On the Government Portal, Mr. T.H.L in Hanoi said that his company participated in the auction of a housing project according to the auction invitation of the Provincial People's Committee and won the auction. The company must pay the auction winning amount to the Treasury before the Provincial People's Committee decides to allocate land/issued red books.
Mr. L's company contacted the bank to borrow capital to pay the winning bid for the above project auction. However, the company has encountered problems in capital mobilization related to the Housing Law.
Specifically, according to Article 46 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government detailing a number of articles of the Housing Law, in case of mobilizing capital through loans from credit institutions operating in Vietnam to implement housing construction investment projects, the project investor must have a decision on land allocation or land lease by a competent authority or have land use rights according to the provisions of the law on land.
Mr. L asked, at the time of paying the auction winning bid, the company had not yet had a decision to allocate land/issued a red book, so could the company borrow capital from domestic credit institutions to pay the auction winning bid?
The Ministry of Construction responds to this issue as follows:
Point b, Clause 1, Article 116 of the 2023 Housing Law stipulates one of the principles of capital mobilization and use for housing development: "Eligible conditions for capital mobilization according to the provisions of the law on housing".
Clause 1, Article 46 of Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government detailing a number of Articles of the Housing Law stipulates: "In case of mobilizing capital through loans from credit institutions operating in Vietnam to implement housing construction investment projects, the project investor must have a decision on land allocation, land lease by a competent authority or have land use rights according to the provisions of the law on land...".
Thus, capital mobilization through loans from credit institutions operating in Vietnam to implement housing construction investment projects is carried out after meeting the conditions specified in Clause 1, Article 46 of Decree No. 95/2024/ND-CP.
