A new bill has been drafted that will double foreigners’ real estate ownership terms for properties in special economic zones in Vietnam.
According to VnExpress, Prime Minister Nguyen Xuan Phuc has already expressed support for the bill that would increase the maximum number of years that foreigners would be allowed to own properties in Vietnam's special economic zones from 50 to 99 years.
Phuc added that the economic zones, which would be the leading national growth force, should be competitive in order to attract investors. He said: "We must consider all the issues. What is beneficial for the investors, for us? What is good in the long-term and short-term? We shouldn't just think about the negative effects," as reported by Dan Tri.
The bill, presented last Wednesday, would also allow foreigners to use property bought in the special economic zones as collateral with international banks.
Vietnam currently has 18 special economic zones and is developing three more in the northern province of Quang Ninh province, the central province of Khanh Hoa, and on the island of Phu Quoc.
However, Tuoi Tre reported that as of May 15, only 15 foreigners and Viet Kieus had been granted certificates of house ownership in Ho Chi Minh City, despite the fact that housing laws were enacted in 2015 to loosen restrictions for foreigners to own property in Vietnam.
Vietnam has only recently opened up its housing market to foreigners. In July 2015, legislation was passed allowing foreign investment funds, foreigners with valid visas and international firms operating in Vietnam and abroad to buy unlimited residential properties with a leasehold of 50 years, as reported by VnExpress.
Although industry insiders believe that more interest in the housing market will be created by the easing of these restrictions, many are concerned that complicated regulations and paperwork will still deter foreign buyers from purchasing property in Vietnam.
[Photo via Vietnam Law Insight]
