Decree No. 51/2009/NĐ-CP guiding the implementation of certain Articles of Resolution No. 19/2008/QH12 dated June 3, 2008 of the National Assembly on piloting the purchase and ownership of houses by foreign organizations and individuals in Vietnam.

DECREE

Guidelines for implementing certain provisions of Resolution No. 19/2008/QH12 dated June 3, 2008 of the National Assembly on piloting the purchase and ownership of houses by foreign organizations and individuals in Vietnam.

June 2008 of the National Assembly on piloting the purchase and ownership of residential properties in Vietnam by foreign organizations and individuals

FOREIGN |||

 _________________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 19/2008/QH12 dated June 3, 2008 of the National Assembly on piloting the purchase and ownership of houses by foreign organizations and individuals in Vietnam;

Considering the proposal of the Minister of Construction,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates detailed regulations and guidelines on documents proving the subject, conditions for purchasing, inheriting, receiving gifts, and owning houses by foreign organizations and individuals; procedures and formalities for issuing Certificates of House Ownership and Land Use Rights for foreign organizations and individuals owning houses in Vietnam; handling violations and responsibilities of relevant agencies in implementing Resolution No. 19/2008/QH12 of the National Assembly dated June 3, 2008 on piloting the purchase and ownership of houses by foreign organizations and individuals in Vietnam (hereinafter referred to as Resolution No. 19/2008/QH12).

Article 2. Applicability

This Decree applies to foreign organizations and individuals working and operating in Vietnam, including:

1. Foreign individuals falling under the categories specified in Clauses 1, 2, 3, and 4 of Article 2 of Resolution No. 19/2008/QH12 who purchase, receive gifts, inherit, and own houses in Vietnam.

2. Foreign-invested enterprises without real estate business functions permitted to purchase and own houses in Vietnam as stipulated in Clause 5 of Article 2 of Resolution No. 19/2008/QH12.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Foreign individual" means a person without Vietnamese nationality;

2. "Foreign-invested enterprise" means an enterprise established by foreign investors to carry out foreign investment activities in Vietnam or a Vietnamese enterprise acquired by foreign investors through share purchases, mergers, or takeovers, directly managed according to Vietnamese laws;

3. "Condominium unit in a commercial housing development project of a real estate developer" means a condominium unit invested and constructed by real estate developers according to approved projects for sale or lease at market prices.

4. "Condominium unit in a commercial housing development project of an individual" means a pre-existing condominium unit purchased by an individual in a commercial housing development project and already issued with a Certificate of House Ownership according to Vietnamese laws.

Article 8. Prohibited acts

1. Falsifying documents proving the subject and conditions for purchasing, inheriting, receiving gifts, and owning houses in Vietnam.

2. Purchasing or selling condominium units in restricted or prohibited areas for foreigners' residence, travel, or purchasing non-condominium units in commercial housing development projects.

3. Purchasing condominium units from real estate companies not through real estate trading floors as required by Vietnamese laws on real estate business.

4. Owning more than one condominium unit when only one is allowed to be owned at the same time while residing in Vietnam.

5. Using houses for rental purposes or other uses or engaging in activities that violate Vietnamese laws.

6. Demolishing, renovating, or maintaining houses in violation of Vietnamese laws.

7. Conducting transactions related to houses in contravention of Resolution No. 19/2008/QH12 and Vietnamese laws.

Chapter II

DOCUMENTS PROVING THE SUBJECT AND CONDITIONS FOR PURCHASING AND OWNING HOUSES IN VIETNAM

Article 5. Documents proving the subject, conditions for purchasing, inheriting, receiving gifts, and owning residential property in Vietnam applicable to foreign individuals

1. Documents proving the subject eligible to purchase, inherit, receive gifts, and own residential property in Vietnam.

Foreign individuals must have a passport or other documents that can replace a passport (hereinafter referred to as passport) issued by the competent authority of their country, accompanied by one of the following documents:

a) In case they are direct investors in Vietnam, they must be listed in the Investment Certificate or in the corresponding document for investment activities issued by the competent authority of Vietnam (hereinafter referred to as Investment Certificate) valid for at least one year, or have documents proving they are members of the Board of Directors or Management Board of operating enterprises in Vietnam;

b) In case they are hired by enterprises operating in Vietnam under business laws to hold positions such as general manager, director, deputy directors of enterprises, or heads and deputies of units subordinate to enterprises, they must have a management position employment contract or a decision appointing them in Vietnamese language;

c) In case they have made special contributions to the country, they must have Medals or Orders awarded by the President of the Socialist Republic of Vietnam;

d) In case they have made outstanding contributions to the country, they must have documents confirming this from the ministry-level agency responsible for the field in which the foreign individual has contributed, sent to the Ministry of Construction for consideration and submission to the Prime Minister for issuance of a permit;

đ) In case they come to Vietnam to work in economic, scientific, technological, environmental, education-training, cultural, information, sports, health, social, lawyer fields, they must have a certificate proving they have a bachelor's degree or higher, issued by the competent authority of Vietnam or of another country, accompanied by one of the following documents:

- A labor permit issued by the competent authority of Vietnam;

- A professional practice permit in Vietnam issued by the competent authority of Vietnam;

e) In case they possess special skills, they must have documents confirming their expertise and skills from Vietnamese associations, professional organizations, or ministry-level agencies responsible for the field in which the foreign individual has expertise and skills, accompanied by a professional practice permit in Vietnam issued by the competent authority of Vietnam (in cases where the law requires a professional practice permit), or a labor permit issued by the competent authority of Vietnam (in cases where the law does not require a professional practice permit);

g) In case they are married to a Vietnamese citizen, they must have a marriage certification issued by the competent authority of Vietnam or another country, accompanied by a Vietnamese passport or permanent residence registration book and identity card of the Vietnamese spouse;

2. Documents proving the conditions for purchasing and owning residential property in Vietnam.

Foreign individuals must have a Permanent Resident Card or Temporary Resident Card or a document certifying permission to reside in Vietnam for at least twelve months issued by the Exit and Entry Administration under the Ministry of Public Security, and not be entitled to diplomatic or consular privileges and immunities according to the Ordinance on Privileges and Immunities for Diplomatic Missions, Consular Posts of Foreign Countries, and International Organizations' Representative Offices in Vietnam dated August 23, 1993, of the Standing Committee of the National Assembly.

Article 6. Documents proving the subject, conditions for purchasing, receiving gifts, inheriting, and owning houses in Vietnam applicable to foreign-invested enterprises

Foreign-invested enterprises eligible to purchase, inherit, receive gifts, and own houses in Vietnam must be operating in Vietnam and hold a valid Investment Certificate issued by competent Vietnamese authorities with at least one year remaining.

Chapter III

PROCEDURE AND PROCEDURES FOR ISSUING HOUSE OWNERSHIP CERTIFICATE

Article 7. Documents proving ownership rights of the house of the seller, donor, or heir

1. In the case of purchasing condominium units in commercial housing development projects of real estate businesses (including both future and existing units), the seller must have the following documents:

a) Decision approving the commercial housing development project by the competent authority;

b) Land lease contract or land allocation decision or Land Use Right Certificate issued by the competent authority to the enterprise;

c) Floor plan of the sold condominium unit;

d) Handover record of the condominium unit accompanied by the common building management regulations issued by the selling enterprise (applicable to existing units).

2. In the case of purchasing, inheriting, or receiving gifts of condominium units in commercial housing development projects of individuals, it must be existing units, and the seller, donor, or heir must have ownership proof documents as follows:

a) Ownership Certificate of the house and land use right certificate issued according to the Law on Housing or Decree No. 60/CP dated July 5, 1994 on ownership of houses and land use rights in urban areas or Ownership Certificate of the house according to Decree No. 95/2005/NĐ-CP dated July 15, 2005 on issuing Ownership Certificates of houses and construction works;

b) Land Use Right Certificate recording the house on the land issued according to the Land Law 2003.

Article 8. Application dossier for House Ownership Certificate and Land Use Right Certificate

The applicant for the House Ownership Certificate and Land Use Right Certificate must prepare a dossier including the following documents:

1. Application form for the House Ownership Certificate and Land Use Right Certificate in Vietnamese and English (according to the model attached as Appendix I and II of this Decree);

2. Original purchase, gift, or inheritance contract of the house in accordance with Vietnamese laws. In the case of purchasing a condominium from a real estate business, the purchase contract does not need to be certified by a notary. If purchasing or receiving a gift of a condominium from an individual, the contract must be certified by a notary in accordance with Vietnamese laws on housing;

3. Certified copy of the foreign passport and one of the documents specified in points a, b, c, d, e, and g Clause 1, Clause 2 Article 5, Article 6, point a, point b Clause 1 Article 7 of this Decree; if the certified copy of the passport is not available, the original must be presented for verification when submitting the dossier. For educational certificates and marriage certificates issued abroad, they must be translated into Vietnamese and certified by a Vietnamese notary office.

For other cases, the application dossier for the House Ownership Certificate must include original related documents as stipulated in Articles 5 and 7 of this Decree.

4. In the case of purchasing a condominium from a real estate business, the transaction must be conducted through a real estate trading floor, and there must be an original confirmation document of the sale through the trading floor in accordance with laws on real estate business.

5. Receipts for tax and stamp duty payments as prescribed by law. The tax and stamp duty rates are applied equally to Vietnamese citizens residing in Vietnam.

Article 9. Procedures, formalities, and authority for issuing Ownership Certificate for Housing and Land Use Right

1. The person requesting issuance of the Ownership Certificate for Housing and Land Use Right shall submit a complete set of documents (complying with the requirements stipulated in Article 8 of this Decree) at the Construction Department where the apartment is located. The person receiving the documents must accept them and issue a receipt indicating the date, time, and location for collecting the result; if the submitted documents are incomplete, the person receiving the documents must immediately provide specific guidance for the applicant to supplement the missing documents. If the application does not meet the conditions, the Construction Department will return the documents and notify the applicant in writing of the reasons.

2. After receiving the documents, the Construction Department shall record the contents on the Ownership Certificate for Housing and Land Use Right in accordance with housing laws and submit it to the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) for signing the Ownership Certificate for Housing and Land Use Right.

The Provincial People's Committee may use the model of the Ownership Certificate for Housing and Land Use Right issued together with Decree No. 90/2006/NĐ-CP dated September 6, 2006, detailing and guiding the implementation of the Law on Housing (hereinafter referred to as Decree No. 90/2006/NĐ-CP) to issue to foreign organizations and individuals owning housing according to this Decree.

3. After signing the Ownership Certificate for Housing and Land Use Right, the Provincial People's Committee shall transfer it back to the Construction Department for delivery to the owner. The person receiving the certificate must present the receipt, pay the fee for issuing the certificate, and sign the Register of Ownership of Housing. If authorizing another person to collect the certificate on their behalf, they must have a power of attorney in accordance with Vietnamese law. The fee for issuing the certificate shall be applied as for Vietnamese citizens within the country.

4. For foreign individuals, within two working days from the date of receiving the certificate from the Provincial People's Committee, the Construction Department must send a written notice to the Ministry of Construction containing information about the name, passport number, place of issuance, date of issuance, nationality of the buyer, address of the purchased apartment, certificate number, and date of issuance of the Ownership Certificate for Housing and Land Use Right for the Ministry of Construction to post on its website (the form of the notice of the Construction Department for managing the purchase of an apartment is specified in Appendix III and IV issued together with this Decree).

Individuals who already own a house in Vietnam as reported on the Ministry of Construction’s website are not allowed to own other houses nationwide.

5. The maximum period for issuing the Ownership Certificate for Housing and Land Use Right prescribed in this Article is thirty days from the date of receiving complete and valid documents, excluding the time for supplementing documents (if any).

6. In case the Ownership Certificate for Housing and Land Use Right has been damaged, torn, or lost, the owner is entitled to request a replacement or reissue of the certificate. The Construction Department shall handle the replacement or reissue of the Ownership Certificate for Housing and Land Use Right in accordance with the procedures stipulated in Article 47 of Decree No. 90/2006/NĐ-CP.

Chapter IV

IMPLEMENTATION

Article 10. Provisions on land use rights for organizations and individuals owning condominium units in Vietnam

1. Foreign organizations and individuals purchasing, inheriting, receiving gifts, and owning condominium units in Vietnam shall have the right to use the common area land of the condominium building under the form of paid land lease for the entire lease period. The duration of the land lease shall be equal to the ownership period of the condominium unit, and information about the land lease usage rights shall be clearly recorded in the Certificate of House Ownership and Land Use Rights.

2. In cases where foreign organizations and individuals transfer ownership of condominium units to domestic organizations and individuals, the transferee shall have the right to use the land stably and long-term according to the provisions of the laws on land, with the land use period recorded in the Certificate of House Ownership and Land Use Rights.

Article 11. Handling of houses that organizations and individuals receive as gifts or inherit

1. Foreign individuals currently owning houses in Vietnam pursuant to Resolution No. 19/2008/QH12 and this Decree, if they receive gifts or inherit other houses, shall have the option to own a condominium unit in a commercial housing development project; for the remaining types of houses, foreign individuals shall have the right to gift or sell such houses to eligible subjects for house ownership in Vietnam to enjoy their value.

2. Foreign-invested enterprises, if they inherit or receive gifts of houses that are not condominium units in a commercial housing development project, shall have the right to gift or sell such houses to eligible subjects for house ownership in Vietnam to enjoy their value.

3. Enterprises and foreign individuals subject to the provisions of Clause 1 and Clause 2 of this Article shall not need to go through procedures to obtain the Certificate of House Ownership and Land Use Rights before selling or gifting such houses to others. Enterprises and foreign individuals may directly or authorize others to sell or gift houses to eligible subjects for house ownership in Vietnam; if authorizing others, they must have a power of attorney in accordance with Vietnamese law.

The sale or gifting of houses by enterprises and foreign individuals as stipulated in this Article shall be carried out in accordance with Article 68 of Decree No. 90/2006/NĐ-CP.

Article 12. Handling of violations

1. Foreign organizations and individuals violating the provisions of Clauses 1, 2, 3, 4, and 5 of Article 4 of this Decree shall not be granted the Certificate of House Ownership and Land Use Rights; if already granted, they must sell the houses along with the land use rights within 120 days from the date of discovery of the violation, while also being subject to administrative penalties according to the laws on administrative penalties in the field of housing management and development.

2. If the deadline specified in Clause 1 of this Article is exceeded and foreign organizations and individuals have not sold the houses, or if foreign individuals fail to sell the houses within the time limit specified in Clause 3 of Article 10 of Resolution No. 19/2008/QH12, the Certificate of House Ownership and Land Use Rights already issued shall be revoked; the houses and land use rights that foreign organizations and individuals have not sold shall belong to the ownership of the State of Vietnam.

3. Organizations and individuals violating the provisions of Clauses 6 and 7 of Article 4 of this Decree shall be subject to administrative penalties according to Vietnamese law.

4. For other violations, depending on the nature and degree of the violation, criminal liability or administrative handling shall be pursued according to Resolution No. 19/2008/QH12 and Vietnamese law. If damage is caused, compensation shall be provided according to Vietnamese law.

5. Civil servants and related personnel who violate the provisions of Resolution No. 19/2008/QH12 and this Decree shall be handled according to the Civil Servant Law and relevant laws.

Article 13. Responsibilities of relevant Ministries and sectors

1. The Ministry of Construction shall be responsible for:

a) Implement the provisions stipulated in Clause 2, Article 11 of Resolution No. 19/2008/QH12;

b) Submit to the Prime Minister for approval of a document allowing foreign individuals who have made special contributions to Vietnam to purchase and own houses in Vietnam as provided in Point d, Clause 1, Article 5 of this Decree;

c) Guide, urge, and inspect the implementation of Resolution No. 19/2008/QH12 and this Decree;

d) Based on reports from Construction Departments of localities, post on the Ministry's website cases of foreign individuals currently owning houses in Vietnam so that localities have grounds to recognize ownership rights to houses and land use rights for foreign individuals according to Clause 4, Article 9 of this Decree.

2. The Ministry of Public Security and the Ministry of National Defense within their respective functions and tasks shall be responsible for reviewing and informing provincial People's Committees about areas restricted or prohibited for foreigners to reside in or travel through.

3. Ministries and sectors within their assigned functions and tasks shall be responsible for coordinating with the Ministry of Construction to guide and organize the implementation of Resolution No. 19/2008/QH12 and this Decree.

Article 14. Responsibilities of the Provincial People's Committees

1. Implement the provisions stipulated in Clause 4, Article 11 of Resolution No. 19/2008/QH12.

2. Direct Construction Departments to manage the ownership of houses by organizations and foreign individuals within their jurisdiction according to the provisions of this Decree.

3. Handle according to their authority or refer to competent authorities to handle organizations and individuals who violate the provisions of Resolution No. 19/2008/QH12 and this Decree.

4. Specify according to their authority or based on notifications from the Ministry of Public Security and the Ministry of National Defense, publicly announce at Construction Departments, headquarters of district, county, town, and city-level People's Committees under provinces, and notarization offices of localities regarding areas restricted or prohibited for foreigners to reside in or travel through.

Article 15. Effective Date

1. This Decree takes effect from August 1, 2009.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government shall be responsible for enforcing this Decree./.