New Vietnam Real Estate draft law giving more rights to foreigners in Vietnam

 ANT Lawyers’ real estate legal practice gives client legal advice on real estate legal matters in Vietnam.  We are keeping track with changes in the Vietnam legal environment to ensure giving our client the best advice.

Real estate market in Vietnam is experiencing a difficult time.  The government has realized that there is a huge demand from the foreigners and oversea Vietnamese investing in Vietnam in owning real estate in Vietnam however the legal regulations on such matter have not yet encouraged them to make the investment.

The Vietnam Ministry of Construction has enacted the fifth Draft of Law on Real Estate Business (amending), which regulates two new noteworthy provisions relating to the scope of real estate business of foreigners and Vietnamese overseas.

While the current regulations in Law on Real Estate 2006 only allow the foreign and oversea Vietnamese organizations, individuals to establish houses, construction works for sale, lease, lease-buy; to invest, reclaim land and set up facilities on the leased land for leasing.  The new Draft of Law on Real Estate expands the scope to i) rent houses, construction works in order to sub-lease; ii) foreign and oversea Vietnamese organizations or individuals operating in real estate area, foreign invested capital enterprises, branches, representatives of foreign enterprises, investment funds, branches of foreign banks currently operating in Vietnam are also permitted to rent, buy and own the office areas for their own work or for lease; to buy, rent, lease-buy houses according to Vietnam law on houses.

Our real estate lawyers in Vietnam have experience in the field of real estate and we have solutions for our client based on client’s unique situation.

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Real Estate Ownership Matters in Vietnam

 In general, it is not permitted to own land in Vietnam as a private entity because the land belongs to the people and the State of Vietnam thereby operates as the administrator.  So when it comes to real estate, what can be purchased?  what can the buyer own? As the question would be raised to real estate law firms in Vietnam, we need to go in specific definition when someone wish to invest in real estate in Vietnam need to understand.

You May Have the Right to Land Use Rights in Vietnam?

Ownership of a right to use land is permitted according to Vietnamese Law.  This so-called Land Use Right (“LUR”) Certificate provides the means to lease land from the State for Vietnamese and foreign people.  

This LUR Certificate entitles the land users to protect their legitimate rights and interests.  The sale of a house or real estate is in fact the transfer of the rights for house ownership combined with the transfer of the land use right from the seller.  

The right to use land can be directly acquired by different ways that are: lease from the state; sub-lease from a developer of a zone; transfer from another land user; allocation from the state.  The legal grounds for Land and House Law of Vietnam are stipulated in the Law on Housing as well as in the Law on Land.  The rights and entitlements of holders of house ownership and the holders of the LUR Certificate are settled in this law.

The name of the individual who holds the house ownership shall be written in the house ownership right certificate and his/her rights include for example the rights to posses; use; sell; lease; donate; exchange; lend or to let other people stay temporarily in the house.  The one who holds the LUR and house ownership certificate is entitled to exercise the full range of rights over the land/house. As such, land use rights and ownership of assets on the land are combined in the Certificate of Land Use Right and House Ownership Right (LURC).

Can Foreigners Buy Houses in Vietnam?

But the possibilities to acquire land or houses depend on the individual/organization that wishes to do so, because Vietnamese, overseas Vietnamese and Foreigners do not have the same rights.  

Especially for foreigners, it was often quite challenging to acquire land or houses in Vietnam. Before the year of 2009, foreigners could not legally acquire property but only could make a joint venture with a Vietnamese company.

But the Resolution No. 19/2008(ND-QH12, effective January 2009, started to entitle foreigners to own houses in Vietnam under the conditions that the foreigner 1) is hired by an enterprise that currently operates in Vietnam and 2) must have at least a temporary residence card to purchase and own an apartment unit in Vietnam.

This five-year piloting program that would end in 2014 is now discussed by the Vietnamese Prime Minister to continue this program after the first five years to support the real estate market and to make it more attractive for foreigners.

After the first 5 years, the government stated to have the plan to review the pilot policy and the Ministry of Construction also opened up for the idea to allow foreigners to buy houses no matter if they work and do business here or if they want to buy real estates in Vietnam.

As the Vietnam’s real estate situation seems to stand before a turning point, it is necessary to keep up to date with all legal changes and developments. Due to the fact that Vietnamese law has special provisions for every organization or individual who wishes to operate with land and real estates related to House Law, it is inevitable to know about this legal circumstances in Vietnam.

How Real Estate Law Firms in Vietnam Could Help?

The real estate law firms in Vietnam could assist in different land and house related projects and matters such as land ownership, house purchase or sale and is aware of the differences between provisions on house law for foreigners and Vietnamese. The professionals could advise clients about possibilities and potential risks concerning real estate laws, housing laws in Vietnam and furthermore could support clients with required procedures with the Vietnamese authorities.

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Five types of real estate contracts abolished mandatory notarization procedure

 According to the regulation of Civil Code 2015, some of the transactions which are required to implement the process of notarization and registration according to the regulation of the laws. As real estate transactions are normally at high value, the process of notarization and registration would help parties involved to be protected from falsified transactions.

As the stipulated in the Real estate trading 2014, the real estate trading agreement must be made in writing. The agreement notarizing or authenticating shall be discussed by contracting parties. However, the real estate trading agreement in which on building sale or lease purchase agreements or land transfer agreements concluded by households and individuals who conduct small-scale or irregular transactions of real estate sale, transfer, lease-out, and lease purchase shall not be required to set up enterprises, but they shall make tax declaration as prescribed need to be implemented the mandatory notarization procedure.

The procedure and dossier for notarization the real estate agreement will be implement according to the regulations of Law on notarization 2014.

Our real estate lawyers in Vietnam recommend client to have house leasing contracts voluntarily notarized to better protect their interests in disputes or any future issues.

For more information or legal advice in real estate transactions, we are glad to assist.  ANT Lawyers, your lawyers in Vietnam

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7 Crucial Steps to Successfully File a Lawsuit in Vietnam

 

Introduction on Steps to File a Lawsuit in Vietnam

Legal disputes are an unavoidable part of life and business, often arising from disagreements over contracts, expectations, or obligations.

For foreign companies or individuals doing business in Vietnam, resolving such disputes can be a particularly challenging task due to unfamiliarity with the local legal system.

However, understanding the procedures to file a lawsuit in Vietnam can empower individuals and businesses to protect their rights effectively.

With proper preparation and legal guidance to file a lawsuit in Vietnam, navigating the complexities of Vietnamese litigation becomes far less intimidating.

In the following, we will explores the key steps involved to file a lawsuit in Vietnam, emphasizing the importance of legal representation and providing an in-depth analysis of the entire process.

The Importance of Legal Representation to File a Lawsuit in Vietnam

When conflicts arise, it is generally advisable to attempt resolution through negotiation or mediation before resorting to litigation and file a lawsuit in Vietnam.

In Vietnam, reconciliation is deeply rooted in the legal culture, with courts often encouraging disputing parties to settle their issues amicably.

Such methods not only save time and money but also foster better relationships between the parties involved.

However, when these approaches fail to produce satisfactory results, to file a lawsuit in Vietnam becomes the next logical step.

For foreigners, the challenges of dealing with Vietnam’s legal procedures are compounded by linguistic and cultural barriers, as well as the technicalities of the law.

This is where litigation lawyers in Vietnam play an indispensable role to help file a lawsuit in Vietnam. Their expertise in local laws, court processes, and dispute resolution can help bridge the gap, allowing you to focus on your personal or business priorities.

Engaging a litigation lawyer to file a lawsuit in Vietnam ensures that your case is handled professionally. From advising on pre-litigation strategies to representing you in court, these professionals offer invaluable assistance in crafting a strong case and achieving a favorable outcome.

Preparing the Petition: The Cornerstone to File a Lawsuit in Vietnam

When negotiations or mediation efforts do not bring results, the first step in litigation is the preparation and submission of a petition to the competent court.

The petition is a critical document, as it outlines the claimant’s case and provides the basis for the court’s review.

A well-drafted petition must include the following:

• Details of the Parties Involved: This includes the full names, addresses, and contact information of both the claimant and the defendant. For businesses, documentation establishing their legal status, such as registration certificates, must be provided.

• Summary of the Case: The petition should concisely describe the nature of the dispute, including relevant events, evidence, and contractual obligations.

• Claimant’s Requests: This section specifies the remedies sought by the claimant, such as financial compensation, enforcement of a contract, or damages.

• Supporting Documents: These may include contracts, invoices, purchase orders, delivery confirmations, and meeting minutes that substantiate the claims.

In Vietnam, strict standards govern the submission of documents to courts.

For instance, any documents issued abroad must be notarized, legalized, and translated into Vietnamese by certified professionals.

These measures ensure the validity of the evidence presented and prevent unnecessary delays in the litigation process. A skilled litigation lawyer can help streamline this process, ensuring that your petition meets all legal requirements and is submitted in a timely manner.

Filing the Petition: The Initial Legal Steps

Once the petition is prepared, it must be submitted to the appropriate court.

Determining which court has jurisdiction over your case is crucial.

After submission, the court will review the petition to ensure it adheres to procedural and jurisdictional requirements.

If the petition is accepted, the court will notify the claimant of the necessary court fees. Upon payment of these fees, the case is officially registered, and the litigation process begins.

This phase underscores the importance of precision and adherence to procedural guidelines. Any oversight in the petition or supporting documents could result in delays or even dismissal of the case. With their expertise, litigation lawyers ensure that every detail is accounted for, allowing the case to proceed smoothly.

The Pre-Trial Process: Setting the Stage for Litigation

After the case is registered, it enters the trial preparation phase. During this stage, the court assigns a judge to oversee the proceedings. The judge’s primary responsibilities include reviewing the petition, examining the evidence, and managing pre-trial activities.

One of the key aspects of this phase is the opportunity for reconciliation. Vietnamese courts often encourage parties to resolve their disputes through facilitated discussions. If successful, the court documents the agreement and issues a decision recognizing the resolution. This process saves time and resources for all parties involved. However, if reconciliation efforts fail, the case proceeds to trial.

Pre-trial activities may also involve meetings with the judge, during which parties are asked to provide additional information or evidence. These interactions allow the court to clarify any ambiguities and prepare for the trial itself. Here again, the expertise of litigation lawyers is invaluable. They ensure that their clients are well-prepared, that all evidence is properly organized, and that no procedural missteps occur.

The Trial: Presenting Your Case in Court

When a case proceeds to trial, it enters a formal stage where the court examines the evidence, hears arguments, and ultimately delivers a judgment. The trial process involves several key components:

• Admissibility of Evidence: Only evidence that complies with Vietnamese legal standards is admissible in court. Ensuring the legitimacy and relevance of your evidence is essential to the success of your case.

• Testimonies and Arguments: Both parties, typically represented by their lawyers, present their arguments and respond to questions from the judge.

• Judgment: After evaluating the evidence and arguments, the court issues its judgment, which may include financial compensation, enforcement of obligations, or other remedies.

Throughout this process, having a skilled litigation lawyer by your side can make a significant difference. They advocate on your behalf, craft persuasive arguments, and ensure that your case is presented in the strongest possible light.

The Role of Litigation Lawyers in Vietnam

Litigation lawyers are essential allies for foreigners seeking to file a lawsuit in Vietnam. Their expertise extends across the entire legal process, from pre-litigation activities to courtroom representation. Here’s how they can assist at various stages:

• Pre-Litigation:

• Collecting and organizing evidence to support your case.

• Drafting demand letters to the opposing party, outlining the dispute and seeking resolution.

• Representing you in negotiations or mediation sessions.

• Litigation:

• Developing a comprehensive legal strategy tailored to your case.

• Preparing the petition and ensuring all documentation complies with Vietnamese legal standards to file a lawsuit in Vietnam.

• Representing you during court hearings and trial proceedings.

By handling these complex tasks, litigation lawyers not only improve your chances of success but also alleviate the burden of navigating an unfamiliar legal system.

Key Takeaways for Foreigners Filing a Lawsuit in Vietnam

To file a lawsuit in Vietnam involves multiple stages, each requiring meticulous preparation and adherence to legal procedures. For foreigners, the process can be especially challenging without the guidance of experienced legal professionals.

Here are the key steps to remember:

1. Attempt negotiation or mediation before resorting to litigation.

2. Engage a skilled litigation lawyer for guidance and representation.

3. Prepare a comprehensive petition that meets all legal requirements to file a lawsuit in Vietnam.

4. Ensure all supporting documents are authenticated and translated as necessary.

5. Submit the petition to the appropriate court and pay the required fees.

6. Participate in pre-trial activities, including reconciliation efforts and meetings with the judge.

7. Present your case effectively during the trial with the help of your lawyer.

Conclusion: Empowering Yourself with Knowledge and Expertise

To file a lawsuit in Vietnam can seem overwhelming, but with the right preparation and professional support, the process becomes manageable.

Understanding the legal system, complying with procedural requirements, and enlisting the help of experienced litigation lawyers are all critical steps toward achieving a favorable outcome.

Whether you’re a business owner involved in a commercial dispute or an individual seeking justice, taking the time to understand how to file a lawsuit in Vietnam is an investment in protecting your rights.

With the right approach, you can navigate the complexities of the Vietnamese legal system and secure the resolution you deserve.

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Real Estate and Construction

 With substantial real estate industry experience, we handle a wide range of sophisticated transactions for nearly every product type. What distinguishes us from many law firms is our cost-effective teams and our knowledge of real estate industry fundamentals.

Our lawyers represent real estate buyers, investors, landlords and tenants in the negotiation, acquisition of residential apartments, houses, tenant leases of office, industrial, retail and other commercial space.

“They really know what we care about, where our risk buttons are. They do a great job in representing us, helping us identify risk, and take us off the ledge.”

We have particular experience with regard to the structuring, drafting and negotiating of engineering, procurement and construction (EPC) contracts for construction projects. Our lawyers work closely with clients to structure and negotiate EPC arrangements that meet the competing requirements of owners, contractors, lenders and other project participants. Our lawyers are trained to anticipate issues and recognize opportunities in the project development context.

We have a deep understanding of the industries we serve and that knowledge provides us with the ability to deliver better solutions.

Please contact us for inquiries through email ant@antlawyers.vn or call our partner directly at  + 84 912 817 823.

Let ANT Lawyers help your business in Vietnam.

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Legal Regulations in Purchasing Real Estate for Foreigners in Vietnam

 Vietnam has become a better place for foreigners to visiting and staying. Many chose Vietnam as home and they come to Ho Chi Minh City, Ha Noi, Da Nang, Phu Quoc, Nha Trang… to buy real estates for living. Many foreigners consider seeking understanding and with the advisory of their real estate lawyers in Vietnam to purchase the property under their name for best interest protection. There are a number of foreigners seek to cooperate with local Vietnamese under investment agreement to invest in properties. It has always been suggested the buyer or investor to receive legal advice from real estate lawyers and law firms in Vietnam before committing the investment to a certain extent.

According to the Law on housing 2005, foreign organizations and individuals investing in construction of houses for sale and lease in Vietnam have the right to own the houses in Vietnam. However, according to the provisions of the Law on housing 2014, the house owners expand and include foreigners being investors building the houses under investor projects, foreign organizations operating in Vietnam and foreign individuals being allowed to enter Vietnam under the provisions of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; and are not entitled to diplomatic privileges and immunities.

Under the provisions of the Law on housing 2014, foreign organizations and individuals are allowed to own apartments, individual houses (villas and townhouses) in commercial housing projects. The total number of foreign individuals/organizations owned does not exceed 30% of an apartment building or does not exceed 10% or 250 houses of a housing project. Foreign individuals may own houses for up to 50 years and are allowed to extend for no more than 50 years. Foreign organizations own the houses according to the time limit on the Investment Registration Certificate and the extension period. During the time of owning the houses, foreign individuals are allowed to sublease, but foreign organizations are not allowed to sublease the houses.

For foreign individuals/organizations, when buying the houses in Vietnam, it is necessary to have a well drafted sales contract for purchase and sale of the houses because all rights and obligations related to the purchase, sales and ownership of houses are regulated in the contract. Therefore, the buyer should consider the contract carefully, usually with the help of real estate lawyers whom understand Vietnam laws before signing, in order to protect their legitimate rights and interests.

The foreigner when buying and selling the houses, especially off-plan house, need to also pay attention to the regulations on payment schedule in the contract. According to Article 57 of the Law on housing 2015, the payment in the purchase, sales, lease sales of the off-plan real estate in Vietnam is carried out in installments, and the first time must not exceed 30% of the contract value, the next times must be in accordance with the construction schedule, however, not exceeding 50% of the contract value when not handed over when the buyer is an enterprise with foreign investment, not exceeding 70% the value of contract, if the buyer is the foreigner individual the payment is not exceed 50% the value of the contract before handing over the house to the buyer. Until the buyer is issued with a certificate of land use right, ownership of houses and other assets attached to the land, the buyer shall pay no more than 95% the value of contract.

Foreigners in Vietnam need to be assisted to be familiar with the laws relating to the purchase and sale of real estate in order to protect their legitimate rights and interests when participating in transactions in Vietnam. It is important that the foreigners consider using the services of law firm in Vietnam specializing in real estate to advise and help manage the transaction.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have attorneys in Hanoi, Ho Chi Minh and Danang. 

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