|MINISTRY OF CONSTRUCTION
|SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
RE: a wholly foreign-owned company’s purchase of a building used for business operation and residence
|Hanoi, September 22, 2014|
To: Cathay Insurance (Vietnam) Co. Ltd.
The Ministry of Construction received the Dispatch No. 043/2014/CV dated August 08, 2014 of Cathay Insurance (Vietnam) Co. Ltd. requesting guidance on purchase of a building for business operation and residence in Vietnam. After due consideration, The Ministry of Construction hereby provides guidance as follows:
- According to documents enclosed with the Dispatched No. 043/2014/CV, Cathay Insurance (Vietnam) Co. Ltd. (hereinafter referred to as the Company) is a foreign-invested company licensed to trade in real estate and wishes to buy housing for its employees, thus the Company is regulated by the National Assembly’s Resolution No. 19/2008/NQ-QH12 dated June 03, 2008 on experimental permission for foreign entities to purchase and own housing in Vietnam.
Pursuant to Clause 5 Article 2 and Clause 2 Article 5 of Resolution No. 19/2008/NQ-QH12, every foreign-invested company that is operating in Vietnam under regulations of law on investment and licensed to trade in real estate is not permitted to buy and own housing (including multi-purposes buildings used for both business operation and residence) in Vietnam. Thus, to satisfy the need for provision of housing for the Company’s employees, the Company may leases housing in Vietnam according to Clause 2 Article 62 of the Government’s Decree No. 71/2010/NĐ-CP dated June 23, 2010 on guidelines for the Law on Housing.
- According to Clause 2 Article 153 and Clause 1 Article 169 of the Law on Land 2013 (effective from July 01, 2014), foreign-invested companies may only receive the rights to use land when the State allocates land to execute projects of investment in construction of housing for sale and/or for lease, or when the State leases out land. A foreign-invested company may use the piece of land on which its business premises are built if such piece of land is leased out by the State or leased by the company from a Vietnamese business operation or from an overseas Vietnamese citizen.
Pursuant to Point a Clause 1 Article 10 of the Law on Real estate trading, foreign entities may create houses and constructions for sale, for lease, or for lease purchase.
Comparing the aforementioned regulations with the documents of the Company, the Company may only leases land or receive land allocated by the State to build a multi-purpose building (which is used for residence) for sale, for lease, or for lease purchase; the sale, lease, and lease purchase must comply with regulations of law.
The Company is responsible for the implementation of this Dispatch./.
PP THE MINISTER
Nguyen Manh Ha
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