How to Obtain Construction Practicing Licenses in Vietnam?

The Construction Practicing License (practicing license) shall be issued to any Vietnamese citizens, overseas Vietnamese or foreigners who legally carry out construction activities in Vietnam in order to hold certain positions or operate their own construction business as prescribed in the amended Law on Construction 2020.

 

Holders of titles and individuals practicing construction activities who are required to possess practicing licenses as prescribed in Law on Construction include construction investment project managers, construction planning design managers, construction survey managers, construction design or design verification managers, construction supervision consultants, and managers in charge of formulating, verifying and managing construction investment costs. Any foreigner who obtained a practicing certificate issued by a foreign authority or organization and has practiced construction in Vietnam for less than 06 months shall be permitted to practise construction activities. If he or she has practised construction in Vietnam for at least 06 months, he or she is required to change the construction practicing license.

A foreigner shall be issued with the practicing license if he or she: has full legal capacity as prescribed by law and obtains a residence permit or work permit in Vietnam; has qualifications and experience relevant to requirements of the practicing certificate; passes the test in the field that is covered by the practice license applied for.

Practicing licenses shall be classified into Rank-I, Rank-II and Rank-III. In particular, a Rank-I practicing license is granted to the individual who gains a bachelor’s degree in appropriate major and at least 07 years’ experience relevant to requirements of that practicing license; a Rank-II practicing license is granted to the individual who gains a bachelor’s degree in appropriate major and at least 04 years’ experience relevant to requirements of that practicing license; a Rank-III practicing license is granted to the individual who has appropriate qualifications and at least 02 years’ experience relevant to requirements of that practicing license with respect to the holder of the undergraduate degree and at least 03 years’ experience with respect to the holder of the associate degree or intermediate diploma.

The competence authority in Vietnam to grant practice licenses: the construction-specialized agencies directly under the Ministry of Construction shall grant Rank-I practicing licenses; The Department of Construction issues Rank-II, Rank-III practicing license and recognized socio-professional organizations grant Rank-II, Rank-III practicing license to individuals who are their members and members.

An application for issuance of the construction practicing license for the first time includes: An application form enclosed with the applicant’s 02 color 4 x 6 cm and white background pictures which are taken within the last 06 months; Qualification(s) granted by a legal training institution in accordance with the type or rank of the certificate applied for; Decisions on task assignment (responsibility assignment) issued by an organization to an individual or written confirmation of completed typical tasks provided by the legal representative of the investor, in case the individual runs his/her own construction business, a contract and record on commissioning of listed typical tasks are required; Legal residence-related documents or work permit issued by a Vietnam competent authority, applicable to foreigners. The above documents must be notarized, legalized, authenticated then translated with certified true copies into Vietnamese or included in a file that contains color photos of originals or copies presented together with the originals for comparison. Besides, satisfactory test result in case the test is done before the date of submission of the application for the practicing license.

For application of the practicing license, the applicant shall submit an application form for issuance of the practicing license, electronically or by post or in person, to the issuing authority. From the date on which the satisfactory application is received, the issuing authority shall issue the construction practicing license within 20 days in the case of issuance of the license for the first time. In the case the application is unsatisfactory, the issuing authority shall notify the applicant in writing once within 05 days from the date on which the application is received.

The practicing license of a foreign individual, its effective period shall be determined according to the period specified in the work permit or temporary resident card issued by a competent authority but not exceed 05 years.

The above are provisions on the process of granting construction practicing licenses for foreign individuals working in Vietnam under the amended Law on Construction 2020. The amended Law on Construction 2020 takes effect from January 1, 2021.

ANT Lawyers, a law firm in Vietnam with offices in Hanoi, Da Nang, Ho Chi Minh city could assist clients with application process.

 

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What Are the Conditions for Initiating an Anti-dumping Case?

Anti-dumping measures as trade remedies are imposed to protect the domestic market against the unfair penetration and competition from foreign goods. GATT requires member countries to reduce tariffs as well as other non-tariff trade barriers on goods in general and to impose trade remedies in accordance with statutory conditions and procedures in particular.

 

What Are the Conditions for Initiating an Anti-dumping Case

The investigating authority must verify the satisfied conditions under regulations of the anti-dumping law and requests the Minister of Industry and Trade to issue a decision on the initiation of investigations. In order to comply with GATT and ADA, an anti-dumping investigation are initiated if (i) there is obvious evidence that import of dumped goods causes or threatens material injury to an established industry or materially retards the establishment of a domestic industry and (ii) organizations or individuals representing the domestic industry submit an application for the anti-dumping measures.

How to determine dumping actions and its consequences?

The dumping action is one of the conditions required as imposing anti-dumping measures.  A product is to be considered as being dumped (i.e. introduced into the commerce of another country at less than its normal value) if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country. Besides, the anti-dumping measure shall not be imposed on a product whose dumping margin is not more than 2% of its export price.

The investigating authority must determine whether the domestic established industry is materially injured or threatened material injury or establishment of a domestic industry is materially retarded or not. The investigating authority of the importing country shall be liable for proving these factors based on specific evidences.

A causal link between the dumped imports and the alleged injury is required. The dumping of goods imported into Vietnam causes or threatens material injury to an established industry or materially retards the establishment of a domestic industry. Factors other than dumping of goods imported into Vietnam such as trade restriction policy, development of technology, export capacity and productivity of domestic manufacturing industry, etc., will not be considered as effect caused by the dumping of goods.

Whom could request for imposing anti-dumping measures?

Investigation is conducted upon request of imposing anti-dumping measures by organizations or individuals representing the domestic industry. Organizations or individuals are deemed as representation of domestic industry if: The total production of like products produced by the applicant(s) and domestic producers supporting the application is greater than those produced by domestic producers that opposite to the application; and the total production of like products produced by the applicant(s) and domestic producers supporting the application accounts for at least 25% of total production of like products produced by the domestic industry.

Upon receiving a sufficient dossier as prescribed by the laws, the investigating authority shall conduct the dossier appraisal within a certain time limit and recommend the Minister of Industry and Trade to decide whether the investigation is initiated or not.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our international trade attorney at Hanoi Office and Ho Chi Minh City of ANT Lawyers could be of help.

In order to seek further advice, please contact us at ant@antlawyers.vn or call + 84 912 817 823.  ANT Lawyers, your law firm in Vietnam.

 

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How Copyright Related Rights Are Regulated?

 

How Copyright Related Rights Are Regulated?

Copyright related rights (hereinafter referred to as related rights) means rights of an organization or individual to performances, audio and visual fixation, and broadcasts and satellite signals carrying coded programmers. Related rights shall arise at the moment of the above subject matters are fixed or displayed without causing loss or damage to copyright. Principally, related rights are protected by state agency even without the registration. However, the related right owner still may perform the registration procedures for being granted of copyright related right certificate by state agency. The copyright related rights registration could also be assisted by IP attorney in Vietnam.

Copyright in Vietnam

Which individuals/organizations are eligible for protection of related rights?

The three following subjects are entitled for being protected copyright related rights (i) actors and actresses, singers, instrumentalists, dancers and other persons who perform literary and artistic works (hereinafter all referred to as performers); (ii) organizations and individuals who own performances; (iii) organizations and individuals who fix for the first time the sounds and images of performances or other sounds and images (hereinafter all referred to as producers of audio and visual fixation); (iv) organizations which initiate and carry out broadcasting (hereinafter referred to as broadcasting organizations).

The specific subject matters of copyright related rights which are protected under the law of Vietnam are:

Firstly, performance shall be protected if they fall into one of the following categories (i) it is made by Vietnamese citizens in Vietnam or abroad; (ii) it is made by foreigners in Vietnam; (iii) it is formed on audio and visual fixation; (iv) it has not yet been formed on audio and visual fixation but have already been broadcast (v) it is protected pursuant to an international treaty of which the Socialist Republic of Vietnam is a member.

Secondly, audio and visual fixation shall be protected if it falls into one of the following categories (i) it belongs to audio and visual fixation producers bearing Vietnamese nationality; (ii) it belongs to audio and visual fixation producers protected pursuant to an international treaty of which the Socialist Republic of Vietnam is a member.

Thirdly, broadcasts and satellite signals carrying coded programmers shall be protected if they fall into one of the following categories (i) they belong to broadcasting organizations bearing Vietnamese nationality (ii) they belong to broadcasting organizations protected pursuant to an international treaty of which the Socialist Republic of Vietnam is a member.

It is necessary to take note that the above subject matters are only be protected in the condition that they are not prejudicial to copyright.

If Client needs any more information or request for legal advice regarding copyright related right or other matters of intellectual property, IP attorney in Vietnam at ANT Lawyers could assist.

 

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How to Use Published Works Without Permission or Pay Royalties, Remuneration?

According to regulation of current Law on intellectual property, copyright means rights of an organization or individual to works created or owned by such organization or individual. Copyright to a work includes moral rights and property rights. If other organization or individual wishes to exploit, use a part or the whole of works, they shall ask permission, pay the owner of copyright for royalties, remuneration according to both parties’ agreement or regulation of law. However, there are still cases of using works without having permission and/orwithout paying the author or owner of copyright for royalties, remuneration.

Cases of using published works without having permission, without paying for royalties, remuneration include:

 

Copyright in Vietnam

-Making one copy for scientific research or personal teaching purposes.

-Reasonable quoting from a work in order to comment on or illustrate one’s own works, without misrepresenting the author’s views;

-Quoting from a work in order to write an article published in a newspaper or to use in periodical publications, in a radio or television broadcast or in a documentary, without misrepresenting the author’s views;

-Quoting from a work in order to teach in school or university without misrepresenting the author’s views and not for commercial purposes;

-Copying of a work in order to archive in library and research purposes;

-Performing a stage work or other art work in cultural meetings, communication or mobilization activities without collecting fees in any form;

-Directly audio-visual recording of a performance in order to report current news or to teach;

-Photographing or televising shaping work, architectural, photographic, or applied art work displayed at a public place in order to present images of such work;

-Translating a work into braille or other languages for the blind;

-Importing copies of another’s work for personal use.

However, it should be noted that organization or individual using, exploiting works in above cases must meet the conditions: not causing damage to the normal exploit of works, not causing damage to copyright and owner of copyright; must provide information of  the author and the source and origin of the work. In addition, due to specific characteristics of of various types of works such as architectural works, shaping works and computer programs, cases of (i) making one copy for scientific research or personal teaching purposes and (ii) copying of a work in order to archive in library and research purposes, shall have permission and pay author or owner of copyright for royalties, remuneration according to both parties’ agreement or regulation of law.

Cases of using published works without having permission but paying for royalties, remuneration include:

-A broadcasting organization which uses a published work to make a broadcast which is sponsored, contains an advertisement or which collects fees in any form shall not be required to ask permission but must pay the owner of copyright for royalties or remuneration from using time. Level of royalties, remuneration or other material benefits and payment methods are agreed by parties; If the agreement can not be reached, it shall follow regulation of Government or shall file a petition to Court according to regulation of law;

-A broadcasting organization which uses a published work to make a broadcast which is not sponsored, no advertisement or which do not collect fees in any form shall not be required to ask permission but must pay the owner of copyright for royalties or remuneration from using time according to regulation Government;

Similarly, the use of a work in these two cases must neither affect the normal use of such works nor cause prejudice to the rights of the author or copyright holder, and must provide information being the author’s name and the source and origin of the work. Besides, in case of using published work without having to seek permission but royalties or remuneration must be paid shall not be applied to cinematographic works.

If the client needs any other information, requires for further legal advice, or dispute with others on IP matters, our Vietnam IP attorney, copyright lawyers in Vietnam at ANT Lawyers, we will be available for service.

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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How Non-voting Depositary Receipt Work?

 

Decree No. 60/2015/ND-CP (Decree 60) amending and supplementing a number of articles of Decree No. 58/2012/ND-CP issued by the Government on May 26th, 2015 has lifted foreign ownership limit of the public enterprises (with conditions) and permitted enterprises operating in all sectors and areas without restriction on foreign ownership to self-set out limits of foreign ownership.

Finance Dispute Law Firm in Vietnam

Although the Government has been facilitating foreign investor investing in the Vietnam stock market as well as Vietnam enterprises whom raise capital, the foreign investors still faced a number of challenges. The Decree 60 has taken effect since September 1st, 2015, but most public companies did not lift their foreign ownership limit over 51%. One of the reasons is that, the enterprises with 51% foreign ownership shall meet the statutory conditions and therefore have to follow the investment procedures applicable to foreign investors in accordance with the Law on Investment, Law on Securities and other guiding legislations. Having said that, Vietnam enterprises with over 51% foreign ownership shall be treated as foreign investor. These requirements shall significantly impact on business plans and procedures that an enterprise must comply and restrict them from doing business in some sectors. Accordingly, the daily purchase and sale of shares by foreign investors around the threshold of 51% of the charter capital makes it difficult to determine the legal status of an enterprise.

In order to facilitate the attraction of foreign capital inflows, the Government has been reviewing acceptance of non-voting depositary receipt (NVDR). The promulgation of the Enterprise Law 2020 effective from January 1st, 2021, initially recognized NVDR. Ordinary shares used as underlying assets to issue NVDR are called as underlying ordinary shares. Non-voting depository receipts have interest and obligations proportional to the underlying ordinary shares, excepting for voting rights. NVDR is a negotiable financial instrument issued by a third party which is a subsidiary of the Stock Exchange (Issuing Organization). The Issuing Organization will then hand over to investors all financial benefits attached stocks such as dividends, rights offering. This is a solution from other country that helps foreign investors to invest in public enterprises, even they such enterprises reached limit boundary of foreign ownership. NVDR can be converted into ordinary shares in case the public company has not yet reached foreign ownership limit.

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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What Are Fundamental Contract Breaches in Law on Commerce 2005 and CISG 1980?

Fundamental breach is atype of contract breach, in which the Law on Commerce 2005 defines that a breach of contract committed by one of the parties is fundamental if it causes damage to the other party to the extent that the other party fails to achieve purpose of contract conclusion. The significant factor that makes the difference between the fundamental and minor breach of contract is the materiality.

 

Fundamental breach is an important foundation for the imposition of trade remedies such as temporary suspension of performance, suspension of performance or contract cancellation when the contract has no specific agreement. Nonetheless, Law on Commerce 2005 does not provide further guidance on fundamental breach. Court or arbitrator has a right to determine whether a breach is fundamental on a case-by-case basis. 

As set forth in CISG 1980, a breach of contract committed by one of the parties is fundamental if it results in such detriment to the other party as substantially to deprive him of what he is entitled to expect under the contract, unless the party in breach did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result. CISG also does not provide specific provisions to explain fundamental breach in details. Nonetheless, it can be deemed that in order to constitute a fundamental breach, three following factors need to be met: (i) a breach is made, (ii) detriment resulted from such breach substantially deprives him of what he is entitled to expect under the contract, and (iii) the breach can be foreseen.

The difference between constitution of a fundamental breach under CIGS 19080 and Law on Commerce 2005 is that: a breach cannot be treated as under CISG 1980 in case the breaching party did not foresee and a reasonable person of the same kind in the same circumstances would not have foreseen such a result. Law on Commerce 2005 does not stipulate factor (iii) as mentioned herein but requires that (1) a breach is made and (2) damage resulted from such breach causes other party failed to achieve its purpose of contract conclusion to constitute a fundamental breach. The aggrieved party accordingly has a right to impose remedies such as temporary suspension of performance, suspension of performance or contract cancellation.

The consequence factor of fundamental breach in Law on Commerce 2005 is similar to CIGS 1980. In case the purchaser is aggrieved party, what he/she is entitled to expect under the contract is right to receive the goods, to own the goods and to sell to other parties to earn profits or manufacture products or other ways he/she can make a profit. In case the seller is aggrieved party, what he/she is entitled to expect under the contract is right to receive payments, which is profits he/she may earn. The purpose of contract conclusion as provided in Law on Commerce 2005 is same as what the purchaser and seller are entitled to expect under the contract as stipulated in CISG 1980.

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or service request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

 

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What Are Procedures for Postponement at the First Instance Court?

In case that civil lawsuit cannot be mediated or cannot conduct the mediation, the Judge shall hold the meetings for checking the handover, access, disclosure of evidences and mediation. In cases there are many parties in a case and some of them are absent but present parties agree to conduct the meetings and the conduct of the meeting does not affect rights and obligations of absent parties, the Judges shall conduct meeting between present parties. If parties request to postpone the mediation meeting until all parties attend, the Judge shall postpone the meeting. The Judges must notify postponement and re-open of meeting to the parties. The litigation lawyers could be the best advisors to the client to utilize the procedures for the best interests of their client depending on the situation.

 Procedures for Postponement at the First Instance Court

In the first-instance court hearings, when being summoned duly the the Court for the first time, the parties or their representatives and defense counsels shall be present at the Court hearings. If any of them is absent, the Trial Panel shall postpone the Court hearings, unless such person requests for trial in his/her absence. The Courts must notify the postponement of the Court hearings to the parties, their representatives and defense counsels. When being summoned duly for the second time, parties or their representatives and defense counsels shall be present at the Court hearings unless they request for trials in their absence. If the absence is caused by a force majeure event or an objective obstacle, the Court may postpone the Court hearings, otherwise the Court shall handle as follows: (i) The absence of plaintiff without his/her representative shall be considered giving up the lawsuit initiation, thus the Court shall issue a decision to terminate the case resolution for his/her request for lawsuit initiation, unless such plaintiff requests for trials in their absence. The plaintiff may re-initiate lawsuits according to law provisions; (ii) If neither the defendant without counter-claims or a person with relevant interests and duties (relevant person) without independent claims nor his/her representative participates in the Court hearings, the Court shall conduct trial in their absence; (iii) If neither the defendant with counter-claims nor his/her representative participates in the Court hearings, such defendant shall be considered giving up the counter claims, thus the Court shall issue a decision to terminate the resolution for his/her counter claims, unless such defendant requests for trial in his/her absence. The defendant may re-initiate lawsuits for his/her counter-claims according to law provisions; (iv) If neither relevant person with independent claims nor his/her representative participates in the Court hearings, such person shall be considered giving up the independent claims, thus the Court shall issue a decision to terminate the resolution for his/her independent claims, unless such person requests for trial in his/her absence. Such person may re-initiate lawsuits for his/her independent claims according to law provisions; (v) If the defense counsels of the parties is absent, the Court shall conduct trial in their absence.

 

When the witnesses are absent, the Trial Panels shall decide to conduct trial or to postpone the court. The Trial Panels shall still conduct trial if the witnesses are absent but have earlier given their testimonies in person or sent their testimonies to courts. The presiding Judges shall make such testimonies public. The Trial Panels shall decide to postpone the Court hearings if the absence of the witnesses at Court creates difficulties or affects the objective and comprehensive resolution of the cases.

 

If the expert-witnesses are absent, the Trial Panels shall decide to conduct trial or to postpone the court. If the interpreters are absent without substitutes, the Trial Panels shall decide to postpone the Court hearings. If expert-witnesses or interpreters must be replaced, the Judges, the Trial panels or the Civil matter-resolving council shall issue decisions to postpone the Court hearings.

 

When any procedure participants are absent from Court hearings and it does not fall into the cases which the Courts must postpone the Court hearings, the presiding Judges must ask if there is any one requesting to postpone the Court hearings. If there is, the Trial Panels shall consider and decide to accept or not accept such request. In case of non-acceptance, the reasons must be clearly stated.

 

In addtion to absence and change of procedure participants, the change of procedure-conducting person may make the Court hearings be postponed. Firstly, in case of change of the Judge, People’s Jurors, Ombudspersons, Court clerks, procurators, the Trial Panels shall issue decisions to postpone the Court hearings.

Decision on postponing the Court hearings in above circumstances is made by Trial Panels and the time limit for postponing shall not exceed 01 month or not exceed 15 days, applicable to Court carried out under simplified procedure, from the day on which the decision to postpone the Court session is issued.

 

Having said that, the client could rely on the litigation lawyers in Vietnam for the solution in each case to protect the best interests if postponement procedures of the first instance trial could be applied.

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What Are Tax Obligations of a Representative Office in Vietnam?

Vietnam-based representative office of a foreign trader means a dependent unit of the foreign trader, which is established under the provisions of Vietnamese law to conduct market survey and a number of commercial promotion activities permitted by Vietnamese law.

Representative office of foreign trader in Vietnam has the rights and obligations in accordance with the law of Vietnam. Foreign trader is responsible before the law of Vietnam for all operations of its representative office in Vietnam.

 

Accordingly, representative office in Vietnam is not allowed to conduct business activities, nor carry out other activities for profit-generating purposes. The representative office in Vietnam only performs the activities for the right purposes, scope and duration specified in the certificate to establish the representative office. Besides, the representative office in Vietnam has the right to rent the head office, rent and buy the facilities and materials necessary for the operation of the representative office; to recruit Vietnamese and foreign employees to work at the representative office in accordance with the provisions of Vietnamese law; to use an account in foreign currency, in Vietnam dong of foreign currency origin opened by a foreign trader at a bank licensed to operate in Vietnam and only use this account for the operation of the representative office; to have a seal bearing the name of the representative office according to the provisions of Vietnamese law. Representative office in Vietnam can sign contracts, perform transactions with partners when authorized by the enterprise.

Hence, due to the limited scope of activities, the tax liability of a foreign representative office in Vietnam is narrower than that of an enterprise.  As the representative office does not produce or trade in goods and services, it is not required to pay license fees as prescribed. Representative office of foreign trader in Vietnam is dependent unit of foreign trader, established to investigate the market and carry out some trade promotion activities permitted by Vietnamese law, does not carry out production and business activities, so it is not required to pay license fees.

The fact that the representative office has the right to recruit Vietnamese or foreign employees to work at the office is the basis for arising personal income tax obligation. At the same time, representative office of foreign organization is subject to personal income tax registration. For employees working at foreign representative office in Vietnam, the taxable incomes are based on salaries and wages. Declaring, withholding, paying taxes and settling personal income tax of employees working at foreign representative office is the responsibility of such representative office.

ANT Lawyers, a law firm in Vietnam with offices in Hanoi, Da Nang and Ho Chi Minh City could help client to set up representative office in Vietnam and advise on the compliance on regular basis.

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Vietnam to Investigate Anti-Dumping Case of Sorbitol Chemical Products from China, India and Indonesia

On August 18^th, 2020, Trade Remedies Authority of Vietnam (TRAV) acknowledged the Dossier on request of investigation to impose the anti-dumping measures to Sorbitolchemical products originated from China, India and Indonesia from the companies representing the domestic industry (Requester).  If there is anti-dumping actions, the anti-dumping investigation will be initiated and related parties would cooperate with TRAV to provide data as required.

 

On the basis of assessing the Dossier, on September 30^th, 2020, TRAV had confirmed the sufficiency of the dossiers according the the laws on trade remedy.

Within 45 days from the date of receiving sufficient and lawful dossier, TRAV will assess dossier to submit Minister of Ministry of Industry and Trade for consideration whether to process the investigation.

The assessment’s contents includes:

-Identify the legal representative status of the domestic industry of organizations and individuals who submit dossier in accordance with the Law on Foreign Trade Management;

-Define evidence on the dumping of imported goods that cause or threaten to cause significant losses to a domestic manufacturing industry or substantially prevent the formation of a domestic manufacturing industry.

In order to serve the assessment process, as well as to ensure the legitimate rights and interests of the enterprise, TRAV recommends that the domestic enterprises manufacturing trading in the same goods mentioned above provide the following information.

-Enterprise’s information;

-Capacity/design and production of Sorbitol chemical products in 2017, 2018, 2019 and 2020;

-Enterprise’s opinion on the case (to agree, oppose, have no opinion);

-Any document/evidence which companies consider to be related to the case

 

The due date to provide the above information is before 5p.m October 16^th, 2020.

Our competition, anti-dumping, and countervailing duty lawyers of international trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up trade remedy development to update clients on regular basis.

 

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How Foreigners Could Buy Real Estate in Vietnam?

Regulations on foreigners owning real estate in Vietnam are regulated in Civil Code 2015, Law on Land 2013, Law on Housing 2014, Decree no. 99/2015/ND- CP on guidlines the Law on Housing and related documents.

 

For land, foreign individuals are not eligible to use land assigned or leased by the State, recognized land use rights, received transfer of land use rights. However, a foreign-invested enterprise could be allocated or leased land by the State, recognized land use rights, or received a land use right transfer. Foreign-invested enterprises that are assigned land by the State with the collection of land use levies to execute investment projects on the construction of houses for sale or for sale in combination with lease.

For housing, foreign entities eligible for the homeownership in Vietnam include: foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organization); foreign individuals who are allowed to enter Vietnam.

The foreign entities are eligible for the homeownership in Vietnam if they invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; or buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

Foreign organizations and individuals must have documents proving being the eligible subjects and meeting conditions to own houses in Vietnam. A foreign individual must have an unexpired passport bearing the entry seal of the Vietnam’s immigration authority and not given diplomatic immunity and privileges according to Ordinance on diplomatic immunity and privileges of diplomatic missions, consular offices, and representative authorities of international organizations in Vietnam. Foreign organizations must be subjects of owning houses in Vietnam which have investment registration certificate or a permission issued by a Vietnam’s competent authority for operation in Vietnam which is still unexpired at the time of housing transaction (hereinafter referred to as investment registration certificate).

A foreign entity shall not be granted a Certificate of the house and may only sell or offer it to another entity eligible to own housing in Vietnam in the case being: a foreign organization or individual receives a house as an inheritance or a gift which is located in an area in which foreign entities must not own houses, or the quantity of which exceeds the permissible limits; a foreign organization that does not operate in Vietnam, or a foreign individual who is not permitted to enter Vietnam, receives a house in Vietnam as a gift or an inheritance.

For specific situations, to avoid future dispute in house ownership arisen from the purchase, lease of property, house, land from the state, developer or other seller, or lessor it is important that the client check with property lawyers for eligibility, conditions and other relevant matters.

ANT Lawyers - a Law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or serive request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529

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