Major Changes To The Implementing Rules of Law On Real Estate Business in Vietnam

On 6 January 2022, the Government issued Decree 2/2022 on implementation of the Law on Real Estate Business 2014. Decree 2/2022 will take effect from 1 March 2022 and replace Decree 76/2015. This post will summarize some notable new regulations introduced by Decree 2/2022.

This post is written by Nguyen Hoang Duong and edited by Nguyen Quang Vu.

New definitions

Decree 2/2022 introduces definitions for various vague legal terms which are frequently used in the Law on Real Estate Business 2014, such as real properties made available for sale (bất động sản đưa vào kinh doanh), real estate project (dự án bất động sản), or contracts for real estate trading (hợp đồng kinh doanh bất động sản). The new definitions could facilitate a more consistent of the interpretation of various regulations of the Law on Real Estate Business 2014 and Decree 76/2015.

Disclosure requirement by a real estate developer

Under Decree 2/2022, a real estate developer will have to make various public disclosure about its real estate projects. In particular, the following information must be made available on website of the developer, at headquarter of project management board (in case of investment project of doing real estate business), or at real estate trading floor (in case of doing real estate business via trading floor):

· information as to real properties made available for sale;

· information as to mortgage of house, construction works, and real properties made available for sale (if any); and

· information as to quantity, type of (1) real properties available for sale, (2) real properties that have been sold, transferred, leased, and remaining real properties available for trading; and

· any change to the above information.

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New measures to control greenhouse gas emissions in Vietnam

In this January 2022, three new legal documents have been issued regarding the reduction of greenhouse gas emissions and protection of the ozone layer, including:

· Decree 6 of the Government dated and effective from 7 January 2022 (Decree 6/2022);

· Circular 1 of the Ministry of Natural Resources and Environment (MONRE) dated and effective from 7 January 2022 regarding response to climate change (Circular 1/2022); and

· Decision 1 of Prime Minister regarding issuance of list of greenhouse gas emitting sectors and establishments subject to greenhouse gas inventory dated and effective from 18 January 2022 (Decision 1/2022).

The legislation seems to a step to implement Vietnam’s commitment to achieve net-zero carbon emissions by 2050 in the COP26.

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Allocating Sea Area for Offshore Wind Power Projects In Vietnam

Applicability of Decree 11/2021

It is likely that an offshore wind power project (Offshore WPP) will need to follow the procedures under Decree 11/2021 in order to be allocated with the necessary sea area for development and operation of the Offshore WPP. This is because:

  • Under the current wind power development regime of Vietnam, an Offshore WPP is defined as a grid-connected wind power project with wind power turbines constructed and operated “from the average lowest seawater line over several years off the coast” (nằm ngoài đường mép nước biển thấp nhất trung bình trong nhiều năm ra ngoài khơi);

  • Decree 11/2021 applies to the allocation of certain sea area “from the average lowest seawater line over several years off the coast” for exploitation and use of “sea resource” (tài nguyên biển); and

  • Sea resource is defined to include biological and non-biological resource of the water mass, the [sea] bed and the soil beneath the seabed.

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New Decree 31/2021 guiding the implementation of the Investment Law 2020 on the Market Entry of Foreign Investors

The Government has issued Decree 31/2021/ND-CP (Decree 31/2021) which becomes effective on the signing date, 26 March 2021. Decree 31/2021 provides certain appreciable provisions guiding the negative list approach and the application of market entry conditions of the Investment Law 2020. These implementing provisions (as discussed in this post) are expected to provide more certainty and transparency to foreign investors.

This post is written by Ha Thi Dung.

Please download the full pdf version Here

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