RESOLUTION

ON PILOT PERMISSION FOR FOREIGN ORGANIZATIONS AND INDIVIDUALS TO PURCHASE AND OWN RESIDENTIAL HOUSES IN VIETNAM

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;
After considering the Government's Report No. 52/TTr-CP of April 23, 2008. requesting the adoption of a resolution on pilot permission for foreigners to purchase and own residential houses in Vietnam; the National Assembly Economic Committee's Examination Report No. 240/ UBKT12 of April 29. 2008: and opinions of National Assembly deputies:

RESOLVES:

Article 1.- Scope of regulation

1. This Resolution specifies foreign organizations and individuals eligible to purchase and own residential houses, and conditions which must be satisfied by them to do so: rights and obligations of house owners being foreign organizations and individuals; procedures for purchase and sale of residential houses and grant of residential house ownership certificates; settlement of disputes and complaints, and handling of residential house-related law violations involving entities defined in .Article 2 of this Resolution.

2. Residential houses which foreign organizations and individuals are allowed to purchase and own under this Resolution are apartments built under projects on development of residential houses for commercial purposes and not located in areas in which residence or travel by foreigners is restricted or banned.

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The following foreign organizations and individuals are allowed to purchase and own residential houses in Vietnam:

1. Foreign individuals who make direct investment in Vietnam under ;he investment law or are hired to work as managers by enterprises operating in Vietnam under the enterprises law, including domestic enterprises and foreign-invested enterprises:

2. Foreign individuals who have made contributions to Vietnam and are conferred orders or medals by the President of the Socialist Republic of Vietnam: foreign individuals who have made special contributions to Vietnam as decided by the Prime Minister:

3. Foreign individuals who are working in socio-economic domains and posses^: university or higher degrees, and specialists in field; which Vietnam has demand for:

4. Foreign individuals who marry Vietnamese citizens;

5. Foreign-invested enterprises which are operating in Vietnam under the investment law but not engaged in real estate business, and wish to purchase residential houses for their employees.

Article 3.- Conditions which must be satisfied by foreign organizations and individuals to purchase and own residential houses in Vietnam

1. Foreign individuals defined in Clauses 1,2, 3 and 4. Article 2 of this Resolution must be residing in Vietnam, permitted by competent state agencies to reside in Vietnam for at least one year, and ineligible for diplomatic or consular privileges and immunities under Vietnamese law.

2. Foreign-invested enterprises specified in Clause 5, Article 2 of this Resolution must possess investment certificates or written certifications of investment activities as appropriate to investment forms specified by the investment lav. (below collectively referred to as investment certificates) granted by a competent Vietnamese state agency.

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1. Foreign individuals defined in Clauses 1,2, 3 and 4. Article 2 of this Resolution may own residential houses for maximum 50 years from the date of grant of residential house ownership certificates. This duration is stated in residential house ownership certificates.

Within twelve months after the expiration of the duration of owning residential houses in

Vietnam, entities denned in this Clause shall sell or donate these houses

2. Foreign-invested enterprises specified in Clause 5. Article 2 of this Resolution may own residential houses for a duration stated in investment certificates granted to them, including also extended duration. Such a duration is counted from the date an enterprise is granted a residential house ownership certificate and is stated in such certificate.

Upon the expiration of licensed investment durations or in case of dissolution or bankruptcy of enterprises specified in this Clause, their residential houses shall be handled in accordance with the laws on investment and business bankruptcy and other provisions of Vietnamese law.

Article 5.- Rights of residential house owners being foreign organizations and individuals

Foreign organizations and individuals owning residential houses in Vietnam have the following rights:

1. At a time, a foreign individual defined in Clause 1,2,3 or 4. Article 2 of this Resolution may own only one apartment in a commercial housing development project. In case he/she is donated or inherits another residential house, he/she can only choose to own that apartment while enjoying the value of the donated or inherited residential house:

2. A foreign-invested enterprise specified in Clause 5. Article 2 of this Resolution may own one or several apartments in a commercial housing development project for its employees. In case it is donated or inherits other residential houses, it can only choose to own those apartments while enjoying the value of the donated or inherited residential houses:

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Individuals who own residential houses but can no longer reside in Vietnam may sell or donate their residential houses ahead of the time limit specified in this Clause:

4. To bequeath their residential houses under the Vietnamese law on inheritance. Heirs who are ineligible to own residential houses in Vietnam may enjoy the value of the inherited residential houses;

5. To mortgage their residential houses at credit institutions licensed to operate in Vietnam:

6. To authorize other persons to manage residential houses under their lawful ownership;

7. To request competent state agencies to grant, renew or re-grant residential house ownership certificates, or certify changes occurring after residential house ownership certificates are granted under this Resolution and the housing law;

8. To maintain and renovate residential houses, and use spaces of residential houses in line with construction and architecture planning and in accordance with Vietnamese law;

9. To receive damages for coerced dismantlement or ground clearance under Vietnamese law;

10. To lodge complaints and denunciations about acts of violating this Resolution and the housing law.

Article 6.- Obligations of residential house owners being foreign organizations and individuals

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1. To use residential houses only for the residential purpose, not to use residential houses for lease, as working offices or for other purposes:

2. To purchase, sell, donate, inherit or mortgage residential houses or authorize other persons to manage residential houses in strict accordance with this Resolution and the housing law.

3. To fully comply with the prescribed order and procedures for applying for the grant, renewal or re-grant of residential house ownership certificates or certification or changes occurring after residential house ownership certificates are granted under this Resolution and the housing law:

4. To manage, use. maintain, renovate or dismantle residential houses under Vietnamese law without harming or damaging the state and public interests and lawful interests of other persons:

5. To pay taxes and fees under Vietnamese law when purchasing, buying, donating, mortgaging or inheriting residential houses, applying for the grant, renewal or re-grant of residential house ownership certificates, or certification of changes occurring after residential house ownership certificates are granted:

6. To abide by competent Vietnamese state agencies* decisions on handling of violations, settlement of disputes, complaints or denunciations about residential houses; on ground clearance, com-pensation. supports, resettlement or dismantlement of residential houses; or on requisition, compulsory purchase or pre-emption of residential houses:

7. To perform other obligations specified by Vietnamese law.

Article 7.- Procedures for purchase and sale of residential houses

1. The purchase and sale of residential houses must be conducted under contracts in accordance with the housing law. Contracts on residential house purchase and sale must be made in Vietnamese.

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residential house ownership certificate to the purchaser. For case of purchase of a residential house from an individual, the responsibility to carry out procedures for applying for a residential nouse ownership certificate shall be agreed upon by the two parties. The parties shall pay taxes and fees prescribed by Vietnamese law.

Article 8.- Competence, order and procedures for granting residential house ownership certificates

1. People's Committees of provinces and centrally run cities (below collectively referred to as provincial-level People's Committees) shall grant residential house ownership certificates to foreign organizations and individuals in Vietnam under this Resolution and the housing law.

2.Adossier of application for a residential house ownership certificate comprises:

a/ An .application;

b/ Copies of papers proving that the foreign organization or individual is among eligible entities defined in Article 2 and full satisfies the conditions specified in Article 3 of this Resolution;

c/ The original contract on residential house purchase and sale or donation and papers on residential house inheritance;

d/ Papers evidencing the residential house ownership of the seller, donor or bequeather under the housing law:

e/ Receipts of tax and fee payment.

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a/Dossiers of application for residential house ownership certificates shall be submitted to provincial-level residential house management agencies in localities where these residential houses are located:

b/ Dossier-receiving agencies shall examine dossiers. If dossiers are incomplete, they shall promptly provide specific guidance for dossier-submitting organizations and individuals to supplement their dossiers. The time for dossier supplementation is not counted into the time limit for grant of residential house ownership certificates. Dossier-receiving agencies shall issue receipts to organizations and individuals that have submitted complete dossiers, clearly stating the date of handover of residential house ownership certificates;

c/ Within 30 days after receiving complete and valid dossiers, provincial-level People's Committees of localities where residential houses in question are located shall grant residential house ownership certificates. In case of refusal to grant certificates, they shall reply in writing, clearly stating the reason.

4. Foreign organizations and individuals that purchase or inherit residential houses or receive donated residential houses may authorize other persons to carry out procedures for applying for residential house ownership certificates under this Article and other provisions of Vietnamese law.

Article 9.- Settlement of disputes, complaints and denunciations

1. Disputes over residential houses related to the entities defined in Article 2 of this Resolution shall be settled under this Resolution and Vietnam's housing, civil and civil procedure laws.

2. Complaints and denunciations about residential houses related to the entities defined in Article 2 of this Resolution shall be settled under Vietnam's law on complaints and denunciations.

Article 10.- Handling of violations

1. Persons who commit acts of violating the provisions of this Resolution shall, depending on the nature and severity of their violations, be administratively handled or examined for penal liability. If causing damage, they shall pay compensations under Vietnamese law.

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3. Foreign individuals owning residential houses in Vietnam who fail to sell or donate their residential houses twelve months after the expiration of the duration of owning residential houses in Vietnam as specified Clause 1, Article 4 of this Resolution shall have their residential house ownership certificates withdrawn and may no longer use these residential houses.

4. For foreign organizations and individuals owning residential houses in Vietnam that use or let other persons use residential houses under their ownership for committing illegal acts, and foreign individuals owning residential houses in Vietnam who are expelled from Vietnam, their residential houses shall be handled under Vietnamese law.

Article 11.- Responsibilities for state management of residential houses owned by foreign organizations and individuals in Vietnam

1. The Government performs the unified state management of residential houses owned by foreign organizations and individuals in Vietnam.

2. The Construction Ministry is answerable before the Government for performing the state management of residential houses owned by foreign organizations and individuals in Vietnam according to the following regulations:

a/ To promulgate according to its competence or submit to competent state agencies for promulgation legal documents guiding the implementation of this Resolution:

b/ To provide for the grant of residential house ownership certificates for foreign organizations and individuals owning residential houses in Vietnam:

c/To review the situation of grant of residential house ownership certificates to foreign organizations and individuals throughout the country; to assist the Government in reviewing and evaluating the implementation of the Resolution;

d/ To inspect, examine, and settle complaints and denunciations, and handle according to its competence acts of violating the provisions of this Resolution.

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4. Provincial-level People's Committees shall:

a/Announce areas in which residence or travel by foreigners is restricted or banned under regulations of competent state agencies;

b/Grant residential house ownership certificates to foreign organizations and individuals in their localities;

c/ Report to the Construction Ministry on the management of residential houses and grant of residential house ownership certificates to foreign organizations and individuals in their localities;

d/ Inspect, examine, and settle complaints and denunciations, and handle according to its competence acts of violating the provisions of this Resolution.

Article 12.- Implementation provisions

1. This Resolution takes effect on January 1, 2009. and applies on a pilot basis for five years.

2. When this Resolution ceases to be effective, foreign organizations and individuals owning residential houses in Vietnam may continue owning these residential houses until the expiration of the ownership durations stated in their residential house ownership certificates and have the owner's rights and obligations provided for by Vietnamese law.

3. The Government shall guide the implementation of this Resolution and report implementation results to the National Assembly at the end of the duration of pilot application.

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CHAIRMAN OF THE NATIONAL ASSEMBLY




Nguyen Phu Trong