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Official Gazette

Tuesday, June 6, 2023

Administrative procedures simplified for real estate projects

Updated: 15:34’ - 25/02/2009

The Ministry of Planning and Investment recently released a call for private investment (domestic and foreign), in addition to official development assistance and State budget support, on a list of urban infrastructure projects. The country is estimated to need an approximate USD 12 billion from now to 2020 to improve the infrastructure system in a total of 731 urban centers nationwide. In order to facilitate the inflow of investment capital in urban center projects as well as housing and technical infrastructure of industrial parks, the Government issued Resolution No. 33/2008/NQ-CP of December 31, 2008, on pilot application of simplified administrative procedures for these projects.  

Regarding procedures for evaluating, approving and adjusting construction detailed plans, the Resolution stipulated that for areas without approved detailed construction plans of 1:2,000 scale, local administrations should expeditiously elaborate these plans to serve as a basis for the investment in the projects. If investment decisions have been issued but no detailed construction plans of 1:2,000 scale are available, provincial-level People’s Committees may authorize investors to elaborate these plans according to assigned architectural and planning tasks and regulations. These plans will be evaluated and approved by local administrations within 30 working days.

Investors authorized to elaborate plans will be prioritized to act as investors of planned projects. Depending on the sizes of planned land plots, investors may propose local administrations to allow them to elaborate 1:500-scale plans only, but not both 1:500 and 1:2,000-scale ones.      

Some administrative procedures are also adjusted by the Government to be more flexible and convenient for investors. For areas with 1:2,000-scale detailed construction plans, if investors propose in their 1:500-scale construction plans details different from the approved 1:2,000 ones, competent authorities may examine and approve these plans within 15 days after receiving them, and do not have to adjust the 1:2,000-scale ones.

After finalizing 1:500-scale plans, investors should submit them to local state authorities for evaluation and approval and may get approval decisions within 30 working days. However, this time limit can be extended for another 30 working days if supplementation of these plans is required.  

The Resolution abolishes investment certification procedures for domestic investment projects, saying that investment projects on new urban centers, residential housing areas or industrial parks will be subject only to investment registration. Their investors will not have to obtain investment certificates as previously. Investment sub-projects in new urban centers and residential housing areas will not be subject to both investment registration and certification. 

In order to reduce formalities, time and costs for investors, environmental impact assessment reports are allowed to be made as an integral part of investment projects. Environmental impact assessment will be conducted upon evaluation of 1:500-scale detailed plans and post-investment inspection of projects.

In a bid to simplify procedures and redress irrationalities in land allocation or lease and land rent collection, local administrations may grant land use rights certificates directly to owners of houses and construction works attached to land instead of granting to investors (class-1 investors) land use rights certificates for the whole projects.

Investors are allowed to remit land use levy amounts according to the project implementation schedule, starting from the date they complete project foundations and are allowed to receive first installment payments from registered customers under the Housing Law and the Real Estate Business Law, or within three months after receiving clear grounds from local administrations.

The Resolution also waives the requirement on investors to get competent authorities’ consent to the height of each of their construction works. The Ministry of Defense should prepare a government decree on obtaining defense authorities’ opinions on air traffic and airspace defense in the stage of evaluation of general construction plans.     

Under the Resolution, the Construction Ministry is assigned to oversee and assess the implementation of this Resolution, report it to the Prime Minister, and propose necessary amendments to relevant regulations and laws. Concerned ministries and local administrations should abolish their regulations which are contrary to this Resolution, remove procedural obstacles to construction investment and prohibit their staffs from harassing investors with arbitrary formalities.-



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