Forms of housing development for the People's Armed Forces in Vietnam

Forms of housing development for the People's Armed Forces in Vietnam​ (Image from Internet)

1. Forms of housing development for the People's Armed Forces in Vietnam

According to Article 103 of the Law on Housing 2023, the forms of housing development for the People's Armed Forces in Vietnam are defined as follows:

- The State invests in the construction of housing for the People's Armed Forces using public investment funds for lease, lease purchase by subjects stipulated in Clause 7, Article 76 of the Law on Housing 2023.

- The State invests in the construction of housing for the People's Armed Forces using funds specified at Point b, Clause 1, Article 113 of the Law on Housing 2023 for purchase, lease purchase, or lease by subjects stipulated in Clause 7, Article 76 of the Law on Housing 2023.

- Real estate businesses invest capital in the construction of housing for the People's Armed Forces to be purchased, lease purchased, or leased by subjects stipulated in Clause 7, Article 76 of the Law on Housing 2023.

2. Principles for mobilizing and using funds for housing development in Vietnam

The principles for mobilizing and using funds for housing development in Vietnam are articulated in Article 116 of the Law on Housing 2023 as follows:

- The mobilization of funds must adhere to the following principles:

+ Mobilize in the correct form;

+ Have sufficient conditions to mobilize funds in accordance with the housing law;

+ Be suitable for each type of housing as prescribed by the Law on Housing 2023;

+ Comply with legal regulations on anti-money laundering;

+ Adhere to regulations on bidding and other relevant legal provisions; if mobilizing State funds as stipulated in Article 113 of the Law on Housing 2023, then must also comply with legislation on State budgets and public investment;

+ Participants in capital contribution, investment cooperation, business cooperation, joint ventures, and affiliations as stipulated in Point a, Clause 1, Article 114 of the Law on Housing 2023 may only distribute profits in cash or shares based on the capital contribution ratio as agreed in the contract; project investors for housing construction cannot apply the capital mobilization form as stated here or other forms to allocate housing products or to prioritize registration, deposit, benefit from the right to purchase housing or allocate land use rights within the project to the mobilized party, except in the case of capital contribution to establish a new legal entity given by the State as the project investor for housing construction under legal provisions.

- Mobilization of funds not in the correct form and not meeting all the conditions for each type of housing as stipulated by housing laws is legally invalid.

- The use of funds for housing development must comply with the following principles:

+ Ensure openness, transparency; protect the legal rights and interests of capital providers;

+ Must be used solely for housing development purposes and project execution for housing construction, not for other projects or purposes;

+ The allocation and use of funds for housing development must align with the province-level housing development programs and plans that have been approved.

3. State funds for housing development in Vietnam

State funds for housing development in Vietnam are stipulated in Article 113 of the Law on Housing 2023 as follows:

- State funds for housing development include:

+ Public investment funds as stipulated by the public investment law;

+ Funds from national bonds, bonds, official development assistance, concessional loans from sponsors, State development credit funding; funds mobilized from the Land Development Fund, and other financial funds outside the State budget as prescribed by law.

- Funds specified in Clause 1, Article 113 of the Law on Housing 2023 are utilized by the State to develop official-duty housing, social housing, housing for the People's Armed Forces, housing for resettlement, and reconstruct, renovate, rebuild apartment buildings, and other public housing assets as prescribed by the Law on Housing 2023.

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