The adoption of the new Draft Law by the National Assembly is scheduled to take place in November 2023 and here are some comments about this coming soon Draft Law.

1. Expanded Definition of “Real Estate Projects”

The proposed Draft Law introduces a broader understanding of what constitutes a “Real estate project.” According to the draft, a “Real estate project” refers to a project with approved land use intended for investment in the construction of residential houses, various construction works, and technical infrastructure.

2. Rules on implementation of the Law on Real Estate Business and related legislation

– Real estate business activities in Vietnam must adhere to the provisions of both the Law on Real Estate Business and other pertinent laws.
– The resolution of legal matters related to real estate business must align with the provisions of the Law on Real Estate Business and other applicable laws that were in effect at the time the real estate business transaction occurred.

3. Scope of doing business of foreign-invested economic organizations

Various sections of the Draft Law make reference to the term “foreign-invested economic organization.” It is worth noting that this term appears to have the same meaning as defined in the Investment Law 2020. However, the Draft Law also uses the term “foreign-invested enterprise” without providing a specific legal definition. Furthermore, we hope that this is simply a drafting error and that the drafter intends to refer to the concept of a foreign-invested economic organization. In light of this, it would be helpful for the Draft Law to provide clarity on its terminology to avoid any confusion or misinterpretation.

4. Conclusion

In conclusion, there are several key concerns and suggestions raised regarding the Draft Law. Moreover, it is important for stakeholders and policymakers to diligently review and address these issues. This will ensure that the final law provides clarity, fairness, and necessary protections for all entities involved in the real estate business. Additionally, by taking into account the feedback received and making appropriate revisions, it is possible to create a robust and effective legal framework.

For the full detail of this post, please reference on this link: http://hmlf.vn/comments-on-draft-on-law-on-real-estate-business/ 

Harley Miller Law Firm “HMLF”
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