Chapter I:

GENERAL PROVISIONS

• Article 1:

  Residential houses stipulated in this Decree are houses belonging to all forms of ownership.

• Article 2:

  Buying, selling and trading in residential houses stipulated in this Decree consist of the following form:

  • 1. Selling residential houses owned by the State to the existing tenants.
  • 2. Trading in residential houses.
  • 3. Buying and selling residential houses not for commercial purposes.

• Article 3:

  Buying and selling a residential house mean conveyance of ownership of that residential house and transfer of the relevant land use right from the seller to the buyer through a written contract signed between the buyer and the seller as provided for by la w. The seller must be the lawful owner of the residential house and lawful user of the residential land. In all other cases, the seller must possess the letter of authority certified by the Office of the State Notary Public of the lawful owner of such res idential house and lawful user of such residential land.

• Article 4:

  The State stipulates the minimum standard prices for newly-build residential houses and the scale of residential land prices applied for land use right transfer, and the minimum standard prices for renting residential houses for use as basis for controlli ng residential house-buying, selling and trading activities.

Chapter II:

SELLING STATE-OWNED RESIDENTIAL HOUSES TO EXISTING TENANTS

• Article 5:

  The State undertakes sales of residential houses belonging to State ownership to tenants who are leaseholders of their rented space so that the buyers have conditions to improve their domiciles, with exception for the following types of house:

  • 1. Residential houses in areas planned for construction of other projects or to be transformed into new residential quarters.

  • 2. Houses for specialized usage being arranged for temporary residential purpose (hotels, rest houses, schools, hospitals, offices, stores and other types of houses for specialized usage).

  • 3. Villas of all types planned for use as public offices or for other purposes.

• Article 6:

  Purchase of a residential house owned by the State is voluntary. In case the lessee does not buy, he/she is allowed to continue the leasehold on it. If households living in such residential houses as stipulated in Clauses 1, 2 and 3 of Article 5 in this D ecree wish to buy houses, they are considered for grant of permission to buy other residential houses under State ownership in accordance with this Decree, but they shall have to return the leasehold spaces they are occupying respectively to the State.

• Article 7:

  The selling prices of residential houses under State ownership sold to existing tenants shall comprise the prices of such residential houses and the prices of residential land upon transfer of land use right.

  • 1. The prices of residential houses are determined on the basis of the remaining value of such houses and the coefficient for adjusting their utility value:
    • a/ The remaining value of residential houses is determined on the basis of remaining percentage of such houses in comparison with the prices of newly-built residential houses stipulated by the People's Committee of provinces and centrally-ruled cities (he reinafter referred to as the provincial level) on the Basis of the minimum standard prices of newly-built residential houses fixed by the State. This percentage is determined for each specific housing space for sale, subject to the duration of its utiliza tion and to its actual situation.

      The Ministry of Construction, the Ministry finances and the Government's Pricing Board shall provide guiding methods for determining the remaining value of residential houses.

    • b/ The coefficient for adjusting utility value is stipulated as follows:

    • - Ground floor and single-storied houses, coefficient applicable is 1.2
    • - first floor, coefficient applicable is 1.1
    • - Second floor, coefficient applicable is 1.0
    • - Third floor, coefficient applicable is 0.9
    • - fourth floor, coefficient applicable is 0.8
    • - fifth and higher floors, coefficient applicable is 0.7

• 2. The prices of residential land applicable upon transfer of land use right are fixed by the provincial-level People's Committee on the basis of the land price scale stipulated by the State, subject to the location of each plot of residential ground and the ordinal number of each floor:
  • a/ Regarding single-storied and multi-storied houses each occupied by a single household, the selling prices are equivalent to 40% of the land price upon transfer of land use right.

  • b/ Regarding multi-storied buildings occupied by more than one household, the selling prices are equivalent to 10% of the land price upon transfer of land use right and distributed to different floors according to the coefficients of floors in the followi ng table:

  ---

                              Coefficients of floors
  Houses     Grnd     1st     2nd     3rd    4th    5th higher
            floor   floor   floor   floor  floor  floor  floor   
  
  
  2-storied  0.7     0.3
  3-storied  0.7     0.2       0.1
  4-storied  0.7     0.15      0.1      0.05
  5-storied  0.7     0.15      0.08     0.05    0.02      0.00  
  

  ---

• Article 8:
  • 1. The Seller is the Director of the House Trading Company under the provincial-level Housing Management Department, or the Chairman or Vice-Chairman of the People's Committee of the province, provincial town, urban precinct or district (where local house -trading company is not available) which is managing the residential house(s) to be sold.

  • 2. Regarding residential houses under State ownership being managed by administrative offices, armed forces units, mass associations, political and social organizations and State-run enterprises, which are in the category of houses to be sold to their lea seholders, schemes should be drawn up to hand them over to the Seller in accordance with the relevant procedures stipulated by law.

  • 3. The provincial-level People's Committee is responsible for submitting the house-selling scheme to the People's Council of the same level for approval before implementing them. With particular regard to Hanoi and Ho Chi Minh City, such schemes having be en approved by the municipal People's Council shall have to be consented to by the Prime Minister of the Government.

  To help the provincial-level People's Committee implement the scheme for selling residential houses, the Chairman of the provincial-level People's Committee shall decide on formation of a residential house-selling council with its president being a leadin g member of the provincial-level People's Committee and its councilors consisting of representatives of the Housing and Land Management Department, the Construction Department, the Chief Architect (if available), the financial-Pricing Department, the Cada stral Department, the provincial federation of Trade Unions, the provincial fatherland front Committee, and the Seller provided for in Clause 1 of this Article.

  The house-selling council is responsible for drawing up house-selling scheme in which are specified the area(s) of houses to be sold, the types of houses to be sold, the sale plan, the price scales and the sale regulations, and organizing the sales accord ing to the approved scheme and periodically reporting results achieved to the provincial-level People's Committee.

  Subject to local realities, the Chairmen of the provincial-level People's Committees may decide to form house-selling councils in districts, provincial towns and cities which are not provincial capitals with the Chairmen of the People's Committees of the corresponding levels as presidents of such councils respectively.

• Article 9:

  The mode of payment to buy residential houses under State ownership is stipulated as follows:

  • 1. Payment is made in the currency of the State Bank of Vietnam.

  • 2. Term of payment is not longer than 10 years. The first installment of payment upon signing of the contract is not less than 20% of the total sum payable, the remainder of the sum is calculated into an equivalent quantity of gold of 98% purity for use a s basis for the subsequent payments, and in each of the following years the amount payable is not less than 8% of the total sum payable.
    

    If payment is made in full once and for all upon signing of the contract, the Buyer shall be entitled to a 10% discount, and if full payment is made within a year's time, the Buyer shall enjoy a 2% discount, of the selling price.

  • 3. In case the Buyer has not yet paid up to the total sum payable when the term of payment set out in the contract is over or fails to make payment as stipulated in Clause 2 of this Article, in the absence of justifiable reason(s), the Seller shall have t he right to terminate the contract unilaterally and return to the Seller the amount of money the Buyer has received after deducting a penalty equal to 5% of the contract value. The Buyer shall have to pay retrospectively all outstanding rentals in order t o be allowed to continue the leasehold of the residential house concerned.

  • 4. In case the Buyer moves to another place before completing payment of the full amount of the selling price, he/she then shall be permitted to continue paying for the selling price in order to be issued the title-deed to the house and the certificate o f residential land use right.
    

    In all other cases, the provisions in Clause 3 of this Article shall apply.

  • 5. Regarding any residential house the building cost of which was partly contributed by individual(s) or collective(s) and was not originated from the State budget, the house-selling council shall base itself on the proportion of the actual contribution a lready made to the " settled account" value of the constructed project in order to calculate the amount which still remains payable by the Buyer against the selling price as set out in Article 7 of this Decree.

• Article 10:

  After having paid the full amount of the selling price and completed the conveyance duty procedures, the Buyer shall be issued the title-deed to the residential house and the certificate of residential land use right. If the Buyer resell the house, the St ate shall regulate the capital gain and transfer the land use right as stipulated by law.

• Article 11:

  Proceeds from the sale of residential houses shall be paid to the State budget for use in maintaining and developing the housing fund in accordance with such projects and plans submitted by the Chairman of the provincial-level People's Committee to the Pe ople's Council of the corresponding level for approval, in which priority is given to the following objectives:

  • 1. Building residential houses for rent or sale in accordance with this Decree in favor of those who have no residential houses as yet or whose housing spaces are too small.

  • 2. Building residential houses for sale or rent in favor of households living in such houses as set out in Clauses 1, 2 and 3 of Article 5 in this Decree.

  • 3. Building infrastructure in land sites already planned for construction of residential quarters.

  • 4. Transforming class-IV housing areas into multi-storied buildings for sale or for rent.

  • 5. Improving housing areas where conditions are too poor.

  • 6. Implementing the social policy related to housing
  Estimate of expenses of residential house sales shall be formed by the Seller, submitted through the house-selling council to the Chairman of the provincial-level People's Committee for approval and covered by appropriations from the funds generated by re sidential house sales.

  The Ministry of finance shall provide guidance's on collection, payment and utilization of the proceeds from residential house sales in accordance with the relevant provisions in this Article.

Chapter III:

TRADE IN RESIDENTIAL HOUSES

• Article 12:

  Trade in residential houses referred to in this Decree means to carry out a single activity or some or all activities for the following earning purposes:

  • 1. Lease out residential houses.

  • 2. Buy and sell residential houses.

  • 3. Take up land use right to build residential houses for sale or for rent, and invest in building infrastructure projects under residential housing development plans for the purpose of transfer of land use right.

  • 4. Provide services in buying, selling and leasing out residential houses.

• Article 13:

  Local organizations and individual Vietnamese citizens residing in Vietnam are permitted to trade in residential houses, who shall have to fully implement all stipulations concerning business establishment and registration and other statutory provisions.

• Article 14:

  Organizations and individuals trading in residential houses shall have to pay for the use or lease of residential land as stipulated in the Land Law, to use such land for its proper purpose and according to its planning, and to fulfill all capital constru ction formalities provided for by law.

• Article 15:

  The commercial prices of residential houses, including selling price, renting price and servicing charge in buying, selling and renting activities, are Agreed Prices struck by the contractual parties.

  The renting prices of residential houses under State ownership and such prices applicable to foreigners and overseas Vietnamese nationals in residence in Vietnam are implemented as stipulated by law.

• Article 16:

  Organizations and individuals trading in residential houses must comply with the stipulations on buying, selling and leasing out residential houses as set out in Chapter IV and Chapter V of the Residential House Ordinance, and at the same time must duly f ollow the statistic and accounting systems and fulfill their obligation to pay tax and other obligations to the State as stipulated by law.

Chapter IV:

BUYING AND SELLING RESIDENTIAL HOUSES NOT fOR COMMERCIAL PURPOSES

• Article 17:

  Buying and selling residential houses not for commercial purposes mean conveyance of the residential house ownership and land use right from the Seller to the Buyer through a signed contract in writing, if the Seller sells his/her house because he/she is no longer in need of it, or sells a house in his/her possession by inheritance or as a gift, while the Buyer needs to buy it for his/her own use.

• Article 18:

  Local organizations and individual Vietnamese citizens settling in Vietnam are permitted to buy and sell residential houses not for commercial purposes.

• Article 19:

  An Individual foreigner settling in Vietnam is allowed to buy one residential house from a State enterprise specializing in residential house trade of Vietnam for the residential purpose of his/her own and his/her family in the locality where his/her set tlement is permitted.

• Article 20:

  The Buyer and the Seller of residential houses have the responsibility to pay tax and fee as stipulated by law.

  The price for tax calculation is that set out in the contract, but in all cases it should not be lower than that provided for in the price scale stipulated by the Chairman of the provincial-level People's Committee.

Chapter V:

STATE MANAGEMENT ON BUYING, SELLING AND TRADING ACTIVITIES WITH RESPECT TO RESIDENTIAL HOUSES

• Article 21:

  The Minister of Construction is responsible for ensuring a uniform State management on buying, selling and trading activities in relation to residential houses on a national scale.

  The Chairman of the provincial-level People's Committee is responsible for exercising State management on such activities within the locality in his charge.

• Article 22:

  The Chairman of the provincial-level People's Committee shall depend on the price scale for types of land fixed by the Government, the minimum standard price scale for newly-built residential houses(Annex 1 attached to this Decree) and the minimum standar d rental scale for leasehold of residential houses (Annex 2 attached to this Decree) to put forth price scales applicable for residential land upon transfer of land use right, for newly-built residential houses and for leasehold and for leasehold of resid ential houses in the locality in his/her charge. The prices fixed by the Chairman of the provincial-level People's Committee shall in no case be higher or lower than the minimum standard price scales promulgated by the State. The prices fixed by the Chair man of the provincial-level People's Committee shall be the basis for management of buying, selling and trading activities in relation to local residential houses.

  In the case of fluctuation in the market price, which shows an upswing of 20% or higher as compared with the price scale or the minimum standard price scale issued attached to this Decree, the Ministry of Construction, the Ministry of finance and the Gove rnment's Pricing Board shall have an inter-ministerial responsibility for submitting such prices scale to the Government to be revised as appropriate.

• Article 23:

  The State has the first refusal on residential houses for sale if necessary. In this case, the State shall have the responsibility to fulfill all obligations binding on the Buyer as stipulated in the contract signed previously.

• Article 24:

  The Ministry of finance is responsible for providing guidance's on the accounts receivable and items of tax payable to the State budget against buying, selling and trading activities in relation to residential houses.

• Article 25:

  The Ministry of Construction and the Ministry of finance are responsible for setting out stipulations governing the management of servicing activities related to buying, selling and leasing residential houses.

Chapter VI:

PROVISIONS Of IMPLEMENTATION

• Article 26:

  This Decree is valid for implementation as of the date of its signing. All previous stipulations contrary to this Decree stand canceled. All cases of violation shall, subject to their seriousness, be subjected to disciplinary actions, administrative penal ties or prosecution for criminal liability as by law enacted.

• Article 27:

  The Ministry of Construction, the Ministry of finance and the Government's Pricing Board have an inter-ministerial responsibility to coordinate with the functional offices concerned for guiding and inspecting the implementation of this Decree.

• Article 28:

  The ministers, heads of the ministerial offices, head of the governmental agencies, and Chairmen of the People's Committees of the provinces and centrally-ruled cities are responsible for the implementation of this Decree.

• fOR THE GOVERNMENT
• PRIME MINISTER:
• (Signed)

• VO VAN KIET

MINIMUM STANDARD PRICE SCALE fOR NEWLY-BUILT RESIDENTIAL HOUSES

(Applicable to Vietnamese citizens trading in residential houses) (Promulgated together with Decree No.61/CP dated July 5,1994 of the Government)

Unit 1000 VND/m2 of utility space

No      Areas        Villas(class)              Houses(class)
                  I    II    III    IV      I    II    III   IV
1. Capital city  1100  1200  1400  2000    900   800   550  400
     of Hanoi


2  Hochiminh     1200  1500  1600  2000   1000   900   550  400
      City
3   Cities of    1100  1200  1300  2000    800   700   400  300
    type II
4 Northern plain  900  1100  1200  2000    800   700   400  300


5     Mekong     1100  1200  1300  2000   1000   900   450  300
   Delta plain
6 Mid-land area  1100  1200  1300  2000    900   700   450  300


7 Mountain area  1100  1300  1500  2000   1000   800   400  250