THE GOVERNMENT OF VIETNAM ——–	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness —————-
No. 100/2024/ND-CP	Hanoi, July 26, 2024

DECREE

ELABORATING LAW ON HOUSING PERTAINING TO SOCIAL HOUSING DEVELOPMENT AND MANAGEMENT

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendment to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Construction Law dated June 18, 2014; the Law on amendment to the Construction Law dated June 17, 2020;

Pursuant to the Law on Bidding dated June 23, 2023;

Pursuant to the Law on Housing dated November 27, 2023;

Pursuant to the Land Law dated January 18, 2024;

Pursuant to the Law on amendment to Land Law No. 31/2024/QH15, Law on Housing No. 27/2023/QH15, Law on Real Estate Business No. 29/2023/QH15, and Law on Credit Institutions No. 32/2024/QH15 dated June 29, 2024;

At request of the Minister of Construction;

The Government promulgates Decree elaborating the Law on Housing pertaining to social housing development and management.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree elaborates Articles, Clauses, and Points under the Law on Housing No. 27/2023/QH15 (hereinafter referred to as “Housing Law”) pertaining to:

1. Clause 2 Article 83 detailing how project developers of commercial housing investment projects must dedicate a part of residential land in projects where technical infrastructures have been invested and built for construction of social housing or allocate land fund for social housing where technical infrastructures have been invested and built outside the scope of commercial housing investment projects in the same urban areas or pay an amount equivalent to value of land fund on which technical infrastructures have been invested and built to accommodate social housing construction.

2. Clause 2 Article 34 pertaining to investment stages of social housing, houses for people’s armed forces.

3. Point a and Point b Clause 4 Article 84 pertaining to selection of project developers for social housing investment projects.

4. Point c, Point d, Point dd Clause 2 Article 85 and Clause 3 Article 85 pertaining to incentives for project developers of social housing investment projects (standard profits; area of business, commercial operations, commercial housing; loan application at concessional interest rates), project developers of commercial housing investment projects who directly invest in social housing construction in the same commercial housing investment projects.

5. Article 82 pertaining to type and area standards of social housing.

6. Point a and Point b Clause 1, Clause 6 and Clause 8 Article 78 pertaining to eligibility for incentive policies related to social housing.

7. Clause Article 87 pertaining to selling price, rent, lease purchase price of social housing not funded by public investment, union funding.

8. Clause 4 Article 126 pertaining to determination of prices of social housing, houses for people’s armed forces that are public property; reduction, exemption from rent of social housing, houses for people’s armed forces; management, use, operation of social housing, houses for people’s armed forces of public property.

9. Clause 9 Article 88 and Point e Clause 1 Article 89 pertaining to payment of land levy upon reselling social housing.

10. Clause 4 Article 89 pertaining to procedures for selling, lease-purchasing, leasing social housing.

11. Clause 2 Article 94 pertaining to environmental safety requirements, size and percentage of land area for worker housing development in industrial parks.

12. Clause 4 Article 100 pertaining to leasing, management, and use of worker housing in industrial parks.

13. Clause 4 Article 109 pertaining to procedures for selling, lease-purchasing, leasing houses for people’s armed forces.

14. Clause 5 Article 77 pertaining to concessional loans granted by the Government via Vietnam Bank for Social Policies (VBSP), credit institutions designated by the Government for purchase, lease-purchase of social housing, houses for people’s armed forces or housing construction, renovation, repair at their discretion.

15. Clause 4 Article 117 pertaining to concessional loans granted via Vietnam Bank for Social Policies, Vietnam Development Bank for social housing development.

16. Clause 2 Article 125 pertaining to inspection of scheme for sale of social housing, houses for people’s armed forces that are public property and being leased.

17. Clause 10 Article 88 pertaining to forcible repossession of social housing.

18. Clause 2 Article 191 pertaining to transition provisions pertaining to social housing.

Article 2. Regulated entities

This Decree applies to:

1. Organizations, households, individuals affiliated to economic sectors in Vietnam, in other countries, and overseas Vietnamese investing in development of social housing, worker housing in industrial parks, houses for people’s armed forces in accordance with Housing Law.

2. Entities eligible to purchase, lease-purchase, rent social housing; rent worker housing; purchase, lease-purchase, rent houses for people’s armed forces in accordance with Housing Law.

3. State authorities and organizations related to development and management of social housing, worker housing in industrial park, and houses for people’s armed forces.

Article 3. Definitions

In this Decree, terminologies below shall be construed as follows:

1. Household eligible for social housing support policies in accordance with this Decree means spouses, parents, children in accordance with residence laws of beneficiaries of social housing support policies according to Article 77 of Housing Law.

2. Lease-only social housing project means a social housing project built only for lease.

3. Investment projects for social housing, houses for people’s armed forces include housing investment projects under Points a, b, c, dd, and e Clause 1 Article 30 of Housing Law.

4. Low-income individual under Clause 5 Article 76 of Housing Law means a person whose income is compliant with Article 30 hereof.

Chapter II

INVESTMENT STAGES OF SOCIAL HOUSING, HOUSES FOR PEOPLE’S ARMED FORCES

Section 1. PREPARATION STAGE OF INVESTMENT PROJECTS FOR SOCIAL HOUSING, HOUSES FOR PEOPLE’S ARMED FORCES

Article 4. Proposing investment for housing investment projects upon applying for decision or approval for investment guidelines

1. Investment proposition for investment projects for social housing, houses for people’s armed forces in the process of applying for decision or approval for investment guidelines shall conform to Article 13 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government elaborating the Law on Housing.

2. For social housing investment projects funded by union funding, Vietnam General Confederation of Labor shall assign affiliated entities or public service providers within their power to propose investment projects.

Article 5. Construction planning for implementation of housing investment projects

1. Construction planning for implementation of social housing investment projects, houses for people’s armed forces shall conform to Clause 1, Point c Clause 2, Clause 3, Article 14 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

2. Requirements pertaining to planning level for investment selection for investment projects:

a) Where bidding is conducted to select project developers, requirements pertaining to planning under Point d Clause 1 Article 21 hereof;

b) Where the Government uses land fund in commercial housing investment projects for social housing investment and assigns other organizations to implement investment projects for social housing, houses for people’s armed forces in accordance with Clause 3 Article 84 of Housing Law, the Government shall select project developers in accordance with this Decree if social housing parameters defined under 1/500 scale detail planning of commercial housing investment projects approved by competent authorities.

Where 1/500 scale detail planning of commercial housing investment projects approved by competent authorities have not defined social housing parameters in the projects, bidding for selection of new project developers for social housing investment projects shall conform to Point a of this Clause.

3. Where residential land fund on which technical infrastructures have been invested in commercial housing investment projects must be reserved for social housing construction in accordance with Clause 1 Article 17 hereof, the land fund shall be determined in accordance with 1/500 scale detail planning of commercial housing investment projects approved by competent authorities.

Article 6. Decision, approval, and revision to investment guidelines of housing investment projects

1. Decision, approval, revision to investment guidelines of investment projects for social housing, houses for people’s armed forces shall conform to Clause 1, Clause 2, Clause 3, Clause 4, and Clause 6 Article 15 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Decision and revision of investment guidelines of social housing investment projects funded by union funding shall conform to regulations applicable to public investment projects in accordance with public investment laws.

2. Where the Government uses land fund in commercial housing investment projects for social housing investment and assigns other organizations to implement social housing investment in accordance with Clause 3 Article 84 of Housing Law, prior to selecting new project developers, competent authorities shall approve investment guidelines in accordance with investment laws.

3. In respect of social housing investment projects where investment guidelines are approved in accordance with investment laws, presiding authorities that inspect investment guidelines have the responsibility to solicit housing authorities of the same level for advice regarding details according to investment laws and Clause 4, Clause 5 of this Article.

For housing investment projects for people’s armed forces, presiding authorities that inspect investment guidelines have the responsibility to solicit the Ministry of National Defense and Ministry of Public Security for advice regarding requirements of projects and other details (if any).

4. Solicited advice relating to social housing and houses for people’s armed forces in application for approval of investment guidelines include details under Clause 5 Article 15 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government and the following details:

a) Overall total investment of the projects;

b) Type of houses and area standard;

c) Regulations, policies assisting project developers (if any).

5. Inspected details relating to houses in application for approval of investment guidelines and investors as project developers of investment projects for social housing, houses for people’s armed forces include:

a) Fulfillment of eligibility to act as project developers in accordance with housing laws, investment laws, land laws, and relevant law provisions (unless project developers have been selected in accordance with housing laws, land laws, and relevant law provisions);

b) Information under Clause 4 of this Article.

6. Competent agencies, competent persons shall only be held accountable for details relating to houses on which they are requested to give advice under application for approval of investment guidelines under Clause 4 and Clause 5 of this Article; shall not be held accountable for other details in documents, files that have been approved, inspected, approved, or handled by other competent agencies, competent persons.

Article 7. Project developers of social housing investment projects

1. For projects funded by public investment and/or union funding, project developers shall be determined in accordance with Clause 3 Article 7 of the Law on Construction and construction laws.

2. For projects funded by funding sources under Point b Clause 1 Article 113 of Housing Law, project developers shall be determined in accordance with Clause 2 Article 7 of the Law on Construction.

3. For projects not funded by funding sources under Clause 1 and Clause 2 of this Article and where project developers of commercial housing investment projects do not directly invest in social housing, project developers shall be selected via:

a) Investor approval in accordance with Point a Clause 4 Article 84 of Housing Law;

b) Bidding for project developer selection in accordance with Point b Clause 4 Article 84 of Housing Law;

c) Approval of investment guidelines and investors as project developers in accordance with Point c Clause 4 Article 84 of Housing Law.

4. Procedures for selecting project developers in accordance with Point a and Point b Clause 3 of this Article shall conform to Article 20 and Article 21 hereof.

5. For cases detailed under Point c Clause 3 of this Article, written approval for investment guidelines and project developers shall be the document determining project developers.

6. Where land fund in commercial housing investment projects must be reserved for social housing construction in accordance with Article 17 hereof, project developers of the commercial housing investment projects shall implement social housing investment on the land area at their discretion.

Where the Government assigns this land fund to other organizations for implementation of investment projects for social housing, houses for people’s armed forces as per the law, project developers shall be selected in accordance with Article 20, Article 21 hereof.

7. Where multiple investors of investment projects for social housing, houses for people’s armed forces are granted approval for investment guidelines in accordance with investment laws, these investors may appoint a investor qualified or establish enterprises, cooperatives qualified to act as project developers in accordance with housing laws. Where project developers are authorized to act as project developers of investment projects for social housing, houses for people’s armed forces under this Clause, such authorization shall be implemented via written contracts which specify rights and responsibilities of parties.

Article 8. Land allocation, land lease, land repurposing for implementation of housing investment projects

1. Land allocation, land lease, and land repurposing for investment projects for social housing, houses for people’s armed forces and for investment, construction of commercial housing within investment projects for social housing, houses for people’s armed forces (if any) shall conform to land laws. Compensation, assistance, relocation (if any) of the projects shall conform to land laws.

2. project developers of investment projects for social housing, houses for people’s armed forces shall be exempted from paying land levy and land rents for the entirety of land area of the projects; determining land price, land levy, and land rents; applying for exemption from paying land levy and land rents.

Where developers invest in commercial housing in the projects in accordance with Point d Clause 2 Article 85 of Housing Law, land price and land levy payable shall be determined in accordance with land laws.

3. Decision allocating land, leasing land shall specify land area of commercial housing investment for which land levy must be paid in case project developers invest in commercial housing in the projects at their discretion.

4. Where project developers of social housing investment projects have paid land levy after investors holding land use right approve agreements pertaining to transfer of land use right for land type on which social housing investment projects are permitted or while holding land use right for land type on which social housing investment projects are permitted in accordance with the Law on Land, provincial People’s Committees shall consider and decide to reimburse or deduct land levy that project developers have paid the Government in accordance with regulations of the law on land levy and land rents on the date on which the Government promulgates decision permitting land repurposing.

Article 9. Other relevant procedures in preparation stage

1. After selecting project developers in accordance with Article 7 hereof, project developers must adopt procedures such as infrastructure connection negotiation, environmental protection commitment if required, fire prevention and firefighting measures in accordance with fire prevention and firefighting laws, and other relevant procedures as per the law.

Where approved detail planning of the projects have not been developed, project developers shall developers shall develop and submit detail planning of the projects for inspection and approval in accordance with planning laws and construction laws.

2. Depending on nature of the projects and specific conditions, project developers may adopt procedures under this Article individually or simultaneously in a manner compliant with procedures under construction laws, land laws, and relevant law provisions.

Article 10. Development, inspection, and approval of housing investment projects

Development, inspection, and approval of investment projects for social housing, houses for people’s armed forces shall conform to Article 19 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Section 2. IMPLEMENTATION STAGE OF INVESTMENT PROJECTS FOR SOCIAL HOUSING, HOUSES FOR PEOPLE’S ARMED FORCES

Article 11. Development, inspection, and approval of construction design

Development, inspection, and approval of construction design of investment projects for social housing, houses for people’s armed forces shall conform to Article 20 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Article 12. Construction permission

Construction permission of investment projects for social housing, houses for people’s armed forces shall be granted in accordance with Article 21 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Article 13. Construction, sale, lease-purchase of off-the-plan houses

1. After obtaining construction permit, project developers shall send construction commencement notice to local construction authorities in accordance with construction laws.

After commencing construction, project developers have the responsibility to provide project-related information in accordance with Point a Clause 1 Article 38 hereof. Investment projects for houses for people’s armed forces shall conform to Point a Clause 1 Article 68 hereof.

2. Project construction and investment shall conform to construction laws and relevant laws.

3. Sale and lease-purchase of off-the-plan social housing, houses for people’s armed forces shall conform to Article 88 of Housing Law. Sale and lease of off-the-plan commercial housing in the projects shall conform to housing laws and real estate business laws.

After houses and other structures of housing investment projects are eligible for business in accordance with housing laws and real estate business laws, project developers shall be permitted to conduct business involving housing products and other structures as per the law.

Project developers shall develop and request field-specific authorities affiliated to provincial People’s Committees to inspect selling price and lease-purchase price of social housing, houses for people’s armed forces as per the law.

Project developers shall fulfill financial obligations related to land in accordance with Clause 2 Article 23 hereof before conducting business involving commercial housing products (if any).

Article 14. Commissioning construction completion

Construction process of investment projects for social housing, houses for people’s armed forces shall undergo commissioning in accordance with Article 23 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Section 3. CONCLUSION STAGE OF INVESTMENT PROJECTS FOR SOCIAL HOUSING, HOUSES FOR PEOPLE’S ARMED FORCES

Article 15. Conclusion stage of housing investment projects

Conclusion stage of investment projects for social housing, houses for people’s armed forces shall conform to Article 24 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Article 16. House delivery

Delivery of social housing, houses for people’s armed forces shall conform to Clause 3 and Clause 4 Article 37 of Housing Law and Article 25 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government.

Chapter III

REGARDING SOCIAL HOUSING

Section 1. RESERVATION OF SOCIAL HOUSING LAND AREA IN COMMERCIAL HOUSING INVESTMENT PROJECTS OR ALLOCATION OF LAND AREA OUTSIDE OF COMMERCIAL HOUSING INVESTMENT PROJECTS OR PAYMENT OF AMOUNT EQUIVALENT TO VALUE OF LAND FUND ON WHICH TECHNICAL INFRASTRUCTURE SYSTEM HAS BEEN IMPLEMENTED FOR CONSTRUCTION OF SOCIAL HOUSING

Article 17. If residential land area on which technical infrastructures have been invested in commercial housing investment projects is partially reserved for construction of social housing

1. In special class, class I, class II, and class III urban areas, provincial People’s Committees of administrative divisions where the projects are located shall, upon approving investment guidelines of projects within their power, request the project developers to reserve 20% of total residential land area (excluding existing land area, land for relocation) in the projects where technical infrastructure system has been implemented for construction of social housing (hereinafter referred to as “land fund for social housing”).

In respect of commercial housing investment projects in special class, class I, class II, and class III urban areas where the Prime Minister is entitled to approve investment guidelines, provincial People’s Committees of administrative divisions where projects are located shall reserve 20% of total residential land area (excluding existing land area, land for relocation) in the projects where technical infrastructure system has been implemented for construction of social housing after presiding authorities request the Prime Minister to approve investment guidelines.

2. Where commercial housing investment projects are located on multiple administrative divisions at least one of which is a class III urban area or higher, project developers of the projects shall reserve 20% of total residential land area in the projects where technical infrastructure system has been implemented for construction of social housing in accordance with Clause 1 of this Article.

Article 18. In case of allocation of land fund for social housing with invested technical infrastructure system outside of commercial housing investment projects

1. In respect of projects in special class, class I, class II, and class III urban areas where provincial People’s Committees are entitled to approve investment guidelines, provincial People’s Committees shall decide the allocation of land fund for social housing with invested technical infrastructure system outside of commercial housing investment projects upon approving investment guidelines and investors as follows:

a) Reservation of land fund for social housing is required in accordance with Article 17 hereof;

b) Project developers are in possession of land fund appropriate to land use planning, plans and in the same urban areas as relevant commercial housing investment projects, in possession of residential land area of which value is equivalent to that of land fund for social housing with invested technical infrastructure system in accordance with Article 17 hereof, or in possession of residential land of which area is equivalent to that of residential land with invested technical infrastructure system where reservation for construction of social housing is required in relevant commercial housing investment projects;

c) Project developers request to be allocated with land fund in writing in accordance with Point b of this Clause to replace land fund for social housing under Article 17 hereof.

2. In respect of projects in special class, class I, class II, and class III urban areas where the Prime Minister is entitled to approve investment guidelines and project developers, provincial People’s Committees of administrative divisions where projects are located shall decide the allocation of land fund for social housing with invested technical infrastructures outside of commercial housing investment projects after presiding authorities request Prime Minister to consider and approve investment guidelines and investors if the projects satisfy requirements under Point a, Point b, and Point c Clause 1 of this Article.

3. Where competent authorities approve the allocation of land fund for social housing with invested technical infrastructures outside of the projects in accordance with Clause 1, Clause 2 of this Article, provincial People’s Committees have the responsibility to amend land use plans in accordance with land laws; approve or request competent authorities to approve investment guidelines and investors in order to enable project developers to invest in social housing on alternative land area under Clause 1, Clause 2 of this Article; invest in technical infrastructures system outside of alternative land area under Clause 1, Clause 2 of this Article.

Article 19. In case of payment equivalent to value of land fund with invested technical infrastructure system for construction of social housing

1. In respect of commercial housing investment projects in special class, class I, class II, and class III urban areas, provincial People’s Committees shall, upon approving investment guidelines of commercial housing investment projects or approving investors for commercial housing investment projects, consider and decide against allocation of residential land fund with invested technical infrastructure system in the projects in accordance with Article 17, Article 18 hereof and allow relevant project developers to make payments equivalent to value of residential land fund with invested technical infrastructure system reserved for construction of social housing.

In respect of commercial housing investment projects in special class, class I, class II, and class III urban areas where the Prime Minister is entitled to approve investment guidelines, provincial People’s Committees of administrative divisions where projects are located shall decide against reservation of residential land area for construction of social housing in accordance with Article 17, Article 18 hereof and allow relevant project developers to make payments equivalent to value of residential land fund with invested technical infrastructure system reserved for construction of social housing after presiding authorities request the Prime Minister to approve investment guidelines.

2. Payments made by project developers shall conform to regulations of the law pertaining to land levy and land rents and determined on the date on which investment in technical infrastructure system has been implemented.

3. Payments made by project developers in accordance with Clause 2 of this Article shall be submitted to local government budget, managed and used in accordance with state budget laws.

4. Where project developers of commercial housing investment projects have made payments equivalent to value of land fund for social housing with invested technical infrastructure system in accordance with Clause 2 of this Article, the project developers shall be considered to have fulfilled obligations relating to social housing.

5. Documents submitted by project developers of commercial housing investment projects upon making payments equivalent to value of land fund under Clause 2 of this Article:

a) In respect of projects where provincial People’s Committees are entitled to approve investment guidelines, the required documents shall be written approval for investment guidelines or written approval for investors in accordance with investment laws;

b) In respect of projects where the Prime Minister is entitled to approve investment guidelines, the required documents shall be written approval for investment guidelines in accordance with investment laws; written response sent by provincial People’s Committees to presiding authorities to enable Prime Minister to approve project investment guidelines.

Section 2. PROJECT DEVELOPERS OF SOCIAL HOUSING INVESTMENT PROJECTS

Article 20. Selection of project developers for social housing investment projects with only 1 interested investor

1. Where only 1 investor satisfies requirements under expression of interest in accordance with bidding laws, provincial People’s Committees of administrative divisions where the projects are located shall approve the investor as project developer of social housing investment projects after conditions for investor approval in accordance with investment laws and requirements pertaining to equity and capital mobilization capability in accordance with real estate business laws, land laws, and other relevant law provisions are met.

2. Procedures for approving investors shall conform to investment laws.

3. Written approval for investors shall be the documents determining project developers of social housing investment projects under this Article.

Article 21. Selection of project developers for social housing investment projects via bidding

1. For social housing investment projects, bidding for selection of project developers shall be conducted if:

a) Requirements and criteria of projects where bidding is required in accordance with bidding laws are met;

b) The projects do not fall under cases detailed in Point a and Point c Clause 4 Article 84 of Housing Law;

c) Decision approving investment guidelines in accordance with investment laws has been issued;

d) 1/2000 scale zone planning or 1/500 scale detail planning is available.

2. Organizations participating in bidding for selection of project developers of social housing investment projects must satisfy requirements under Clause 5, Clause 6 Article 126 of Land Law No. 31/2024/QH15 dated January 18, 2024 and documents guiding Land Law, Bidding Law No. 22/2023/QH15 dated June 23, 2023 and other guiding documents.

3. Declaration of social housing investment projects where project developers are selected via bidding shall conform to Bidding Law No. 22/2023/QH15 dated June 23, 2023 and guiding documents.

4. Expression of interest and bidding documents for selection of project developers of social housing investment projects shall conform to document forms for bidding in accordance with bidding laws whereas bidding documents must also comply with regulations on evaluation standards under Clause 5 of this Article.

5. Bid evaluation for investor selection for social housing investment projects shall conform to bidding laws.

Bid shall be evaluated on the scale of 100 points where total points are determined by evaluation of qualifications, experience, business and investment plans, investment effectiveness of industry, sector, local development where total weighting of all criteria does not exceed 100%.

a) Evaluation criteria regarding qualification and experience:

Criterion pertaining to financial capability for project execution (investors whose equity according to real estate business laws is the highest are selected): 5% to 10% of total points.

Criterion pertaining to experience in implementing housing investment projects (investors that have more experience in implementing housing investment projects are selected): 5% to 10% of total points.

b) Evaluation criteria regarding business investment plans:

Criterion pertaining to conformity of business and investment plans to local housing development programs and plans and requirements under bidding documents: 7% to 10% of total points.

Criterion pertaining to feasibility of solutions for adopting construction technology according to proposition of investors; 1% to 2% of total points.

Criterion pertaining to investment in technical infrastructures, social infrastructures: 5% to 7% of total points; if technical infrastructures and social infrastructures of projects are available, all investors are granted maximum point for this criterion.

Criterion pertaining to schedule of project execution and structure operation (investors that propose the shortest project implementation period are selected): 2% to 3% of total points.

Criterion pertaining to compensation, assistance, relocation plans and expenditure (if any): 2% to 3% of total points; where compensation, assistance, relocation expenditure expenditure equivalent to 10% total investment or higher is paid in advance, all investors are granted maximum point for this criterion.

Criterion pertaining to social benefits for local employees: 2% to 3% of total points.

Criterion pertaining to environmental protection, energy efficiency, land use ratio, natural resource use at the site of projects: 1% to 2% of total points.

c) Evaluation standards regarding investment effectiveness of industry, sector, local development: Criterion pertaining to selling price, lease-purchase price, rent (investors that propose a lower price are selected): 40% to 50% of total points (where selling price requirement is determined in bidding, price evaluation is not implemented in presence of 1/500 scale detail planning).

Investors shall be selected as project developers of social housing investment projects via bidding if they meet all requirements according to bidding laws, satisfy minimum point requirements of individual criterion in Point a, Point b, and Point c of this Clause, and have the highest maximum points not lower than 70.

Where 2 investors or more tie in total points, investors scoring the highest point in the first criterion in the order listed in this Clause where the all investors do not tie shall be selected.

6. Decision approving investors awarded contracts in accordance with this Article shall be the documents determining project developers.

Section 3. INCENTIVES FOR PROJECT DEVELOPERS OF SOCIAL HOUSING INVESTMENT PROJECTS

Article 22. Standard profits

1. Standard profits of project developers of social housing investment projects under Point c Clause 2 Article 85 of Housing Law shall equal at most 10% total investment for social housing area determined in accordance with Clause 2 of this Article.

2. Total investment of social housing area consists of construction expenditure of social housing investment projects (including: social housing structures, structures or work items of technical infrastructures, social infrastructures (if any) in the projects), loan interest (if any), and legitimate and reasonable expenditure of enterprises allocated to social housing area and is determined as follows:

a) Investment of projects which is determined in accordance with regulations of the law on management of investment expenditure on the date on which inspection application is submitted including: compensation, assistance, relocation expenditure (if any), construction expenditure, equipment expenditure, project management expenditure, construction counseling expenditure, other expenditure, provisional expenditure;

b) Loan interest (if any) which does not include loan interest during construction period defined under construction and investment expenditure of the projects;

c) Legitimate and reasonable expenditure of enterprises which consists of expenditure on arranging sale, expenditure on managing enterprises, expenditure related to projects and allocated to social housing area for sale and are determined on the basis of the date on which inspection application is submitted. Total legitimate and reasonable expenditure shall equal 2% of investment in social housing area for sale, lease-purchase, lease under Point a of this Clause. Where total legitimate and reasonable expenditure is insufficient, project developers shall develop estimates for this expenditure.

3. Investment in structures or work items of technical infrastructures, social infrastructures (common ownership if any) of the entire projects and compensation, assistance, relocation expenditure under Clause 2 of this Article shall be evenly distributed across residential land area and land area for business, service, commercial operations (if any) in social housing investment projects.

4. Investment in structures and work items of common technical infrastructures of the projects under Clause 2 of this Article includes: investment in traffic system, energy supply system, public lighting system, communication system, water supply system, drainage and sewage treatment system, solid waste management system, public hygiene system, other technical infrastructure system in social housing investment projects in accordance with construction laws.

Article 23. Area for business, service, commercial operations, commercial housing

1. Project developers of social housing investment projects shall be eligible for incentive policies for area for business, service, commercial operations, and commercial housing under Point d Clause 2 Article 85 of Housing Law.

2. Where project developers of social housing investment projects invest in commercial housing on the land area specified under Clause 1 of this Article, project developers shall pay land levy for the construction area of commercial housing in accordance with land laws.

3. Land area for construction of service, commercial structures shall be determined in total land area for commercial, service operations of the projects. Land area for construction of commercial housing shall be determined in total residential land area of the projects. Specific land area for construction of business, service, commercial structures and commercial housing shall be determined upon developing, approving detail planning of the projects and shall not exceed 20% total residential land area of the projects.

4. Where detail planning of social housing investment projects approved by competent authorities does not allocate separate land fund for construction of business, service, commercial structures and commercial housing in the projects, project developers may reserve floor area that does not exceed 20% total housing floor area of the projects, does not include area accommodating common activities of households in the projects (community spaces, medical facilities, kindergartens, other essential infrastructures serving building inhabitants), and does not include parking lot area in accordance with the National Technical Regulations on Apartment Buildings for business, service, commercial operations.

Where social housing investment projects consist of multiple apartment blocks, project developers may choose to reserve floor area for business, service, commercial operations in each apartment block or combine floor area for business, service, commercial operations of each apartment block into floor area for business, service, commercial operations of an apartment block or apartment blocks.

5. Where project developers of social housing investment projects invest in business, service, commercial structures on land area or floor area of the projects reserved for business, service, commercial operations, project developers shall not be required to incur land levy and land rents for this land area and floor area unless the project developers transfer this area or contribute capital in form of this area.

Article 24. Incentives for project developers of commercial housing investment projects that directly invest in social housing in the same commercial housing investment projects

1. Where project developers of commercial housing investment projects directly invest in social housing investment projects in accordance with Clause 2 Article 83 of Housing Law, the project developers shall be eligible for incentives specified under Clause 2 Article 85 of Housing Law, Article 22, and Article 23 hereof.

2. Where project developers of commercial housing investment projects directly invest in social housing investment projects in accordance with Clause 3 Article 83 of Housing Law, the project developers shall be eligible for incentives specified under Clause 2 Article 85 of Housing Law, Article 22, and Article 23 hereof.

Article 25. Concessional loans granted to project developers of social housing investment projects not funded by public investment or union funding

VBSP, BIDV, and credit institutions shall grant concessional loans in a manner compliant with regulations of the law on lending operations of VBSP, BIDV, and applicable law provisions pertaining to lending operations of credit institutions for customers that are project developers of social housing investment projects not funded by public investment or union funding under Clause 2 Article 85 of Housing Law as follows:

1. Eligibility for loans:

a) Investment guidelines of social housing investment projects have been approved by competent authorities in accordance with investment laws;

b) Project developers have been selected in accordance with land laws, investment laws, housing laws, and relevant law provisions;

c) Eligibility to apply for loans in accordance with regulations of the law pertaining to lending operations of credit institutions for customers has been met;

d) Security interests in lending operations have been adopted in accordance with regulations of the law and regulations of VBSP, credit institutions.

2. Loan limit:

a) In respect of social housing invested and built to be sold or lease-purchased: Project developers shall be eligible for loans that at most equal 70% total investment of the projects or capital use plans and 70% of loan security interests;

b) In respect of social housing invested and built to be solely leased: Project developers shall be eligible for loans that at most equal 80% total investment of the projects or capital use plans and 80% of loan security interests.

3. Loan term:

a) In respect of social housing invested to be sold, loan term shall not be longer than 10 years from the date on which the first loan is disbursed;

a) In respect of social housing invested to be lease-purchased, loan term shall not be longer than 15 years from the date on which the first loan is disbursed;

c) In respect of social housing invested to be solely leased, loan term shall not be longer than 20 years from the date on which the first loan is disbursed.

4. Loan interest:

a) For social housing investment projects where social housing is to be sold or lease-purchased, concessional interest rate for loans granted by VBSP shall equal 120% of interest of loans applied for by borrowers for purchase, lease-purchase of social housing from time to time at VBSP. Interest of outstanding loan shall equal 130% loan interest;

b) For social housing investment projects where social housing is to be leased, concessional interest rate for loans granted by VBSP shall equal interest of loans applied for by borrowers for purchase, lease-purchase of social housing from time to time at VBSP. Interest of outstanding loan shall equal 130% loan interest;

c) Concessional interest rate for loans granted by credit institutions shall be negotiated by the credit institutions and borrowers.

5. Loan disbursement: Loan shall be disbursed in accordance with project schedule and request of project developers. Amount of disbursement varies depending on technical stops.

6. Eligibility to apply for loans, loan amount, loan term, loan interest, loan security interests, and other details related to the loans granted by BIDV shall conform to applicable regulations of the law pertaining to investment credit of the Government.

7. In addition to provisions specified under Clause 1, Clause 2, Clause 3, Clause 4, and Clause 5 of this Article, for other details related to lending operations, credit institutions that grant loans shall comply with applicable law provisions pertaining to lending operations of credit institutions.

Article 26. Concessional loans granted to individual borrowers for renovation and repair of houses for lease

Individuals building or renovating or repairing houses to lease to beneficiaries of social housing support policies in accordance with Clause 4 Article 85 of Housing Law shall be eligible for concessional loans as follows:

1. Eligibility for loans:

a) Borrowers have sufficient solvency according to commitment with lending credit institutions;

b) Borrowers are in possession of certificate of land use right, property ownership for property attached to land in respect of houses to be built, renovated, and repaired;

c) Borrowers are in possession of capital use plans and construction permit where such items are required in accordance with construction laws. In case of term construction permit, borrowers shall be eligible for loans the term of which is appropriate to useful life of structures;

d) Borrowers implement loan security interests equal to use value of residential land and property attached to residential land or other property as per the law.

2. Loan limit: Borrowers shall be eligible for loans that equal at most 70% total project investment or capital use plans and do not exceed 70% value of loan security interests.

3. Loan term: Loan term shall not be longer than 20 years from the date on which the first loan is disbursed.

4. Loan interest:

a) Concessional interest rate for loans granted by VBSP shall equal that of loans applied for by borrowers at VBSP for purchase, lease-purchase of social housing from time to time. Interest of outstanding loan shall equal 130% loan interest;

c) Concessional interest rate for loans granted by credit institutions shall be negotiated by the credit institutions and borrowers.

5. Individuals building, renovating, repairing houses at their discretion to lease to beneficiaries of social housing support policies in accordance with Clause 4 Article 85 of Housing Law shall be eligible for concessional loans satisfactory to Clause 1 of this Article and required to develop investment plans. Social housing products must not be traded directly. Periodic reports must be filed to provincial housing authorities on a 3-month basis throughout implementation.

Section 4. TYPE AND AREA STANDARDS OF SOCIAL HOUSING

Article 27. Type and area standards of social housing in investment projects

1. Where social housing is an apartment building built under scope of projects, the following requirements must be met:

a) The apartment building must be designed, built in manner that is thorough and compliant with national technical regulations and technical standards;

b) Standard useable area of each apartment unit is at least 25 m² and 70 m² at most;

c) Maximum useable area of apartment units can be increased by a maximum of 10% where the number of apartment units of which useable area exceeds 70 m² does not exceed 10% total number of social housing apartment units in the projects.

2. Social housing built in form of single-family houses under projects shall only be implemented in communes located in ethnic minorities regions and mountainous regions in accordance with regulations of the Prime Minister and provisions below:

a) The social housing shall be so designed and built to comply with national standards, national technical regulations on construction planning;

b) Building density, land use coefficient, height of single-family houses conform to rural planning or regulations on architecture management of rural areas approved by competent authorities;

c) Area of plot on which social housing that is single-family house is built shall not exceed 70 m² while land use coefficient does not exceed 2.

Article 28. Type and area standards of social housing built by individuals for lease

1. In case of multi-storey, multi-unit apartments, the following requirements must be met:

a) For apartment buildings with at least 2 storeys and at least 20 units, requirements under Clause 1 Article 57 of Housing Law must be met;

For apartment buildings with at least 2 storeys and less than 20 units, requirements under Clause 3 Article 57 of Housing Law must be met.

2. Where a row of single-storey houses is built for lease, requirements below must be met:

a) The structures must be enclosed (with separate dwelling areas, separate sanitation areas) in accordance with construction standards;

b) Average useable area per person for residential purposes shall not be lower than 8 m² (excluding area of auxiliary sections);

c) Regulations pertaining to construction quality of level IV or higher in accordance with construction laws must be met;

d) Layout arrangement of houses and other work items in a row of single-storey houses on plot must allow convenient traffic, environmental hygiene, and satisfy conditions for emergency remediation (fire, explosion, structural failure, etc.).

Section 5. ELIGIBILITY FOR SOCIAL HOUSING SUPPORT POLICIES

Article 29. Housing eligibility

1. Entities under Clause 1 Article 77 of Housing Law or their spouses (if any) have not owned houses as they are not named under certificate of land use right or ownership of property attached to land in provinces and central-affiliated cities where relevant social housing projects are located at the time in which they apply for purchase, lease-purchase of social housing.

Within 7 days from the date on which district land registration offices/office branches affiliated to provinces and central-affiliated cities where relevant social housing investment projects are located receive application for verification of ownership status under certificate of land use right, and/or ownership of property attached to land, the district land registration offices/office branches shall verify in respect of entities under this Clause.

2. Entities under Clause 1 Article 77 of Housing Law own houses where average floor area per capita is lower than 15 m² of floor area/person. Floor area per capita under this Clause shall be determined on the basis of: applicant, his/her spouse, his/her parent(s) (if any), his/her children (if any) of whom residence is registered at the property.

Within 7 days from the date on which commune-level People’s Committees receive application for verification of floor area per capita, commune-level People’s Committees shall verify for cases detailed under this Clause.

Article 30. Income eligibility

1. Entities under Clauses 5, 6, and 8 Article 76 of Housing Law must meet income requirements below:

a) Where the applicant is single, net monthly income must not exceed 15 million VND according to pay slip verified by his/her employer, workplace, enterprise.

Where the applicant is married as per the law, net monthly income of the applicant and his/her spouse must not exceed 30 million VND according to pay slip verified by their employers, workplaces, enterprises.

b) Income data shall be collected in the last year from the date on which entities under this Clause submit adequate applications for purchase, lease-purpose to project developers.

2. In case entities under Clause 5 Article 76 of Housing Law are not in possession of employment contract, where they are single, net monthly income must not exceed 15 million VND; where they are married, net monthly income of the applicants and there spouses must not exceed 30 million VND. Within 7 days from the date on which commune-level People’s Committees receive applications, commune-level People’s Committees shall verify income eligibility in the last year from the date on which entities under this Clause submit adequate application for purchase, lease-purchase of social housing.

3. For entities under Clause 2, Clause 3, and Clause 4 Article 76 of Housing Law, the entities must be categorized as poor households or near-poor households in accordance with poverty lines of the Government.

4. For entities under Clause 7 Article 76 of Housing Law, income eligibility under Article 67 hereof shall be adopted.

Section 6. SELLING PRICE, LEASE-PURCHASE PRICE, RENT OF SOCIAL HOUSING

Article 31. Rent, lease purchase price of social housing funded by the Government using public investment and union funding

1. Rent of social housing funded by the Government using public investment or union funding shall conform to the regulations below:

a) Social housing rent shall be determined on the basis of including costs under Clause 1 Article 86 of Housing Law and excluding bonuses under Clause 1 Article 85 of Housing Law;

b) Rent of social housing shall be determined using the formula below:

G_t =	V_đ + B_t	x K x (1 + GTGT)
	12 x S_t

Where:

G_t: means rent for 01 m² of floor area for 1 month (VND/m²/month).

V_đ: means total investment and construction costs excluding VAT for implementation of social housing investment projects (including costs allocated to social housing) in accordance with regulations of the law pertaining to management of construction, allocated on an annual basis to leased floor area on a capital preservation principle.

V_đ =	T_đ x r x (1 + r)ⁿ
	(1 + r)ⁿ – 1

T_đ (VND): means total investment and construction costs of social housing area under Clause 2 Article 22 hereof, determined in accordance with investment settlement value approved by competent authorities; where investment settlement has not been approved, total investment and construction costs are determined on the basis of investment and construction costs approved by competent authorities or investment and construction costs under bidding results (if any).

r (%/year): means interest rate for investment preservation (in years) determined by persons making investment decision.

n: means the number of years necessary to recover investment, determined by persons making investment decision, at least 20 years.

B_t: means annual maintenance expenditure allocated to floor area for lease in accordance with regulations of the law on quality management, structure construction and management.

S_t : means floor area of houses for lease.

K: means coefficient of rent adjustable of dwelling units determined on the basis of weighted mean where weight mean of floor area on all storeys of a building block equals 1.

GTGT: means VAT determined in accordance with tax laws.

12: means the number of month in a year.

c) Rent shall be determined for the entire project or individual investment stage (if any) depending on project investment guidelines.

2. Lease-purchase price of social housing funded by the Government using public investment shall conform to regulations below:

a) Lease-purchase price of social housing shall be determined on the basis of including costs under Clause 2 Article 86 of Housing Law and excluding bonuses under Clause 1 Article 85 of Housing Law;

b) Lease-purchase price of social housing shall be determined using the formula below:

G_t =	V_đ	x K x (1 + GTGT)
	12 x S_tm

Where:

G_t: means lease-purchase price for 01 m² of housing area for 1 month (VND/m²/month).

V_đ =	T_đ x r x (1 + r)ⁿ
	(1 + r)ⁿ – 1

r (%/year): means interest rate for investment preservation (in years) determined by persons making investment decision.

n: means the number of years necessary to recover investment, determined by persons making investment decision, at least 05 years.

S_tm:means floor area of lease-purchased houses.

K: means coefficient of lease-purchase price adjustable of dwelling units determined on the basis of weighted mean where weight mean of floor area on all storeys of a building block equals 1.

GTGT: means VAT determined in accordance with tax laws.

12: means the number of month in a year.

c) Lease-purchase price shall be determined for the entire project or individual investment stage (if any) depending on project investment guidelines.

3. On the basis of Clause 1 and Clause 2 of this Article, provincial housing authorities have the responsibility to take charge and cooperate with equivalent financial authorities in preparing and requesting ownership representative agencies to promulgate rent, lease-purchase price of social housing that are public property and applying to houses under their management.

4. For projects funded by union funding, project developers shall propose rent plans to Vietnam General Confederation of Labor for promulgation.

Article 32. Selling price of social housing not funded by public investment and union funding

1. Selling price of social housing shall be determined on the basis of including costs under Point a Clause 1 Article 87 of Housing Law and excluding bonuses, maintenance expenditure under Point b Clause 1 Article 87 of Housing Law.

c) Selling price shall be determined for the entire project or individual investment stage (if any) depending on project investment guidelines.

2. Selling price of social housing shall be determined using the formula below:

Gi^B =	T_đ + L	x Ki x (1 + GTGT)
	S^B

Where:

Gi^B (VND/m²): means selling price of 01 m² of area of an apartment unit (or a house) of social housing of which construction has completed in the i^th position.

T_đ (VND): means total investment and construction costs (including VAT) of social housing area under Clause 2 Article 22 hereof, determined in accordance with investment settlement value; where investment settlement has not been approved, total investment and construction costs shall be determined in accordance with approved investment and construction costs or investment and construction costs according to bidding results (if any).

L (VND): means standard profits determined by standard rates multiplied by T_đ.

S^B (m²): means total floor area of apartment units (or houses) for sale in houses or projects, including area of apartment units or houses which the project developers do not sell.

Ki: means coefficient of selling price variables for area in the ith position determined via weighted mean where weighted mean of floor area of a building block equals 1.

3. Procedures for inspecting selling price of social housing not funded by public investment and union funding shall conform to Article 35 hereof.

Article 33. Lease-purchase price of social housing not funded by public investment and union funding

1. Lease-purchase price of social housing shall conform to Clause 2 Article 87 of Housing Law and exclude bonuses, maintenance expenditure under Point b Clause 1 Article 87 of Housing Law.

Lease-purchase price shall be determined for the entire project or individual investment stage (if any) depending on project investment guidelines.

2. Lease-purchase price of social housing shall be determined using the formula below:

Where:

Gi™ (VND/m²/month): means lease-purchase price for 01 m² of floor area of apartment unit (or house) of social housing of which construction has been completed in i^th position in a month. Lease-purchase price does not include apartment building maintenance fund.

Ai: means a percentage between remaining value of apartment unit (or house) of social housing in the i^th position (less initial payment) relative to initial value of the i^th lease-purchased apartment unit (or house) (A < 1) according to lease-purchase contracts.

V_đ (VND/year): means total investment and construction costs of social housing in the project allocated to lease-purchased floor area of social housing, allocated annually on the principle of capital preservation, and determined using the formula below:

V_đ =	T_đ x r x (1 + r)ⁿ
	(1 + r)ⁿ – 1

r (%/year): means interest rate for investment preservation (in years) determined by persons making investment decision.

n: duration of lease-purchase agreed upon between the landlord and the tenant, at least 5 years.

L (VND/year): standard profits per year and equal standard rate multiplied by T_đ.

Si™ (m²): means floor area of apartment unit (or house) of social housing for lease-purchase at ith position of housing structure or projects.

Ki: means coefficient of lease-purchase price variables for area in the ith position determined via weighted mean where weighted mean of floor area of a building block equals 1.

3. Procedures for inspecting lease-purchase price of social housing not funded by public investment and union funding shall conform to Article 35 hereof.

Article 34. Rent of social housing not funded by public investment and union funding

1. Methods for determining rent of social housing not funded by public investment and union funding shall be similar to those for rent of social housing funded by public investment under Clause 1 Article 31 hereof. Rent of social housing consists of maintenance funding and standard profits as per the law and does not include bonuses provided by the Government.

2. Provincial housing authorities have the responsibility to take charge, cooperate with equivalent financial authorities in developing and requesting provincial People’s Committees to promulgate social housing rent bracket. During development of social housing rent bracket in their jurisdiction, provincial housing authorities may hire consultancy entities to develop and determine social housing rent bracket.

3. For social housing built, renovated, or repaired by individuals to lease to beneficiaries of social housing support policies, the individuals shall evaluate at their discretion in a manner compliant with bracket promulgated by provincial People‘s Committees of administrative divisions where social housing for lease is located.

Prior to signing social housing rent contract, the tenant shall send rent bracket to local commune-level People’s Committees.

Article 35. Procedures for inspecting selling price, lease-purchase price of social housing not funded by public investment and union funding

1. Project developers shall submit application (certified true copies) in person to field-specific authorities of provincial People’s Committees of administrative divisions where the projects are located or online via provincial online public service portal for inspection of selling price, lease-purchase price of social housing that they fund the construction of in accordance with Clause 2 of this Article.

2. Application for price inspection consists of:

a) Written application using form under Appendix I attached hereto;

b) Legal documents of the project (consisting of: Written approval of investment guidelines; decision allocating land or certificate of land use right or other documentation proof of land use right; written approval for 1/500 scale detail planning; construction permit and other relevant documents);

c) Methods for determining selling price, lease-purchase price of social housing funded by project developers.

3. Field-specific authorities of provincial People’s Committees of administrative divisions where relevant projects are located shall inspect lease-purchase price of social housing at request of project developers as follows:

a) Field-specific authorities of provincial People’s Committees of administrative divisions where relevant projects are located shall conduct inspection and be responsible to provincial People’s Committees for inspection result and time limit.

Where project developers have finished construction of social housing and audit or settlement of project costs as per the law, field-specific authorities of provincial People’s Committees of administrative divisions where projects are located may rely on audit report, decision approving settlement results to inspect selling price, lease-purchase price of social housing in the projects.

b) Within 30 days from the date on which field-specific authorities of provincial People’s Committees receive adequate application for price inspection submitted by project developers, field-specific authorities of provincial People’s Committees shall conduct inspection and inform project developers about inspection results which include approved details and details that need to be amended (if any).

Based on written notice of inspection results, project developers promulgate selling price, lease-purchase price of social housing which must not be higher than the inspected price.

c) Where field-specific authorities of provincial People’s Committees of administrative divisions where relevant projects are located do not issue written notice within the time limit under Point b of this Clause, project developers have the right to promulgate prices in accordance plans submitted for inspection or proposed prices under bid and sign social housing purchase, lease-purchase contracts with customers after sending social housing selling price, lease-purchase price schedule to local Departments of Construction.

d) Within 60 days from the date on which the time limit under Point b of this Clause expires, field-specific authorities of provincial People’s Committees of administrative divisions where relevant projects are located must inspect social housing selling price, lease-purchase price and inform project developers about inspection results.

Where inspected price is higher than the price with which project developers enter into contracts, the project developers must not charge further. Where inspected price is lower than the price with which project developers enter into contracts, project developers shall re-sign contracts or amend contract appendices and refund the excess to the buyers, tenants.

dd) Field-specific authorities of provincial People’s Committees have the responsibility to publicly post inspected prices on their website (within 15 days after the date on which inspection results are available); project developers shall publicly post inspected prices, selling price, lease-purchase price of social housing at the site of project and on website of project developers, website of the projects (if any).

e) After social housing investment projects have concluded and entered into operation, project developers shall audit, approve settlement of project expenditure and submit 1 set of documents (certified true copies) to field-specific authorities of provincial People’s Committees request inspection of social housing selling price, lease-purchase price.

Where social housing selling price, lease-purchase price under audit results, settlement approval is higher than the price with which the project developers enter into contracts, the project developers must not charge further. Where social housing selling price, lease-purchase price under audit results, settlement approval is lower than the price with which the project developers enter into contracts, project developers shall re-sign contracts or amend contract appendices and refund the excess to the buyers, tenants.

4. Where project developers adopt winning bid, re-inspection of social housing selling price and lease-purchase price in accordance with this Article shall not be required.

Article 36. Exemption and reduction of rent of social housing that is public property

1. Exemption and reduction of rent of social housing that is public property shall conform to the following principles:

a) Beneficiaries of rent reduction or exemption must be a party to property lease contracts (including representatives signing the contracts and other members named in the contracts);

b) Each tenant shall only be eligible for consideration for rent reduction, exemption once;

c) Where a tenant is eligible for multiple instances of rent reduction, exemption, he/she shall benefit from the highest instance;

d) Where at least 2 tenants in a household are eligible for rent reduction, the household shall be eligible for rent exemption.

2. Entities eligible for rent exemption, reduction of social housing of public property include:

a) Individuals serving the war, relatives of martyrs eligible for housing improvement in accordance with Ordinance for benefits for individuals serving the Revolution;

b) Poor households, near-poor households in accordance with regulations of the law on poverty lines;

c) Social protection beneficiaries receiving monthly social allowance as per the law eligible for social housing support policies.

3. Rent reduction, exemption amount

a) Entities under Point a Clause 2 of this Article shall be eligible for rent reduction the rate of which is specified under documents guiding implementation of Ordinance for benefits for individuals serving the Revolution;

b) Entities under Point b, Point c of this Clause shall be eligible for 60% rent reduction; in respect of poor and near-poor households, this reduction applies to the whole household (instead of individual household member).

Section 7. PROCEDURES FOR SELLING, LEASE-PURCHASING, LEASING SOCIAL HOUSING

Article 37. Procedures for leasing, lease-purchasing social housing funded by the Government using public investment and union funding

1. Procedures for leasing social housing funded by the Government using public investment:

a) Individuals wishing to rent social housing funded by the Government using public investment shall submit application to provincial housing authorities or local decentralized housing management entities. The application consists of Form No. 1 under Appendix II attached hereto, documentation proof of eligibility in accordance with guidelines of the Minister of Construction, Minister of National Defense, Minister of Public Security, and documentation proof of eligibility for rent reduction, exemption (if any).

Where entities under Clause 5 Article 76 of Housing Law are not working under employment contracts, eligibility confirmation issued by commune-level People’s Committees using form provided by the Minister of Construction shall be required. Entities under Clause 10 Article 76 of Housing Law shall be required to acquire eligibility confirmation of district-level People’s Committees of administrative divisions where they are subject to land expropriation, premise preparation, house demolition using form provided by the Minister of Construction.

b) Agencies receiving the application have the responsibility to examine and categorize the applications; where the application is inadequate, the receiving agencies must immediately respond to enable the applicants to revise the applications. Housing management entities that receive the applications shall submit list of individuals eligible to rent and legitimate documents to housing authorities for examination after examining and categorizing the applications;

c) On the basis of the list of individuals eligible to rent and legitimate documents, housing authorities shall submit list of persons allowed to rent social housing and request to ownership representative agencies.

Where total number of legitimate applications is equal to lower than total number of social housing for lease, individuals named under list of individuals eligible for rent shall also be named under list of individuals allowed to rent.

Where total number of legitimate applications are greater than total number of social housing for lease, individuals allowed to rent shall be determined and approved via lottery (online or in-person) implemented by provincial housing authorities or housing management entities. where housing management entities implement the lottery, provincial housing authorities shall supervise the process. The lottery results must be recorded in writing.

Where priority eligible entities under Point dd Clause 1 Article 79 of Housing Law are present in the projects, a specific percentage of these entities shall be allowed to rent social housing without going through the lottery process. Number of social housing leased to these entities (not via lottery) shall be determined by total number of applications submitted by all priority entities divided by total number of applications submitted multiplied by total number of social housing for lease. List of priority entities shall be arranged in order to submission. Social housing shall be leased to all listed priority entities in listing order. Social housing shall be leased to other entities via lottery.

d) On the basis of reports submitted by housing authorities, ownership representative agencies shall consider, issue, and send decision approving list of individuals allowed to rent social housing to housing management entities for signing lease contracts with tenants;

dd) Time limit for resolving social housing lease shall not be longer than 30 days from the date on which receiving agencies receive adequate applications;

e) Depending on local conditions, provincial People’s Committees may prescribe priority in renting social housing funded by the Government using public investment in their jurisdiction.

2. Procedures for leasing social housing funded by union funding:

a) Workers and employees eligible for social housing support policies shall submit application for renting social housing funded by the Vietnam General Confederation of Labor using union funding to organizations assigned to manage and operate houses of Vietnam General Confederation of Labor or provincial Confederation of Labor. The application consists Form No. 1 under Appendix II attached hereto and documentation proof of eligibility as per the law;

b) Agencies receiving the application have the responsibility to examine and categorize the applications; where the application is inadequate, the receiving agencies must immediately respond to enable the applicants to revise the applications. Where provincial Confederation of Labor receives the application, the provincial Confederation of Labor shall draft and send list of individuals eligible to rent social housing and legitimate documents to organizations assigned to manage, operate houses of the Vietnam General Confederation of Labor.

Where total number of legitimate applications is greater than total number of social housing for lease, individuals ed to rent shall be determined and approved via in-person lottery implemented by authorities managing houses of the Vietnam General Confederation of Labor. The lottery results must be recorded in writing. Where priority eligible entities under Point dd Clause 1 Article 79 of Housing Law and union members are present in the projects, they may rent social housing without going through the lottery process.

c) On the basis of list of individuals eligible to rent social housing and legitimate documents, organizations managing, operating houses of the Vietnam General Confederation of Labor shall review and sign lease contracts with ed to rent;

d) Time limit for processing social housing lease shall not be longer than 10 days from the date on which organizations managing, operating houses of the Vietnam General Confederation of Labor receive adequate applications.

3. Procedures for lease-purchasing social housing funded by the Government using public investment:

a) Individuals wishing to lease-purchase social housing shall submit application in-person to local Departments of Construction or housing management entities according to local decentralization. The application consists of Form No. 1 under Appendix II attached hereto, documentation proof of eligibility for social housing support policies as per the law.

b) Procedures for lease-purchasing social housing shall conform to Points b, c, d, and dd Clause 1 of this Article.

Article 38. Procedures for selling, lease-purchasing, leasing social housing built under projects and not funded by public investment, union funding

1. Procedures for selling social housing:

a) After 30 days from the date on which project construction is commenced, project developers of social housing investment projects have the responsibility to provide project-related information (project name; project developers; construction location; contact address, submission address; project schedule; project size; number of dwelling units (including: number of dwelling units for sale; dwelling unit area; selling price (estimates) for individual dwelling unit type); application time limit, and other relevant details) which will be publicly posted on website of Departments of Transport, district-level People’s Committees of administrative divisions where relevant projects are located, posted at least once under newspaper of press authority of local government, publicly posted at real estate trading centers of project developers (if any) in order to inform the general public and monitor, supervise;

b) Prior to proceeding with procedures for selling, project developers of social housing investment projects have the responsibility to file reports on total number of dwelling units expected to be sold, expected initial application submission date, expected initial selling date to Departments of Construction of administrative divisions where the projects are located to enable the Departments of Construction to examine and publicly post on their website within 30 days from the date on which the project developers start to accept application for purchase of project housing;

c) On the basis of information on social housing projects in the area that has been publicly posted in accordance with Clause 1 of this Article; households and individuals shall submit application for social housing purpose to project developers in person. The application consists of Form No. 1 under Appendix II attached hereto, documentation proof of eligibility for social housing support policies as per the law.

d) After receiving adequate applications, project developers of social housing investment projects have the responsibility to review individual applications, cross-examine against regulations on eligibility, eligible entities under Article 76 and Article 78 of Housing Law, document forms provided by the Minister of Construction, Minister of National Defense, and Minister of Public Security and prepare list of individuals allowed to purchase social housing in projects that they act as project developers.

Where applicants have submitted adequate application for social housing purchase to project developers and where no remaining housing fund is available, project developers have the responsibility specify reason and return the applications (including documentation proof of eligibility and eligible entities for social housing purchase submitted by the applicants).

Individuals receiving submitted application shall record receipt. Where application is inadequate, individuals receiving the application have the responsibility to specify reason for rejection and return the application to allow the applicants to revise the application.

While accepting submission of application for social housing purchase, project developers of social housing investment projects have the responsibility to publicly post list of sold dwelling units (signed lease contracts), list of remaining dwelling units at locations where applicants submit their application, headquarters of project developers, and real estate trading centers of project developers (if any) to inform the general public.

dd) Project developers of social housing investment projects have the responsibility to send list of entities to be prioritized for social housing purchase in accordance with Clause 2 of this Article to Departments of Construction of administrative divisions where the projects are located in order to enable the Departments of Construction to examine and verify entities eligible to purchase social housing and eliminate cases where applicants have purchased or lease-purchased social housing, received housing support provided by the Government in any shape or form in provinces, central-affiliated cities where relevant social housing projects are located. Competent authorities entitled to issue certificate of land use right, ownership of property attached to land in administrative divisions where relevant social housing investment projects are located have the responsibility to cooperate with Departments of Transport of administrative divisions where projects are located in inspecting information within their powers and assuming responsibility for inspection results. Upon receiving application or inspecting eligibility, project developers are not required to be in possession of selling price inspection results of competent authorities.

Where entities expected to purchase social housing according to list prepared by project developers have purchased, lease-purchased social housing or have received housing support provided by the Government in any shape or form in provinces, central-affiliated cities where relevant social housing investment projects are located or have owned houses but have not met requirements under Clause 2 Article 29 hereof, Departments of Transport have the responsibility to notify the project developers in writing to remove these entities from list of entities allowed to purchase social housing.

Where Departments of Construction do not respond within 20 days from the date on which they receive the list, project developers shall inform entities allowed to purchase social housing in their projects to negotiate and sign contracts.

Where individuals that meet requirements and have been included in list of buyers of social housing in the project no longer wish to purchase social housing, project developers shall return their applications (including documentation proof of eligibility and eligible entities for social housing purchase) to the applicants.

e) Each household, individual that wishes to purchase social housing shall only submit application at one project. Where no remaining housing fund is available, project developers shall specify reasons and return application to allow applicants to submit at other projects.

Buyers of social housing shall pay project developers directly or via bank according to negotiation between project developers and the buyers.

g) Project developers shall only sign social housing purchase contracts with customers where requirements in accordance with regulations of the law on housing are met and selling price has been inspected, approved as per the law.

After signing social housing purchase contracts, project developers have the responsibility to send list of entities (including household members) that have purchased social housing to Departments of Construction of administrative divisions where projects are located to enable Departments of Construction to publicly post within 30 days from the date on which they receive the list and keep a copy for management and inspection. Departments of Construction have the responsibility to update list of entities allowed to purchase social housing on their website in accordance with Article 44 hereof and send this list to the Ministry of Construction (hard copy and soft copy) for monitoring. Project developers have the responsibility to publicize this list at their headquarters and at real estate trading centers or their social housing website (if any).

2. Where total number of adequate applications for purchase, lease-purchase, rent is equal to or lower than total number of dwelling units declared by project developers for individual product type, selection of dwelling units shall be negotiated by the project developers and customers.

Where total number of adequate applications for purchase, lease-purchase, rent is greater than the number of dwelling units declared by project developers for individual product type, approval and selection of eligible entities shall be implemented via lottery (in-person or online) organized by project developers and attended by representatives of local Departments of Transport. The lottery results must be recorded in writing.

Where priority eligible entities under Point dd Clause 1 Article 79 of Housing Law are present in the projects, a specific percentage of these entities shall be allowed to rent social housing without going through the lottery process. Number of dwelling units (houses) reserved for these priority eligible entities (without lottery) shall be determined by ratio between total number of applications submitted by priority eligible entities to total number of applications submitted multiplied by total number of social housing in the projects. List of priority entities shall be arranged in order to submission. Social housing shall be leased to all listed priority entities in listing order. Social housing shall be leased to other entities via lottery.

3. Procedures for lease-purchasing social housing shall conform to Clause 1 and Clause 2 of this Article.

4. Procedures for leasing social housing shall conform to Clause 1 of this Article and shall not require documentation proof of housing and income eligibility. For the purpose of renting social housing of public property, tenants shall submit documentation proof of eligibility for reduction and exemption of social housing rent (if any).

Where entities allowed to rent social housing is currently renting other social housing, Departments of Transport have the responsibility to inform project developers in writing to remove said entities from list of entities allowed to rent social housing.

Article 39. Procedures for re-selling social housing within 5 years

Procedures for re-selling social housing within 5 years in accordance with Point dd Clause 1 Article 89 of the Housing Law:

1. Where social housing is re-sold to project developers, the seller shall settle the contract with the project developers. Re-selling of social housing shall conform to Clause 1 Article 89 of the Housing Law, real estate trading laws, and land laws.

2. Procedures for re-selling social housing to other entities eligible to purchase, lease-purchase social housing:

a) The buyer must be in possession of documentation proof of eligibility and eligible entities in accordance with instructions of the Minister of Construction, the Minister of National Defense, and the Minister of Public Security and shall submit application to local Departments of Construction of administrative divisions where relevant projects are located to verify eligibility and eligible entities in accordance with Point dd Clause 1 Article 38 hereof;

b) The seller must settle the contracts with the project developers (if any). Re-selling of social housing shall conform to Clause 1 Article 89 of the Housing Law, real estate trading laws, and land laws.

Article 40. Procedures for re-selling social housing after 5 years

Procedures for re-selling social housing after 5 years in accordance with Point e Clause 1 Article 89 of Housing Law:

1. The Seller is already in possession of certificate of land use right, ownership of property attached to land.

2. Re-selling process shall conform to real estate trading laws and land laws.

Article 41. Land levy payment of project developers upon re-selling social housing that has been leased for more than 10 years

Payment of land levy of project developers upon re-selling social housing that has been leased for more than 10 years under Clause 9 Article 88 of Housing Law shall conform to land laws.

Article 42. Payment of land levy upon re-selling social housing after 5 years

Payment of land levy upon re-selling social housing that is single-family houses after 5 years under Point e Clause 1 Article 89 of Housing Law shall also include 50% of land levy in accordance with land laws in addition to amounts payable. Calculation of land levy shall be started from the date on which adequate applications for recognition of land use right is submitted in accordance with land laws.

Article 43. Procedures for leasing social housing funded by individuals

Procedures for leasing social housing funded by individuals:

1. Individuals funding social housing construction have the responsibility to report to commune-level People’s Committees of administrative divisions where social housing is built in writing regarding location of construction; construction schedule; size, quantity of dwelling units, including: Number of dwelling units for lease; initial time for lease to enable commune-level People’s Committees to publicly post information at headquarters of commune-level, ward-level government to inform the general public and implement monitoring.

2. On the basis of information on local social housing publicly posted as per the law; individuals wishing to rent social housing shall submit written verification of social housing support beneficiaries in accordance with guidelines of the Minister of Construction, Minister of National Defense, and Minister of Public Security to individuals funding social housing construction.

3. After collecting adequate applications submitted by applicants, individuals funding social housing construction shall sign lease contracts with tenants. Send list of entities renting social housing to commune-level People’s Committees for management and inspection (post-inspection).

Article 44. Updating information on entities allowed to purchase, lease-purchase, rent social housing

1. After 15 days from the date on which list of entities that have signed social housing purchase, lease-purchase, rent contracts in accordance with Point g Clause 1 Article 38 hereof, Departments of Transport of administrative divisions where relevant projects are located have the responsibility to examine and upload the list on their website in accordance with Clause 2 of this Article.

2. Updated information:

a) Full name;

b) ID Card/identification number;

c) Permanent/temporary residence registration;

d) Household members;

dd) Name of social housing investment projects.

3. Where individuals that wish to purchase, lease-purchase, rent social housing have entered into contracts with project developers fall under cases where contract termination is required, the project developers have the responsibility to report to Departments of Construction to update list of entities allowed to purchase, lease-purchase, rent social housing on their website and website of the Ministry of Construction.

4. Where data and information on entities allowed to purchase, lease-purchase, rent social housing is not available on website of the Ministry of Construction, Departments of Transport shall publicly post this list on their website and send this list to the Ministry of Construction (hard copy and soft copy) of which contents are compliant with Clause 2 of this Article.

Article 45. Rights, obligations, and responsibilities of the seller, landlord and the buyer, tenant of social housing

Rights, obligations, and responsibilities of the seller, landlord and the buyer, tenant of social housing shall conform to civil laws, housing laws, and specified under social housing purchase, lease-purchase, rent contracts and include:

1. The seller, landlord of social housing:

a) shall strictly adhere to clauses under social housing purchase, lease-purchase, rent contracts;

b) may terminate social housing purchase, lease-purchase, rent contracts in accordance with terms of the contracts;

c) establish apartment building administration boards and develop regulations on apartment building management and operation in accordance with guidelines of the Minister of Construction for social housing that is apartment buildings;

d) recover leased social housing upon termination of rent contracts as long as the landlord notifies the tenant at least 1 month in advance, pays deposit and rent paid in advance (if any) in accordance with rent contracts;

dd) collect service fees related to social housing management and use in accordance with signed contracts and regulations on apartment building management and operation in case of social housing that is apartment buildings;

e) comply with decision of competent authorities pertaining to actions against violations and settlement of disputes, complaints related to sale, lease-purchase, lease of social housing;

g) exercise other rights and obligations as per the law.

2. The buyer, tenant of social housing:

a) may terminate social housing purchase, lease-purchase, rent contracts in accordance with terms of the contracts;

b) shall adhere to terms under social housing purchase, lease-purchase, rent contracts and regulations on apartment building management and operation in case of social housing that is apartment building;

c) comply with decision of competent authorities pertaining to actions against violations and resolution of conflicts, disputes related to purchase, lease-purchase, rent of social housing and exercise other rights and obligations as per the law;

d) return rented social housing to the landlord in accordance with rent contracts; where the tenants unilaterally terminate the contracts prematurely, notify the landlord at least 1 month in advance; where the tenants have paid rent for the entirety of contract term, receive rent corresponding to the remainder of rent duration and deposit (if any) except for unilateral contract termination caused by violation of a party in which case deposit is dealt with in accordance with the Civil Code; may purchase rented social housing if the owners sell in accordance with this Decree and relevant housing laws; refrain from maintaining, renovating rented property, using rented property for other purposes, subletting or lending property; refrain from transferring rent contracts or swapping rented property with other people without consent of the landlord;

dd) upon expiry of the contracts and where the tenants are still eligible to rent social housing, the parties shall negotiate and renew rent contracts; where the tenants wish to renew rent contracts and have not fallen under cases where contract termination is warranted, the tenants may renew rent contracts or extend rent contracts at least 3 months prior to expiry of contracts;

e) pay landlord deposit in accordance with agreement between the parties. This deposit must not be greater than the equivalent of 3 months’ worth of rent and must not be lower than 1 month’s worth of rent.

The parties may negotiate deposit higher than the value specified under this Clause to a maximum of 50% of value of rented property. Where the tenants pay deposit in accordance with this Clause, they shall benefit from rent reduction or exemption from rent in a specified period agreed upon by the parties.

In respect of entities under Clause 1, Clause 4, and Clause 11 Article 76 of Housing Law, deposit payment shall not be required for the purpose of renting social housing.

Section 8. CONCESSIONAL LOANS GRANTED BY THE GOVERNMENT FOR PURCHASE, LEASE-PURCHASE OF SOCIAL HOUSING; HOUSING CONSTRUCTION, RENOVATION, REPAIR FOR IMPLEMENTATION OF SOCIAL HOUSING POLICIES

Article 46. Principles of concessional loan policies

1. Where an entity is eligible for multiple concessional loan policies for housing support, the entity shall be eligible for policies with the highest value.

2. Where there are multiple beneficiaries of multiple concessional loan policies in a household, the entire household shall be eligible for one concessional loan policy.

3. VBSP or credit institutions designated by the Government shall grant concessional loans for social housing, houses for people’s armed forces in a manner compliant with housing laws, credit laws, and relevant law provisions.

4. VBSP may mobilize saving deposits of households, domestic individuals that wish to purchase, lease-purchase social housing, houses for people’s armed forces to lend to these entities in accordance with Clause 1 Article 48 and Clause 1 Article 71 hereof after a definite period of deposit in accordance with agreement with the VBSP.

Article 47. Concessional loans for housing construction, renovation, repair under national target programs or housing public investment programs

1. Entities under Clause 1, Clause 2, and Clause 3 Article 76 of Housing Law shall be eligible for housing concessional loans for housing construction , renovation, repair in accordance with specific regulations of individual national target programs or housing public investment programs decided by competent state authorities.

2. Eligibility for loans, loan amount, loan terms, loan interest, debt settlement policies, loan security measures, loan term extension shall conform to specific provisions under Decision approving corresponding national target programs or housing public investment programs of competent authorities.

Article 48. Concessional loans for purchase, lease-purchase of social housing; housing construction, renovation, repair granted by VBSP

1. Entities under Clause 1, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 Article 76 of Housing Law shall satisfy all requirements below in order to be eligible to apply for loans for social housing purchase, lease-purchase:

a) The entities have income and sufficient solvency in accordance with commitment made with the VBSP; and

b) The entities file application for loans for social housing purchase, lease-purchase; and

c) The entities have entered into social housing purchase, lease-purchase contracts with project developers in accordance with this Decree and housing laws; and

d) The entities use property funded by the loans as collateral as per the law. The VBSP, project developers, and loan applicants shall specify means for management and handling of collateral under tripartite contract.

2. Entities under Clause 1, Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 Article 76 of Housing Law shall satisfy all requirements below in order to be eligible for loans for housing construction, renovation, repair:

a) The entities are in possession of documentation proof of eligibility, eligible entities in accordance with Article 76 and Article 110 of Housing Law.

Commune-level People’s Committees shall verify eligibility in accordance with Point a Clause 4 Article 110 of Housing Law using forms compliant with instructions of the Minister of Construction; and

b) The entities have sufficient solvency according to commitment with lending credit institutions; and

c) The entities have filed application for loans for housing construction, renovation, repair; and

d) The entities are in possession of certificate of land use right, property ownership for property attached to land in respect of houses to be built, renovated, and repaired; and

dd) The entities have prepared cost calculation and construction permit for cases where such items are required in accordance with construction laws. In case of term construction permit, borrowers shall be eligible for loans the term of which is appropriate to useful life of structures; and

e) The entities have implemented loan security interests equal to use value of residential land and property attached to residential land or other property as per the law.

3. Loan limit:

a) Maximum limit of loans for social housing purchase, lease-purchase shall equal 80% the value of house purchase, lease-purchase contracts;

b) Maximum limit of loans for housing construction, renovation, repair shall equal 70% the value of estimated value or capital use plans to a maximum of 1 billion VND taking into account construction investment rate, housing construction unit price of competent authorities and shall not exceed 70% the value of loan collateral.

4. Loan interests shall equal those for poor households prescribed by the Prime Minister from time to time. Interest of outstanding loan shall equal 130% loan interest.

5. Loan term: Loan term shall be discussed by lending banks and the borrowers in accordance with solvency of the borrowers to a maximum of 25 years from the date on which the first loan installment is disbursed.

6. Entities under Clause 2, Clause 3 Article 76 of Housing Law allowed to purchase, lease-purchase social housing in accordance with Clause 1 Article 77 of Housing Law shall be eligible for concessional loans in accordance with Clause 1, Clause 3, Clause 4, and Clause 5 of this Article.

Article 48. Concessional loans for social housing purchase, lease-purchase, housing construction, renovation, repair granted by Government-designated credit institutions

1. Entities eligible for concessional loans for purchase, lease-purchase of social housing; housing construction, renovation, repair granted by Government-designated credit institutions shall be those specified under Clause 1, Clause 4, Clause 5, Clause 6, Clause 7, and Clause 8 Article 76 and Point a Clause 3 Article 78 of Housing Law.

2. Government-designated credit institutions shall grant loans to entities under Clause 1 of this Article in accordance with documents approved by the Government and the Prime Minister.

Section 9. FUNDING SOURCES OF CONCESSIONAL LOANS, MANAGEMENT AND USE THEREOF FOR IMPLEMENTATION OF SOCIAL HOUSING POLICIES

Article 50. Funding sources of concessional loans

1. Funding sources of concessional loans granted via VBSP:

a) The state budget shall provide 100% funding, cover interest rate differences and management costs in medium-term and annual public investment plans for VBSP as per the law for the purpose of granting loans to entities under Article 25, Article 26, Clause 1 Article 47, and Clause 3 Article 71 hereof;

b) The state budget shall allocate 50% of funding from medium-term and annual public investment plans while the VBSP satisfies the remaining 50% via mobilized capital; the state budget shall cover interest rate differences and management costs for VBSP as per the the law for the purpose of granting loans to entities under Clause 5 Article 77 of Housing Law;

c) Trust funds from local housing development funds (if any), annual funding from local government budget, capital derived from housing bond and government bonds and other legitimate sources as per the law decided by the provincial People’s Councils (for provincial government budget), district-level People’s Councils (for district government budget) for implementation of local social housing targets and plans.

2. Funding sources for loans for social housing granted by BIDV:

a) Funding sources provided by issuance of Government-backed bonds and other legitimate funding sources as per the law for loans for social housing in accordance with Clause 6 Article 25 hereof. The Government shall not cover differences in interest rate and management costs.

b) Funding sources allocated from government budget for the purpose of granting loans for social housing in accordance with loan programs of the Government and the Prime Minister from time to time. The Government shall cover differences in interest rate and management costs.

3. Funding sources provided by state budget:

On the basis of provincial housing development programs and plans from time to time approved by competent authorities, provincial People’s Committees shall develop medium-term and annual public investment plans which enable the state budget to provide funding for provinces and central-affiliated cities to cover interest rate differences and allow project developers of social housing, worker housing in industrial parks, houses for people’s armed forces, and loan applicants for housing construction, renovation, and repair for lease in accordance with this Decree to apply for concessional loans at credit institutions. Concessional interest rate shall be decided by the Prime Minister at request of the Ministry of Finance from time to time.

4. Funding sources for concessional loans granted by credit institutions:

a) Government-designated credit institutions shall grant loans in accordance with credit programs decided by the Government and Prime Minister from time to time;

b) The Government shall on-lend ODA, foreign concessional loans to credit institutions designated to grant loans for social housing in accordance with this Decree;

c) Government bonds, municipal bonds.

Article 51. Management and use of funding sources for concessional loans

1. Management of funding sources and use of funding for concessional loans for social housing shall be implemented by VBSP or Government-designated credit institutions.

2. Debt classification and handling of risky debts at the VBSP shall conform to regulations on debt classification and risky debt handling at VBSP.

Section 10. MANAGEMENT, USE, OPERATION OF SOCIAL HOUSING OF PUBLIC PROPERTY

Article 52. Management, use, operation of social housing of public property

1. Management, use, operation of social housing of public property shall conform to regulations of the law on management and use of public property housing, including:

a) Housing authorities, responsibilities of housing authorities;

b) Housing management entities and responsibilities of housing management entities;

c) Management of revenues generated by housing lease, lease-purchase and sale;

d) Management, use, operation of housing of public property;

dd) Procedures for repossessing and forcibly repossessing houses of public property.

2. Where social housing investment is necessary, ownership representative agencies of houses of public property may file schemes for sale of currently leased social housing compliant with Article 53 hereof.

Procedures for developing, inspecting, approving schemes for sale of currently leased social housing of public property shall conform to Article 54 hereof.

3. Procedures for selling social housing of public property after the schemes are approved shall conform to Clause 3 Article 37 hereof.

Article 53. Basic information of schemes for sale of currently leased social housing of public property

Schemes for sale of currently leased social housing of public property consist of:

1. Address, number of houses.

2. Reasons for selling.

3. Selling price plans where calculation is adequate, correct, preserves investment, and prevents losses of Government property.

4. Eligibility and entities eligible for housing purchase.

5. Procedures for selling.

6. Payment methods; time limit for implementation; estimated revenues.

7. Plans for reinvesting generated revenues in other social housing projects.

Article 54. Procedures for developing, approving schemes for sale of currently leased social housing of public property

Procedures for developing, approving schemes for sale of currently leased social housing of public property in accordance with Clause 2 Article 125 of Housing Law shall conform to the following:

1. Ownership representative agencies shall develop schemes for housing sale the basic components of which comply with Article 53 hereof.

2. Ownership representative agencies shall send written request and the schemes to the Ministry of Construction for inspection and reporting to the Prime Minister.

3. Where the Prime Minister approves, ownership representative agencies shall approve the schemes and arrange implementation in accordance with the schemes and written approval of the Prime Minister.

4. Revenues generated by housing sale shall be reinvested in social housing construction; ownership representative agencies shall file reports on the use of these revenues to the Ministry of Construction. Ministry of Construction has the responsibility to examine the use of the revenues and report to the Prime Minister.

5. Where social housing of public property assigned by the Ministry of Construction for management must have its occupancy changed or sold in accordance with this Article, file written request and documents in accordance with Clause 1 of this Article to the Prime Minister for consideration and decision.

Section 11. FORCIBLE REPOSSESSION OF SOCIAL HOUSING NOT OF PUBLIC PROPERTY

Article 55. Procedures for forcibly repossessing social housing

1. Forcible repossession of social housing shall be implemented after 30 days from the date on which decision on repossession of social housing issued by provincial People’s Committees comes into force and where owners of repossessed property do not comply.

Decision on forcible repossession of social housing shall be promulgated by provincial People’s Committees, sent to persons subject to the forcible repossession, publicly posted at headquarters of commune-level People’s Committees and community spaces of residential areas where repossessed houses are located.

2. Within 10 days from the date on which decision on forcible repossession of houses is issued, Chairpersons of provincial People’s Committees shall, at their discretion or by authorizing district-level People’s Committees, establish board for forcible repossession of social housing, the composition of which consists of: Chairpersons or Vice Chairpersons of provincial or district-level People’s Committees act as directors; representatives of inspecting bodies, construction authorities, judicial authorities, natural resource and environment authorities; project developers, representatives of administration boards, and other members decided by Chairpersons of provincial or district-level People’s Committees.

3. The board for forcible repossession of social housing shall encourage, persuade, and negotiate with persons subject to forcible repossession in 10 days. Where persons subject to forcible repossession comply with decision on forcible repossession, the board for forcible repossession shall file record of compliance. Delivery of social housing shall be implemented within 30 days from the date on which record is filed.

Where persons subject to forcible repossession do not comply with decision on forcible repossession, the board shall arrange forcible repossession of social housing.

4. The board has the right to request persons subject to forcible repossession and relevant persons to leave houses subject to forcible repossession and remove property from houses subject to forcible repossession at their discretion or remove persons subject to forcible repossession, relevant persons, and property from houses subject to forcible repossession.

5. The board shall request representatives of district-level Committee of Vietnamese Fatherland Front to oversee the forcible repossession process.

Article 56. Responsibilities of organizations and individuals in implementation of decision on forcible repossession of social housing

1. Provincial and district-level People’s Committees have the responsibility to arrange implementation of forcible repossession, resolution of complaints relating to forcible repossession in accordance with complaint laws; provide necessary equipment and means for forcible repossession; allocate expenditure on forcibly repossessing social housing.

2. Board for forcible repossession of social housing has the responsibility to take charge of developing and submitting forcible repossession plans and forcible repossession expenditure estimates to provincial or district-level People’s Committees; transfer social housing to developers of social housing projects or the authorities to accommodate eligible entities as per the law.

3. Police forces have the responsibility to maintain security and safety throughout implementation of forcible repossession.

4. Commune-level People’s Committees of administrative divisions where repossessed social housing is located have the responsibility to cooperate with relevant agencies, entities in sending decision on forcible repossession to persons subject to housing forcible repossession and publicly posting the decision; cooperate with board for forcible repossession of social housing in sealing and relocating property of persons subject to forcible repossession.

5. Other relevant agencies, organizations, and individuals have the responsibility to cooperate with board for forcible repossession of social housing in implementing forcible repossession at request of the board.

Chapter IV

REGARDING WORKER HOUSING IN INDUSTRIAL PARKS

Article 57. Investment stages of worker housing investment projects in industrial parks

1. Preparation stage:

a) Proposition; decision, approval of investment guidelines; planning for worker housing shall be implemented together with industrial park infrastructure investment projects in accordance with industrial park and economic zone management laws, investment laws, and other relevant law provisions;

b) Selection of project developers for worker housing projects in industrial parks shall conform to housing laws. Where enterprises engaged in industrial park infrastructure services invest in worker housing at their discretion, the enterprises shall act as project developers of worker housing investment projects. Where manufacturing enterprises, cooperatives, joint cooperatives in industrial parks rent land or rent sublet land to facilitate worker housing investment projects in industrial parks, the manufacturing enterprises, cooperatives, joint cooperatives shall act as project developers;

c) Land allocation, land lease, and land repurposing shall conform to land laws;

d) Procedures for developing, inspecting, and approving projects shall conform to construction laws.

2. Stages of project implementation consists of surveying, developing, inspecting, approving construction design, granting construction permission, commencing construction, operating construction, and commissioning construction completion in accordance with construction laws.

3. Project conclusion stage consists of delivery, settlement of construction contracts, and other relevant procedures in accordance with construction laws, housing laws, and other relevant law provisions.

Article 58. Size and ratio of land area for worker housing development in industrial parks

1. In the process of planning for industrial park construction, provincial People’s Committees have the responsibility to allocate at least 20% of land fund for commercial, service operations in industrial parks for worker housing unless provincial land use planning and plans, provincial housing development programs, plans have allocated sufficient land fund to meet accommodation demands for workers in the industrial parks.

2. Where industrial parks have been built without sufficient worker housing and where land area for commercial, service operations satisfactory to environmental safety requirements under Article 59 hereof is available, enterprises engaged in industrial park infrastructure services may study and request the provincial People’s Committees to partially reserve land area for commercial, service operations to facilitate worker housing.

Article 59. Environmental safety requirements

Worker housing in industrial parks shall satisfy environmental safety requirements below:

1. Environmental separation distance of worker housing shall comply with environmental laws, construction laws for the purpose of maintaining structural safety and be determined in a uniform manner during environmental impact assessment of industrial parks.

2. Worker housing shall have separate walkways and gates from those of industrial parks. Separation distance between gates and walkways shall satisfy fire prevention and firefighting laws.

3. Worker housing must be physically separated from industrial manufacturing areas by walls and/or fences.

4. Buffer plantings of which minimum width is 10 m shall be required around worker housing area.

5. Environmental separation distance from contaminating sources in industrial parks which are manufacturing facilities, material, finished product, hazardous waste storage units, and other auxiliary structures where non-civil wastes are produced must be maintained.

Article 60. Lease of worker housing in industrial parks

1. Where worker housing in industrial parks is built by enterprises engaged in infrastructure services:

a) Enterprises engaged in infrastructure services or authorized entities managing operation of worker housing have the responsibility to lease to workers working in the industrial parks.

b) Workers wishing to rent shall file Form No. 2 under Appendix II hereof and obtain verification of manufacturing enterprises in industrial parks;

c) Where number of application for rent of worker housing is greater than total number of worker housing available, consideration and selection of eligible entities shall be implemented via lottery arranged by project developers and overseen by representatives of industrial park management boards and union bodies. The lottery results must be recorded in writing;

d) Rental of worker housing shall be recorded under lease contracts signed with entities managing operation of worker housing;

dd) Tenant workers shall pay rent properly, refrain from subletting or transferring lease contracts lest termination of lease contracts or legal actions.

2. Where worker housing in industrial parks are invested by manufacturing enterprises in industrial parks, workers shall file Form No. 2 under Appendix II attached hereto and comply with Point a, Point b, and Point d Clause 1 of this Article.

Article 61. Management and use of worker housing in industrial parks

1. Project developers shall, at their discretion or by hiring, entrusting competent entities, to manage operation of worker housing.

2. Worker housing shall be leased to appropriate entities.

3. Occupancies of worker housing must not be changed without permission.

4. Maintenance process shall conform to construction laws.

5. Entities managing operation of worker housing shall develop and publicly post regulations on use of worker housing to inform and require compliance of relevant entities, individuals.

6. Entities managing operation of worker housing have the right to provide other services in vicinity of worker housing are not prohibited by the laws in order to benefit from reduction to housing management service costs.

7. Management of operation of worker housing shall be eligible for benefits applicable to public services.

Chapter V

REGARDING HOUSES FOR PEOPLE’S ARMED FORCES

Section 1. HOUSES FOR PEOPLE’S ARMED FORCES FUNDED BY PUBLIC INVESTMENT

Article 62. Rental, lease-purchase price of houses for people’s armed forces funded by the Government using public investment

Determination of rental and lease-purchase price of houses for people’s armed forces funded by the Government using public investment shall conform to Article 31 hereof.

Article 63. Procedures for leasing, lease-purchasing houses for people’s armed forces funded by the Government using public investment

1. Procedures for leasing houses for people’s armed forces funded by the Government using public investment:

a) Persons wishing to rent houses for people’s armed forces shall submit application in-person to housing authorities designated by the Ministry of National Defense or Ministry of Public Security or entities managing housing operation designated by the Ministry of National Defense, Ministry of Public Security. The application consists of Form No. 3 under Appendix II attached hereto, documentation proof of eligibility to rent houses for people’s armed forces and documentation proof of eligibility to benefit from reduction, exemption to rent of houses for people’s armed forces (if any);

b) Housing authorities designated by the Ministry of National Defense or Ministry of Public Security have the responsibility to examine and classify applications; where applications are inadequate, respond in writing to request applicants to submit additional documents. Housing management entities that receive the applications shall submit list of individuals eligible to rent and legitimate documents to housing authorities designated by the Ministry of National Defense, Ministry of Public Security for examination after inspecting and categorizing the applications;

c) Housing authorities designated by the Ministry of National Defense, the Ministry of Public Security in consolidating and sending list of expected tenants to local Departments of Construction to examine and exclude persons who are expected to rent social housing or houses for people’s armed forces;

d) Within 20 days from the date on which Departments of Transport receive the list, where Departments of Transport do not respond, housing authorities designated by the Ministry of National Defense, Ministry of Public Security shall file list of persons allowed to rent houses of people’s armed forces and written request to ownership representative agencies unless assigned by ownership representative agencies to comply with Clause 3 Article 15 of Housing Law;

dd) Housing ownership representative agencies or housing authorities assigned to comply with Clause 3 Article 15 of Housing Law shall consider, issue, send decision approving list of persons allowed to rent to entities managing housing operation to sign lease contracts with persons allowed to rent.

Where total number of legitimate applications is equal to lower than total number of houses for people’s armed forces for lease, individuals named under list of individuals eligible for rent shall also be named under list of individuals allowed to rent.

Where total number of legitimate applications is greater than total number of houses for people’s armed forces for lease, consideration and selection of individuals allowed to rent shall comply with decision of housing ownership representatives.

e) Time limit for processing lease of houses for people’s armed forces shall be 30 days from the date on which accepting entities receive legitimate applications.

2. Procedures for lease-purchasing houses for people’s armed forces funded by the Government using public investment:

a) Persons wishing to lease-purchase houses for people’s armed forces shall submit application to housing authorities designated by the Ministry of National Defense, Ministry of Public Security or entities managing housing operation assigned by the Ministry of National Defense, Ministry of Public Security. The application consists of Form No. 3 under Appendix II attached hereto, documentation proof of eligibility to lease-purchase houses for people’s armed forces in accordance with housing laws;

b) Housing authorities designated by the Ministry of National Defense or Ministry of Public Security have the responsibility to examine and classify applications; where applications are inadequate, respond in writing to request applicants to submit additional documents. Housing management entities that receive the applications shall submit list of individuals eligible to lease-purchase and legitimate documents to housing authorities designated by the Ministry of National Defense, Ministry of Public Security for examination after inspecting and categorizing the applications;

c) Housing authorities assigned by the Ministry of National Defense, Ministry of Public Security have the responsibility to consolidate and send list of expected house buyers to local Department of Construction in order to arrange, cooperate with relevant agencies in excluding cases where persons interested in lease-purchasing do not satisfy housing eligibility under Point a Clause 1 Article 78 of Housing Law;

d) Preparation of list of expected house buyers, decision approving the list, and time limit for processing the lease-purchase shall conform to Point d, Point dd, and Point e Clause 1 of this Article.

Section 2. MANAGEMENT, USE, OPERATION OF HOUSES FOR PEOPLE’S ARMED FORCES OF PUBLIC PROPERTY

Article 64. Management, use, operation of houses for people’s armed forces of public property

Management, use, operation of houses for people’s armed forces of public property shall conform to Clause 1 Article 52 hereof.

Article 65. Exemption, reduction to rent of houses for people’s armed forces of public property

1. Exemption, reduction to rent of houses for people’s armed forces of public property shall conform to principles under Clause 1 Article 36 hereof.

2. Entities under Clause 7 Article 76 of Housing Law that fall under any of the cases below shall be eligible for exemption, reduction to rent of houses for people’s armed forces of public property:

a) The entities sustain body injury of 31% or higher in the performance of urgent or dangerous duties;

b) Household members served the war or are people with disabilities.

3. Entities under Clause 2 of this Article shall benefit from 50% reduction to rent payable.

Article 66. Sale of currently leased houses for people’s armed forces of public property

1. For the purpose of investment in houses for people’s armed forces, ownership representatives of houses of public property may develop schemes for sale of currently leased houses for people’s armed forces the contents of which are compliant with Article 53 hereof.

2. Procedures for developing, inspecting, approving schemes for sale of currently leased houses for people’s armed forces of public property shall conform to Clauses 1, 2, 3, and 4 Article 54 hereof.

3. Procedures for selling houses for people’s armed forces of public property after the schemes have been approved shall conform to Clause 2 Article 63 hereof.

Section 3. HOUSES FOR PEOPLE’S ARMED FORCES NOT FUNDED BY PUBLIC INVESTMENT

Article 67. Income eligibility for purchase, lease-purchase of houses for people’s armed forces

1. Where the applicant is single, his/her net monthly income shall not exceed total income of a colonel-ranking official (consisting of minimum wages and allowances as per the law) verified by presiding agencies, entities.

2. Where the applicant has married:

a) Where the applicant and his/her spouse fall under Clause 7 Article 76 of Housing Law, their total net monthly income shall not exceed twice total income of a colonel-ranking official (consisting of minimum wages and allowances as per the law) verified by presiding agencies, entities;

b) Where spouse of the applicant does not fall under Clause 7 Article 76 of Housing Law, their total net monthly income shall not exceed 1,5 times total income of a colonel-ranking official (consisting of minimum wages and allowances as per the law) verified by presiding agencies, entities;

Where spouse of the applicant does not work under employment contracts, commune-level People’s Committees shall verify income eligibility.

3. Income eligibility shall be determined in the last year from the date on which application for purchase, lease-purchase of houses for people’s armed forces.

Article 68. Procedures for selling, lease-purchasing, leasing houses for people’s armed forces

1. Procedures for selling houses for people’s armed forces:

a) Following construction commencement, project developers of housing projects for people’s armed forces have the responsibility to provide information related to the project (project name; project development, construction location; contact address; project schedule; project size; number of dwelling units (including: Number of dwelling units for sale; dwelling unit area; selling price (estimates) of individual type of dwelling units; starting date and ending date for application submission, and other relevant information) to housing authorities designated by the Ministry of National Defense, Ministry of Public Security; upload at least once on newspapers that are press authorities of local government and publicly post at real estate trading centers of project developers (if any) to enable entities affiliated to people’s armed forces to apply;

b) Prior to selling houses for people’s armed forces, project developers of housing projects for people’s armed forces have the responsibility to send report on total number of dwelling units to be sold, expected initial date of sale to housing authorities designated by the Ministry of National Defense, Ministry of Public Security, and local Departments of Construction. Publicly post at real estate trading centers of project developers (if any) and website of local Departments of Construction for at least 30 days from the first date on which application for purchase of project houses is received;

c) On the basis of information housing projects for people’s armed forces publicly posted in accordance with Clause 1 of this Article; individuals wishing to purchase houses for people’s armed forces shall submit Form No. 3 under Appendix II attached hereto and documentation proof of eligibility to purchase houses for people’s armed forces to housing authorities designated by the Ministry of National Defense, Ministry of Public Security.

Housing authorities designated by the Ministry of National Defense, Ministry of Public Security shall consolidate and send list of expected buyers of houses for people’s armed forces and documentation proof of eligible entities and eligibility as per the law to the Ministry of National Defense, Ministry of Public Security.

d) On the basis of reports submitted by housing authorities, the Ministry of National Defense and Ministry of Public Security shall approve and send list of potential buyers of houses for people’s armed forces to project developers and local Departments of Transport in order to arrange, cooperate with relevant agencies in examining and excluding cases where potential buyers of houses for people’s armed forces do not satisfy housing eligibility in accordance with Point a Clause 1 Article 78 of Housing Law.

Where entities under list filed by the Ministry of National Defense or Ministry of Public Security do not meet housing eligibility in accordance with Point a Clause 1 Article 78 of Housing Law, Departments of Construction have the responsibility to inform project developers in writing in order to remove these entities from the list.

dd) Within 20 days from the date on which Departments of Construction receive the list, where Departments of Construction do not respond, project developers shall prepare and send list of entities to be processed for purchase of houses for people’s armed forces in accordance with principles under Clause 2 of this Article to the Ministry of National Defense, Ministry of Public Security to inform and enable entities allowed to purchase houses for people’s armed forces in their projects to negotiate and sign contracts.

Where applicant that satisfies eligibility, qualifies as eligible entities, has been included in list of buyers of houses for people’s armed forces in the projects no longer wishes to purchase houses for people’s armed forces, project developers shall consolidate and send list of these applicants to the Ministry of National Defense, Ministry of Public Security.

e) Project developers shall only sign contracts for sale of houses for people’s armed forces with customers when all requirements have been met in accordance with housing laws and when selling price has been inspected, approved by competent authorities in accordance with Article 35 hereof.

After signing contracts for sale of houses for people’s armed forces, project developers have the responsibility to prepare and send list of successful buyers (including household members) of houses for people’s armed forces to housing authorities designated by the Ministry of National Defense, Ministry of Public Security, and local Departments of Construction for storage, management, and inspection. Meanwhile, project developers have the responsibility to publicly post this list at their headquarters and their real estate trading centers (if any).

2. Principles in approving entities purchasing houses for people’s armed forces

a) Where total number of legitimate applications is equal to or lower than number of dwelling units announced by project developers, selection of dwelling units shall conform to negotiation between project developers and customers;

b) Where total number of legitimate applications is greater than number of dwelling units announced by project developers, approval and selection of entities shall be implemented via lottery arranged by project developers and overseen by representatives of housing authorities designated by the Ministry of National Defense, Ministry of Public Security, and local Departments of Construction. The lottery results must be recorded in writing.

3. Procedures for lease-purchasing houses for people’s armed forces shall conform to Clause 1 of this Article.

4. Procedures for leasing houses for people’s armed forces shall conform to Clause 1 of this Article and shall not require documentation proof of housing and income eligibility. Upon renting houses for people’s armed forces of public property, tenants shall submit documentation proof of eligibility for rent reduction, exemption of houses for people’s armed forces (if any).

Article 69. Procedures for re-selling houses for people’s armed forces

1. Procedures for re-selling houses for people’s armed forces within 5 years:

a) Where houses for people’s armed forces are re-sold to project developers, comply with Clause 1 Article 39 hereof;

b) Where houses for people’s armed forces are sold to other entities eligible to purchase, lease-purchase houses for people’s armed forces, the new buyers shall submit application and documentation proof of eligibility to purchase houses for people’s armed forces to housing authorities designated by the Ministry of National Defense, Ministry of Public Security, and local Departments of Construction in order to verify eligibility and eligible entities in accordance with Point c and Point d Clause 1 Article 68 hereof. The seller must settle the contracts with the project developers (if any).

Re-selling shall conform to Clause 1 Article 109 of the Housing Law, real estate trading laws, and land laws.

2. Procedures for re-selling houses for people’s armed forces after 5 years shall conform to Article 40 hereof.

Article 70. Updating information on entities eligible to purchase, lease-purchase, rent houses for people’s armed forces

1. Within 15 days from the date on which local Departments of Transport receive list of entities that have signed contracts for purchase, lease-purchase, rent of houses for people’s armed forces in accordance with Point e Clause 1 Article 68, the Departments of Transport have the responsibility to update list of entities eligible to purchase, lease-purchase, rent houses for people’s armed forces on their website in accordance with Clause 2 of this Article.

2. Updated information consists of:

a) Full name;

b) ID Card/identification number;

c) Permanent residence address;

d) Household members;

dd) Name of housing investment project for people’s armed forces.

3. Where persons that wish to purchase, lease-purchase, rent houses for people’s armed forces and have entered into contracts with project developers fall under cases where contract termination is warranted, project developers have the responsibility to report to housing authorities designated by the Ministry of National Defense, Ministry of Public Security, and local Departments of Transport to update list of entities eligible to purchase, lease-purchase, rent houses for people’s armed forces.

Article 71. Concessional loans for purchase, lease-purchase of houses for people’s armed forces and construction of houses for people’s armed forces

1. Application for concessional loans for purchase, lease-purchase of houses for people’s armed forces at VBSP shall conform to Clauses 1, 3, 4, and 5 Article 48 hereof.

2. Application for concessional loans for purchase, lease-purchase of houses for people’s armed forces at Government-designated credit institutions shall conform to Article 49 hereof.

3. Application for concessional loans submitted by project developers for housing projects for people’s armed forces not funded by public investment shall conform to Article 25 hereof.

Chapter VI

ORGANIZING IMPLEMENTATION

Article 72. Responsibilities of Ministry of Construction

1. Exercise duties specified under Housing Law and this Decree.

2. Promulgate regulations on management of operation of social housing, houses for people’s armed forces in form of apartment buildings.

3. Take charge, cooperate with ministries, central departments, provincial People’s Committees in guiding development of and updating database on social housing on website of the Ministry of Construction; guide, inspect, examine development and management of social housing; consolidate and evaluate implementation of this Decree; propose amendments in accordance with practical situations to the Government.

4. Exercise other duties and powers as per the law.

Article 73. Responsibilities of relevant ministries and central departments

1. The Ministry of National Defense and Ministry of Public Security have the responsibility to:

a) take charge of promulgating and guiding forms of documentation proof of eligibility for support policies for houses for people’s armed forces, support policies for social housing under their jurisdiction;

b) take charge, cooperate with provincial People’s Committees in determining housing demands for people’s armed forces under their management and incorporating this demand in local housing development plan;

c) take charge promulgating, guiding compliance with requirements in respect of housing investment projects for people’s armed forces under their management and ensure compliance with Housing Law and this Decree;

d) cooperate with ministries, central departments in reporting difficulties, issues in implementation of housing investment projects for people’s armed forces under their management to competent authorities;

dd) arrange inspection, examination, supervision, and actions against violations relating to sale, lease-purchase, lease of houses for people’s armed forces under their management;

e) assume responsibility for approval of list of applicants for purchase, lease-purchase, lease of houses for people’s armed forces sent to project developers of housing projects for people’s armed forces and assurance of eligibility and eligible entities in accordance with housing laws.

2. The Ministry of Finance has the responsibility to

Cooperate with the Ministry of Planning and Investment, relevant ministries, central departments in allocating funding from central government budget in accordance with annual plans via VBSP, BIDV, government of provinces and central-affiliated cities in order to implement concessional loan policies in accordance with this Decree.

3. Ministry of Environment and Natural Resources has the responsibility to:

Take charge of guiding local government to develop land use planning, allocate land fund for implementation of social housing investment projects, housing investment projects for people’s armed forces.

4. State Bank of Vietnam has the responsibility to

Rely on credit programs decided by the Government and Prime Minister from time to time, assign credit institutions to grant loans to support social housing, worker housing in industrial parks, houses for people’s armed forces.

5. VBSP and BIDV have the responsibility to:

a) manage and use funding, grant loans to borrowers compliant with eligibility specified under this Decree;

b) cooperate with ministries and central governments in reporting difficulties, issues during implementation of concessional loans for social housing.

6. Relevant ministries and central departments have the responsibility to study and promulgate or request competent authorities to promulgate amendments to regulations, policies related to social housing development and management under this Decree.

Article 74. Responsibilities of Vietnam General Confederation of Labor

1. Manage and use union funding for implementation of social housing development and management policies for lease in accordance with Housing Law and this Decree.

2. Take charge of promulgating and guiding rent of social housing in social housing investment projects within their jurisdiction.

3. Cooperate with ministries, central departments in reporting difficulties, issues in implementation of social housing investment projects under their jurisdiction to competent authorities.

4. Arrange inspection, supervision and propose actions against violations relating to lease of social housing under social housing investment projects within their jurisdiction.

Article 75. Responsibilities of People’s Committees of provinces and central-affiliated cities

1. Arrange and coordinate inspection, survey, consolidation of demands in order to develop, amend annual, medium-term, long-term social housing programs, plans, investment in their jurisdiction; direct and assign local enterprises, cooperate with the Ministry of Construction, Ministry of National Defense, and Ministry of Public Security in assigning affiliated state-owned enterprises to develop social housing, houses for people’s armed forces in accordance with this Decree.

2. Review, amend, add more land fund for social housing development (including land fund for development of houses for people’s armed forces) in zone planning, detail planning.

3. Expropriate 20% of land fund for social housing in commercial housing, urban investment projects in accordance with the Law on Housing No. 65/2014/QH13 where project developers fail to use this land fund or are behind on land use schedule specified under investment projects which warrants land expropriation in accordance with land laws and assign to project developers wishing to implement social housing investment projects. Land expropriation process shall conform to land laws.

4. Expropriate 20% of land fund in accordance with land laws where project developers of commercial housing investment projects that are required to reserve land fund for social housing investment fail to implement construction in a manner compliant with construction schedule specified under investment projects.

5. Coordinate development, inspection, decision of investment guidelines or approval for social housing investment projects funded by public investment within their powers; inspect and approve investment guidelines of social housing investment projects not funded by public investment within their powers.

6. Elaborate and publicly post standards, eligibility, eligible entities for purchase, rent, lease-purchase of social housing in their jurisdiction in accordance with local conditions.

7. Oversee and closely monitor sale, rent, lease-purchase of social housing.

8. Request authorities to consult methods for determining rent under Article 34 hereof and local rent to develop, promulgate rent bracket for social housing, houses for people’s armed forces built under projects, worker housing in industrial parks in accordance with local conditions; promulgate rent bracket for houses built, renovated, repaired by individuals to be leased to local beneficiaries of social housing support policies in accordance with this Decree.

9. Direct affiliated authorities to assess selling price, lease-purchase price of social housing, houses for people’s armed forces in their jurisdiction. Manage and closely monitor sale, lease-purchase, and lease.

10. Promulgate management service prices for housing operation applicable to social housing investment projects, housing investment projects for people’s armed forces in their jurisdiction.

11. Cooperate with the Ministry of National Defense and Ministry of Public Security in determining, consolidating demands for houses for people’s armed forces in their jurisdiction during development of local housing development plans; allocate land fund from local land fund for social housing development to accommodate housing development for people’s armed forces.

12. Implement policies and regulations pertaining to development, management of social housing, houses for people’s armed forces, and worker housing in industrial parks; promulgate specific provisions pertaining to additional incentive policies of local government to encourage all types of ownership to invest in social housing, houses for people’s armed forces, worker housing in industrial parks in their jurisdiction; assist project developers of social housing investment projects, housing investment projects for people’s armed forces, worker housing investment projects in industrial parks in connecting project technical infrastructure system with general infrastructure system of the area.

13. Request local project developers of social housing investment projects, housing investment projects for people’s armed forces, worker housing investment projects in industrial parks to file reports on project implementation to local housing authorities on a periodic basis; arrange assessment, evaluation of local social housing development situations, results on an annual or irregular basis and report to the Ministry of Construction and Prime Minister.

14. Request Departments of Transport, Departments of Natural Resources and Environment, governments of districts, communes, and other local authorities to inspect, verify eligible entities, housing eligibility, income eligibility, eligibility for concessional loans in accordance with this Decree; closely cooperate with VBSP and credit institutions in resolving doubtful debt and collateral to recover loans.

15. Take charge or cooperate with relevant ministries, central departments in examining, inspecting, supervising, and taking actions against violations in investment, construction, sale, lease, lease-purchase of social housing, houses for people’s armed forces, and worker housing in industrial parks in the area.

16. Cooperate with relevant ministries, central departments in consolidating, reporting medium-term and annual public investment plans to competent authorities, and allocate funding from government budget to cover interest rate differences to enable project developers of social housing investment projects to apply for concessional loans at credit institutions in accordance with Clause 3 Article 50 hereof; provide guidelines on covering interest rate differences for entities applying for concessional loans at credit institutions in accordance with Clause 3 Article 50 hereof.

Article 76. Responsibilities of enterprises having manufacturing facilities in industrial parks

1. In respect of enterprises that are engaged in manufacturing operations in industrial parks, on the basis of practical demands for worker housing in industrial marks and land fund for commercial, service operations of the industrial parks, the enterprises shall develop plans for worker housing and reserve funding sources to invest in and lease worker housing to their employees during employment period.

2. In respect of newly established or expanded manufacturing enterprises, these enterprises have the responsibility to provide social housing to accommodate households and employees working in their facilities.

Chapter VII

IMPLEMENTATION

Article 77. Implementation and responsibility for implementation

1. This Decree comes into force from August 01, 2024.

2. The following regulations on social housing development and management expire from the effective date hereof:

a) Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government;

b) Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government;

c) Article 6 and Clause 4 Article 16 of Decree No. 35/2023/ND-CP dated June 20, 2023 of the Government;

d) Article 7 of Decree No. 104/2022/ND-CP dated December 21, 2022 of the Government.

3. The VBSP shall not grant loans to project developers of social housing investment projects, housing projects for people’s armed forces, individuals constructing, renovating, repairing houses for lease in accordance with Article 25, Article 26, and Clause 3 Article 71 hereof for the period until 2030.

After 2030, within the powers and functions given by the authorities, VBSP shall take charge, cooperate with the Ministry of Construction, relevant ministries, central departments in developing schemes for granting loans to project developers of social housing investment projects, housing projects for people’s armed forces, individuals constructing, renovating, repairing houses for lease in accordance with Article 25, Article 26, and Clause 3 Article 71 hereof and submit to the Government for consideration, approval prior to implementation.

4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and relevant agencies, organizations, individuals shall be responsible for the implementation of this Decree.

Article 78. Transition clauses

1. In respect of social housing investment projects implemented in built-transfer (BT) model in accordance with Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government, transition thereof shall conform to public-private partnerships investment laws.

2. In respect of commercial housing and urban investment projects of which investment guidelines have been decided or approved after the effective date of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government, Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government, Decree No. 35/2023/ND-CP dated June 20, 2023 of the Government, project developers shall exercise social housing-related obligations in accordance with the aforementioned decrees. Adjustment to project schedule shall conform to investment laws.

3. Where social investment projects have had investment guidelines approved or decided by competent authorities; project investment approved; investment projects approved before the effective date of the Law on Housing No. 27/2023/QH15 dated November 27, 2023, project developers shall continue to benefit from investment incentives detailed under written decision, approval. Where newer and higher investment incentives are prescribed under the Law on Housing No. 27/2023/QH15 and this Decree, the project developers shall be eligible for investment incentives under the Law on Housing No. 27/2023/QH15 and this Decree for the remainder incentive duration.

4. In respect of commercial housing investment projects under 10 ha, where project developers have been approved to fulfill social housing obligations in form of monetary payment before the effective date hereof and have not made the payment as of the effective date hereof, the project developers shall incur payment that is equivalent to land levy of 20% of residential land area with invested technical infrastructure in accordance with land laws and determined on the date on which competent authorities allow the project developers in writing to fulfill social housing obligations in form of monetary payment.

5. In respect of commercial housing and urban development projects of which project developers have been selected before the effective date hereof, where land fund for social housing construction has not been reserved in accordance with land laws as of the date on which the projects have their investment guidelines decided, approved, investment approved, project approved and where the projects are retracted and assigned to other project developers after the effective date hereof, project developers have the responsibility to develop, amend planning to allocate additional residential land fund in the projects to accommodate social housing in accordance with Article 17 hereof.

6. Where social housing investment projects benefit from incentives in accordance with Point b, Point c Clause 1 Article 9 of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government (amendment under Point a Clause 8 Article 1 of Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government, Clause 2 and Clause 5 Article 6 of Decree No. 35/2023/ND-CP dated June 20, 2023 of the Government), transfer of commercial business establishments and commercial housing located in the area where the incentives apply shall not require payment of previously reduced, exempted land levy to the Government.

7. Where social housing investment projects have had investment guidelines decided or approved, project investment approved, project approved by competent authorities and benefit from one-time land levy, land rents reduction and exemption granted by competent authorities before the effective date of the Law on Housing No. 27/2023/QH15 dated November 27, 2023, applicable incentives, land rents, and land levy that have been previously determined in a law-compliant manner shall not be determined again.

8. Project developers of social housing investment projects not funded by funding sources or means under Clause 1 Article 53 of Law on Housing No. 65/2014/QH13 amended by Point b Clause 6 Article 99 of the Law on Public-Private Partnerships Investment No. 64/2020/QH14 for lease, lease-purchase, or sale shall be exempted from land levy and land rents in accordance with Point a Clause 2 Article 85 of the Law on Housing No. 27/2023/QH15 dated November 27, 2023.

Provincial People’s Committees shall decide reimbursement or deduction from financial obligations that project developers pay to the Government, including compensation, site preparation costs (if any) if project developers have paid land levy upon receiving land allocated by the Government or receiving land use right transferred from other organizations, households, individuals where the land area accommodates social housing or if project developers have paid land levy for 20% of land fund in accordance with Article 5 of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government (amended by Clause 4 Article 1 of Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government).

9. Where social housing investment projects are in project developer selection phase in accordance with Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government and where written selection of project developers have not been promulgated in accordance with Decree No. 49/2021/ND-CP before the effective date hereof, provisions under Decree No. 49/2021/ND-CP shall prevail.

10. In respect of social housing sale where land levy must be paid in accordance with Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government (amended by Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government) before the effective date hereof, where land levy has not been paid as of the effective date hereof, payment shall conform to Decree No. 49/2021/ND-CP.

11. Where application submission, examination, price inspection, contract signing, purchase, lease-purchase, lease, re-selling of social housing which are compliant with Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government (amended by Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government) before the effective date hereof have not been resolved as of the effective date hereof, provisions under Decree No. 49/2021/ND-CP shall prevail.

12. Where 20% of total floor area of social housing in social housing investment projects have been leased in accordance with Clause 2 Article 26 of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government and where tenants wish to purchase the house that they are currently renting before the 5-year mark, project developers may sell the house to the tenants as long as eligibility and eligible entities according to this Decree are met.

13. In respect of projects that are undergoing investment guidelines approval process before the effective date hereof, where detail project planning is not compliant with general planning and zone planning, planning compliance shall be examined on the basis of general planning, zone planning and land use coefficient or building density in accordance with the Law on Housing No. 65/2014/QH13 and guiding documents.

14. In respect of loans of which credit contracts have been signed with VBSP for purchase, lease-purchase of social housing, housing construction, renovation, repair for residential purposes in accordance with Article 16 of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government (amended by Decree No. 49/2021/ND-CP dated April 1, 2021 of the Government) before the effective date hereof, interest rates specified under Clause 4 Article 48 hereof shall be applied to actual principal and outstanding principal (if any)./.

ON BEHALF OF THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER

Tran Hong Ha

Decree No. 100/2024/ND-CP on elaborating Law on Housing pertaining to social housing development and management

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