The Land Law (amended) passed by the National Assembly at the 5th extraordinary session has many new points. These include provisions to better protect the legitimate rights and interests of land users, such as expanding land use rights to Vietnamese citizens, including Vietnamese people residing abroad (overseas Vietnamese).
Attracting overseas Vietnamese to buy houses
Article 4 of the Land Law (amended) stipulates that land users are supplemented with a group of Vietnamese origin residing abroad but without Vietnamese nationality. This group will enjoy full rights to land and housing like domestic citizens and Vietnamese residing abroad (people who still have Vietnamese nationality).
The flexible regulations of the Land Law, the Real Estate Business Law and the Housing Law (amended) are expected to attract remittances to invest in the Vietnamese real estate market. Photo: TAN THANH
Article 28 of the Land Law (amended) also stipulates that overseas Vietnamese who are allowed to enter Vietnam are allowed to buy or rent houses attached to land use rights, receive land use rights in housing development projects; inherit land use rights and other types of land on the same plot of land with houses (current law does not have these provisions).
Articles 41 and 46 of the Land Law (amended) stipulate that people of Vietnamese origin residing abroad and economic organizations with foreign investment capital are allowed to lease land from the State, sell assets attached to land and lease rights in lease contracts. This is expected to help promote secondary transfer activities, creating a more flexible mechanism for the real estate market.
According to experts, expanding land use rights for overseas Vietnamese who are Vietnamese citizens, including regulations on land use rights, creating conditions for them to directly participate in domestic real estate transactions... avoids the shortcomings of the past when wanting to use domestic land, overseas Vietnamese had to ask relatives in the country to act as their names to transfer and manage land use rights, which has given rise to many disputes.
This also creates more favorable conditions for attracting foreign investment capital from overseas Vietnamese to participate in real estate when the Land Law (amended) takes effect from January 1, 2025. "I believe that Vietnamese people living far away from home, foreigners, when investing, doing business or having relatives in Vietnam, all want to send money back to buy land, buy houses, not only for the purpose of ownership but simply to have a place to return to. At the same time, it is also to keep the property long-term, more secure thanks to the name of the person in charge, managing. Therefore, if the new regulations are favorable, it will definitely attract buyers, especially overseas Vietnamese and foreigners" - Mr. Hoa - the owner of a house for rent in District 3, Ho Chi Minh City - expects.
Still wondering
According to Mr. Le Hoang Chau, Chairman of the Vietnam Real Estate Association (HoREA), not only the Land Law (amended) but also the Law on Real Estate Business (amended), the Housing Law (amended) passed by the National Assembly at the end of 2023, when coming into effect, will create equality between domestic individuals and Vietnamese people residing abroad in investing and trading in real estate. From there, it will help attract remittances to invest in the Vietnamese real estate market.
According to the Ministry of Construction , there are currently about 4 million people, including foreigners and overseas Vietnamese, who want to buy houses in Vietnam. In addition, foreign direct investment (FDI) is pouring into Vietnam, attracting foreigners to live and work long-term. This is an opportunity for real estate investors to develop every year.
Although the new laws have many positive points in attracting investment and increasing liquidity for the real estate market, a real estate business leader said: "Up to now, although we have realized that customers with foreign elements buying houses will increase sales opportunities for businesses, due to difficulties in buying and selling procedures and limitations in applying for certificates of land use rights, house ownership rights and other assets attached to land for this type of customer, businesses have had difficulty collecting the remaining 5% of the contract value. Therefore, real estate businesses mainly focus on selling to Vietnamese customers whose housing needs are still high."
Mr. Le Hoang Chau also said that in addition to new and positive points, the current law still has some problems such as the issue of granting pink books to foreigners, including overseas Vietnamese who have bought apartments in Vietnam. Mr. Chau cited statistics from 17 real estate companies that by 2020, there were 14,000 foreigners who bought apartments in Vietnam without being granted separate pink books. Of these, there were 11,000 apartments in Ho Chi Minh City.
In addition, another obstacle related to foreigners is that the Law on Real Estate Business (amended) still does not allow foreigners to own land use rights due to regulations on houses attached to land, apartments with limited usage periods, etc.
Source: https://nld.com.vn/co-hoi-thu-hut-kieu-hoi-vao-bat-dong-san-196240219205434376.htm
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