VK or Foreigners buyers Presentation

8/7/2019 VK or Foreigners buyers Presentation

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27 November 2009

Presentation on the

Real Property Investment in Vietnam


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Topic

A. Residential housing ownership of

A. Overseas VietnameseB. Foreign individuals

C. Foreign organisations

B. Procedures and requirements

C. Rights and obligations


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Relevant Legislation

Law on Land No. 13/2003/QH11 passed by the National Assembly of Vietnam on 26November 2003;

Law on Residential Housing No. 56/2005/QH11 passed by the National Assemblyof Vietnam on 29 November 2005;

Law on Amendment to Article 126 of the Law on Residential Housing andArticle 121 of the Law on Land No. 34/2009/QH12 passed by the NationalAssembly of Vietnam on 18 June 2009;

Resolution No. 19/2008/QH12 on pilot scheme permitting foreign organisations andindividuals to purchase and own residential houses in Vietnam passed by theNational Assembly of Vietnam on 3 June 2008 (Resolution No. 19); and

Decree No. 51/2009/ND-CP of the Government dated 3 June 2009 providingregulations for implementation of Resolution No. 19.


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Residential housing ownership of Overseas Vietnamese

A. An Overseas Vietnamese (Vietkieu), who is permitted to reside in Vietnam for 3 monthsor more and meeting any of the below criterion:

has a Vietnamese nationality;

has a Vietnamese origin and returns for a direct investment in Vietnam;

has a Vietnamese origin and his/her work has contributed to the country;

is a scientist, cultural activist or a person with special skills required by a Vietnameseorganisation and is working in Vietnam; or

whose spouse is a Vietnamese citizen and lives in Vietnam,is entitled to own a residential housing without limitation.

B. A Vietkieu who does not meet the above criteria but has a visa exemption certificate andpermitted to reside in Vietnam for 3 months or more is entitled to own one separate

residence or one apartment in an apartment block.


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Residential housing ownership of Foreign IndividualsA foreign individual who does not have a Vietnamese nationality but meets any of the

following:

has a direct investment in Vietnam;

is hired by and holds a managerial position in an enterprise that is currently operating inVietnam;

whose contribution to Vietnam has been rewarded by the President or the Prime Minister ofVietnam;

with a university or higher equivalent qualification and works in the socio-economic sector orwith special technical knowledge and technical skills that Vietnam requires; or

whose spouse is a Vietnamese citizen,

and satisfy the following conditions:

must be currently living in Vietnam;

has a permanent or temporary residence card and/or a document permitting residence inVietnam for 12 months or more; and

not being persons entitled to diplomatic or consular immunity and privilege,

is permitted to own at any one time only one apartment in an apartment block inVietnam for a period of 50 years as from the date of issuance of the residential house

ownership certificate.


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Residential housing ownership of Foreign Organisations

A foreign organisation, which is an enterprise with foreign owned capital currently operating inVietnam, must meet the following conditions:

is established by a foreign investor in order to conduct foreign investment activities inVietnam;

is a Vietnamese enterprise in which a foreign investor purchases shareholdings, merges oracquires to directly manage the business pursuant to the law of Vietnam;

is not undertaking real property business; and

has a need for a residential housing for its staff or employees,is permitted to own one or a number of apartments in an apartment building(s) for aperiod in accordance with the duration stipulated in its investment certificate includingany extended duration.


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Resolution 19

Article 1.2 of Resolution 19/2008/QH12 of the National Assembly of Vietnam dated 3 June2008 states that:

Residential houses which foreign organisations and individuals are eligible to purchase andown pursuant to this Resolution mean apartments in apartment buildings of projects fordevelopment of commercial residential housing, and which are not in an area in whichforeigners are restricted or prohibited from residence and movement.

A foreign individual or organisation is entitled to purchase apartments from: a real property business enterprise that conducts investment and

construction pursuant to a project for commercial development of housingapproved by the competent body, in order to sell or lease the apartments atmarket price; and

an individual whose apartment is available and was previously purchasedfrom a project for commercial development of housing and was issued with ahousing ownership certificate in accordance with the law.


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Procedures and RequirementsA. Viet Kieu

1. An application for issuance of a residential housing ownership certificate;

2. An original copy of the contract for sale and purchase, donation to, or document on

inheritance of a residential house in accordance with Vietnamese law;3. A document evidencing that the applicant is entitled to own a residential house;

4. Plan of the residential house and residential land;

5. Request for issuance of housing ownership and residential land use right certificate inEnglish and Vietnamese languages on standard form;

6. Original copy of the contract for purchase and sale or donation of the apartment or

document on inheritance of the apartment as prescribed by the law of Vietnam.

7. Certified copy of foreign passport and one of the documents proving eligibility andsatisfaction of conditions by foreign individuals and organisations to purchase, inherit orreceive a donation of and own housing in Vietnam.

8. Procedures for purchase of the apartment via a trading floor must be conducted andthere must be an original document certifying that the purchase and sale of the

apartment was in fact conducted via a real property trading floor if purchasing theapartment from a real property business enterprise.

9. Receipts for payment of tax and registration fees in accordance with law.


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Procedures and Requirements

B. Foreign individual

A Foreign individual who meets any of the following criteria would be required tosubmit the corresponding documents:a. has a direct investment in Vietnam (Direct Investor);

b. is hired by and holds a managerial position in an enterprise that iscurrently operating in Vietnam (Manager);

c. whose contribution to Vietnam has been rewarded by the President or thePrime Minister of Vietnam (Awardee);

d. with a university or higher equivalent qualification and works in the socio-economic sector or with special

e. technical knowledge and technical skills that Vietnam requires (SkilledProfessional); or

f. whose spouse is a Vietnamese citizen (Spouse),


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a marriage certificateissued by thecompetent Vietnameseor foreign authority,together with theVietnamese passportor residents householdregistry and personal

identity card of thespouse beingVietnamese citizen.

a certificate ofengineeringqualifications or abachelor or higherdegree issued by thecompetent Vietnameseor foreign authority,together with one of

the followingdocuments whichshould be issued bythe competentVietnamese authority:

a work permit; or

a practising

certificate for his/herspecialty in Vietnam.

a decoration or medalpresented by thePresident of theSocialist Republic ofVietnam;

a certificate from theministerial level bodyresponsible for thesector in which theforeigner made suchspecial contribution,which certificate shallbe sent to the Ministryof Construction for itsconsideration and

submission to thePrime Minister of theGovernment to issue aletter of permission.

a contract stating suchindividual is holding amanagerial position; or

a decision appointingthe foreigner to suchposition in Vietnameselanguage.

an investmentcertificate specifyingthe name of the foreignindividual with aresidual term of validityof one year or more; or

a document provingmembership of theboard of managementor managerial board ofan enterprise currentlyoperating in Vietnam.

Permanent residency or temporary residence card or a document permitting residence in Vietnam from 12 months or moreissued by the immigration body under the Ministry of Public Security

Passport issued by the competent foreign authority

SpouseSkilledProfessional

AwardeeManagerDirect Investor


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C. Foreign Organisation

An investment certificate with a residual term of validity of one year or more issued bythe competent Vietnamese authority.


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Applicant submits

one valid set of the application file

Department of Construction (DOC)

in the placewhere the apartment exists

DOC shall provide a written response

to the applicant specifying thereason for the application failing

to satisfy the conditions

DOC will issue a housing ownership and

Residential land use right certificate within

30 days from receipt

ApproveReject


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Rights and Obligations

A. Viet Kieu

To transfer the residential land use right when selling, donating, bequeathing orconverting the house to a domestic organization or individual, or to a Vietnameseresiding overseas who is entitled to own a house in Vietnam to live in; or whendonating the house together with the land use right to the Vietnamese State, to acommunity of citizens or as a charity house;

To mortgage the house on residential land with credit institutions licensed to operate inVietnam;

To be paid compensation in accordance with the law of Vietnam if the VietnameseState recovers the land; and

To lease out and/or to authorise others to manage the house in the period that he/shedoes not use the house.


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B. Foreign Individuals or organisations

Rights:

To sell or donate their residential house after 12 months from the date ofissuance of the ownership certificate.

To mortgage their residential house to a credit institution authorised tooperate in Vietnam.

To bequeath their residential house in accordance with the law of Vietnam

on bequests. To delegate authority to other people to manage the residential house.

To maintain and improve the residential house and to use its space inconformity with master planning on construction and architecture and inaccordance with the law of Vietnam.

To be paid compensation for loss if the residential house must bedemolished and the site cleared pursuant to the law of Vietnam.


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B. Foreign Individuals or organisations

Obligations

To use the residential house only for residential purposes, and not to leaseit or use it as an office or for any other purpose.

To manage, use, maintain, improve or demolish the residential house inaccordance with the law of Vietnam but without adversely affecting orcausing loss or damage to the interests of the State, to the public interest,

or to the lawful rights and interest of others. To pay taxes, fees and charges as stipulated by the law of Vietnam on the

purchase or sale, donation, mortgage or bequest of the residential house,and on request for new issuance, issuance of an exchanged, or re-issuance of an ownership certificate or for certification of changes aftersuch issuance.

To comply with any decision of a competent State body of Vietnam ondealing with a breach or on resolving a complaint or denunciationregarding the residential house; on site clearance, on payment ofcompensation, on assistance, resettlement, or demolition of the residentialhouse; or on requisition, compulsory purchase or advanced purchase of

the residential house.


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An introduction to Frasers

Frasers incorporates Freehills practice inVietnam (20 years of experience)

First foreign law firm to be granted a foreign

law company licence in Vietnam

One of the largest law firms in Vietnam with

cross-practice expertise


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Why clients appoint Frasers

Frasers incorporates practice in Vietnam and

as an associated office of Freehills we are able toprovide our clients with top commercial Vietnameseand international legal advice, with the resources andexpertise of more than 1000 lawyers, across South-East

Asia and Australia. Our primary objective is to be recognised as the premier

commercial law firm in Vietnam. With that in mind, weprovide our clients with commercial expert advice at thehighest international standards of practice.


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Why clients appoint Frasers

We have an understanding of local business practices and

the legal, political and regulatory issues that are involvedwhich is fundamental to the success of any venture.

Full service law firm - we aim to provide a comprehensivelegal serviceto help clients navigate these complex issues

to achieve outstanding business outcomes: International legal advice

Vietnamese legal advice

Industry relationships and extensive contacts on adomestic and international level.


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Ho Chi Minh City Office10th floor, Saigon Centre65 Le Loi BoulevardDistrict 1

Ho Chi Minh City

Phone 848 3824 2733Fax 848 3824 2736

Frasers Law Company

e-mail: [email protected]

Hanoi Office12th Floor, Pacific Place83B Ly Thuong Kiet StreetHoan Kiem District

Hanoi

Phone 844 3934 6239Fax 844 3934 6238

Documents

VK or Foreigners buyers Presentation