SALE OF RESIDENTIAL HOUSES IN VIETNAM

The positive prospect of Vietnam residential house market is attracting foreign direct investment especially to Hanoi and HCMC's real estate market. However, the law and regulations related to the real estate business has many kinds of typical aspects because of the characteristic of the socialist system of Vietnam. In addition, the new Residential Housing Law and new Real Estate Law adopted many kinds of new requirements for the real estate developer to protect residential house buyers. Thus the investors in the area of real estate need to focus on the legal elements required by the Vietnamese law and related regulations. This article only reviewed the sales period in the residential house development project such as Deposit Agreement, Capital Contribution Contract, requirements for the Sale and Purchase of houses and issuance of Land Use Right Certificate. Thus before starting the residential housing investment in Vietnam, the foreign company also needs to review the first stage of investment such as obtaining Investment License, permission for the construction together with the second stage such as the compensation for the land and the attached assets, clearance of the land and so on. The investor also needs to consider the difficulties in clarifying the requirements for the real estate business because the law and regulations are not clear and the ruling of courts have not been opened to the public in Vietnam. In addition, it is difficult to find a appropriate textbook or thesis clearly explaining the law and regulations related to the real estate business in Vietnam. Lastly I want to add that it is difficult to contact officials of Ministry of Construction and Department of Construction to get the answers for the vague parts of real estate areas. In conclusion, to secure success of investment in Vietnamese real estate business market, the investor needs to carefully review the law and regulations, consider the unclear requirements in the law and consult the real estate business law specialists to get their experience together with the principles in law.