Are Land Use Rights Considered As Immovable Properties Under Vietnamese Law?

Under the current law of Vietnam, it is possible that “land use rights” (quyền sử dụng đất) are considered “immovable properties”. The following arguments support the view that land use rights are immovable properties under Vietnamese law:

Land use rights (LUR) are property rights (quyền tài sản), which is a property (tài sản). Properties are divided into movable properties (động sản) and immovable properties (bất động sản). Immovable properties are defined to include: (i) Land; (ii) House and construction work attached to land; (iii) Other properties attached to land, house or construction works; and (iv) other properties as stipulated by law.
Regarding item (iv) above, LURs are stipulated under Article 5.4 of the Law on Real Estate Business 2014 as types of “immovable properties made available for trading” (bất động sản đưa vào kinh doanh). This view is also adopted by Dr. Do Van Dai in his book on Civil Code 2015.
Regarding item (iii), Dr. Nguyen Minh Tuan considers LURs being immovable properties because they are “properties attached to land”.

Environmental license and permit for industrial parks in Vietnam

The following is a non-exhaustive list of licenses, permits and requirements on environment which an industrial park in Vietnam need to comply with.

1. Environment impact assessment report (EIAR – Báo cáo đánh giá tác động môi trường) or environment protection plan (EPP – Kế hoạch bảo vệ môi trường).

2. Confirmation on completion of the environmental protection works (Xác nhận hoàn thành công trình bảo vệ môi trường).

Issues in selecting arbitration to settle construction disputes in Vietnam

Under the Law on Construction 2014, a dispute relating to a construction contract can be resolved through mediation, by a commercial arbitration or court “in accordance with law”. This standard wording seems to allow parties to a construction dispute in Vietnam to select arbitration to settle the dispute. However, Circular 26/2016 of the Ministry of Construction provides that a dispute relating to quality of a construction work will be resolved in the following steps:

New regulations on industrial zones in Vietnam

On 22 May 2018, the Government issued Decree 82/2018 on industrial zones and economic zones in Vietnam. Decree 82/2018 replaces Decree 29/2008 as amended from 10 July 2018. The salient points of Decree 82/2018 are as follows:

An economic zone located in an area entitled to investment incentive policies is now entitled to be regarded as an area facing extreme socio-economic difficulties.
Decree 82/2018 introduces three new kinds of industrial zones which are supporting industrial zone, eco-industrial zone, and industrial-urban-service zone. Certain investment incentives will be available to supporting industrial zones and eco-industrial zones (e.g., land rental exemption, soft loans, or maximum land lease term). An industrial-urban-service area may include a residential and service area which must not exceed one third of the area size of the industrial zone. In addition, an exporting processing zone is now regarded as a type of industrial zone instead of being classified as a separate type of zone.
The amended definition of export processing enterprise (EPE) seems to suggest that an EPE does not need to export all of its products. Instead, an EPE only needs to be specializing in manufacturing exported products.
Decree 82/2018 allows an industrial zone to have separate dwelling facilities for foreign managers, chief officers and experts.

This post is contributed by Ha Kieu Anh, a trainee at Venture North Law.

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Vietnam Business Law