Mortgaging a Residential Construction Investment Project: Comparison of Vietnamese and Chinese Law

Abstract

Objective: The primary objective of the analytical review was to conduct a comparative analysis of the residential construction investment project mortgaging laws in China and Vietnam. The aim was to examine the existing legal frameworks associated with residential mortgages in the two countries and the analysis of areas of similarity, differences, strengths, flaws and drawbacks. The research further evaluates how the mortgage rules protect borrowers and identifies the existing strengths and weaknesses and the systems, and provide the necessary recommendations. Methodology: The review adopted the form of a summary of the existing state of the current laws and regulations associated with the topic of research by combining reference to primary sources including legislation, existing court cases with reference to secondary sources including handbooks, policy papers and most recent journal articles. Findings: Both China and Vietnam have definitive laws which outlines the registration processes of mortgages for residential project construction projects. In China, the registration of mortgages is outlined by Article 388, 395, 400 and 402, Civil Code and Article 2, Real estate Registration Regulation 2019. In Vietnam, the registration of residential real estate mortgage is governed by Article 317, 318, 320-324 of Civil Code 2015 and MOJ Circular 07/2019/TT-BTP. Existing similarities and differences in the parties’ rights and obligations in relation to mortgaging residential real estate projects. Significant differences in terms of the legal aspects of taxes and fees on mortgaged residential property in China and Vietnam. Conclusions: China and Vietnam have witnessed varying levels of changes of property mortgage regulations attributed to the rising housing and mortgage finance needs. The two countries have recorded a wide range of reforms and changes to the law and regulations that govern the mortgaging a residential construction investment project.