23 terms / definitions related to project legal procedures

During the implementation of investment projects in Vietnam, understanding legal terms and regulations is crucial for investors to mitigate risks and ensure compliance. Below are key concepts and definitions related to project legal procedures, based on current legal documents such as the Investment Law 2020, Land Law 2023, Housing Law 2023, Real Estate Business Law 2023, and Construction Law 2020.

Key legal definitions for project implementation

• Investment policy approval

Legal basis: Article 3, Investment Law 2020
Investment policy approval is the process by which competent state agencies approve the objectives, location, scale, progress, duration, investor selection methods, and special mechanisms (if any) for an investment project.

Simplified meaning: A document issued by state management authorities allowing an investor to proceed with a project.

• Authorities granting investment policy approval

Legal basis: Articles 30, 31, 32, Investment Law 2020
The authority to approve investment policies depends on the nature and scale of the project and may be granted by the National Assembly, the Prime Minister, or the Provincial People’s Committee.

• Investor

Legal basis: Article 3, Investment Law 2020
An investor is an individual or organization engaged in business investment activities, including domestic investors, foreign investors, and economic organizations with foreign-invested capital.

• Foreign investor

Legal basis: Article 3, Investment Law 2020
A foreign investor is an individual holding foreign nationality or an organization established under foreign laws that conducts business investment activities in Vietnam.

• Domestic investor

Legal basis: Article 3, Investment Law 2020
A domestic investor is an individual holding Vietnamese nationality or an economic organization with no foreign investors as members or shareholders.

• Investment registration certificate

Legal basis: Article 3, Investment Law 2020
A paper or electronic document recording an investor’s registration information about an investment project.

Simplified meaning: A document issued to organizations with foreign ownership exceeding 50% before receiving investment policy approval.

• Investment registration authority

Legal basis: Article 3, Investment Law 2020
The competent authority responsible for granting, amending, and revoking investment registration certificates. This includes the Management Boards of Industrial Parks, Export Processing Zones, High-Tech Parks, Economic Zones, or the Department of Planning and Investment in each province.

• Project developer

A project developer is an investor as defined by investment laws and other relevant regulations, selected to implement a project involving land use and granted land use rights or lease rights under the Land Law.

Simplified meaning: A project developer is an investor recognized in the investment policy decision and officially acknowledged under the Housing Law 2024.

The investor of a housing construction investment project is an organization selected to implement the housing construction investment project in accordance with the provisions of this Law.

• Land use planning map

Legal basis: Article 3, Land Law 2024
A map created at the beginning of the project planning period that displays the allocation of land use types for the final phase of planning.

Simplified meaning: A map showing future land use purposes (typically within a 10-year period).

• Land use plan

Legal basis: Article 3, Land Law 2024

A land use plan is the phased allocation of land use over time for implementation.

Simplified meaning: A plan designating land use purposes for the upcoming year.

• Land price

Legal basis: Article 3, Land Law 2024

Land price is the monetary value of land use rights per unit of land area.

Simplified meaning: The unit price of land at specific locations as determined by the government.

• Value of land use rights

Legal basis: Article 3, Land Law 2024

The value of land use rights is the monetary worth of land use rights for a specific land parcel, determined at a given time and based on the designated land use duration.

Simplified meaning: The amount paid to the government to convert the land use purpose of a specific land parcel.

• State allocation of land use rights

Legal basis: Article 3, Land Law 2024

State allocation of land use rights (hereinafter referred to as state land allocation) is the process by which competent state authorities issue decisions granting land use rights to individuals or organizations in need.

Simplified meaning: The government allocates land to applicants for use.

• Apartment building

Legal basis: Article 2, Housing Law 2023

An apartment building is a residential structure with two or more floors, multiple apartments, shared corridors and staircases, and common and private ownership areas, along with shared infrastructure for families, individuals, or organizations. It includes apartment projects built for residential purposes as well as mixed-use apartment buildings.

• Commercial housing

Legal basis: Article 2, Housing Law 2023

Commercial housing is housing that is developed for sale, lease-purchase, or lease according to market mechanisms.

• Social housing

Legal basis: Article 2, Housing Law 2023

Social housing refers to housing supported by the government for eligible beneficiaries under the housing policy as stipulated by this Law.

• Housing construction investment project

Legal basis: Article 2, Housing Law 2023

A housing construction investment project is a set of proposals related to the use of capital to carry out new construction, reconstruction, renovation, or repair of housing, technical infrastructure, and social infrastructure to meet residential needs at a specific location within a defined timeframe and budget.

Simplified meaning: Investing capital in new housing construction, renovation, or repair for business purposes.

• Private ownership

Legal basis: Article 2, Housing Law 2023

Private ownership in an apartment building refers to the area within an apartment or in a non-apartment area of the building that is legally recognized as private ownership of the apartment owner, along with the equipment used exclusively in the apartment or in the non-apartment area of the apartment owner as stipulated by this Law.

Simplified meaning: for buyers: anything purchased from the developer through the sales contract belongs to the buyer’s private ownership. for the developer: anything used commonly but approved by the State in the investment policy decision belongs to the developer’s private ownership.

• Common ownership

Legal basis: Article 2, Housing Law 2023

Common ownership in an apartment building refers to the remaining areas of the building, outside of private ownership, including shared equipment and facilities as stipulated by this Law.

Simplified meaning: Anything used for common purposes is considered common ownership (except for areas designated as private ownership).

• Future-formed housing

Legal basis: Article 2, Housing Law 2023

Future-formed housing refers to residential properties that are still under construction or have not yet been inspected and approved for use according to construction laws.

Simplified meaning: Buying a house that will be handed over in the future.

• Existing housing

Legal basis: Article 2, Housing Law 2023

Existing housing refers to residential properties that have been fully constructed and approved for use according to construction laws.

Simplified meaning: A ready-built house that can be received immediately upon purchase.

• Real estate project

Legal basis: Article 3, Real Estate Business Law 2023

A real estate project is an investment project for constructing buildings for the business of housing, construction works, or land use rights with technical infrastructure that has been approved by the competent state authority according to legal regulations, including:

Housing construction investment projects; urban area development projects; rural residential area development projects; construction investment projects for buildings serving educational, medical, sports, cultural, office, commercial, service, tourism, hospitality, industrial purposes, and mixed-use functions; technical infrastructure construction projects; infrastructure construction investment projects for industrial parks, industrial clusters, and high-tech zones.

Simplified meaning: a project involving the construction of apartment buildings, land plots, urban areas, or industrial zones for business purposes.

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• Real estate transfer

Legal basis: Article 3, Real Estate Business Law 2023

The transfer of a real estate project refers to the process in which the project owner transfers all or part of the real estate project, including the owner’s rights, obligations, responsibilities, and legal interests, as well as the rights and obligations related to other involved parties (if any), to the transferee through a contract.

Simplified meaning: The project owner sells all or part of the real estate project to another project owner.

Conclusion

Mastering the system of legal terminology and regulations related to project legal procedures is a fundamental factor in ensuring transparency and compliance in the implementation of investment projects in Vietnam. Understanding the regulations from the Investment Law, Land Law, Housing Law, Real Estate Business Law, and related legal documents not only helps investors optimize execution timelines but also prevents potential legal risks and protects their rights at every stage of the project.

With over 14 years of experience in project development, VictoryCons is proud to have a team of experienced legal experts, committed to accompanying investors through all legal procedures.

We provide support from investment policy approval, licensing registration, project execution, to final completion. With meticulous legal expertise and a deep understanding of current regulations, VictoryCons delivers comprehensive and professional legal solutions, ensuring that investors implement projects efficiently, comply with the law, and optimize time and costs.