Land, housing and real estate business laws take effect from August 1, 2024
On June 29, the National Assembly voted to pass the Law amending and supplementing a number of articles of the Land Law No. 31/2024/QH15, the Housing Law No. 27/2023/QH15, the Real Estate Business Law No. 29/2023/QH15, and the Law on Credit Institutions No. 32/2024/QH15.
Consisting of 5 Articles and taking effect from August 1, 2024, the Law stipulates amendments and supplements to a number of articles of the Land Law No. 31/2024/QH15, such as amending and supplementing Clause 2, Article 251: "Abolish Resolution No. 132/2020/QH14 dated November 17, 2020 of the National Assembly piloting a number of policies to remove difficulties and backlogs in the management and use of national defense and security land in combination with labor production and economic construction activities from January 1, 2025.".
Amend and supplement Clause 1, Article 252: “This Law takes effect from August 1, 2024, except for the cases specified in Clauses 2 and 3 of this Article.”
In addition, amend and supplement Clause 10, Article 255: “Investment projects in the case of land allocation and land lease not through the form of land use rights auction according to the provisions of Land Law No. 45/2013/QH13, relevant laws and in accordance with land use planning and plans but have not been allocated or leased land, shall continue to carry out the next steps in the order and procedures for land allocation and land lease to allocate land and lease land to investors and project owners according to the provisions of this Law if they fall into one of the following cases:
a) The project has selected investors and project owners in accordance with the provisions of the law on investment, the law on housing, and the law on bidding from July 1, 2014 to before August 1, 2024;
b) Projects for which investors have submitted valid documents to carry out procedures for selecting investors and project owners before August 1, 2024 and have selected investors and project owners before January 1, 2025.
The selection of investors and project owners for projects specified in this point shall be carried out in accordance with the provisions of the law on investment, the law on housing, and the law on bidding in effect at the time of dossier submission.
At the same time, the Law also amends and supplements Clause 1, Article 197 of the Housing Law No. 27/2023/QH15; amends and supplements Clause 1, Article 82 of the Real Estate Business Law No. 29/2023/QH15; and amends and supplements Clause 2, Article 209 of the Credit Institutions Law No. 32/2024/QH15, effective from August 1, 2024.
New regulations on compensation, support and resettlement
The Government issued Decree No. 88/2024/ND-CP dated July 13, 2024 regulating compensation, support and resettlement when the State acquires land; effective from August 1, 2024.
Decree No. 88 stipulates compensation in the form of land with a different purpose than the type of recovered land or in the form of housing when the State recovers land as prescribed in Clause 1, Article 96, Clause 1, Article 98, Clause 1, Article 99 of the Land Law.
According to regulations, the land price for calculating land use fees when compensating with land with a different purpose of use than the type of land recovered for households, individuals, and people of Vietnamese origin residing abroad who are using residential land or owning houses attached to land use rights in Vietnam is the land price determined according to the land price list at the time of approval of the compensation, support, and resettlement plan.
In case of compensation by land lease with land rent paid in one lump sum for the entire lease term, the land price for calculating land rent is the specific land price decided by the competent People's Committee at the time of approval of the compensation, support and resettlement plan.
Land price for calculating land use fee and land rent when compensating with land with a different purpose than the type of land recovered for economic organizations with recovered residential land is the specific land price decided by the People's Committee at the competent level at the time of approving the compensation, support and resettlement plan.
People whose land is recovered are compensated with land with a different purpose of use than the type of recovered land or with housing where there is a difference in value between the compensation and support for land and the land use fee, land rent payable when being allocated land, renting other land or money to buy housing, it will be handled as follows:
In case the compensation and support for land is greater than the land use fee or land rent payable when land is allocated or leased for a purpose other than the type of recovered land or the house purchase price, the person whose land is recovered shall receive the difference;
In case the compensation and support for land is less than the land use fee or land rent payable when land is allocated or leased for a purpose other than the type of recovered land or the house purchase price, the person whose land is recovered must pay the difference.
Provincial People's Committees, based on land funds, housing funds and actual local situations, shall prescribe the conversion rate and compensation conditions in terms of land with a different purpose of use from the type of recovered land or in terms of housing to compensate people whose land is recovered as prescribed.
Standards for real estate valuation
The Ministry of Finance issued Circular No. 42/2024/TT-BTC dated June 20, 2024 promulgating Vietnamese Valuation Standards on real estate valuation, effective from August 5, 2024.
Accordingly, the Vietnamese Valuation Standards prescribe and provide guidance on real estate valuation when appraising prices in accordance with the provisions of the law on prices. This Vietnamese Valuation Standards does not apply to land valuation in accordance with the provisions of the law on land.
Approaches applied in real estate valuation include market approach, cost approach and income approach as prescribed in Vietnamese Valuation Standards or using a combination of approaches.
Valuation methods used in real estate valuation include valuation methods belonging to the approaches or a combination of the approaches specified above. The surplus method is a valuation method built on the basis of combining the market approach, the cost approach and the income approach.
Based on the characteristics of the real estate to be appraised, the purpose of the appraisal, the time of appraisal, the basis of the appraisal value, the information and data about the real estate to be appraised that can be collected to choose the appropriate approach and method of appraisal.
New regulations on buying and selling corporate bonds by credit institutions
The State Bank issued Circular 11/2024/TT-NHNN dated June 28, 2024 amending and supplementing a number of articles of Circular 16/2021/TT-NHNN regulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches; effective from August 12, 2024.
Circular 11/2024/TT-NHNN adds Clause 14 to Article 4 on the principles of buying and selling corporate bonds: the issuing enterprise must send to the credit institution information about related persons as prescribed in the Law on Credit Institutions before the time the credit institution purchases corporate bonds. Related persons of the issuing enterprise are organizations and individuals having a relationship with the issuing enterprise as prescribed in Clause 24, Article 4 of the Law on Credit Institutions.
Information about the related person being an individual, including: full name; personal identification number; nationality, passport number, date of issue, place of issue for foreigners; relationship with the issuing enterprise. Information about the related person being an organization, including: name, enterprise code, head office address of the enterprise, number of the Certificate of Business Registration or equivalent legal documents; legal representative, relationship with the issuing enterprise.
In addition, the Circular adds Clause 15 to Article 4: credit institutions must use non-cash payment services when making payments in the purchase and sale of corporate bonds in accordance with the provisions of law on non-cash payments.
The Circular also amends and supplements Clause 1, Article 8 on the limit on purchasing corporate bonds. Accordingly, the total balance of corporate bond purchases (including bonds issued by enterprises and related parties of such enterprises) is calculated into the total outstanding credit balance for a customer, for a customer and related parties according to the provisions of the Law on Credit Institutions and the regulations of the State Bank of Vietnam on limits and safety ratios in the operations of credit institutions.
Amendment of regulations on indirect investment abroad
The State Bank issued Circular 23/2024/TT-NHNN dated June 28, 2024 amending and supplementing a number of articles of Circular No. 10/2016/TT-NHNN dated June 29, 2016 guiding a number of contents prescribed in Decree No. 135/2015/ND-CP dated December 31, 2015 of the Government regulating indirect investment abroad.
Circular amending and supplementing Article 8 on principles for implementing overseas share award programs. Accordingly, the implementation of overseas share award programs must ensure the following principles: overseas share award programs with participants being Vietnamese employees can only be implemented through the organization implementing the share award program.
Foreign currency collected from dividends and other legal income related to the overseas share award program must be transferred to Vietnamese employees through the program implementation account specified in Article 12 of this Circular. Comply with regulations on foreign exchange management, income tax payment obligations and other relevant regulations of Vietnamese law.
Compared to current regulations, Circular 23/2024/TT-NHNN has removed the requirement for confirmation of registration from the State Bank before implementing a program to reward shares issued abroad.
At the same time, the Circular also amends and supplements Article 9 on bonus forms: (1) Direct bonus in shares; (2) Other forms of bonus shares abroad that do not generate cash flow abroad.
The Circular adds other forms of stock awards abroad that do not generate cash flows abroad. Current regulations only mention direct stock awards and stock purchase rights awards with preferential conditions.
Source: https://kinhtedothi.vn/hang-loat-chinh-sach-moi-co-hieu-luc-tu-thang-8-2024.html
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