[LMS2024] [Khanh Hoa] Real estate sector: Seminar "Real estate disputes in the context of new legal framework"

On July 18, 2024, in Khanh Hoa province, the Vietnam International Arbitration Centre (VIAC) coordinated with Ho Chi Minh City University of Law, the Khanh Hoa Bar Association, the Khanh Hoa Lawyers’ Union, and the Representative Office of the Vietnam Chamber of Commerce and Industry in Khanh Hoa (VCCI in Khanh Hoa) to organize a seminar titled “Real estate disputes in the context of new legal framework”. The seminar was attended by more than 200 delegates representing government agencies, the judiciary, lawyers, and businesses in Khanh Hoa province.

To welcome the seminar, Ms. Phạm Thị Xuân Trang - Vice Chairwoman of the Khanh Hoa Provincial People's Council, assessed the development situation in Khanh Hoa as the key laws related to real estate take effect. With the issuance and impending effectiveness of important legal documents, including the 2024 Land Law, the 2024 Housing Law, and the 2023 Real Estate Business Law, businesses find numerous new opportunities and are able to resolve many bottlenecks in investment and business activities. This, in turn, fosters the gradual recovery of the real estate market in Vietnam in general and in Khanh Hoa province in particular, achieving new milestones. Mrs. Trang emphasized that legal issues play a crucial role in the robust development of the real estate market; therefore, businesses need to invest in and thoroughly research the application of laws, especially concerning new regulations.

In the opening speech, Dr. Lê Trường Sơn - Rector of the Ho Chi Minh City University of Law, stated that although the real estate business sector has faced many difficulties and is fraught with legal risks for many years, recent changes in key legal documents of the industry have shown more promising signs for businesses. These new regulations need to be disseminated and guided so that agencies, organizations, and individuals can understand and apply them correctly, ensuring fairness and efficiency in the implementation process. Representing the Ho Chi Minh City University of Law, Mr. Son expressed deep appreciation for the cooperation of the units involved in organizing this meaningful seminar. He also emphasized that this activity reflects a spirit of contribution to society, supporting the business community, organizations, and individuals in the dissemination of laws and providing effective legal management solutions for investment and business activities.

Following Dr. Le Truong Son’s speech, Mr. Vũ Ánh Dương - Secretary General and Vice Chairman of the Vietnam International Arbitration Centre (VIAC) stated that, with the positive changes in the Land Law 2024, which includes regulations related to expanding the authority to resolve disputes through arbitration and mediation, this is a recognition that is very much in line with the continuously evolving context of dispute resolution methods. According to VIAC statistics, the number of disputes related to land has seen a dramatic increase (accounting for up to 26.18% of the total disputes handled by VIAC in 2023). Thus, with this expansion, businesses are more reassured when choosing to resolve disputes through arbitration and mediation, fully leveraging the outstanding advantages of these methods.

At the event, a Memorandum of Understanding (MOU) signing ceremony between the Ho Chi Minh City University of Law and the Khanh Hoa Bar Association was also conducted, marking a commitment to a long-term and closer collaboration between the two entities. This agreement reflects the desire to regularly implement meaningful activities that contribute to promoting the connection and close cooperation among organizations in organizing various activities aimed at lawyers in the near future.

At the beginning of the workshop, Dr. Lê Xuân Thân – Member of Parliament, Chairman of the Khanh Hoa Lawyers Association, and Director of the Vietnam International Arbitration Centre (VIAC) Branch in Khanh Hoa, delivered a keynote speech summarizing the impact of the new regulations on the real estate market. Regarding investment activities, the Land Law demonstrates significant improvements with the addition of regulations on land use principles, mechanisms for land allocation and lease, and balancing the rights and positions of investors and landowners affected by land recovery, particularly in terms of compensation and resettlement support. Thus, with these efforts, in the future, investors will have easier access to land, administrative procedures will be simpler and more transparent, and the public will also benefit from more stable land prices, eliminating many existing legal obstacles.

After the keynote speech, Dr. Lê Xuân Thân continued to moderate the discussion session with the participation of Dr. Phan Đức Hiếu – Standing Committee Member of the National Assembly Economic Committee; VIAC Arbitrator; Mr. Châu Việt Bắc – Deputy Secretary-General of the Vietnam International Arbitration Centre (VIAC); and Mr. Nguyễn Anh Tuấn – Vice Chairman of the Khanh Hoa Real Estate Brokerage Association. During the discussion session, the experts analyzed the prominent changes in the key legal documents, the advantages, and the arising issues that need to be guided. By updating on the development trends of the Khanh Hoa real estate market, the experts made recommendations for effectively implementing policies and legal regulations on land from both the perspective of policymakers and insights from businesses.

Opening the second discussion session, Prof. Dr. Đỗ Văn Đại – Vice Rector of Ho Chi Minh City University of Law and a VIAC Arbitrator, also provided a keynote introduction, highlighting the landscape of real estate disputes in 2023 and notable legal points. According to him, disputes in real estate transactions are very diverse, arising from various types of contracts such as deposits, sales, and business cooperation, with the most common disputes stemming from conditions of validity. Statistics from VIAC show that the current number of recorded real estate disputes is significant; Mr. Dai assesses that, in the near future, some real estate disputes are likely to increase even more, particularly regarding risks related to documentation, notarization, and registration, as the Civil Code 2015 and the Land Law 2024 have abolished some unnecessary procedures. On the other hand, real estate disputes also arise from the complexity of unclear legal regulations or intentional non-compliance by the parties involved.

The second discussion session was conducted under the coordination of Prof. Dr. Đỗ Văn Đại – Vice Rector of Ho Chi Minh City University of Law, VIAC's Arbitrator, along with the participation of Dr. Nguyễn Đình Thơ - Permanent Member of the Executive Committee, Head of the Training and Development Committee of the Vietnam Bar Federation, Head of the Lawyers' Association of Khanh Hoa Province, VIAC Arbitrator; Mr. Trần Hữu Viên - Vice President of the Lawyers' Association of Khanh Hoa Province, former Deputy Chief Justice of the Khanh Hoa Provincial People's Court; Ms. Lê Thị Hiền - Chief Justice of the Civil Court of Khanh Hoa Province; and Ms. Ngô Quỳnh Anh – Senior Partner of Dentons LuatViet.

During the session, the experts presented various perspectives on the current state of real estate disputes in Khanh Hoa Province. In addition to in-depth discussions on the causes of disputes, many opinions during the session revolved around the jurisdiction to resolve disputes related to real estate. Given the characteristics and the involvement of third parties in real estate transactions, disputes in this area have long been prioritized for resolution in courts. However, with the new, clearer regulations, the expanded jurisdiction for resolving disputes through alternative dispute resolution methods such as arbitration and mediation is expected to become more convenient. Nevertheless, experts emphasized that current practices still need to address interpretations related to jurisdiction over disputes arising from commercial activities but not from contracts, as well as issues concerning the enforcement of arbitration awards related to land matters.

Some additional images from the Seminar

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