VietNamNet Bridge – The draft amendments to the Real Estate Trading Law have loosened some property trading conditions for foreigners and overseas Vietnamese but foreigners are still prohibited from trading houses in Vietnam.

Illustrative image. – File photo

Minister of Construction Trinh Dinh Dung submitted the draft law to the National Assembly Standing Committee at the 26th session early this week, aiming at solving difficulties in the market and loosening trading conditions for many entities.

According to the ministry, the real estate market now has seen shortcomings such as a lack of strong sanctions against violations. Overseas Vietnamese and foreigners are not allowed to make deeper participation in the market while operation regulations of real estate trading floors are still not transparent.

The draft law consists of two key points that would open trading conditions for overseas Vietnamese and foreigners.

Vietnamese living abroad will get nod for property trading via investing in real estate projects, leasing or selling homes, investing in technical infrastructure works on leased land for re-lease or transfer.

Foreign individuals and organizations will be able to make investment in construction and leasing but they are not allowed to trade properties and transfer land use rights.

Explaining the issue, the ministry said that the Land Law 2013 has yet to allow foreign individuals and organizations to take over land use rights.

The draft law also allows investors to lease properties that will be formed in the future, not just existing projects like now. The rule aims to help investors mobilize capital from future tenants instead of mobilizing from homebuyers only.

According to the government website chinhphu.vn, the National Assembly Standing Committee has agreed at the new regulations. However, some have been concerned about how to establish the financial capability of foreign investors.

“It is necessary to set up a mechanism to control capability of foreign investors,” Nguyen Hanh Phuc, director of the National Assembly Office, told the draft compilation board.

Minister Dung during the session also suggested removing the rule that forces all property trading and leasing activities to be made via realty exchange centers. This aims to fix shortcomings in real estate trading and reduce adverse impacts of the centers on the market.

Source: SGT