Incentive regulations for apartment building business, service and mercantile areas in Projects for renovation and reconstruction of apartment buildings in Vietnam

Incentive regulations for apartment building business, service and mercantile areas in Projects for renovation and reconstruction of apartment buildings in Vietnam (Image from Internet)

1. Incentive regulations for apartment building business, service and mercantile areas in Projects for renovation and reconstruction of apartment buildings in Vietnam

The Incentive regulations for apartment building business, service and mercantile areas in Projects for renovation and reconstruction of apartment buildings in Vietnam according to Article 41 of Decree 98/2024/ND-CP is as follows:

- The investor of the project for renovation, reconstruction of condominiums is allowed to sell the apartments stipulated in Clause 2, Article 41 of Decree 98/2024/ND-CP at commercial business prices without paying land levy to the state when selling these apartments and without converting the function to commercial housing according to the housing law.

- The apartments after reconstruction sold at commercial business prices include:

+ Apartments constructed additionally for business according to approved planning apart from apartments allocated for resettlement to the owners, residents of the condominium as per the compensation, resettlement plan;

+ Apartments allocated for resettlement but the owners choose cash compensation according to the approved compensation, resettlement plan, including apartments to be compensated to the state but the state chooses cash compensation instead of resettlement apartments as per Point c, Clause 1, Article 33 of Decree 98/2024/ND-CP;

+ Apartments allocated for resettlement according to the approved compensation, resettlement plan but the owners do not purchase the different area as stipulated in Clause 2, Article 28 of Decree 98/2024/ND-CP or in cases where the owners have been allocated resettlement to a different location as stipulated in Clause 3, Article 28 of Decree 98/2024/ND-CP;

- The investor of the project for renovation, reconstruction of condominiums is allowed to conduct business on the service, commercial business area and other construction works (if any) within the project scope with exemption from land compensation, land levy, land rent according to Clause 1, Article 40 of Decree 98/2024/ND-CP.

In case the investor transfers or capital contributes the area stipulated in this Clause attached to land use rights, they shall fulfill the financial obligations regarding land as per the land law.

- For the business area stipulated in Clauses 2 and 3, Article 41 of Decree 98/2024/ND-CP but outside the project scope enjoying land compensation exemption, land levy exemption, land rent exemption as stipulated in Clause 1, Article 40 of Decree 98/2024/ND-CP, the project investor must fulfill financial obligations regarding land as per the land law.

2. Principles for administrative procedures related to Projects for renovation and reconstruction of apartment buildings in Vietnam

The principles for resolving administrative procedures related to Projects for renovation and reconstruction of apartment buildings in Vietnam according to Article 4 of Decree 98/2024/ND-CP are as follows:

- Investors are responsible before the law for the legality, accuracy, and truthfulness of the contents of the dossier submitted to the competent state agency.

- The agency receiving the dossier is responsible for checking the validity of the dossier and cannot request investors to submit additional documents other than those stipulated in the dossier by Housing Law 2023 and Decree 98/2024/ND-CP; the submission of dossiers by organizations, individuals to perform administrative procedures as per Decree 98/2024/ND-CP is done either directly, through postal services, or online.

- In cases where there is a need to amend or supplement the dossier when resolving administrative procedures, the agency receiving the dossier must notify the investor once in writing about the contents requiring amendments or supplements for each dossier and the time limit for amendments or supplements. If the amendment or supplement is not made within the time limit, the agency receiving the dossier will consider stopping processing the dossier and notify the investor in writing of the specific reasons.

In cases where an explanation for the contents in the dossier is required, the agency receiving the dossier must notify the investor in writing and specify the time limit for explanation. If the explanation is not provided within the specified time, the agency receiving the dossier will consider stopping processing the dossier and notify the investor in writing of the specific reasons.

- The time for making amendments, supplements, or explanations as stipulated in Clauses 2 and 3 of Article 4 Decree 98/2024/ND-CP does not count towards the time for resolving administrative procedures according to Housing Law 2023 and Decree 98/2024/ND-CP.

- Seeking opinions from other state agencies during the process of resolving dossiers for administrative procedures must be conducted as follows:

+ The agency seeking opinions must identify the content to be consulted in accordance with the functions and duties of the agency being consulted and specify the reply time limit according to the Housing Law 2023 and Decree 98/2024/ND-CP;

+ Within the time limit specified in Point a, Clause 5, Article 4 of Decree 98/2024/ND-CP, the agency being consulted is responsible for responding and is accountable for the content of their consultation within their functions and duties; if no response is given within the specified time, it is considered that the agency agrees with the content within its scope of management.

- The agency receiving and resolving administrative procedures for Projects for renovation and reconstruction of apartment buildings is not responsible for content in the official documents, records, in the dossiers that have been approved, appraised, or resolved by other competent agencies or individuals.

- Based on the processing conditions for each administrative procedure, related organizations, individuals can either simultaneously carry out multiple administrative procedures or perform administrative procedures sequentially according to regulations.

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