Vietnam’s lack of condotel legal framework stalls investment
In the Vietnam Investment Review’s article, Condotels look to legal framework for revival, Kevin Hawkins, Co-executive Partner of ZICO Law Vietnam, explains why the lack of legal framework on condotels has had a chilling effect on both developers and buyers.
Hawkins writes, “In April, the prime minister issued Directive 11 requiring, among other things, that the MoC, the Ministry of Natural Resources and Environment, and the Ministry of Culture, Sports and Tourism develop regulations and standards to improve the legal framework regulating condotel development sales.
Those regulations from the various ministries were expected to be issued within the third quarter of 2019. Within the last few days, the MoC indicated that it has developed regulations for the operation management of condotels. However, since regulating condotels relates to several ministries’ functions, the MoC has been instructed by the prime minster to wait for the other ministries to complete their tasks before issuing such regulations publicly.
While waiting for these regulations, the lack of a legal framework for development and sales and issuance of residential titles continues to have a chilling effect on both developers and buyers. Developers are waiting for these regulations in order to refine their marketing and business operation plans. Buyers are also waiting to have clearer guidance on how and when to proceed with making a purchase in the condotel market.
We can only hope that the announcement from the MoC regarding the progress of its scope will put pressure on the other ministries to complete their drafting soon so that condotel standards and regulations can be issued as soon as possible within this year.”
For more information on the condotel market in Vietnam, contact Kevin Hawkins or the ZICO Law lawyer you normally deal with.
Extract published in Vietnam Investment Review’s print edition, October 7-13 2019.