Proposal for foreigners to buy

TPO - The Ministry of Planning and Investment proposed that foreigners doing business and investment activities in financial centers be allowed to buy and sell houses in housing construction investment projects in the financial centers.

TPO - The Ministry of Planning and Investment proposed that foreigners doing business and investment activities in financial centers be allowed to buy and sell houses in housing construction investment projects in the financial centers.

Many housing incentives

According to the latest draft (draft 12) of the Resolution on the establishment and operation of financial centers in Vietnam, the proposed land policy in financial centers is stipulated as follows: For industries, occupations, and fields that are priority industries and occupations for development of financial centers as prescribed in the Prime Minister's establishment decision, the land use term shall not exceed 70 years; for other industries and occupations, it shall not exceed 50 years.

When the term expires, if the land user has a need to continue using the land, the State will consider extending the land use term, but not beyond the prescribed term.

Notably, economic organizations and enterprises with foreign investment capital have the right to mortgage land use rights and assets attached to land in financial centers at credit institutions licensed to operate in Vietnam to borrow capital to implement investment projects without depending on the form of land rent payment to the State.

Economic organizations and enterprises with foreign investment capital are allowed to mortgage land use rights and assets attached to land at foreign credit institutions to borrow investment capital; in case of disputes, they shall comply with Vietnamese law.

The proposal for foreigners to buy and transfer projects in the financial center received comments from two ministries.

When handling mortgaged assets, the mortgagee may only exercise the right to transfer land use rights and assets attached to the land to entities permitted to receive transfers according to the provisions of Vietnamese law.

The Ministry of Planning and Investment also proposed that foreigners entering Vietnam to work or conduct business investment activities in financial centers are allowed to receive transfers, assign, and buy and sell houses in housing construction investment projects in the financial centers.

Ownership can be carried out through the forms of purchase, hire-purchase, receiving gifts, receiving inheritance from the project investor or organizations, households, individuals owning real estate in the real estate construction investment project. The rights and obligations of investors and owners regarding land are determined in accordance with the form of land allocation and land lease of the real estate construction investment project according to the provisions of the law on land.

Speculation worries push up housing prices

Commenting on the proposal to draft a National Assembly Resolution on the establishment and operation of financial centers in Vietnam, the Ministry of Industry and Trade requested an assessment of the impact on the policy allowing foreigners entering Vietnam to receive transfers, transfer, and buy and sell houses in projects in financial centers.

"Thus, foreigners not in Vietnam can also buy, speculate, and push up prices, leading to unfavorable housing rental for those working in financial centers, reducing cost competitiveness and attracting workers," said the Ministry of Industry and Trade.

In addition, the ministry also proposed clarifying the policy on inspection and examination of member enterprises of the financial center.

According to the Ministry of Construction, the draft resolution outline stipulates land policies in the financial center regarding land use term, land use rights mortgage rights, foreigners are allowed to buy and sell houses in housing construction investment projects...

The dossier proposing the National Assembly to draft a resolution needs to clarify the functions of financial centers, distinguish the similarities and differences between international financial centers and regional financial centers to serve as a basis for assessing the implementation of relevant laws on land, housing, real estate business and propose appropriate mechanisms and policies to promote the construction of financial centers in Vietnam, contributing to bringing the country into a new era, an era of national growth.

In response to this suggestion, the Ministry of Planning and Investment recommended not to distinguish between regional financial centers and international financial centers to ensure synchronous development among financial centers.

According to statistics from the Ministry of Construction, from 2015 to the end of the third quarter of 2023, more than 3,000 foreigners have bought houses in Vietnam, mainly apartments in commercial housing projects and concentrated in large provinces and cities. Of which, Hanoi accounts for more than half with 1,765 units - only about 0.53% of the total housing volume in the country in the period of 2018-2022.

Ngoc Mai

Source: https://tienphong.vn/de-xuat-nguoi-nuoc-ngoai-duoc-mua-ban-nha-trong-trung-tam-tai-chinh-post1718932.tpo