Authority to approve the transfer of entire or partial real estate project in Vietnam

Authority to approve the transfer of entire or partial real estate project in Vietnam (Image from Internet)

1. Authority to approve the transfer of entire or partial real estate project in Vietnam

The authority to approve the transfer of entire or partial real estate project in Vietnam under Article 41 of the Real Estate Business Law 2023 is as follows:

- For real estate projects approved for investors or granted Investment Registration Certificates under the provisions of the Investment Law 2020, the authority and procedures for transferring the entire or part of a real estate project shall be carried out according to the provisions of the Investment Law 2020.

- For real estate projects not covered by Clause 1, Article 41 of the Real Estate Business Law 2023, the authority to approve the transfer of entire or partial real estate project is as follows:

+ The Prime Minister of the Government of Vietnam decides to allow the transfer of entire or partial real estate project for projects where the Prime Minister decides on the investment policy, approves the investment policy, or approves the investment. In cases where the Prime Minister delegates the authority to the provincial People's Committee to decide on the transfer of part of the real estate project, the provincial People's Committee shall decide on the transfer of part of the project and follow the provisions in Clause 2, Article 42 of the Real Estate Business Law 2023;

+ The provincial People's Committee decides to allow the transfer of entire or partial real estate project approved by the provincial People's Committee.

2. Conditions for transfer of entire or partial real estate project in Vietnam

The conditions for transferring the entire or part of a real estate project under Article 40 of the Real Estate Business Law 2023 are as follows:

* The real estate project to be transferred must meet the following conditions:

- The project has been decided on the investment policy, approved for investment policy, or approved for investment by competent state agencies; the investor has been selected or recognized for projects requiring investor recognition procedures;

- The project has a detailed plan approved according to the provisions of the law on construction and urban planning;

- The project or the part of the project to be transferred has completed compensation, support, and resettlement. For projects transferring the entire infrastructure construction project, the technical infrastructure works must be completed according to the approved progress, design, detailed planning under construction law, urban planning, and the approved project content;

- The land use rights of the project or the part of the project to be transferred are not under any dispute being notified, accepted, or resolved by competent authorities; not being distrained to ensure enforcement of judgments; not falling under prohibited transactions; not under the suspension or temporary suspension of transactions as prescribed by law;

- The project is not suspended or terminated, and there is no decision on land recovery from competent state agencies; in cases where the project or part of the project to be transferred has been administratively sanctioned, the investor must complete the enforcement of the administrative sanction decision of competent state agencies as prescribed by law on handling administrative violations;

- In case the project is mortgaged to ensure the performance of obligations as prescribed by law, the mortgage must be discharged;

- The project is still within its execution period;

- For real estate projects transferring part of the project, the construction works or the purpose of use, business of the construction works of the part of the project to be transferred must be independent of other parts of the real estate project.

* The investor receiving the transfer of the entire or part of the real estate project must meet the conditions specified in Clauses 1 and 2, Article 9 of the Real Estate Business Law 2023 and commit to continuing to deploy construction investment, business according to the approved project content; in case of changes to the project content, follow the provisions in Clause 3, Article 39 of the Real Estate Business Law 2023.

* The transferring investor has been granted land allocation, land lease, or land use purpose change decision from competent state agencies; has completed financial obligations on land of the project including land levy, land rent, and taxes, fees, and related charges (if any) to the State for the transferred project or part of the project without requiring a certificate of land use rights according to land law for the entire or part of the transferred project.

* State-owned enterprises transferring part or the entire real estate project must comply with the provisions of law on the management and use of state capital invested in production and business in enterprises, in addition to complying with Clauses 1, 2, and 3, Article 40 of the Real Estate Business Law 2023.

* Besides the conditions specified in Clauses 1, 2, 3, and 4, Article 40 of the Real Estate Business Law 2023, the transfer of entire or partial real estate project must also meet other conditions as prescribed by the law on investment and other related laws.

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