The Land Law will create momentum to attract investment.

On July 17th, the Ho Chi Minh City Trade and Investment Promotion Center (ITPC), in collaboration with the Vietnam International Arbitration Center (VIAC), organized a workshop titled "Land Law 2024: Effective Implementation Solutions for Investors".

Many new and positive aspects

Speaking about the positive aspects of the 2024 Land Law, which will take effect on August 1st, lawyer Nguyen Van Hai from YKVN Law Firm said that the new law has broadened access to land through auction methods for land reclaimed by the state according to Article 79; bidding to select investors to implement projects using land; or agreements. Thanks to this, businesses can negotiate with landowners to acquire land for commercial housing development if they meet the procedures, planning, and other local regulations.

Furthermore, the 2024 Land Law has shifted the land lease payment method for investment projects in the construction and operation of industrial park and high-tech park infrastructure from annual payments to a one-time payment for the entire or partial business area. This allows investors to sublease the land with either a one-time or annual payment. This helps generate stable revenue from land for the state and investors, and enables land lessees to develop sustainably.

The law also stipulates that land users are only allowed to convert the form of land lease payment from annual to one-time payment if the land being used belongs to an agricultural, forestry, or fisheries production project; industrial park land, high-tech park land, or commercial and service land for tourism , office business activities, etc. "Disputes may be handled more easily and smoothly through Vietnamese commercial arbitration after the Land Law 2024 comes into effect, in addition to the old forms of the People's Committee or the court," lawyer Hai expects.

Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, stated that the new Land Law allows foreign investors and overseas Vietnamese to receive land use rights transfers in industrial parks, industrial clusters, and high-tech zones; foreign investors can also receive transfers or contribute capital in the form of land use rights as stipulated by the Government… "These new points will positively impact production and business activities, while also breathing new life into the real estate market, bringing in revenue and boosting strong economic development," Mr. Hieu said.

However, according to Mr. Hieu, businesses and organizations need to focus on understanding the new law comprehensively, avoiding searching for each individual clause. This will help businesses apply the law effectively and accurately assess the factors affecting their investment and business environment.

As an organization supporting Vietnamese investors residing abroad, Mr. Hoang Minh Thang, Head of Business Development at TMA Innovation, believes that these regulations not only facilitate Vietnamese expatriate investors in bringing capital back to Vietnam but also provide businesses with more opportunities to accelerate the implementation of projects such as technology parks and office buildings.

"With these regulations, land-related procedures for foreign investors will be significantly streamlined, almost equivalent to those for domestic businesses. Hopefully, when the new Land Law is implemented, the regulations will be effectively enforced, providing a great impetus for businesses to reach their full potential," Mr. Thang shared.

According to the leader of a well-known real estate company in Ho Chi Minh City, the development of real estate businesses depends not only on the output of apartments and townhouses, but also on land as an input, which plays a crucial role in determining the survival of the business. With the new regulations of the 2024 Land Law, he predicts that companies with prime land plots and sound legal status will benefit greatly in the near future.

"To be more specific, detailed, and clear, I propose that the authorities promptly issue decrees and circulars to guide the implementation in case of any obstacles or difficulties after the 2024 Land Law is implemented," this leader said.

New laws related to housing are expected to revitalize the real estate market. Photo: TAN THANH

Things that need to be done immediately.

Recently, speaking at a meeting to hear reports on the completion of draft 2 Decrees detailing some provisions of the Law on Real Estate Business and detailing some provisions of the Law on Housing regarding the renovation and reconstruction of apartment buildings, Deputy Prime Minister Tran Hong Ha requested the Ministry of Construction to incorporate and institutionalize the timeline for implementing the steps and procedures for regulating the real estate market, ensuring feasibility, timeliness, and appropriateness.

From an expert perspective, Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, recommends adding regulations to determine the threshold of real estate market fluctuations that necessitate regulatory measures.

Meanwhile, Associate Professor Tran Dinh Thien, a member of the Prime Minister's Economic Advisory Group, believes that for the Vietnamese real estate market to truly stabilize and develop again, it needs to be "unblocked," especially "unblocked supply and demand"—so that the currently congested supply and demand for real estate can meet, and the market can "change its dynamics." Professor Thien proposed several immediate actions.

Firstly, institutional obstacles must be resolved quickly and decisively so as not to hinder the market's recovery.

Secondly, it is necessary to channel resources and implement measures to promote and create opportunities for both real estate businesses and customers/investors to access favorable capital sources with truly supportive interest rates, thereby creating new impetus for growth and development.

Third, consider solutions to improve the minimum wage so that people have the opportunity to increase their income, thereby stimulating demand.

Fourth, continue implementing solutions to attract investment flows to maintain and promote the industrial, commercial, and tourism/resort real estate segments.

Most importantly, Associate Professor Tran Dinh Thien noted that solutions need to be implemented synchronously, and any bottlenecks that have the opportunity to be resolved should be addressed immediately to avoid losing the momentum of the market's recovery. "Unlocking capital for the real estate market is the crucial step," Mr. Thien emphasized.

Clearly define what constitutes "Vietnamese origin".

Mr. Phan Duc Hieu stated that the 2024 Land Law stipulates that individuals in Vietnam and Vietnamese people residing abroad are Vietnamese citizens, replacing the concept of "Vietnamese people residing abroad" with "people of Vietnamese origin residing abroad". Both groups have the right to own housing associated with land use rights according to the law.

However, according to Mr. Ma Xuan Tuan, Director of the Ho Chi Minh City Real Estate Investment Research Center (HOREC), there needs to be a clear definition of the term "origin" in this case. "For example, if a Vietnamese couple has a child who goes to the US, marries a US citizen, and has a child who also has US citizenship, should that child be considered of Vietnamese origin? Or, if a Vietnamese person has been living abroad for a long time and no longer possesses an identity card or other documents proving Vietnamese citizenship, should they be considered of Vietnamese origin?" Mr. Tuan questioned.

Source: https://nld.com.vn/luat-dat-dai-se-tao-dong-luc-thu-hut-dau-tu-196240717194932229.htm