HCMC Justice Department: Notarization Essential for Real Estate Transactions

Ho Chi Minh City Justice Department Positions Notarization as Professional Activity

According to Nguyen Thi Hong Hanh, Director of the Department of Justice of Ho Chi Minh City, legal authentication and notarization are professional activities rather than standard administrative procedures. Speaking on draft regulations governing real estate transactions by individuals and organizations, Hanh noted that Article 22, clause 4 of the draft addresses documentation for land users exercising their rights. Hanh stated that Resolution No. 21 regarding amendments to the Land Law does not mention notarization or certification, limiting itself instead to administrative procedure reforms. Under Article 3, paragraph 1 of Decree No. 63, an administrative procedure involves the order, mode of implementation, documents, and conditions prescribed by state agencies or competent authorities to resolve a specific issue. Hanh argued that because notarization is a long-standing professional activity, categorizing it as an administrative procedure or attempting to eliminate it via Decree 63 is incorrect.

Land Databases Supplement Rather Than Replace Notarization, Experts Warn

Draft regulations currently suggest that notarized contracts for transfers, donations, mortgages, and capital contributions are only required for land parcels lacking complete information in the land database. Hanh argued that this approach misunderstands the core function of notarization, which is certifying the consent and will of parties involved in a transaction. While land databases help verify property information, prevent document falsification, and reduce transaction risks, they cannot replace the legal validation of intent. Dr. Tran Du Lich pointed to international models during the discussions, noting that countries like France and Germany maintain notarization. Conversely, the United States does not use it because it relies on established real estate registry management systems and legally liable intermediaries. Because Vietnam lacks a comparable data infrastructure and liability mechanism, a suitable transition phase is necessary rather than an abrupt abandonment of notarization.