in accordance with real estate trading laws for implementation of each housing investment and construction law; and

+ obtain land use right for each type of housing investment and construction law in accordance with the Housing Law 2023 or be assigned with land or leased land in accordance with Land Law 2024; and

+ have sufficient capacity and experience in executing housing investment and construction projects as per the law.

- In respect of cases under Point b Clause 1 of Article 35 of the Housing Law 2023, developers of housing investment and construction projects shall be organizations assigned by individuals deciding on investment to manage, use capital in order to execute housing investment and construction projects.

- Depending on type of housing investment and construction project, selection of project developers shall conform to Clauses 1, 2, and 3 of Article 35 of the Housing Law 2023 and other relevant law provisions.

Regulations on developers of commercial housing property development projects in Vietnam

Article 36 of the Housing Law 2023 stipulates developers of commercial housing property development projects in Vietnam as follows:

- Developers of commercial housing property development projects shall be real estate enterprises satisfying requirements under Points a and c Clause 2 Article 35 of the Housing Law 2023 and falling under any of the cases mentioned in Clause 2 or Clause 3 of Article 36 of the Housing Law 2023.

- Real estate enterprises assigned with land or leasing land as a result of winning land use right auction or winning bid for selection of contractors for projects that involve land use; or otherwise accepted as investors when organizing auction, bidding in accordance with investment laws.

- Real estate enterprises having approved investment guidelines and accepted as developers of commercial housing property development projects when the investors obtain land use right via agreement on acceptance of land use right in regard to type of land on which commercial housing property investment and construction projects are allowed or are having land use right in regard to type of land on which commercial housing property investment and construction projects are allowed according to Land Law 2024.

More details can be found in the Housing Law 2023 takes effect on January 1, 2025.

The Housing Law 2014 expires from the effective date of the Housing Law 2023, except for the cases specified in Point b Clause 1, Points a, c, dd, e and g Clause 2, Clause 3, Points a, b, c, d, dd and e Clause 5 Article 198 of the Housing Law 2023.

State-owned housing is defined in legislative documents on housing issued before the effective date of the Housing Law 2023 as public property.

To Quoc Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE