Land Law will create incentives to attract investment

On July 17, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in collaboration with the Vietnam International Arbitration Center (VIAC) organized a workshop on "Land Law 2024: Effective implementation solutions for investors".

Many new and positive points

Talking about the positive points of the 2024 Land Law, which will take effect from August 1, lawyer Nguyen Van Hai, YKVN Law Firm, said that the new law has expanded access to land through auction methods for land recovered by the state under Article 79; bidding to select investors to implement projects using land or agreements. Thanks to that, enterprises can negotiate with landowners to receive transfers and have land to develop commercial housing if they meet local procedures, planning and other regulations.

In addition, the 2024 Land Law has changed the form of land rental payment for investment projects in the construction and business of infrastructure of industrial parks and high-tech parks from annual to one-time payment for all or part of the business area. From there, investors have the right to sublease land with one-time or annual land rental payment. This helps bring stable revenue from land for the state, investors and helps land lessees develop stably.

The law also stipulates that land users can only change the form of land rental payment from annual to one-time payment if the land being used belongs to an agricultural, forestry, or fishery production project; land in industrial parks, high-tech parks, or commercial and service land for tourism and office business activities... "Disputes may be handled more easily and gently by Vietnam Commercial Arbitration after the 2024 Land Law takes 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, said that the new Land Law allows foreign investors and overseas Vietnamese to receive transfers of land use rights in industrial parks, industrial clusters, and high-tech zones; foreign investors are also allowed to receive transfers or contribute capital using land use rights according to Government regulations... "These new points will have a positive impact on production and business activities, and at the same time breathe new life into the real estate market, bringing in revenue and promoting strong economic development," said Mr. Hieu.

However, according to Mr. Hieu, businesses and organizations need to pay attention to studying the new law comprehensively, avoiding looking up each clause. This will help businesses apply the law effectively and correctly assess the factors that are affecting the investment and business environment of businesses.

As a unit supporting Vietnamese investors residing abroad, Mr. Hoang Minh Thang, Head of Business Development Department of TMA Innovation, said that the above regulations not only help overseas Vietnamese investors easily pour money into Vietnam but also help businesses have more opportunities to speed up the implementation of projects to build technology parks, office buildings, etc.

"With the above regulations, land-related procedures for foreign investors will be significantly reduced, almost equivalent to domestic enterprises. Hopefully, when the new Land Law is implemented, the regulations will be effectively enforced, which will be a great driving force to help enterprises reach new heights," Mr. Thang shared.

According to the leader of a famous real estate business in Ho Chi Minh City, the development of real estate enterprises, in addition to the output of apartments, townhouses, etc., the input of land plays a key role, deciding the survival of the enterprise. With the new regulations of the Land Law 2024, he predicts that units with beautiful land funds and good legal status will benefit greatly in the near future.

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

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

Things to do now

Recently, speaking at a meeting to listen to reports on the completion of draft 2 Decrees detailing a number of articles of the Law on Real Estate Business and detailing a number of articles of the Housing Law on renovation and reconstruction of apartment buildings, Deputy Prime Minister Tran Hong Ha requested the Ministry of Construction to absorb and institutionalize the implementation time of steps and procedures for regulating the real estate market, ensuring feasibility, timeliness and suitability.

From an expert perspective, Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council, proposed adding regulations to determine the threshold of real estate market fluctuations to the point where regulatory solutions must be implemented.

Meanwhile, Associate Professor Dr. Tran Dinh Thien, a member of the Prime Minister's Economic Advisory Group, said that in order for the Vietnamese real estate market to truly stabilize and develop again, it is necessary to "clear the gap", in which it is especially necessary to "clear the gap between demand and supply" - so that the currently blocked real estate supply and demand can meet, and the market will "change its color". Mr. Thien proposed a number of things that need to be done immediately.

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

Second, through resources and measures to promote and create opportunities for both real estate businesses and customers/investors to have access to favorable capital sources with truly supportive interest rates, creating new growth and development engines.

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

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

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

Clearly define what is "Vietnamese origin"

Mr. Phan Duc Hieu said that the 2024 Land Law has stipulated that domestic individuals and Vietnamese people residing abroad are Vietnamese citizens and replaced the concept of "Vietnamese people residing abroad" with "people of Vietnamese origin residing abroad". Both of these subjects have the right to own houses associated with land use rights according to the provisions of law.

However, according to Mr. Ma Xuan Tuan, Director of the Ho Chi Minh City Real Estate Investment Research Center (HOREC), it is necessary to clearly define the word "origin" in this case. "For example, a Vietnamese couple has a child who goes to the US and marries an American woman, gives birth to a child and has American citizenship. Is that child considered to be of Vietnamese origin? Or is a Vietnamese person who has lived abroad for a long time and no longer has an ID card or documents proving Vietnamese nationality considered to be of Vietnamese origin?" - Mr. Tuan raised the question.

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