Since July 01, regarding residential urban area projects with land using scope of less than 20 ha, the owner’s capital should occupy at least 15% the total investment capital.  

Hanoi has just made an additional decision which replaces some articles in the contemporary Regulation on management of construction investment and trading new urban areas and resident areas in its territory. Since July 1, regarding residential urban areas with land using scope of less than 20 ha, the owner’s capital should occupy at least 15% the total investment capital.

As for project of resident urban areas with land using scope of less than 20 ha, equity should occupy at least 15% the total investment capital. The total investment of a new urban area will be made under current planning, including land using or renting cost, compensation for site clearance, resettling support…

Regarding to project of resident urban areas with land using scope of 10 ha or more, under the plan ratified by competent authority, investor is obliged to transfer 20% area to be used for building houses to the city in order to serve demand of resettling, social houses, houses for low-income people.

Expense for site clearance compensation and infrastructure investment will be deducted from land using fee. In case this amount exceeds the land hiring fee, it will be refunded from budget of the City. As for projects which are deployed under the previous decision and ratified by the City authority to be used as public purposes, the expense shall not be required to be refunded.

(Source: VnExpress – Translated by P&P)