Vietnam: When shall agencies be allowed to conduct sale of property on land and assignment of land use rights?

According to Article 6 of Decree No. 167/2017/NĐ-CP of Vietnam’s Government, the sale of property on land or assignment of land use rights of bodies shall be done in the following cases:

- Redundant property no longer needs to be used after disposition;

- Generate sources of funds investment in construction, upgrade or renovation of working offices, public-sector establishments of bodies within its scope of management of central or local ministries.

The sale of property on land or assignment of land use rights of enterprises shall be done in the following cases:

- Redundant property no longer needs to be used after disposition;

- Generate sources of funds investment in construction, upgrade or renovation of working offices and business establishments of enterprises.

Note: The sale of property on land or assignment of land use right shall be made in a property sale contract.

Payment period of property purchase is specified in the auction regulations (in case of auction) or property sale contract. The payment period of property purchase is specified as follows:

- Within 30 days from the date of signing the auctioned property sale contract (in case of auction) or the Department of Finance issues a notice on the selling price of property on land or assignment of land use right (in case of designated sale), the buyer shall be responsible for paying 50% of the price of the property to the body or enterprise managing such property;

- Within subsequent 60 days, the buyer shall be responsible for paying 50% of the remaining price amount to the property to the body or enterprise managing such property;

- Upon expiry of the payment period prescribed above, if the buyer has not made full payment to the body or enterprise managing such property, the buyer has to pay late payment interest as prescribed in laws and regulations on tax administration.

The body or enterprise managing the property sends a dossier of property sale to the Department of Taxation (of province where such property is located), the Department of Taxation shall then determine and give a notice of a certain amount of late payment interest in accordance with laws and regulations on tax administration. The late payment interest shall be managed and used in compliance with the laws and regulations on state budget.

The dossier sent to Department of Taxation includes:

- Notice of selling price of property on land or assignment of land use rights of the Department of Finance (in case of designated sale).

- Property sale contract.

- Receipt of payment paid to the body managing the property (copy).

The body or enterprise managing such property shall make payment to the account prescribed in Articles 18, 19 and 20 of Decree No. 167/2017/NĐ-CP of Vietnam’s Government.

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