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MINISTRY OF CONSTRUCTION
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 04/VBHN-BXD

Hanoi , August 26, 2021

 

CIRCULAR

GUIDELINES FOR IMPLEMENTATION OF SOME CONTENT OF THE LAW ON HOUSING AND THE GOVERNMENT'S DECREE NO. 99/2015/ND-CP

Circular No. 19/2016/TT-BXD dated June 30, of the Minister of Construction provides guidelines for implementation of some content of the Law on Housing and Decree No. 99/2015/ND-CP dated October 20, 2015 on guidelines for the Law on Housing, comes into force on August 15, 2016 and is amended by:

1. Circular No. 02/2019/TT-BXD dated July 01, 2019 of the Minister of Construction on periodic reports; amendments to some Articles on Circulars relevant to periodic reports under the management of the Ministry of Construction, which comes into force on August 15, 2019;

2. Circular No. 07/2021/TT-BXD dated June 30, 2021 of the Minister of Construction on amendments to and annulment of some Articles of Circular No. 19/2016/TT-BXD and Circular No. 02/2016/TT-BXD.

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Government's Decree No. 99/2015/ND-CP dated October 20, 2015 on guidelines for implementation of some Articles of the Law on Housing (hereinafter referred to as Decree No. 99/2015/ND-CP);

Pursuant to the Government’s Decree 62/2013/ND dated June 25, 2013 on functions, duties, powers and organizational structure of the Ministry of Construction;  

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The Minister of Construction promulgates a Circular on guidelines for implementation of some content of the Law on Housing and the Government's Decree no. 99/2015/ND-CP on elaboration of the Law on Housing.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Circular provides guidelines for implementation of provisions for housing development, management and use of houses, housing transaction, house ownership, state management of housing in the Law on Housing and Decree No. 99/2015/ND-CP dated October 20, 2015 elaborating the Law on Housing (hereinafter referred to as “Decree No. 99/2015/ND-CP").

2. Provisions for social housing development, management and use of social housing not owned by the State are not regulated by this Circular.

Article 2. Regulated entities

1. Organizations, domestic households and individuals, Vietnamese citizens residing overseas, foreign entities relevant to develop, management, use, transaction of houses and house ownership in Vietnam.

2. Housing authorities.

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1. The People’s Committees of provinces shall provide funding from their provincial budgets to formulate local housing development plans/programs in accordance with Decree No. 99/2015/ND-CP and this Circular.

2. Funding for formulation of a housing development program/plan includes cost of formulation, assessment, management and announcement of the program/plan exclusive of VAT and cost of selection of a consultancy unit.

3. Funding for formulation of a local housing development plan/program is determined according to the formula below:

T = C1 + C2

Where:

CT: total cost of formulation, assessment, management and announcement of the housing development program.

C1: total cost of formulation of the housing development program, which is determined as follows:

C1= Cchuẩn x H1 x H2 x K

Where:

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H1: Factor of working conditions and level of socio-economic development of the area according to Table 02 of Appendix 01 enclosed herewith.

H2: Factor of natural area according to Table 03 of Appendix 01 enclosed herewith.

K: average consumer price factor.

At the time of promulgation of this Circular, K = 1; In case of adjustment of K by a competent authority:

K = 0,5 x (1 + K1). K1 is average consumer price factor which equals (=) consumer price index published by the State at that time divided by (:) consumer price index at the time of promulgation of this Circular.

C2: total cost of assessment, management and announcement of the program, which equals 15,6% C1. Specific costs shall be determined according to Table 01 of Appendix 01 enclosed herewith.

4. Funding for study revisions to a local housing development program depends on the revisions and shall not exceed 60% of the total funding for formulation of a new housing development program specified in Clause 3 of this Article.

Limits on funding for revisions to local housing development programs are specified in Table 01 of Appendix 01 enclosed herewith.

5. Funding for formulation and revision of a local housing development plan shall be determined as follows:

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b) Funding for formulation of an annual housing development plan (except for that of the first year of a program) shall not exceed 20% of the total funding for formulation of a new housing development program determined at the time of estimate calculation; funding for revision of an annual housing development plan shall not exceed 60% of the total funding for formulation of an annual housing development plan according to regulations of this Point.

Article 3a. Criteria for housing demand determination for formulation of housing development programs and plans

For formulation of a local housing development program and plan, housing demand shall be determined based on the following criteria:

1. Housing development targets and requirements in the national housing development strategy approved by the Prime Minister.

2. Targets related to housing development in provincial planning and local construction planning during performance of the housing development program and plan approved by the competent authority.

3. Land allocated for housing development in local land use plan and construction planning approved by the competent authority.

4. Floor area demand of each entity in the locality according to regulations of Article 49 of the Law on Housing.

5. Housing support policies and mechanisms promulgated by the State at the time of research and formulation of the housing development program and plan.

6. Actual state of local floor area provided by the competent authority at the time of formulation of the housing development program and plan; actual states of commercial housing, social housing, housing for official business, housing for relocation, housing for poor households in rural areas and housing for other entities for the previous 5- or 10-year period.

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8. Expected financial capacity of local budget for supporting construction of housing for those eligible for social housing policies.

Chapter II

HOUSING DEVELOPMENT

Section 1. SOME PROVISIONS FOR HOUSING DEVELOPMENT

Article 4. (annulled)

Article 5. (annulled)

Article 6. (annulled)

Article 7. (annulled)

Article 8. (annulled)

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1. (annulled)

2. An application sent to the Department of Construction for announcement of fulfillment of conditions for raising capital specified in Clause 3 Article 19 of Decree No. 99/2015/ND-CP consists of:

a) A written request for announcement of fulfillment of conditions for raising capital;

b) Certified true copies of the decision on investment guidelines or approval for investment guidelines issued by a competent authority; a decision on approval enclosed with the project documents according to construction and housing laws;

c) A written confirmation by a competent authority of completion of land clearance on schedule;

d) Certified true copy of the record on transfer of the project boundary on schedule.

3. A capital contribution contract, investment cooperation contract, or business cooperation contract specified in Clause 3 Article 19 of Decree No. 99/2015/ND-CP shall specify:

a) Names and addresses of parties to the contract;

b) Capital raising method;

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d) Profit distribution method;

dd) Time limit for capital reimbursement;

e) Rights and obligations of the parties;

g) Dispute settlement;

h) Other arrangements.

4. Where capital is contributed to establish a new legal entity as the investor in the housing project, the capital contribution contract, investment cooperation contract, or business cooperation contract shall be made out in accordance with investment laws and relevant laws.

Section 2. OFFICIAL RESIDENCE DEVELOPMENT

Article 10. Procedures for determination of residence demand and approval for official residence development plan

1. Procedures for determination of residence demand and approval for official residence development plan of a central agency (except for those of the Ministry of National Defense and the Ministry of Public Security):

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A 5-year official residence development plan (2016 – 2020) shall be sent to the Ministry of Construction before September 30, 2016; the next 5-year plans shall be sent before October 31 of the year preceding the planning period; an annual official residence development plan shall be sent before October 31 of the year preceding the planning year.

The Ministry of Construction shall finish appraising within 60 days from the receipt of proposal for official residence demand from a central agency;

b) In consideration of consolidated demand for official residence of central agencies, the Ministry of Construction shall develop a plan for development of official residences of central agencies and submit it to the Prime Minister for consideration. After such plan is approved by the Prime Minister, the Ministry of Construction shall send it to relevant bodies for implementation.

2. Procedures for determination of residence demand and approval for official residence development plan of the Ministry of National Defense and the Ministry of Public Security:

a) The Ministry of National Defense or the Ministry of Public Security shall conduct survey into demand for official residence and develop its own plan for official residence development, and request the Ministry of Construction to offer opinions before submitting such plan to the Prime Minister;

b) After receiving the consensus of the Ministry of Construction, the Ministry of National Defense and the Ministry of Public Security shall complete the plan and submit it to the Prime Minister for approval. After the plan is approved by the Prime Minister, the Ministry of National Defense or the Ministry of Public Security shall implement and send it to the Ministry of Construction for consolidation and monitoring.

3. Procedures for determination of residence demand and approval for official residence development plans of local governments:

a) The Department of Construction shall take charge and cooperate with relevant agencies and the People’s Committees of districts in surveying their demands for official residence according to Appendix 07 enclosed herewith.

In consideration of consolidated demand for official residence of agencies in the province, the Department of Construction shall develop a 5-year and annual official residence development plans and submit them to the People’s Committee of the same province for approval.

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b) The People’s Committee of the province shall consider, approve, and provide instructions on implementation of the local official residence development plan, and send it to the Ministry of Construction for monitoring according to the form in Appendix 07a enclosed herewith.

Article 11. (annulled)

Chapter III

MANAGEMENT AND USE OF STATE-OWNED HOUSES

Section 1. MANAGEMENT AND USE OF STATE-OWNED RELOCATION HOUSES

Article 12. Application and contract for sale, lease, lease purchase of relocation houses

1. The form of application for sale, lease, lease purchase of relocation house is provided in Appendix 08 enclosed herewith. The form of contract for sale, lease, lease purchase of relocation house is provided in Appendix 19, 20 and 21 enclosed herewith.

2. Minimum duration of a relocation house lease contract is 03 years (unless otherwise agreed by the parties); such contract may be extended for up to 03 more years.

3. Minimum duration of a relocation house lease purchase contract is 05 years.

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1. The rent for a relocation house comprises construction cost, land levies or land rent, maintenance cost (only applied to houses for lease) and VAT.

2. Calculation of rent for a relocation house:

Gt =

Vđ + Vsdđ + Bt

x K x (1 + GTGT)

12

Where:

a) Gt: monthly rent for 01 m2 (VND/m2/month).

b) Vđ: annual total pretax reasonable cost of construction per 1 m2 prescribed by regulations of law on management of investment and construction. In case of lease purchase, the first installment agreed in the contract shall be deducted from Vđ.

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- Where the State directly invest state capital in construction of relocation houses specified in Clause 3 Article 36 of the Law on Housing or use of social houses as relocation houses: Vđ shall be determined  according to the investment value in the financial statement approved by a competent authority; if the financial statement has not been approved, Vđ shall be determined according to construction cost in the total construction investment approved by a competent authority.

- This content is annulled

- Where the State purchases commercial houses as relocation houses: Vđ shall be determined according to buying prices of commercial houses under the sale contract with the investor in the commercial housing project.

c) Vsdđ: Annual land levy or land rent for 01 m2 of housing prescribed by land laws.

- Where the State directly invest state capital in construction of relocation houses specified in Clause 3 Article 36 of the Law on Housing or use of social houses as relocation houses, Vsdđ shall be determined according to land prices imposed by the People’s Committee of the province;

 - In case the State purchase commercial houses as relocations houses,  Vsdđ = 0;

d) Bt: annual maintenance cost per 1 m2. For lease purchase , Bt = 0; buyer/tenant shall pay maintenance cost in accordance with Article 108 of the Law on Housing.

dd) K: floor coefficient which is a weighted mean so that the sum of coefficients of floors of a building is 1.

e) GTGT: VAT determined in accordance with tax laws.

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3. The rent calculated in Clause 2 of this Article is exclusive of management cost, which is paid by the buyer/tenant to the management unit as prescribed.

Section 2. MANAGEMENT AND USE OF STATE-OWNED SOCIAL HOUSES

Article 14. Documents proving eligibility for purchase, lease purchase of state-owned social houses

A tenant or buyer/tenant of a state-owned social house shall prepare an application according to the form in Appendix 09 enclosed herewith and the following documents:

1. Documents proving eligibility:

a) An entity specified in Clause 1 Article 49 of the Law on Housing shall submit a certification according to Appendix 13 enclosed herewith;

b) An entity specified in Clause 4, 5, 6 or 7 Article 49 of the Law on Housing shall submit a certification according to Appendix 14 enclosed herewith;

c) An entity specified in Clause 8 Article 49 of the Law on Housing shall submit a certification according to Appendix 15 enclosed herewith;

d) An entity specified in Clause 10 Article 49 of the Law on Housing shall submit a certification according to Appendix 16 enclosed herewith.

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a) A person who has permanent residence in a province where the social house is located shall submit a certified true copy of the permanent residence book or certificate of registration of collective residence;

b) A person who does not have a permanent residence as specified in Point a of this Clause shall submit the following documents:

- Certified true copies of the certificate of at least 01 year’s temporary residence registration;

- An employment contract of at least 01 year up to the time of submission of the application and a written certification from an insurance authority that he/she is paying social insurance contributions in the province where the social house is located. If such person is working for a branch or representative office in the province where the social house is located and pay social insurance contributions in another province where the headquarters is located, it is required to have a written certification of social insurance payment from the headquarters.

3. Documents proving sufficient income:

a) An entity specified in Clause 5, 6 or 7 Article 49 of the Law on Housing shall submit a certification of sufficient income and living conditions according to Appendix 14 enclosed herewith; if a certification of eligibility and living conditions has been obtained before the effective date of this Circular, only certification of sufficient income according to Appendix 17 of this Circular is required.

b) An entity specified in Clause 4, 5, 6 or 7 Article 49 of the Law on Housing who has resigned his/her job or retired shall prepare a declaration of income himself/herself according to Appendix 18 of this Circular (without certification). If a certification of eligibility and living conditions has been obtained before the effective date of this Circular, only declaration of income is required.

c) An entity specified in Clause 1, 8, 9 or 10 of Article 49 of the Law on Housing is not required to submit documents proving sufficient income.

Article 15. Documents proving eligibility for exemption or reduction of rents for state-owned social houses

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Article 16. Criteria for selection of people eligible for purchase and lease purchase of state-owned social houses

1. Article 49 and Article 51 of the Law on Housing and Article 14 of this Circular shall apply to selection of people eligible for purchase and lease purchase of state-owned social houses. In case available social houses are not adequate for all eligible people, the grading system on a scale from 1 to 100 specified in Clause 2 of this Article shall be applied. A person who has a higher score will be given priority over another who has a lower score.

2. Grading system and corresponding criteria:

STT

Criteria

Point

1

Housing difficulties:

- Owns no house.

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40

30

2

Groups:

- Group 1 (Clauses 1, 8 and 10 Article 49 of the Law on Housing).

- Group 2 (Clauses 5, 6 and 7 Article 49 of the Law on Housing).

- Group 3 (Clauses 4 and 9 Article 49 of the Law on Housing).

 

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30

20

3

Other criteria:

- The household has 02 or more people of Group 1.

- The household has 01 person of Group 1 and at least 01 person of Group 2 or 3.

- The household has 02 or more people in Group 2 or 3.

Notes: In case a person in a household satisfies multiple criteria, the criterion with the most points shall apply.

 

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7


4

 

 

4

Criteria established by the People’s Committee of the province (if any):

10

3. According to the rules and grading system specified in Clause 1 and Clause 2 of this Article, the owner’s representative agency or housing management authority (if authorized) shall specify the criteria for selection of people eligible for lease and lease purchase of state-owned social houses under their management.

4. A housing management authority may establish a council, which comprises representatives from relevant local agencies) to process documents or directly process the applications in a manner that ensure transparency and conformity with the rules and criteria specified in this Article.

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Article 17. Determination of rent for state-owned social house

1. The rent for a state-owned social house specified in Clause 1 Article 55 of Decree No. 99/2015/ND-CP comprises construction cost, land levies or land rent, maintenance cost (only applied to house lease) and VAT, exclusive of land levies, land rents and management cost.

Section 3 of this Chapter shall apply to state-owned social houses leased out to students.

2. Calculation of rent for a state-owned social house:

Gt =

Vđ + Bt

x K x (1 + GTGT)

12

Where:

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b) Vđ: annual total pretax reasonable cost of construction per 01 m2 prescribed by regulations of law on management of investment and construction. In case of lease purchase, the first installment agreed in the contract shall be deducted from Vđ.

The basis for determination of Vđ varies according to the investment method specified in Clause 1 Article 53 of the Law on Housing:

- In case of direct state capital investment in construction of social houses specified in Clause 1 Article 53 of the Law on Housing: Vđ shall be determined  according to the investment value in the financial statement approved by a competent authority; if the financial statement has not been approved, Vđ shall be determined according to construction cost in the total construction investment approved by a competent authority.

- This content is annulled

c) Bt: annual maintenance cost per 1 m2. For lease purchase of social houses, Bt = 0; buyer/tenant shall pay maintenance cost in accordance with Article 108 of the Law on Housing.

d) K: floor coefficient which is a weighted mean so that the sum of coefficients of floors of a building is 1.

dd) GTGT: VAT determined in accordance with tax laws.

e) 12: 12 months in a year.

3. According to Clause 1 and Clause 2 of this Article, the housing management authority shall cooperate with a finance authority at the same level in proposing rents for state-owned social houses under their management to the owner’s representative agency.

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Article 18. Procedures for leasing out state-owned social houses to students

1. State-owned social houses for rent for students are hereinafter referred to as student housing. The lease term varies according to each student’s need but shall not be shorter than 01 year and not longer than the student’s study duration.

2. The following procedures shall apply to student housing invested by the State from June 10, 2009 (effective date of the Prime Minister’s Decision No. 65/2009/QD-TTg):

a) A student who wishes to take out a lease shall submit an application form according to Appendix 10 enclosed herewith and copies of documents proving priority (if any) to:

- The educational institution at which he/she is studying, which shall receive and process applications, compile a list of students and send it to the student housing management authority;

- The student housing management unit (hereinafter referred to as managing unit)after a certification is granted by his/her educational institution.

b) According to the list of students who wish to lease houses, the managing unit shall grant leases according to available housing quantity and in order of priority prescribed in Clause 1 Article 52 of Decree No. 99/2015/ND-CP;

c) Grant of leases shall be considered within 30 days from the day on which the managing unit receive the applications, list and relevant documents.

Where a student is not eligible to take out a lease or available student housing is not adequate, he/she must be informed in writing.

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Article 19. Rules for determination of student housing rents

1. The student housing management authorities (for student housing under management of Ministries and central regulatory bodies) or Departments of Construction (for student housing under management of the People’s Committee of the province) shall impose rents for student housing under their management in accordance with this Article and Article 20 of this Circular, then request the owner’s representative agency to decide in accordance with Clause 1 Article 55 of Decree No. 99/2015/ND-CP. The owner’s representative agency may authorize a student housing management authority to decide the rents.

2. Revenues from student housing rents and provision of services therein shall be recorded and spent in accordance with law; revenues from service provision (if any) minus (-) operational cost shall be used to covered the management cost and maintenance cost with an aim to reduce student housing rents.

Article 20. Determination of student housing rents

1. Student housing rent is inclusive of management cost and maintenance cost, exclusive of construction cost, land levies and land rents.

2. Calculation of student housing rent:

Gt =

Ql + Bt - Tdv

x K

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Where:

- Gt: monthly rent for 01 m2 (VND/m2/month).

- Ql: annual management cost per 01 m2 (VND/year)

- Bt: annual maintenance cost per 01 m2 (VND/year).

- Tdv: revenue from provision of services such as parking, food and drink, other revenues (if any) (VND/year).

- S: total area for lease (m2).

- K: floor coefficient which is a weighted mean so that the sum of coefficients of floors of a building is 1.

- 10: 10 months in a year.

Article 21. Student housing management

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2. Student housing must have an internal  management board which is annually elected by the students and recognized in writing by the managing unit and; the internal management board shall perform the rights and obligations specified in Clause 3 of this Article. The management board consists of 5 – 7 members who are representatives of the tenants and representative of Communist Youth Union of Ho Chi Minh City and Student Union introduced by training institutions among the tenants.

3. Rights and obligations of the internal management board:

a) Disseminate rules and regulations established by the managing unit among students; prevent and report violations committed within the student housing area;

b) Organize cleaning, environmental, cultural, and sports activities in the student housing area;

c) Submit annual reports to the managing unit on the use of the houses and students’ proposals regarding issues related to student housing management.

Section 4. LEASING STATE-OWNED OLD HOUSES

Article 22. Application and contract for lease of a state-owned old house

1. The application form is provided in Appendix 11 enclosed herewith.

2. The model contract is provided in Appendix 20 enclosed herewith.

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1. People with meritorious services to the revolution shall have supporting documents issued by competent authority.

2. A disabled person or lonely elder shall have a written confirmation issued by a competent authority as prescribed by regulations of law on the disabled and social protection beneficiaries.

3. A poor household or near-poverty household in an urban area shall have a written confirmation issued by the People’s Committee of the commune where he/she permanently resides or has temporarily resided for at least 01 year.

Section 5. SELLING STATE-OWNED OLD HOUSES

Article  24. Procedures for selling state-owned old houses

1. The buyer of an old house shall prepare 01 application according to Clause 1 Article 69 of Decree No. 99/2015/ND-CP. Procedures for selling old houses are specified in Clause 2 Article 69 of Decree No. 99/2015/ND-CP.

2. The application form for purchase of a state-owned old house is provided in Appendix 12 enclosed herewith.

3. The model contract for purchase of a state-owned old house is provided in Appendix 22 enclosed herewith.

Article 25. Selling prices for state-owned old houses renovated by the State

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Article 26. Rules for determination of remaining value and value coefficient when selling state-owned old houses

1. The method for determination of remaining value of state-owned old houses sold to tenants as prescribed in this Circular are specified in Circular No. 13/LB-TT dated August 18, 1994.

2. Classification of old houses and calculation of their areas as the basis for determination of selling prices are specified in Circular No. 05-BXD/DT dated February 09, 1993 of the Ministry of Construction.

3. Value coefficients of state-owned old houses:

a) Value coefficients of various types of houses except for those specified in Point b of this Clause:

- Single-story house and 1st floor:

1,2

- 2nd floor:

1,1

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1,0

- 4th floor:

0,9

- 5th floor:

0,8

- From 6th floor:

0,7

b) Value coefficients of multi-family townhouses for more than one household:

- 1st floor:

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- 2nd floor:

0,8

- 3rd floor:

0,7

- 4th floor:

0,6

- 5th floor:

0,5

- From 6th floor:

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c) Coefficients of floors upon transfer of land use right:

Number of stories

Coefficient

1st floor

2nd floor

3rd floor

4th floor

5th floor

From 6th floor

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0,7

0,3

 

 

 

 

3

0,7

0,2

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4

0,7

0,15

0,1

0,05

 

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≥ 5

0,7

0,15

0,08

0,05

0,02

0,0

For a detached house which has a mezzanine, coefficient = 0,7.

When selling an apartment of a state-owned old apartment building with closed structure, land levy distributed to each apartment in the apartment building shall be multiplied by (x) 1,4; this coefficient does not apply to multi-family townhouses.

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1. Any buyer of an old house who is eligible for exemption or reduction of land levies as prescribed in Clause 1 Article 67 of Decree No. 99/2015/ND-CP shall have supporting documents similarly to those required for exemption or reduction of rents for state-owned old houses specified in Article 23 of this Circular.

2. Any buyer of an old house who is eligible for reduction of land shall have any of the following documents:

a) A document proving the buyer’s seniority at his/her current workplace;

b) A written confirmation from the social insurance authority of the district that the buyer is living on pension or compensation for loss of capacity for work or occupational diseases or other occupational benefits as prescribed by law;

c) Certified true copy of the decision on resignation and provision of lump sum social insurance benefits, severance pay before and after the promulgation of Decision No. 111/HDBT dated April 12, 1991 of Minister Council and after the promulgation of the Labor Code 1995, demobilization pay. If such decision is lost, a declaration of career certified by the former employer is required;

d) Documents specified in Article 23 of this Circular if the buyer is a people with meritorious services to the revolution, poor household, near-poverty household, disabled person, lonely elder, or a person facing extreme housing difficulty in an urban area.

3. Levels of land levy reduction:

a) If the buyer is a people with meritorious services to the revolution, exemption or reduction of land levies shall be granted pursuant to:

- The Prime Minister’s Decision No. 118/TTg dated February 27, 1996;

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- The Prime Minister’s Decision No. 117/2007/QD-TTg dated July 25, 2007.

b) If the buyer is a disabled person or lonely elder or member of a poor household or near-poverty household in an urban area, exemption or reduction of land levies shall be granted pursuant to Clause 1 Article 68 of Decree No. 99/2015/ND-CP.

In case of a poor household or near-poverty household or household having a disabled person, 60% reduction of land levies shall apply to the whole household. Example: Mr. A’s household is a poor household with 3 members who have a lease contract. When he buys a house, he will be given 60% reduction of land levies. Mr. B’s household is a poor household and has 02 members who are disabled. The whole Mr. B’s household will be given 60% reduction in land levies when buying an old house.

c) The grant of land levy exemption and reduction when selling state-owned old houses to the entities specified in Point a and Point b of this Clause only apply within the limited area specified in the People’s Committee of the province.

4. Reduction in selling prices for state-owned old houses by seniority:

a) For each year’s working, the buyer will be given a reduction of 0.69 times the minimum wage of officials and public employees or 1.24 times the minimum wage of servicemen.

Example: Mr. A has a seniority of 20 years. At the time of contract conclusion, the minimum wage is 1.210.000 VND. Reduction shall be calculated as follows: 1.210.000 VND x 0,69 x 20 years = 16.698.000 VND. In case Mr. A is a serviceman, reduction shall be calculated as follows: 1.210.000 VND x 1,24 x 20 years = 30.008.000 VND

b) In case of people with meritorious services to the revolution, people of poor households, people with disability, lonely and old people who are eligible for a reduction that is smaller than 6,9 times the minimum wage, the reduction shall be equal to 6,9 times the minimum wage. The same will apply if they have no seniority.

Example: Mr. B is a person with meritorious services to the revolution and has a seniority of 05 years, thus he is eligible for a reduction that smaller than 6,9 times the minimum wage (1.210.000 VND x 1,24 x 5 years = 7.502.000 VND). In this case, he will be eligible for a reduction that is equal to 6,9 times the minimum wage ((1. 210. 000 VND x 6,9 = 8.349.000 VND). The same will apply if Mr. B has no seniority.

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Share area in a multi-family townhouse specified in Clause 1 Article 71 of Decree No. 99/2015/ND-CP shall be dealt with as follows:

1. The shared area shall be sold when all of the following conditions are satisfied:

a) The organization, household or individual that wishes to by the shared area is the owner of the entire housing area that has been sold by the State (which has a land use right certificate);

b) The organization, household or individual that is the owner of the entire housing area sold submits a written application for purchase of the shared area;

c) The shared area is not in dispute.

2. Rents and land levies for shared areas are specified in Clause 1 Article 71 of Decree No. 99/2015/ND-CP; no exemption or reduction of land levies on shared areas shall be granted.

Chapter IV

OWNERSHIP OF HOUSING IN VIETNAM BY FOREIGN ENTITIES

Article 29. Determination of quantity of houses of a housing project in Vietnam foreign entities may own

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2. Determination of quantity of detached houses (including row houses, independent houses, villas) foreign entities may own:

a) If there is only 01 housing project in an area whose population is equivalent to that of a ward, foreign entities may own up to 10% of the houses or 250 houses of such project, whichever comes first. If there are more than one project is such area, foreign entities may own up to 10% detached houses of each project and up to 250 houses of all the projects;

b) If there are more than one housing project in an area whose population is equivalent to that of a ward and the quantity of detached houses owned by foreign entities has reached the limit specified in Point a of this Clause, detached houses of any other project within such area may not be sold to foreign entities.

3. Population of a housing project depends on the construction planning scheme approved by a competent authority. A ward’s population is determined according to regulations of law on organization of local governments.

Article 30. Reporting ownership of housing in Vietnam by foreign entities

1. By June 20 and December 20 every year, the Departments of Construction shall submit biannual and annual reports or irregular reports to the Ministry of Construction on house ownership by foreign entities in their provinces according to Form No. 13 in the Appendix hereof.

2. Issuers of the Land use right certificates (hereinafter referred to as Certificates) shall submit a report to the Ministry of Construction, the Ministry of Natural Resources and Environment issuance of such certificates to foreign entities owning houses in Vietnam according to the form in Appendix 23 enclosed herewith.

Article 31. Management of lease of houses to foreign entities

1. Before signing a lease contract, the foreign owner of the house shall send a notification to the housing authority of the district where the house is located. The notification shall specify the owner’s name, address of the house, lease term, copies of the certificate of the house and its purpose.

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3. The housing authority shall notify the tax authority and submit biannual and annual reports to the Department of Construction on house lease by foreign entities in the province; the Department of Construction shall submit a report to the People’s Committee of the province and the Ministry of Construction.

Chapter V

TRANSFER OF COMMERCIAL HOUSE SALE CONTRACT

Article 32. Conditions for transfer of a commercial house sale contract

1. The buyer of a house of the investor in a commercial housing project may transfer the sale contract to another entity as long as the application for the Certificate has not been submitted to a competent authority, whether the house has been received or not.

2. The transferee of the commercial house sale contract may transfer it to another entity as long as the application for the Certificate has not been submitted to a competent authority.

3. The transfer of such contract shall only apply to separate house or apartment. If the contract covers more than one apartment or house, all the apartments or houses in the contract shall be transferred. If the transferor wishes to transfer one or some of the houses, the transferor shall make out a new sale contract or appendix to the contract before following contract transfer procedures.

Article 33. Procedures for transfer of a commercial house sale contract

1. The transferor and transferee shall make out an agreement on transfer of the sale contract in accordance with Article 34 of this Circular. The transfer agreement shall be made into 06 copies (03 copies submitted to the investor, 01 copy to the tax authority, 01 copy kept by the transferor, 01 copy by the transferee); If the transfer agreement has to be notarized or authenticated, another copy shall be kept by the notary or authenticating body.

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a) If the transferor is not an enterprise or cooperative licensed to trade in real estate as prescribed by regulations of law on real estate trading, the transfer agreement must be notarized or authenticated. Application for notarization or authentication:

- 07 original copies of the transfer agreement;

- The original sale contract with the investor in the commercial housing project. From the second transfer agreement, it is required to have original copies of previous transfer agreement(s). If only one or some of the houses in the original contract is transferred, the certified true copy of the original contract and original copy of its appendix shall be submitted;

- Certified true copies or copies enclosed with originals of the unexpired ID card or passport of an individual; decision on establishment or certificate of registration of an organization;

- Other documents prescribed by regulations of law on notarization and authentication.

The notary or authenticating body shall notarize or authenticate the transfer agreement in accordance with regulations of law on notarization and authentication.

b) If the transferor is an enterprise or cooperative licensed to trade in real estate, notarization and authentication of the transfer agreement is optional. If the transfer agreement has to be notarized or authenticated, provisions of Point a Clause shall apply.

3. After all taxes, fees and charges for transfer of the contract is fully paid, the transferee shall submit an application requesting confirmation by the investor of the transfer agreement.

a) The application for confirmation consists of:

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- Original sale contract with the investor in the commercial housing project. From the second transfer agreement, it is required to have original copies of previous transfer agreement(s). If only one or some of the houses in the original contract is transferred, the certified true copy of the original contract and original copy of its appendix shall be submitted. If the house has been received, a certified true copy of the house transfer note is required;

- Tax payment receipt or documents proving tax exemptions as prescribed by tax laws;

- Certified true copies or copies enclosed with originals of documents of the transferee: the unexpired ID card or passport of an individual; decision on establishment or certificate of registration of an organization.

b) The investor shall give confirmation on the transfer agreement within 05 working days from the receipt of adequate documents as specified in Point a of this Clause and send the following documents to the submitter:

- 02 copies of the transfer agreement bearing the investor’s confirmation; one of them is kept by the transferor, the other by the transferee;

- The original sale contract with the investor in the commercial housing project. From the second transfer agreement, it is required to have original copies of previous transfer agreement(s). If only one or some of the houses in the original contract is transferred, the certified true copy of the original contract and original copy of its appendix shall be submitted. If the house has been received, a certified true copy of the house transfer note is required;

- Tax payment receipt or documents proving tax exemptions as prescribed by tax laws.

4. From the second transfer of the contract, the procedures are the same as those for the first transfer.

5. The last transferee of the sale contract shall be granted the Certificate in accordance with land laws. While following procedures for issuance of the Certificate, the following shall be submitted to the Certificate issuer in addition to the documents prescribed by land laws:

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b) The original copy of the last contract transfer agreement bearing the investor’s confirmation.

6. Confirmation of transfer agreement where an investor is not identified (because of dissolution, bankruptcy, shutdown or other reasons prescribed by law):

a) Where the sale contract is transferred before the effective of this Circular but a Certificate has not been granted to the transferred house, the transfer agreement must be certified by the People’s Committee of the commune where the house is located;

b) Where the basis for certification is not ample, the People’s Committee of the commune shall post the sale contract at its office and the neighborhood where the house is located. If there is no dispute or lawsuit is filed after 60 days from the day on which the contract is posted, the People’s Committee of the commune shall certify on the transfer agreement that there is not dispute or lawsuit. This is the basis for issuance of the Certificate to the transferee.

Article 34. Transfer agreement content and model transfer agreement

1. Main content of a transfer agreement:

a) Information about the transferor and transferee (including information about the legal representative for organizations);

b) Number and date of the sale contract with the investor;

c) Transfer price, deadline and method of payment;

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dd) Dispute settlement;

e) Other arrangements.

2. The model contract is provided in Appendix 24 enclosed herewith. The parties may alter terms and conditions of the model contract as long as the main contain specified in Clause 1 of this Article is adequate and the agreement does not contravene civil law and housing laws.

Chapter VI

IMPLEMENTATION           

Article 35. Responsibilities of the People’s Committees of provinces

1. Perform the tasks specified in the Law on Housing, Article 35 of Decree No. 99/2015/ND-CP and Clause 2 through 4 of this Article.

2. Establish specific criteria for selection of eligible tenants and buyers/tenants of state-owned social houses in their provinces as instructed in Article 16 of this Circular.

3. Promulgate or amend ex officio legislative documents on housing in accordance with the Law on Housing, Decree No. 99/2015/ND-CP and this Circular.

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Article 36. Responsibilities of Departments of Construction

1. Perform the tasks of provincial housing authorities specified in the Law on Housing, Decree No. 99/2015/ND-CP , Decisions of the People’s Committee of the province and Clause 2 through 4 of this Article.

2. Take charge and cooperate with local authorities in establishing criteria for selection of eligible tenants and buyers/tenants of state-owned social houses in their provinces as instructed in Article 16 of this Circular.

3. Carry out inspections and impose penalties or request competent authorities to impose penalties for violations against regulations on management and use of state-owned houses in their provinces.

4. Submit biannual, annual and irregular reports to the People’s Committees of provinces and the Ministry of Construction on management and use of state-owned houses in their provinces.

Article 37. Transition clause

1. If a group of experts has been established to select an investor in a commercial housing project as prescribed in Decree No. 71/2010/ND-CP, applications submitted before the effective date of this Circular shall be processed and submitted to the People’s Committee of the province. From the effective date of this Circular, this Circular shall apply to establishment and operation of groups of experts.

2. From the effective date of this Circular, applications for lease or lease purchase of state-owned social houses, application for purchase, lease or lease purchase of state-owned relocation houses submitted before the effective date of Decree No. 99/2015/ND-CP are exempt from adjustment to Decree No. 99/2015/ND-CP, except for the case in which certification of adequate income has to be provided as specified in Clause 3 Article 14 of this Circular.

3. Contracts for lease of state-owned houses concluded before the effective date of Decree No. 99/2015/ND-CP are exempt from re-conclusion according to this Circular and may be executed until their expiration.

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1. This Circular comes into force from August 15, 2016.

2. The documents below are abrogated from the effective date of this Circular:

a) Decision No. 29/2001/QD-BXD dated November 19, 2001 of the Ministry of Construction;

b) Decision No. 17/2006/QD-BXD dated June 07, 2006 of the Ministry of Construction;

c) Circular No. 38/2009/TT-BXD dated December 08, 2009 of the Minister of Construction;

d) Circular No. 16/2010/TT-BXD dated September 01, 2010 of the Minister of Construction;

dd) Circular No. 14/2013/TT-BXD dated September 19, 2013 of the Minister of Construction;

e) Circular No. 03/2014/TT-BXD dated February 20, 2014 of the Minister of Construction;

g) Circular No. 07/2014/TT-BXD dated May 20, 2014 of the Minister of Construction.

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4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Construction for consideration and guidance./.

 

 

VERIFIED BY

P.P. MINISTER
DEPUTY MINISTER




Nguyen Van Sinh

 

 

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Integrated document No. 04/VBHN-BXD dated August 26, 2021 Circular on guidelines for implementation of some content of the Law on Housing and the Government's Decree No. 99/2015/ND-CP
Official number: 04/VBHN-BXD Legislation Type: Integrated document
Organization: The Ministry of Construction Signer: Nguyen Van Sinh
Issued Date: 26/08/2021 Integrated Date: Premium
Gazette dated: Updating Gazette number: Updating
Effect: Premium

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Integrated document No. 04/VBHN-BXD dated August 26, 2021 Circular on guidelines for implementation of some content of the Law on Housing and the Government's Decree No. 99/2015/ND-CP

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