The first is the decree guiding the law of real estate business (Decree No. 76/2015/ND-CP dated 10 September 2015). Some of the key guidelines include:
– confirmation that (except for a few exceptions) the minimum capital to set up a real estate business is 20 billion VND (approximately US 1 million).
– issuance of model contracts for key real estate transactions (for parties to use as references to prepare their own contracts);
– confirmation that parties can transfer sales contracts of condos and villas that are already built in the secondary market without land papers being completed; and
– detailed guidelines on how investors can transfer their real projects (in part or in whole).
The second is the decree guiding the registration or establishment of companies in Vietnam (Decree 78/2015/ND-CP dated 14 September 2015).
The most significant guidelines are those relating to the establishment of a national company registrar. To date, none has been established in practice and it is impossible to search for information about companies in Vietnam. With this decree, the authorities are required to register all information about companies in the national registrar within 15 days.
This is the first time we have seen legislation that imposes more obligations on the government authorities than on companies … super-investor friendly.
Both decrees will become valid 1 November 2015.
Detailed updates will follow.
DNLegal, 21 September 2015