Investors expect the Government to issue an amended decree undoing bottlenecks in land

DNHN - Pham Thanh Tuan, a legal and real estate expert and arbitrator at the Vietnam Commercial and Justice Arbitration Center (VietJac), stated that investors anticipate the Government to issue a revised decree to eliminate bottlenecks in the field of law.

According to real estate and legal expert Pham Thanh Tuan, a large number of real estate business owners expect the government to soon eliminate legal roadblocks in the land and construction industries. Particularly noteworthy are the early allocation of land to approved investor enterprises (via the appointment of contractors) and the early completion of regulations on the sale of real estate in the form of plots and plots.

Mr. Tuan shared with Enterprise & Integration Magazine that bidding is the most common method for selecting investors in the real estate industry and in the investment and development of commercial housing in particular. When bidding will occur in one of two circumstances:

Scenario 1: If two or more investors meet the preliminary bidding requirements, these investors will advance to the next round of open bidding; the winning enterprise will be recognized as the investor in the project's implementation.

Scenario 2: When only one investor is interested in the project or only one investor meets the preliminary requirements for bidding and is approved as the project's investor (also known as the appointment of contractor).

The Investment Law 2020, Decree 25/2020/ND-CP on investor selection, open bidding when two investors are participating, or the appointment of a contractor when only one investor is participating in the implementation of a project has been in effect since 2020.

Nevertheless, if in the case of public bidding, the winning investor is allocated or leased land by a State agency for the implementation of the project, the allocation of land for lease for the designated investor must be...awaiting the Decree amending several articles of the Decrees guiding the 2013 Land Law, which is expected to be promulgated soon.

In other words, although the approval of investors is consistent with the Law on Investment, the current land law is not consistent with the law on investment because investors are not permitted to allocate or lease land. Mr. Tuan announced the appointment.

Numerous localities, including Thanh Hoa, Hai Duong, etc., have recently petitioned the Ministry of Natural Resources and Environment and the Government to eliminate the aforementioned obstacles and establish conditions for land allocation and land leases to investors. tender determination. Since the government has not issued a Land Law Decree, approved investors must still wait to be allocated land.

From the end of 2022, at the regular Government meeting in October 2022 (item 8 point (b) of Resolution 143/NQ-CP dated November 4, 2022), the Government requested the Ministry of Natural Resources and Environment to coordinate with other ministries and branches to include the content of land allocation in the case of investor approval in the draft decree outlining the 2013 Land Law. This draft decree has not yet been issued, so businesses are permitted to Still, investment approval is comparable to "sitting on fire."

According to the arbitrator of the Vietnam Center for Commercial Arbitration and Justice, if in the past real estate project investors wanted to transfer land use rights that had been invested in building infrastructure for households, individuals who build their own houses (commonly referred to as subdivisions for sale) will be required to apply for approval from the provincial People's Committee.

By Article 11 of Circular No. 20/2013/TTLT-BXD-BNV, the Provincial People's Committee, after consulting the Ministry of Construction, will issue a document allowing the investor to subdivide the plot for sale.

However, Decision No. 1963 of the Prime Minister dated November 22, 2021, approving the plan to reduce and simplify regulations related to business activities within the scope of State management functions of the Ministry of Construction in 2021 and 2022 stipulates the direction of decentralization of this authority for the Provincial People's Committee to self-determine (the Provincial People's Committee is no longer required to consult the Ministry of Construction).

These contents have been specified in the draft decree amending and supplementing several articles of the Ministry of Construction's decrees governing state management. The government has not yet issued the revised Decree governing the construction industry.

The Provincial People's Committee has consulted with the Ministry of Construction on the area where investors are permitted to sell sub-lots by the provisions of Joint Circular No. 20/2013/TTLT-BXD-BNV since the beginning of 2022 and received the same response: "to wait" until the revised decree in the construction sector is issued.

Mr. Tuan stated that between now and the 6th session (October 2023) of the 15th National Assembly, the National Assembly will pass 3 important laws about the real estate market, including the Land Law (amended); Law on Real Estate Business (amended); and Law on Housing (amended).

It is anticipated that the aforementioned laws will go into effect on July 1, 2014, with numerous new provisions regulating investment and land policies to create opportunities for the development of real estate businesses. However, until the new policies specified in the Laws go into effect, the policy is delayed and time is required.

Mr. Tuan suggested, "Therefore, investors want the Government to issue amendment decrees in the field of land, construction, and land allocation to investors before the above-revised laws take effect."

Hoai Anh