Vietcap discusses new real estate regulations with law firm Baker McKenzie

New Land Law:

- Potential to be implemented by mid-2024 via amended circulars and decrees.

- Decentralizes decision-making, focusing on non-agricultural land and new categories like data centers.

- Clarifies land lease and allocation, allows upfront land payments.

- Stricter rules for land expropriation, only allowed for specific public interest projects.

- Requires competitive bidding for urban development projects and some sector-specific projects.

Real Estate Business Law:

- Classifies various real estate products beyond houses and construction works.

- Requires approval for land transactions and registration and licensing.

- Property listings must have land-use certificates and ownership registration.

New Housing Law:

- Restrictions on appropriation, need for residential land for project approval, unclear post-approval land transfer process.

- Introduction of mixed-use buildings with separate functional components for sale.

Overall, the new laws are anticipated to enhance transparency and efficiency in the real estate market. Investors await detailed decrees for clarification, particularly regarding land-use rights after lease expiration, which may impact long-term investments. While the laws may not drastically affect foreign investment, the government is expected to take a stricter stance on approvals to prevent disorderly development.

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