IN CASE OF USE RIGHTS TRANSFER OF “RESIDENTIAL AND NON-RESIDENTIAL LAND”, OR 'NON-RESIDENTIAL LAND”, SHALL COMMERCIAL HOUSING PROJECTS BE GRANTED APPROVAL FOR BOTH INVESMENT POLICY AND INVESTORS?

Since May 4, 2022, the Ministry of Planning and Investment (“MPI”) has issued Documentary No. 2875/BKHDT-PC (“Documentary 2875”) guiding this issue. Accordingly, the MPI has been providing that the simultaneous approval for investment policy and investors implementing commercial housing projects without auction of land use rights and bidding to select investors as abovementioned, is inconsistent with the provisions of the Law on Housing.

Specifically, the Law on Housing stipulates forms of land use to implement construction projects of commercial houses, including:

1. The investor has the right to use residential land or residential land and non-residential land that meets the conditions for change of land use purpose, in order to implement the investment project;
2. The investor transfers residential land use rights in accordance with the law on land in order to build commercial houses.