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In This Updates: |
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LAND – HOUSING |
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LAND - HOUSING |
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Decree No. 101/2015/ND-CP dated October 20, 2015 of the Government on renovation and reconstruction of condominiums |
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* Renovation or reconstruction of condominiums shall be conducted under projects |
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Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on social housing development and management |
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* The maximum loan level for a project to build social houses must equal up to 80% |
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FINANCE – BANKING |
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FINANCE - BANKING |
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Circular No. 25/2015/TT-NHNN dated December 09, 2015 of the State Bank of Vietnam on instructions on concessional loan for implementation of social housing policies |
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* Maximum level for leasing and purchasing social houses shall be 80% of the contract |
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Circular No. 24/2015/TT-NHNN dated December 8, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks |
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* Enterprises are allowed to manufacture and/or trade goods exported through Vietnam’s border checkpoints
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ECONOMIC – SOCIAL POLICIES |
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ECONOMIC – SOCIAL POLICIES |
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5 |
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* Small- and medium-sized enterprises may borrow up to 70 % of investment capital |
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SUMMARY:
Ü LABOR - SALARY
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The renovation or reconstruction of condominiums shall be conducted under projects; reconstruction of individual condominiums (except independent ones) is prohibited to meet the requirements is the important contents prescribed at the Decree No. 101/2015/ND-CP dated October 20, 2015 of the Government on renovation and reconstruction of condominiums. Accordingly, for each area with condominiums in need of renovation or reconstruction, one or more than one project may be carried out under the urban planning approved by competent agencies and in accordance with promulgated construction standards and regulations. In case projects have been approved but project owners fail to implement the projects after 12 months from the date of approval or implement the projects more than 24 months behind the approved schedule due to the project owners’ fault, provincial-level People’s Committees shall issue decisions to withdraw the projects for transfer to other project owners for implementation in accordance with the law. |
Also in accordance with this Circular If the owner of an old condominium wishes to be resettled on the spot and his/her current apartment has two or more household registration books, he/she will have the preemptive right to buy additional apartments in the same location at the price agreed between him/her and the project owner. Real estate businesses acting as owners of projects on condominium renovation and reconstruction are exempted from land use levy, land rental and charge (if any) for change of use purposes for the entire land areas in the premises of the projects (including land areas permitted for use purpose change). Project owners may provide with free model designs and typical designs of houses as well as scientific and technical advances in construction and installation to reduce construction costs; to apply the self-execution form if qualified as prescribed by law. This Decree takes effect on December 10, 2015. |
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This is the important content prescribed at the Decree No. 100/2015/ND-CP issued by the Government dated October 20, 2015 on social housing development and management. Accordingly, enterprises and cooperatives being owners of projects to build social houses for lease, lease-purchase or sale; enterprises and industrial production or service cooperatives that build houses for their workers without collection of rental and households and individuals that build social houses for lease, lease-purchase or sale are allowed to have maximum loan level must equal up to 80% of the total investment of the project or loan borrowing plan but must not exceed 80% of the value of loan security assets; for a project to build social houses for lease-purchase or sale: the maximum loan level must equal up to 70% of the total investment of the project or loan borrowing plan but must not exceed 70% of the value of loan security assets. For projects to build social houses for lease-purchase, loan terms must be at least 10 years and at most 15 years, counted from the date of first disbursement. To be Eligible to borrow loans for purchase, rent or rent-purchase of a social house, a household or an individual must have the minimum capital for borrowing a loan as required by the Vietnam Bank for Social Policies or a state-designated credit institution; possess a complete dossier; having income and capability to repay loans as committed |
with the Vietnam Bank for Social Policies or a state-designated credit institution… Also in accordance with this Decree, the purchaser or lessee-purchaser of a social house may neither mortgage (except in case of bank mortgage for a loan to purchase or rent-purchase that house) nor transfer this house in any form within at least 5 years from the time of making full payment for that house under the contract signed with the seller or lessor-seller; and may sell, mortgage or lease this house only after obtaining a certificate of land use rights and ownership of houses and other land-attached assets. Within 5 years from the time of making full payment for a social house, the purchaser or lessee-purchaser that wishes to sell this house may only sell it to the State (in case he/she rents a state-invested social house) or to the owner of the social housing construction investment project (in case he/she purchases or rents a social house built with non-state funds) or to those eligible to purchase and rent-purchase social houses, at a price maximum equal to the sale price of social houses of the same category in the same place and at the same time, and is not required to pay personal income tax. This Decree takes effect on December 10, 2015, replaces the Government’s Decree No. 188/2013/ND-CP of November 20, 2013. |
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Ü FINANCE - BANKING
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Maximum level of purchase, lease or lease purchase of social houses shall be 80% of the contract for purchase, lease, and lease purchase of houses and for borrowers applying for loans to construct social houses for lease purchase, loan term shall be at least 10 years and not exceed 15 years since disbursement of the first loan are the important contents prescribed at the Circular No. 25/2015/TT-NHNN dated December 09, 2015 of the State Bank of Vietnam on instructions on concessional loan for implementation of social housing policies. Construction of social houses for lease purchase, for sale: Maximum level shall be 70% of total project investment and not exceed 70% of loan collateral. Purchase, lease or lease purchase of social houses: Maximum level shall be 80% of the contract for purchase, lease, and lease purchase of |
houses. Construction or renovation of houses: Maximum level shall be 70% of cost estimates and not exceed 70% of loan collateral. For the other borrowers as applying for loans to construct houses for lease, loan term shall be at least 15 years and not exceed 20 years since disbursement of the first loan. On concessional loan interests, the Circular prescribes that concessional loan interests do not exceed 50% of average loan interest rates of all the banks in the market in the same period and concessional loan interest rates for borrowers applying loans for construction of social houses for lease are lower than the rates for borrowers applying loans for construction of social houses for lease purchase, sale. This Circular takes effect on December 10, 2015. |
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This is the important content prescribed at the Circular No. 24/2015/TT-NHNN dated December 18, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks, taking effect on January 01, 2016. In particular, till the end of December 31, 2016, short-term loans granted to meet domestic enterprises’ demands for short-term capital to serve the purpose of implementing their plans to manufacture and/or trade goods exported through Vietnam’s border checkpoints when borrowers’ foreign currency derived from the export turnover is sufficient to repay such loans; on receipt of loans disbursed by credit institutions, borrowers shall sell such borrowed foreign currency to the lending credit institutions in the form of a foreign-exchange spot transaction, unless the loans borrowers are used by the borrowers to make payments in which foreign currency is compulsory. Besides, the Circular also allows credit institutions granting the foreign currency loans serving certain purposes as specified as short-term, mid-term and long-term loans used |
as outward remittance for imported goods or services, when the borrowers’ foreign currency derived from their business operation is sufficient to repay such loans; and short-term loans granted to central petroleum importers who are given annual quotas on petroleum import by the Ministry of Industry and Trade to pay for such import when the borrowers’ foreign currency derived from their business operation is not sufficient to repay such loans. With regard to foreign currency loans, borrowers shall pay the loan principal and interest by the currency that they borrow, loans used as direct outward investments in important national projects shall be considered granting the foreign currency loans serving certain purposes. With regard to foreign currency loans which borrowers lack legal foreign currency revenues to repay, the lending credit institution shall sell foreign currency to the borrower in order for the borrower to repay principal and interest. This Circular replaces the Circular No. 43/2014/TT-NHNN dated December 25, 2014. |
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Ü ECONOMIC – SOCIAL POLICIES
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Many new policies are prescribed at the Decree No. 111/2015/ND-CP dated November 03, 2015 of the Government on development of supporting industries - means industries that manufacture materials, details, components and spare parts for manufacturing finished products. Firstly, the Decree prescribes that the incentive policies for projects manufacturing supporting industry products on the list of products of supporting industries prioritized for development. Income tax shall be exempted from income tax for imports to create fixed assets in accordance with the Law on Import Duty and Export Duty and guiding documents. Projects manufacturing supporting industry products on the list prioritized for development are entitled to loans at investment credit interest rates from the state investment credit source and to borrow short-term loans in Vietnam dong from credit institutions and foreign bank branches at interest rates conformable with the ceiling interest rate set by the State Bank in each period. And turnover of supporting industry products on the list of products of supporting industries prioritized for development may be declared for value-added tax on a monthly, yearly or temporary basis. Small- and medium-sized enterprises manufacturing supporting industry products on the list of products of supporting industries prioritized for development, land and |
water surface rent are entitled to land and water surface rent reduction or exemption in accordance with the land law; For a project of special significance or large scale bringing about socio-economic benefits that needs a higher support level than the above-mentioned level, the Ministry of Finance shall coordinate with the Ministry of Planning and Investment in submitting such level to the Prime Minister for decision in accordance with the land law at the proposal of the provincial-level People’s Committee of the locality where the project is located. They may borrow up to 70 percent of investment capital from credit institutions with the guarantee of organizations providing credit guarantee for small- and medium-sized enterprises. However, in order to receive the incentives, for small- and medium-sized enterprises must have the total value of assets lawfully mortgaged or pledged at the credit institution at least equal to 15 percent of the loan value after deducting the value of the assets mortgaged or pledged for other loans; put at least 20 percent of its equity capital in the investment project after deducting the equity capital amount arranged for other projects and by the time of guarantee request, owing no state budget debts or non-performing loans to other credit institutions and economic organizations. This Decree takes effect on January 01, 2016 |
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