A draft regulation submitted to the Government by the Ministry of Construction would make it easier for Viet kieu (overseas Vietnamese) to own homes in Viet Nam.
A draft regulation submitted to the Government by the Ministry of Construction would make it easier for Viet kieu (overseas Vietnamese) to own homes in
While the Housing Law of 2005 paved the way for Vietnamese expatriates to own a house or apartment in
Only 137 Viet kieu have been able to buy property legally here since the restricted qualifications to buy a home in the country took effect two years ago, according to the Ministry of Construction.
The draft amendment of Decree No 90 of 2006, which provided guidelines for implementing the Housing Law, was submitted to the Government for consideration earlier this month and would likely be adopted early next month, said the director of the Ministry of Construction’s Housing Management Department, Nguyen Manh Ha.
Under the draft, any Vietnamese residing overseas but still maintaining his or her citizenship will have the same rights and responsibilities as any Vietnamese living in
The ministry has also proposed extending that right to people of Vietnamese origin who used to have Vietnamese nationality or who are children or grandchildren of Vietnamese nationals. The right could also be extended to long-term investors, persons who have contributed to the revolution, and scientists or experts who want to settle in
According to Luong Si Khoa, director of the Phu Gia Real Estate Joint Stock Co, some Viet kieu investors have co-operated with partners at home to develop projects in
"I didn’t expect so many Viet kieu to register to buy the properties," Khoa said, referring to the Lang Doi Xanh villa complex recently built in Dong Nai.
Le Hung, director of Hoang Anh Gia Lai Group’s
"I believe that the number of customers buying property will increase sharply once the policy takes effect," said Hung.
Some real estate developers in the southern
"This is an absolutely sound policy that will have a positive impact on the economy," said Tran Minh Hoang, chairman of the Vinaland Co. "The policy will give the property market a needed push."
Pham Phuong Thao, who represented
Vo Dinh Quoc, general director of the An Binh Real Estate Joint Stock Co, said, "The policy not only stimulates Viet kieu to come home to buy real estate but also stimulate them to invest further here. Their investments would help ease the demand for capital, speed up projects and increase the housing supply."
"However you look at it, this is a policy that benefits everyone," said Ho Chi Minh City Real Estate Association vice chairman Le Hoang Chau. "Even with only 10 or 20 per cent of the three million overseas Vietnamese coming home to buy property and do business, the real estate market and other business areas will prosper."
Broadening the potential customer base for the nation’s housing market would benefit all by lowering housing prices, added Hoang. With the market’s present purchasing power weak, real estate developers have to set prices high to assure profit margins.
"Then, companies have to consider which market segments to invest in. There will be more firms dealing in the low – and medium-end segments that meet the needs of the majority of people. They won’t just focus on the high-end like today," said Hoang.
The nation’s total housing reserves are now about 900 million sq.m, with 35 million sq.m added every year, according to Deputy Minister of Construction Nguyen Tran
(Source: VNS)
