Procedures for selection of investor in official residence construction project in Vietnam

Procedures for selection of investor in official residence construction project in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Method of investment in construction of official residences in Vietnam

According to Article 21 of Decree 99/2015/ND-CP, the method of investment in construction of official residences is as follows:

The State shall make direct investment from state budget, including central government budget and local government budgets in construction of official residences or purchase of commercial housing as official residences.

The provision of capital from state budget for construction of official residences or purchase of commercial housing as official residences must comply with official residence development plans, projects for construction of official residences or purchase of commercial housing as official residences approved by competent authorities in accordance with regulations of law on state budget and public investment.

2. Procedures for selection of investor in official residence construction project in Vietnam

According to Article 22 of Decree 99/2015/ND-CP, procedures for selection of investor in official residence construction project are as follows:

- The Ministry of Construction shall propose investors in projects for construction of official residences to be rented by central agencies (except for those mentioned in Point d Clause 1 Article 32 of the Law on Housing) subject to approval by the Prime Minister to the Prime Minister.

Within 30 days from the receipt of the proposal of the Ministry of Construction, the Prime Minister shall issue a decision on investor selection or authorizes the Ministry of Construction to select the investor.

- The Ministry of National Defense and the Ministry of Public Security shall decide investors in projects for construction of official residences to be rented by the entities mentioned in Point d Clause 1 Article 32 of the Law on Housing subject to approval by the Ministry of National Defense or the Ministry of Public Security respectively.

Within 30 days from the receipt of the investor’s application, the Minister of National Defense or the Minister of Public Security shall issue a decision on investor selection.

- In case of an official residence construction project subject to approval by the People’s Committee of a province, the investor in which shall be selected as follows:

+ The Department of Construction shall submit the decision on investor selection to the People’s Committee of the province or authorize the People’s Committee of the district to select the investor if authorized by the People’s Committee of the province;

+ Within 30 days from receipt of the proposal of the Ministry of Construction, the People’s Committee of the province shall issue a decision on investor selection or authorize the People’s Committee of the district to select the investor. Within 30 days from the receipt of the letter of authorization from the People’s Committee of the province, the People’s Committee of the district must issue a decision on investor selection.

- The investor in the official residence construction project mentioned in Clause 1, Clause 2, or Clause 3 of Article 22 of Decree 99/2015/ND-CP may be an organization, state agency, or real estate enterprise.

- The Ministry of Construction shall provide specific instructions on document and procedures for selecting real estate enterprises as investors in official residence construction projects.

3. Procedures for purchase of commercial housing as official residences in Vietnam

According to Clause 3, Article 24 of Decree 99/2015/ND-CP, procedures for purchasing commercial housing as official residences are as follows:

- Depending on the approved project content, the agency appointed as investor in the purchase project shall conclude a house purchase contract with the investor in the housing construction project in accordance with regulations on trade in commercial housing;

- According to the concluded house purchase contract, the investor in the housing construction project shall transfer the houses/apartments and provide related legal documents to the buyer;

- After receiving the houses/apartments, the investor in the purchase project shall manage and lease them out in accordance with the Law on Housing and Decree 99/2015/ND-CP;

- The Investor in the commercial housing construction project shall follow procedures for obtaining the Certificates for the buyer. In the case mentioned in Point a Clause 2 of Article 24 of Decree 99/2015/ND-CP, the Ministry of Construction, the Ministry of Construction shall be the holder of the Certificates.

IN the case mentioned in Point b Clause 2 of Article 24 of Decree 99/2015/ND-CP, the Ministry of National Defense shall be the holder of the Certificates of the houses/apartments purchased by the Ministry of National Defense, the Ministry of Public Security shall be the holder of the Certificates of the houses/apartments purchased by the Ministry of Public Security.

In the case mentioned in Point c Clause 2 of Article 24 of Decree 99/2015/ND-CP, the People’s Committee of the province or the Department of Construction (if authorized by the People’s Committee of the province) shall be the holder of the Certificates.

Procedures for issuance of Certificates to the authorities mentioned in this Point shall comply with regulations of law on land.

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