What Are Real Estate Transaction Conditions for Buyer and Seller in Vietnam?

 

The real estate market is always an attractive market with a large source of potential speculative profits for investors. Because real estate transaction is always high in value, and buying a property for most people is always a life time important decision, and many times with the financial support from the bank, therefore in developed country, real estate lawyers in Vietnam are always involved in all steps of the transaction to ensure the legitimate transfer of the property. In Vietnam, in reality, many real estate transitions are conducted by the buyer and sellers themselves without real estate lawyers and there are many disputes arisen from the transactions in regard to property deposit agreement, property sales and purchase agreement between real estate developer and buyer for a new property, or between buyer and the previous property owner for resale property.

 

Residential property is one of the common types of real estate traded, so when joining in transactions related to property, it is necessary to ensure the conditions for property transfer.  The related parties need to comply and meet the requirements of the above conditions for a successful transfer transaction.

Conditions for property transfer transaction include the following basic points: the transferred property is not in a dispute, complaint, or claim about ownership; the transferred property shall be within the property ownership period, in the case of property owners with a definite term; the transferred property is not distrained for judgment enforcement or distrained to comply  legally effective administrative decisions of competent state agencies; the transferred property is not subject to a decision on land recovery or a notice of house clearance or demolition issued by a competent agency.

For the conditions on the parties to the property transaction, the property transferor needs to meet the following conditions:

The transferor is the owner of the property or the person permitted or authorized by the owner to carry out the transaction on property according to the provisions of law;

In case of transfer of a commercial house purchase and sale contract, the transferor shall be the person who bought the house from the investor or the person who has received the transfer of the house purchase and sale contract;

If the transferor is an individual, this person shall have full civil act capacity to carry out transactions on housing under the provisions of civil law;

If the transferor is an organization, it shall have legal status, unless the organization donates a house of gratitude or charity.

At the same time, the transferee shall also meet the conditions, specifically including the following conditions:

If the transferee is a domestic individual, this person shall have full civil act capacity to conduct property transactions under civil law and it is not required to them to have permanent residence registration in the place where the housing transferred is located;

If the transferee is a foreign individual or overseas Vietnamese, this person shall have full civil act capacity to carry out transactions on housing under Vietnamese law. In addition, this person must be eligible to own houses in Vietnam according to the provisions of law and it is not required to them to have temporary residence registration or permanent residence registration at the place where the housing transferred is located;

If the transferee is an organization, it shall have legal status and not depend on the place of business registration and establishment; if it is a foreign organization, it must be eligible to own a house in Vietnam according to the provisions of law; if the organization is authorized to manage to house, it must have the function of providing real estate services and be operating in Vietnam under the law on real estate business.

Having said that, it would be more efficient for buyer and seller to engage real estate law firm specializing in real estate transaction for buying and selling property in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer.

ANT Lawyers – Real estate law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529

 

 

 

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How Products could Enjoy Exemption in Trade Remedies?

The scope of the exemption applies primarily to both provisional and formal trade remedies. For goods subject to investigation for application of trade remedies, if falling into one of the following cases, organizations or individuals that import/use such goods will be allowed to submit an application for exemption. The importer or manufacturer could consult with international trade lawyers in Vietnam to present the case to the authority to submit application for exemption if meeting the conditions as regulated by laws.

 

After the 2017 Law on Foreign Trade Management was promulgated with a more comprehensive and comprehensive system of legal provisions on trade remedies, the Ministry of Industry and Trade issued Circular No. 06/2018/TT-BCT in order to provide specific and detailed regulations in this field, including content of the scope of exemption from application of trade remedies. However, based on Clause 1, Article 9 of this Circular, the Ministry of Industry and Trade has only given four (04) exemptions.

After considering the actual situation, on November 29, 2019, the Ministry of Industry and Trade replaced Circular 06/2018/TT-BCT with Circular No. 37/2019/TT-BCT, which stipulates all six (06) types of goods which are exempted from trade remedies. Specifically, Article 10 of Circular No. 37/2019/TT-BCT allows the Minister of Industry and Trade to consider exemption from application of temporary trade remedies and official trade remedies for a number of goods. Imported goods are subject to trade remedy measures in one of six (06) cases.

First, goods cannot be produced domestically.

With this addition, it is understandable that Vietnamese law, in addition to protecting the domestic manufacturing industry, also considers allowing Vietnam to import important goods that cannot yet be produced on its own, in order to ensure to fully and promptly meet the development needs of all aspects, especially the economy and society of the country. The granting of a trade remedy waiver for goods that cannot be produced in the country may initially be seen as preventing the formation of a domestic industry producing the goods. However, the introduction of a new product into the Vietnamese market is a test for the tastes and needs of customers, through which the importation can assess the development potential and profit of that industry in Vietnam, thereby stimulating the investment and production of domestic manufacturers.

Second, goods have distinctive characteristics from domestically produced goods that cannot be substituted for domestically produced goods.

The exemption from trade remedies for different goods that cannot be substituted by domestically produced goods also ensures the supply of special goods, prevents the scarcity of goods, the supply of goods and the supply of goods that cannot be replaced enough demand in the market.

Third, goods are special products of like products or directly competitive goods produced in the country.

Special products are products with the same physical and chemical characteristics as like products or directly competitive goods are domestically produced but have some characteristics, appearance or product quality that are different from those like products, directly competitive goods produced in the country. Basically, this explanation also causes some confusion with the above-mentioned case of goods with differences that cannot be substituted by domestically produced goods, making it difficult to determine the exemption case. However, only goods that fall into one of the six cases can apply for an exemption, so the applicant only needs to prepare sufficient evidence to prove that the goods they import/use in a case that satisfies the condition for an exemption.

Fourth, like products, directly competitive goods produced in the country are not sold on the domestic market under the same usual conditions.

Normal conditions directly affect the quality, efficiency of use, etc. of the goods. Therefore, the difference in normal conditions has brought special features to goods from abroad that are imported/used into Vietnam, which is the basis for exemption from trade remedies, in order to meet the needs of the domestic market.

Fifth, like products, directly competitive goods produced in the country do not meet the amount of domestic use.

With the priority criteria for the development of the domestic manufacturing industry, acts of importing/using foreign goods that cause damage or threaten to cause damage to the domestic industry will be investigated and applied for defensive measures commerce. However, in cases where the domestic industry cannot meet the demand for like products, the relaxation of trade remedies is essential to ensure supply and market balance.

Sixth, imported goods are included in the total amount requested for exemption from regulations for research and development purposes and other non-commercial purposes.

With this regulation, it can be seen that in the future, the goals of science and technology development, technical level development, research and non-commercial purposes will be increasingly focused and encouraged instead of just economic goals as before. Therefore, it can be understood why state agencies allow the import/use of goods for research, development and other non-commercial purposes, even though they are likely to negatively affect the economy domestic production.

Accurate identification of cases where imported/used goods are exempted from trade remedy measures is extremely important and has great significance for foreign importers and manufacturers. Therefore, before submitting an application for an exemption, it is necessary to base on the above provisions and consult with international trade lawyers in trade remedies to accurately determine the scope of the exemption, in order to avoid wasting time and money.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, an Anti-dumping law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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Vietnam to Review Application of Anti-Dumping Measures to Plastic and Polymer

On July 20th, 2020 the Ministry of Foreign and Trade issued Decision No.1900/QD-BCT on applying the official anti-dumping measure to some plastic products and products from plastic made of polymer from propylene originated from the Republic People’s of China, Kingdom of Thailand, and Malaysia (Case No.AR01, AD07).

 

On September 24th, 2021, the Ministry of Foreign and Trade issued Decision No.2201/QD-BCT on the first review of the application of anti-dumping measures to Plastic and Polymer.

The reviewed products

The plastic products and products from plastic made of polymer from propylene having the thickness is from 10 microns to 80 microns and the width is from 115mm to 7800mm. These products are holding HS Code 3920.20.10 and 3920.20.91. The current anti-dumping tax for these products is from 9,05% to 23,71% dependent on the exporter.

The scope of the review

To review the anti-dumping duties applied to:

Group of Kunlene companies, including Suzhou Kunlene Film Industries Co., Ltd. and Yunnan Kunlene Film Industries Co., Ltd.; and

Group of Kinwin companies, including Kinwin Plastic Industrial Co., Ltd.; Zhejiang Kinlead Innovative Materials Co., Ltd., and Ultra Fast Development Limited.

The period of review

The Investigating Authority will collect the data related to the review from October 01st, 2020 to September 30th, 2021.

The time limit for the review

According to the regulations on Law on Foreign Trade Management, the time limit for the review of products subject to the anti-dumping measure is 06 months from the day on which the decision on review is issued, with a possible extension up to 03 months if necessary.

The parties need to register as related parties to ensure their rights in this case.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, an Anti-dumping law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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