VIETNAM Law and Practice Contributed by: Tran Thai Binh and Duong Thi Minh Han, LNT & Partners
LNT & Partners Floor 21 Bitexco Financial Building, No. 2 Hai Trieu, Ho Chi Minh Ciy Tel: +84 8 3821 2357 Email: Binh.tran@lntpartners.com Web: www.lntpartners.com
1. General 1.1 Main Sources of Law
1.3 Proposals for Reform The legal framework governing real estate activi - ties has been reformed and is set to take effect on 1 August 2024. While it is still too early to propose further reforms, certain modifications have been made regarding the scope of busi - ness activities for foreign-invested companies. In particular, the definition of “foreign-invest - ed enterprise” has been standardised across investment, land and real estate trading laws. Previously, any entity with foreign ownership was classified as a foreign-invested company under real estate trading and land laws. With this clear - er definition, entities that do not meet the criteria of “foreign-invested enterprise” can now engage in real estate trading as local entities. Addition - ally, foreign-invested companies are now permit - ted to acquire land-use rights in industrial parks. Nevertheless, it will take time to observe how the laws are applied and how they adapt to the market.
The main sources of real estate law include: • the Land Law 2024 (effective on 1 August 2024); • the Real Estate Trading Law 2023 (effective on 1 August 2024); • the Residential Housing Law 2023(effective on 1 August 2024); and • applicable decrees or decisions issued by the government or the Prime Minister, and circu - lars from the ministries that provide guidance for implementing or clarifying various provi - sions of the above laws. 1.2 Main Market Trends and Deals The real estate market is seeing some dynamic sales and purchases of existing real estate pro - jects. However, asset transfers remain the pri - mary method for raising capital. With the new Housing Law 2023, the market is also expected to see a shift in the development of new social housing projects. Investment in industrial parks appears to be enjoying a steady capital inflow.
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