What Criminal Violations in Stock Exchange in Vietnam?

  Along with the increasingly diversified securities activities, the criminal violations in the stock market are also becoming more and more sophisticated and complex.  The securities lawyer in Vietnam is sharing some opinions on the practice of criminal violations in stock exchange in Vietnam to avoid.

Although in Vietnam, violations and crimes committed in the securities sector still account for a small percentage compared to other fields, but these white collar crimes have directly negatively affected trading activities in the market, in particular eroding investors’ confidence, and causing the stock market distortion. 

The criminal violations in the stock market could hinder the efficient functioning of the stock market which is a component of a free-market economy, where enterprises raise funds and investors invest and trade.  Vietnam is a developing economy and it is getting more serious on prosecuting this crime due to the large scale negative impacts to the financial market.  

There are four violations in the securities sector that are defined as crimes, which are: Provision of false information or concealment of information in securities activities; Use of internal information for trading securities; Manipulation of securities market and Forging documents in offering or listing profile as follows:

Provide false information 

The law in Vietnam charges person who deliberately provides false information or conceals information in the activities of offering, listing, trading securities, market organization, registration, depositing, clearing or paying for securities.  The fine for such activities will be from VND 100,000,000 to VND 2,000,000,000 or up to 02 years’ community sentence or 03 months – 5 years’ imprisonment. Punishments incurred by a corporate legal entity that commits the offenses shall be fined from VND 500,000,000 to VND 5,000,000,000; be banned from operating in certain fields or raising capital for 01 – 03 years.

How insider trading in Vietnam is treated?

Insider trading is also considered a crime in Vietnam but its seriousness has not been emphasized strongly enough as compared with other countries with developed financial market. 

Over the 20 years since the stock market in Vietnam has been established, insider traders have not been found or charged yet although the law states that any person who has information about a public company or public fund which has not been published and could remarkably affect securities price of that public company or public fund but and uses such information to deal in securities or discloses it or provides it for another person for trading securities shall be liable to a fine from VND 500,000,000 to VND 2,000,000,000 or face a penalty of 07 months – 03 years’ imprisonment. Punishments incurred by a corporate legal entity that commits the offenses shall be fined from VND 1,000,000,000 to VND 10,000,000,000.

For some reasons, in Vietnam, it has been disputed that there are challenges to prove the crime in the stock market that make the practice of investigating and charging insider trading crime difficult. 

Manipulation of stock market in Vietnam

Manipulation of stock market could be in the forms of fraudsters using one or more security accounts linked to each others, to set buy or sell orders in significant volume that create unusual and fake supply and demand, to lure other small investors in great quantity to make buy and sell decisions and the fraudster later benefit by exiting their shares at high price. 

Or the fraudster could use pump and dump scheme to manipulate the stock market by spreading misleading information that create a buying frenzy of the stocks to “pump” prices and later “dump” their shares at inflated price. 

The  the fine for the individual committing the crime is ranging from VND 500,000,000 to VND 4,000,000,000 or a penalty of 06 months – 07 years’ imprisonment; the penalty for the legal entity committing the crime is a fine ranging from VND 2,000,000,000 to VND 10,000,000,000; can be permanently shut down or be banned from operating in certain fields or raising capital for 01 – 03 years depending on the severity of the violation.  Recently these criminal activities have been most popular in Vietnam and a number or cases have been prosecuted.  

Forging documents 

Forging documents in offering or listing profile criminal is a stock market crime in Vietnam. The law states that any person who forges documents of the offering or listing profile shall be liable to a fine of from VND 500,000,000 to VND 2,000,000,000 or face a penalty of 06 months – 07 years’ imprisonment. In addition, the offender might also be liable to a fine of from VND 50,000,000 to VND 250,000,000, be prohibited from holding certain positions because of such criminal record in Vietnam or doing certain works in related fields for 01 – 05 years. 

Securities lawyer in Vietnam to distinguish signs of criminal behaviour or administrative violations

There are also disputes among law makers, legal experts and lawyers in Vietnam on whether there are criminal violations or not; or wherether there are administrative violations, or economic or civil violations for acts that could have signs of criminal behaviours.  These kinds of arguments are important to help the society to find balance and defend justice in the development of economy and stabilization of the financial market in Vietnam.

Source: https://antlawyers.vn/library/what-criminal-violations-in-stock-exchange-in-vietnam.html

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How to Make a Joint Will of Husband and Wife under Vietnam Laws?

  

How a will lawyer in Vietnam could help? 

Under Vietnam culture, marriage is a special relationship that is not considered as a contract.  Hence it could become a delicate matter when material comes into play.  And talking about death while still living might trigger emotional reaction especially the concerning matters could arise is how to make a will for the assets owned by husband and wife. 

We have come across such situations and as a will lawyer in Vietnam, we could help the potential client to understand the need to have a will and have the estate planning.  But to get a will and statement service in Vietnam for a joint will or separate will could also be a question.  The following will discuss the matter in details.

In fact, a few spouses desire to make joint will to dispose of their common assets. The prevailing law does not yet stipulate joint testament of husband and wife. Hence how to proceed with the application of law for the cases where husband and wife intend to make joint testament?

Legal grounds for joint will and statement in Vietnam

In the legal document system, the “joint testament of husband and wife” was most recently stipulated in the Civil Code 2005, which has now been superseded by the Civil Code 2015. Accordingly, it can be understood that: a joint testament of husband and wife is an expression of the will of the spouses intending to transfer the common assets of the spouses to another person after the death of both husband and wife. With regard to joint testament of husband and wife, the Civil Code 2005 devotes three articles stipulating particulars of this type of testament including concept; amendment, supplementation, replacement, cancellation; legal effect.

Under the abovementioned understanding, after the Civil Code 2005 expires, among prevailing legal documents, especially the Civil Code 2015 directly regulating inheritance and testament by its sphere, there is no provision on “joint testament of husband and wife”. Thus, the joint testament of husband and wife is not recognized but also not prohibited by the law.

Therefore, it is possible to apply the law for cases where spouses intend to make “joint testament of husband and wife by the understanding of the Civil Code 2005” after the Civil Code 2005 is no longer valid as follows:

Joint testament of husband and wife as a type of testament

According to the basic principles of civil law, individuals shall establish, perform and terminate their civil rights and obligations on the basis of free, voluntary undertaking, agreement; any undertaking or agreement which does not violate a prohibition of law or is not contrary to social morals shall be binding on the parties and be respected by other subjects; the establishment, performance and termination of civil rights and obligations may not infringe upon national or ethnic interest, public interest, or legitimate rights and interest of other people.

Accordingly, husband and wife are completely free to agree on the making of a testament that expresses the joint will of both husband and wife towards common assets but must comply with the law on testament.

As such, to be protected as a legitimate testament and as a legitimate testament under Civil Code 2015, apart from general regulations on testament, the joint will of husband and wife shall comply with following regulations:

Firstly, to be a legitimate testament:

First, common will shall first be a testament as provided by law, which is for the purpose of transferring the common assets of husband and wife to other people after the death of both husband and wife.

Second, the testament shall satisfy the criteria of legitimate testament, including: i) the testator was of sound mind when he/she made the testament; and he/she was not deceived, threatened or coerced; ii) the contents of the testament do not contravene the prohibition of law or contrary to social morals; the testament shall be made in writing, it may be made orally if it is unable to be made in writing.

The testament of the incapacitated or the illiterate shall be made in writing notarized or certified by a witness. A written testament which is not notarized or certified shall be deemed lawful only if the testator is of sound mind when he/she made the testament; and he/she was not deceived, threatened, coerced; contents of the testament does not breach the prohibition of law, not contrary to social morals; formality of the testament complies with the law.

An oral testament shall be deemed lawful only if the testator orally expressed his or her last wishes before at least two witnesses who recorded those wishes in writing and signed or fingerprinted the document immediately after the testator orally expressed his or her last wishes. Such testament must be certified by a notary public officer or an authorized agency, verifying signatures or fingerprints of the witnesses within five working days of the of expressing the last wishes.

Secondly, to amend, supplement, supersede, cancel:

Testators may amend, supplement, supersede or cancel the testament at any time, as a result, spouses may amend, supplement, supersede, cancel the made testament at any time upon mutual agreement.

Thirdly, the time of effectiveness:

The testament shall come into effect as of opening the inheritance. On the other hand, the time of opening the inheritance shall be the time when the testator dies. Therefore, the time of effectiveness of the joint testament shall be from when both husband and wife die.

 Joint testament of husband and wife as a conditional contract.

Also based on the free, voluntary undertaking, agreement of civil law subjects, husband and wife have right to make a civil contract agreeing on the disposal of common assets that may occurring rights and obligations of the third person; meanwhile, defining the specified event where both husband and wife die as the time of commence of the contract and it is not obliged for the contract to be implemented by spouses themself. As such, to be protected and as protected as a civil contract, the joint testament of husband of wife shall comply with civil contract law.

Firstly, to be the conditional contract as provided by law:

As a civil contract, the joint testament of husband and wife shall be the agreement between husband and wife on occurrence, modification, or termination of rights, obligations to the common assets of husband and wife.

Hereunder rights and obligations may occur to the third person, must not be performed by husband and wife themselves. Not an ordinary civil contract, the joint testament of husband and wife is a conditional contract under whereby the performance depends on the occurrence, modification, or termination of a certain event. Thus, in this contract, husband and wife will agree on the time of division of the common assets.

Secondly, to amend, supplement, supersede, terminate, cancel:

As provided by contract law, husband and wife may negotiate to amend, supplement the joint testament. Spouses may also agree on replacing the made joint testament by a new joint testament after terminating the made joint testament or completely terminating the joint testament in accordance with regulations on contract termination. The notable point of cancelation, termination of the joint testament as a contract is the fact that husband and wife may unilaterally cancel, terminate in accordance with law. 

Thirdly, the time of effectiveness:

Not as a testament, stated contract may take effect as of the time of entering contract or the time upon mutually agreed, nevertheless, the effectiveness of the contract is inherently not critical as the establishment, change, and termination of common assets.

For that reason, it is understood that the contract shall take effect from the time as mutually agreed by both husband and wife, otherwise as the time of entering contract. Despite that, apart from the effectiveness of the contract, spouses must also concur on the time of division of the common assets. It is noteworthy that for the purpose of division of the bequests, the abovementioned time shall not fall in the time when it is stated to divide the common assets of husband and wife during the marriage period as prescribed by law on marriage and family.

Application of law to resolve matters relating husband and wife joint testament

Not provided by law, in cases where spouses desire to make joint testament but it is neither applicable for by abovementioned provisions nor agreed upon by the parties, customs can be applied but the customs must not contravene the basic principles of civil law.

If practices are unavailable, provisions of the law governing analogous civil relations shall be applied.  Where analogous law cannot be applied, the basic principles of civil law, case law or equity shall be applied.

In short, because the law leaves open joint testaments of husband and wife, thus, husband and wife who have the will to execute a joint testament shall freely agree in the form of a testament or conditional contract according to the corresponding provisions. For related issues that are not reached with an agreement, customary practices, analogy of law, basic principles of civil law, case law, and equity shall be sequentially applied to resolve.  The individuals are recommended to consult with a will lawyer in Vietnam to help with will and statement service in Vietnam under Vietnam laws.

Source: https://antlawyers.vn/will-lawyer-in-vietnam/how-to-make-a-joint-will-of-husband-and-wife-under-vietnam-laws.html

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What is the Connection between Competition Law and International Trade Agreements?

  Antitrust and competition law firms in Vietnam are witnessing a changing legal landscape, as competition rules are increasingly linked to the provisions of international trade agreements.

In the dynamic landscape of global commerce, the intertwining realms of antitrust and international trade agreements play a pivotal role in shaping business practices and market competition.

This synergy becomes even more pronounced in the context of Vietnam, a nation with a rapidly growing economy and a burgeoning appetite for international trade.

As Vietnam continues to integrate itself into the global market, the interplay between antitrust regulations and international trade agreements has significant implications, both for businesses and the legal experts who specialize in these areas.

In this article, we will explore the connection between antitrust regulations and international trade agreements in Vietnam and examine the implications for businesses and the law firms that advise them.

The Evolving Legal Landscape

Vietnam’s integration into the global economy has been accelerated through trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Vietnam Free Trade Agreement (EVFTA).

These agreements have not only facilitated international trade but also come with provisions that impact antitrust and competition law in the country. As a result, antitrust and competition law firms in Vietnam are navigating an increasingly complex legal environment.

Antitrust and Competition Law Firms in Vietnam: Balancing National and International Laws

For antitrust and competition law firms in Vietnam, the challenge lies in striking a balance between compliance with domestic competition laws and ensuring alignment with international trade agreements.

This requires an in-depth understanding of both legal domains. Let’s delve into the key aspects of this connection:

1. Competition Law in Vietnam: Vietnamese competition law aims to promote fair competition, prevent anti-competitive practices, and protect consumers. This law provides a framework for local authorities to scrutinize mergers, acquisitions, and other business practices to ensure they do not harm competition.

2. International Trade Agreements: Trade agreements like the CPTPP and EVFTA encompass not only trade in goods and services but also provisions related to competition policy. These agreements often include clauses that prohibit anti-competitive practices and require adherence to specific competition principles.

3. Challenges of Convergence: The challenge for antitrust and competition law firms in Vietnam is to reconcile the often different approaches and standards set out in domestic competition laws with those established by international trade agreements. This can be a complex and nuanced task.

Antitrust and Competition Law Firms in Vietnam: The Implications

The implications of this convergence between competition law and international trade agreements are profound, impacting various aspects of business and legal practice in Vietnam.

1. Increased Scrutiny of Cross-Border Mergers and Acquisitions: International trade agreements necessitate a closer look at the potential anticompetitive effects of cross-border mergers and acquisitions. Antitrust and competition law firms in Vietnam need to ensure their clients understand and comply with these requirements.

2. Proactive Compliance and Risk Mitigation: Firms are advising clients to take a proactive approach to ensure their business practices align with both domestic competition laws and international trade agreements. This approach includes conducting internal audits and risk assessments.

3. Litigation and Enforcement: The connection between competition law and international trade agreements can give rise to disputes, which may require litigation. Law firms are increasingly representing clients in these cases, bringing together expertise in competition law, trade law, and dispute resolution.

4. Monitoring and Reporting: International trade agreements often require government authorities to monitor and report on their antitrust activities. Businesses operating in Vietnam may need to keep a close eye on these developments to ensure compliance.

Antitrust and Competition Law Firms in Vietnam: Staying Ahead of the Game

Antitrust and competition law firms in Vietnam are adapting to this changing landscape by providing specialized services to businesses operating in the country. These services include:

1. Comprehensive Legal Counseling: Firms are offering comprehensive legal counseling that considers the intersection of competition law and international trade agreements. This involves assisting businesses in understanding their obligations and rights under these agreements.

2. Compliance Programs: Firms are helping clients establish robust compliance programs that incorporate competition law and trade agreement provisions. These programs aim to mitigate risks and prevent anticompetitive behavior.

3. Due Diligence: Antitrust and competition law firms conduct thorough due diligence when businesses engage in mergers, acquisitions, or international transactions. This diligence includes assessing the potential antitrust and competition law implications under international trade agreements.

4. Dispute Resolution: In case of disputes arising from antitrust and trade-related matters, law firms in Vietnam are equipped to handle legal proceedings, negotiations, and mediation, ensuring clients’ interests are protected.

As Vietnam continues to deepen its involvement in international trade, the connection between antitrust and competition law and international trade agreements becomes more pronounced. Antitrust and competition law firms in Vietnam are at the forefront of this evolving landscape, helping businesses navigate the complex web of regulations and obligations. The ability to harmonize national and international laws is essential, and law firms play a pivotal role in ensuring that businesses thrive within this framework.

In the ever-changing world of business and commerce, staying informed about the interplay between antitrust and trade agreements is not just a matter of compliance; it’s a competitive advantage. Businesses operating in Vietnam need the guidance and expertise of antitrust and competition law firms to harness this advantage while navigating the challenges of this intricate legal landscape. In this new era of international trade, the role of these law firms in shaping the business environment in Vietnam is more significant than ever before.

ANT Lawyers, law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/antitrust-and-competition-law-firms-in-vietnam.html

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Navigating Technology Startups: Potential Disputes and Legal Perspectives from Technology Dispute Lawyers in Vietnam

  The dynamic landscape of technology startups in Vietnam is characterized by innovation, rapid growth, and the potential for disruption. While embarking on this entrepreneurial journey holds immense promise, it also comes with a unique set of challenges, including the potential for disputes. These disputes can involve founders, employees, contractors, or other stakeholders and may require the expert guidance of technology dispute lawyers in Vietnam. In this article, we will explore the common sources of disputes within technology startups and provide legal perspectives from professionals well-versed in the field.

Founders’ Disputes

One of the most frequent sources of disputes in technology startups arises between founders. These disputes often involve issues such as equity distribution, control over the company, and differences in the vision for the startup. Technology lawyers in Vietnam play a pivotal role in resolving these conflicts. They provide valuable legal insight into the rights and responsibilities of each founder and can mediate, negotiate, or litigate when necessary to find an amicable solution.

1. Equity Allocation: A common source of dispute is how equity is divided among founders. Technology dispute lawyers in Vietnam can help startups draft clear and fair equity agreements that prevent conflicts down the road.

2. Decision-Making: Differences in strategic vision can lead to decision-making conflicts. Technology dispute lawyers in Vietnam can help founders establish governance structures that ensure a fair process for decision-making.

3. Exit Strategies: Discussions about exit strategies, such as selling the startup or going public, can lead to disputes. Technology dispute lawyers in Vietnam can facilitate these discussions and help founders reach a consensus.

Employee Disputes

As startups grow, they often bring on employees, and this expansion can lead to employment-related disputes. These may involve issues related to compensation, contracts, and intellectual property. Technology dispute lawyers in Vietnam can help startups understand their legal obligations as employers and navigate employment disputes.

1. Contractual Disputes: Employees may dispute the terms of their employment contracts. Technology dispute lawyers in Vietnam can review and draft employment contracts that protect the interests of both parties.

2. Intellectual Property Ownership: Ownership of intellectual property created by employees can be a contentious issue. Lawyers can ensure that the startup retains the necessary rights to intellectual property.

3. Wage and Compensation Disputes: Disagreements over wages, bonuses, or stock options can lead to legal conflicts. Technology dispute lawyers in Vietnam can help address these issues in compliance with labor laws.

Contractor and Vendor Disputes

Technology startups often collaborate with contractors, vendors, and service providers. These relationships can give rise to disputes related to contract performance, payment, and service quality. Technology dispute lawyers in Vietnam are well-equipped to assist startups in managing these disputes effectively.

1. Contract Disputes: Conflicts may arise if the terms of a contract are not met. Lawyers can review contracts, negotiate terms, and help enforce agreements.

2. Payment Issues: Disputes over payment can harm business relationships. Legal experts can guide startups in addressing payment issues while protecting their interests.

3. Service Quality and Deliverables: Disagreements regarding the quality of services or deliverables can be challenging. Lawyers can advise startups on their rights and potential remedies.

Investor Disputes

Startups often seek investment to fuel growth, but this can lead to disputes with investors over terms, control, or the direction of the company. Technology lawyers in Vietnam can provide legal perspectives to ensure startups understand the implications of investment agreements.

1. Term Sheet and Investment Agreement Disputes: Understanding the terms and conditions of investment agreements is critical. Lawyers can help startups navigate these complex documents and resolve disputes.

2. Control and Decision-Making: Investors may seek a level of control that founders are uncomfortable with. Legal experts can assist in structuring agreements that balance control and decision-making.

3. Exit Strategy Disagreements: Disputes can also arise when it’s time to exit or sell the company. Lawyers can facilitate negotiations and ensure the interests of all parties are protected.

Intellectual Property Disputes

Protecting intellectual property (IP) is vital for technology startups. Disputes can occur if IP rights are not clearly defined or protected. Technology dispute lawyers play a key role in safeguarding startup IP.

1. IP Ownership: Disputes may emerge regarding who owns specific intellectual property. Lawyers can help startups establish clear ownership structures and contracts.

2. IP Infringement Claims: If a startup’s intellectual property is infringed upon, technology lawyers can initiate legal actions to protect IP rights.

3. Licensing and Royalties: Disputes can also occur in licensing or royalty agreements. Legal experts can ensure that these agreements are clear and fair.

Legal Perspectives from Technology Dispute Lawyers in Vietnam

Technology dispute lawyers in Vietnam offer essential guidance to startups, helping them navigate the complex legal landscape while minimizing the risk of disputes. Their expertise is invaluable for drafting clear agreements, mediating conflicts, and providing solutions that align with Vietnamese laws and regulations.

Technology startups in Vietnam hold immense potential for growth and innovation. However, with the potential for disputes stemming from founder disagreements, employee issues, contract disputes, investor conflicts, and intellectual property matters, it is essential for startups to seek the counsel of technology dispute lawyers. These legal experts play a pivotal role in resolving disputes, ensuring compliance with relevant laws, and protecting the interests of startups as they navigate the exciting yet challenging world of technology entrepreneurship.

ANT Lawyers, law firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi,  and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/technology-dispute-lawyers-in-vietnam.html

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Why Client Should Retain Real Estate Lawyers in Vietnam?

  

Laws on land is complicated in Vietnam

Due to changes in law attracting foreigners to come to live, and invest in Vietnam, foreigners have growing interest in investment and acquiring real estate.  However, as real estate is valuable assets, the law on real estate ownership and real estate transactions are complicated, especially for foreigners.  It is important to engage real estate lawyers in Vietnam for advice and representation.

People can not own land in Vietnam

Under the land ownership regime in Vietnam, land belongs to the entire people with the State acting as the owner’s representative and uniformly managing land.  Hence, in Vietnam, the land users will have the land use right without the private ownership of the land.  Land law 2013 does not allow foreigner to have land use rights in Vietnam. It only allows foreign invested enterprises to be permitted to use land through the form of land allocation or lease.

Although foreigner do not have land use rights in Vietnam, they are allowed to own houses in Vietnam under the Law on Housing. In addition, the Law on Real Estate Business has certain limitations for foreign investors to conduct real estate business in Vietnam and must meet the legal requirements.

Foreign investors investing in Vietnam wish to use the land to conduct business activities, or intend to conduct real estate business in Vietnam, or simply a foreigner wishing to purchase and own real estate in Vietnam should be aware of the legal provisions on conditions of implementation, orders and procedures to of the transactions to minimize risks.  The assistance of the lawyers on real estate in Vietnam shall be worthwhile.

How real estate lawyers in Vietnam could help?

Real estate lawyers in Vietnam would have in-depth knowledge of the Land Law, Law on Housing, Law on Real Estate Business and related regulations. In addition, they would have practical experience in implementing legal procedures, handling disputes, and supporting real estate transactions in Vietnam. The real estate lawyers could explain the restrictions on land use rights of foreign organizations and individuals in Vietnam and the conditions for conducting business in real estate in Vietnam.  The lawyers at request could assist the foreigners with the process and procedures to work with state agencies to obtain land use rights for enterprise and home ownership rights for individual more effectively.

When conducting transactions related to real estate such as buying, selling, transferring, renting, leasing, real estate lawyers in Vietnam could also provide assistance in in legal due diligence of the real estate to minimize legal risk to clients. It is important to evaluate the legal status of the property, the owner of property, whether property is in dispute, or subject to additional requirements of government before being sold by the developer and the people eligible for entering into the transaction. In addition, the lawyers in Vietnam can advise clients to draft or review the agreements, sales contract as well as the process to legalize the process to comply with the law in Vietnam.

Source: https://antlawyers.vn/library/why-client-should-retain-real-estate-lawyers-in-vietnam.html

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Legal Regulations in Purchasing Real Estate for Foreigners in Vietnam

  Vietnam has become a better place for foreigners to visiting and staying. Many chose Vietnam as home and they come to Ho Chi Minh City, Ha Noi, Da Nang, Phu Quoc, Nha Trang… to buy real estates for living. Many foreigners consider seeking understanding and with the advisory of their real estate lawyers in Vietnam to purchase the property under their name for best interest protection. There are a number of foreigners seek to cooperate with local Vietnamese under investment agreement to invest in properties. It has always been suggested the buyer or investor to receive legal advice from real estate lawyers and law firms in Vietnam before committing the investment to a certain extent.

According to the Law on housing 2005, foreign organizations and individuals investing in construction of houses for sale and lease in Vietnam have the right to own the houses in Vietnam. However, according to the provisions of the Law on housing 2014, the house owners expand and include foreigners being investors building the houses under investor projects, foreign organizations operating in Vietnam and foreign individuals being allowed to enter Vietnam under the provisions of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam; and are not entitled to diplomatic privileges and immunities.

Under the provisions of the Law on housing 2014, foreign organizations and individuals are allowed to own apartments, individual houses (villas and townhouses) in commercial housing projects. The total number of foreign individuals/organizations owned does not exceed 30% of an apartment building or does not exceed 10% or 250 houses of a housing project. Foreign individuals may own houses for up to 50 years and are allowed to extend for no more than 50 years. Foreign organizations own the houses according to the time limit on the Investment Registration Certificate and the extension period. During the time of owning the houses, foreign individuals are allowed to sublease, but foreign organizations are not allowed to sublease the houses.

For foreign individuals/organizations, when buying the houses in Vietnam, it is necessary to have a well drafted sales contract for purchase and sale of the houses because all rights and obligations related to the purchase, sales and ownership of houses are regulated in the contract. Therefore, the buyer should consider the contract carefully, usually with the help of real estate lawyers whom understand Vietnam laws before signing, in order to protect their legitimate rights and interests.

The foreigner when buying and selling the houses, especially off-plan house, need to also pay attention to the regulations on payment schedule in the contract. According to Article 57 of the Law on housing 2015, the payment in the purchase, sales, lease sales of the off-plan real estate in Vietnam is carried out in installments, and the first time must not exceed 30% of the contract value, the next times must be in accordance with the construction schedule, however, not exceeding 50% of the contract value when not handed over when the buyer is an enterprise with foreign investment, not exceeding 70% the value of contract, if the buyer is the foreigner individual the payment is not exceed 50% the value of the contract before handing over the house to the buyer. Until the buyer is issued with a certificate of land use right, ownership of houses and other assets attached to the land, the buyer shall pay no more than 95% the value of contract.

Foreigners in Vietnam need to be assisted to be familiar with the laws relating to the purchase and sale of real estate in order to protect their legitimate rights and interests when participating in transactions in Vietnam. It is important that the foreigners consider using the services of law firm in Vietnam specializing in real estate to advise and help manage the transaction.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have attorneys in Hanoi, Ho Chi Minh and Danang. 

Source: https://antlawyers.vn/library/legal-regulations-in-purchasing-real-estate-in-for-foreigners-in-vietnam.html

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How Foreigners Could Buy Real Estate in Vietnam?

  

Can foreigners buy real estate in Vietnam?

Regulations on foreigners whom wish to buy real estate in Vietnam are regulated in Civil Code, Law on Land, Law on Housing, and other on decrees that guide the Law on Housing and related documents.

Can foreigners buy land in Vietnam?

For land, foreign individuals are not eligible to use land assigned or leased by the State, recognized land use rights, received transfer of land use rights. However, a foreign-invested enterprise could be allocated or leased land by the State, recognized land use rights, or received a land use right transfer. Foreign-invested enterprises that are assigned land by the State with the collection of land use levies to execute investment projects on the construction of houses for sale or for sale in combination with lease.

Can foreigners buy houses in Vietnam? or can foreigner buy apartments in Vietnam?

For housing, foreign entities eligible for the homeownership in Vietnam include: foreign entities who invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; foreign-invested enterprises, branches, representative offices of foreign enterprises, foreign-invested funds and branches of foreign banks operating in Vietnam (hereinafter referred to as foreign organization); foreign individuals who are allowed to enter Vietnam.

The foreign entities are eligible for the homeownership in Vietnam if they invest in project-based housing construction in Vietnam as prescribed in this Law and corresponding regulations of law; or buy, rent and purchase, receive, or inherit commercial housing including apartments and separate houses in the project for housing construction, except for areas under management relating to national defense and security as prescribed in regulations of the Government.

What conditions to meet when foreigners buy real estate in Vietnam?

Foreign organizations and individuals must have documents proving being the eligible subjects and meeting conditions to own houses in Vietnam. A foreign individual must have an unexpired passport bearing the entry seal of the Vietnam’s immigration authority and not given diplomatic immunity and privileges according to Ordinance on diplomatic immunity and privileges of diplomatic missions, consular offices, and representative authorities of international organizations in Vietnam. Foreign organizations must be subjects of owning houses in Vietnam which have investment registration certificate or a permission issued by a Vietnam’s competent authority for operation in Vietnam which is still unexpired at the time of housing transaction (hereinafter referred to as investment registration certificate).

A foreign entity shall not be granted a Certificate of the house and may only sell or offer it to another entity eligible to own housing in Vietnam in the case being: a foreign organization or individual receives a house as an inheritance or a gift which is located in an area in which foreign entities must not own houses, or the quantity of which exceeds the permissible limits; a foreign organization that does not operate in Vietnam, or a foreign individual who is not permitted to enter Vietnam, receives a house in Vietnam as a gift or an inheritance.

For specific situations, to avoid future dispute in house ownership arisen from the purchase, lease of property, house, land from the state, developer or other seller, or lessor it is important that the client check with dispute property lawyers in Vietnam for eligibility, conditions and other relevant matters.

How real estate lawyers in Vietnam could help client to buy real estate in Vietnam?

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest protection, risk mitigation and regulatory compliance. 

Source: https://antlawyers.vn/update/how-foreigners-could-buy-real-estate-in-vietnam.html

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