Vietnam: Principles of selecting investors for apartment buildings in renovation/reconstruction projects

10:45, 01/11/2015

This is a notable content of the Decree No. 101/2015/NĐ-CP on renovation and re-construction of apartment buildings issued by the Government of Vietnam on October 10, 2015.

dự án đầu tư cải tạo, xây dựng lại nhà chung cư, Nghị định 101/2015/NĐ-CP

According to the Decree No. 101/2015/NĐ-CP of the Vietnam’s Government, the management board of the apartment building or the People’s Committee of the district (for an apartment building that has no management board) shall send invitations to the occupier of the apartment building in order to hold an apartment building meeting with the aim of selecting an investor. The investor shall be selected based on following principles:

- The selection of the investor shall be voted under the majority rule, and shall be made on record with the signatures of chairpersons and the secretary of the Meeting of the apartment buildings;

- With regard to an apartment building in which a part of demolished area belongs to the State, the representative of this area shall attend the apartment building meeting;

- Consultants may be invited to attend the apartment building meeting to give advice on selection of investors. Cost for hiring consultants shall be negotiable and paid by the occupiers;

- At least 70% of the total number of the apartment owners building shall attend the apartment building meeting;

- The occupiers shall recommend a potential investor based on applications for project bidding and plans for compensation, relocation and assistance proposed by the real estate enterprise. An application for project bidding shall be made in accordance with the guidance of the Ministry of Construction and shall be enclosed with a plan for renovation, assistance and relocation as regulated in Article 116 of the Law on Housing of Vietnam and clause 1, Article 14 of this Decree.

On the other hand, if there is only one real estate enterprise registering for project bidding and it receives 51% of the total vote from the apartment owners, the People’s Committee of the province shall consider appointing it as the investor.

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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