According to the Law on Real estate business and Law on land, the scope of real estate business which foreign invested companies (the “FIC”) are eligible to, is as follows:
No. |
The origin of land/construction |
The scope of business
|
1. |
Leasing constructed houses, constructions
|
Entitled to lease houses and constructions
|
2. |
Leasing land from the State
|
Entitled to invest in residential houses construction for lease; and
Entitled to invest in house, construction which are not residential houses for sale, lease, hire purchase.
|
3. |
Receiving a part or the whole real estate project from the Developer through transaction
|
Entitled to sell, lease, hire purchase houses and constructions in the investing project.
|
4. |
Receiving land allocation from the State
|
Entitled to invest residential houses project for sale, lease, hire purchase.
|
5. |
Leasing land in industrial zones, industrial complexes, export processing zones, high tech zones, economic zones
|
Entitled to invest in the project for construction of residential houses, construction in conformity with land use purpose.
|
6. |
Purchasing property attached to the land, receiving land use right as capital contribution
|
Entitled for the continuous of land use in conformity with the business lines of the approved project.
|
Accordingly, the scope of business is determined under the basis of land origin and the formulation of property as mentioned above. Determining the entitled scope of business shall help FICs establish the effective investment plan and appropriate exploitation scheme for the real estate in accordance with legal methods.
In case FICs are in breach of the aforementioned real estate business scope, they shall face the monetary fine from VND 250,000,000 to VND 300,000,000 and be imposed the damages over loss and reimbursement of investing expense for such breach. Hence, the aforementioned content is essential for FICs to note.
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