Long Term Lease Agreement Vietnam- December 12, 2020
Method 4: The fourth option is an agreement to transfer country-related assets through a land transfer agreement, lease or capital injection with an existing user of the land. In such cases, the investor who acquires land-use rights becomes the user of the acquired land. To renew the lease, the investor must obtain permission to renew it. Businesses also have the option of renting an office in a building or renting from a company located in an industrial or export processing area. First, a brief summary of the new laws already introduced in July 2015. They were put into play by the government with the intention of opening up the Vietnamese real estate market to foreign investors, and in many ways it is fair to say that the changes have largely worked. Today, if you are a foreigner who wants to invest in real estate in the country, you can now buy anywhere on the basis of a rental agreement, with a term of up to 50 years and the potential to extend it if you wish once after the expiration of the initial term. Rent can be negotiated freely by both parties. The rent is usually set for the duration of the rental period, usually 1 to 2 years. But one of the main problems related to the ownership of foreign investors in real estate in Vietnam is the nature of what you actually own – under current legislation, it is still incredibly difficult for a foreign investor to fully own a property.
This is partly due to the slow pace of management at both the local and national levels. For example, the Pink Book is the main residential title in Vietnam, and the new rules now allow foreigners to have a Pink Book for every property they invest in. But there has been a problem with the establishment of lists of areas where foreign investors are not allowed to buy real estate – for example for national security reasons – and this delay at the local level has meant that foreigners can sometimes still have difficulty buying homes in Vietnam. This is just one of the reasons why the long-term leases I mentioned are an increasingly popular opportunity for foreign investors to buy real estate in the country. The Office leasing contract is suitable for individuals, between individual and economic enterprises or between companies and businesses. Additional terms and conditions may be adapted to the circumstances. While land leasing does not necessarily have to be a complicated process, it is important to decide whether or not the proposed investment is authorized before signing leases. Potential investors can obtain “authorization in principle,” which is a letter from the State People`s Committee, which, like a firm, decides on the feasibility of the project. Under the annual agreement, an investor is only allowed to use the land for the stated purposes and to transfer assets within the land.