5 principles of capital mobilization for housing development

The Lao Dong Newspaper Legal Consulting Office replied:

Clause 1, Article 116 of the 2023 Housing Law stipulates that capital mobilization for housing development must comply with the following principles:

a) Mobilizing in the correct form;

b) Eligible to mobilize capital according to the provisions of the law on housing;

c) Suitable for each type of housing as prescribed in this Law;

d) Comply with the provisions of law on money laundering prevention and control;

d) Comply with the provisions of the law on bidding and other relevant legal provisions; in case of mobilizing State capital as prescribed in Article 113 of this Law, it is necessary to comply with the provisions of the law on the state budget and the law on public investment;

f) The participant of capital contribution, investment cooperation, business cooperation, joint venture, and linkage specified at Point a, Clause 1, Article 114 of this Law shall only be divided profits in cash or stocks on the basis of capital contribution ratio as agreed in the contract; Investor of housing construction investment projects must not apply the form of capital mobilization specified at this point or other forms of capital mobilization to divide housing products or to prioritize registration, deposit, enjoy the right to buy houses or to divide land use rights in the project for capital mobilization, except for capital contribution to establish new legal entities so that the State is assigned to be investors of housing construction investment projects.

Thus, capital mobilization for housing development must comply with the above principles.