Remittances are ready for new law of housing

Remittances are ready for new law of housing

Since the Law of housing is amended and accepted by the National Assembly in Nov 2014, which allowed foreigners (actually for oversea Vietnamese) to buy houses in Vietnam, there were nearly 7.000 people owned a house in this country.

Talking to the media at the meeting to announce the program “Comeback Homeland Spring 2015”, Deputy Minister of Foreign Affairs Vu Hong Nam said, from the law of housing amended on, there were 7.000 oversea Vietnamese owned a house in Vietnam. “With the environment for investment, business is gradually improving, the changes in approaches of the law-maker…pulled oversea people back to their homeland more and more”
Results from the Research Institute for Economic Management TW (Minister of Planning and Investment) and Western Union conducted at the end of 2014 said, a remarkable portion of remittances sent back to Vietnam used to buy real estate.

Total of remittances in 2014 reached 12 billion USD. 16-17% flowed into real estate market.

Namely, at 7 provinces and cities which had the big amount of remittances, over 30% receiver in recent 3-5 year is for bank deposits, 27-30% for manufacture and business, 20% for gold and 16-17% for real estate. With the total of remittances estimated at 12 billion USD in 2014, there would be about 1.5 billion USD used for buying hoses and lands.
According to Master Vo Tri Thanh, Deputy Director of Research Institute for Economic Management TW, the number shall be changed in the near future when the new law of housing take its affects from 1st July 2014. The openness in allowing oversea Vietnamese, foreigners to own and trading houses in Vietnam could give the remittances for real estate a push. Since 1st July 2015, the law of housing (amended) allowed, oversea Vietnamese who lived abroad could have the right of owning a house without restriction on the number and type of house ownership. It is only when they are accepted by the authority to allow entry to Vietnam. The same for the foreigners. Specially, organizations and individuals are allowed to invest and build housing project for rent. Early, the overseas Vietnamese and foreigners want to buy houses in Vietnam shall comply with Resolution 19/2008 / QH12 very limited. Thus, according to the Department of Housing Management and Real Estate Market (MOC), the 5-year (2009-2014), who was just over 400 overseas Vietnamese and foreigners buy houses in Vietnam.

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Commenting on the changes in housing policy in Vietnam, Richard Leech, Executive Director of CBRE Vietnam, the conditions for foreigners to own houses in Vietnam more open than the previous forecast, which marked an important step in opening up the real estate market for foreign investors. The two provisions are limited only to the foreign ownership period not exceeding 50 years and the amount of property owned up in an apartment building / a ward-level administrative units (or equivalent equivalent). In addition, there are no limits on property ownership permitted. Answering the question, whether or not a wave of overseas Vietnamese and foreigners poured money to buy real estate in Vietnam when the Housing Law (amended) effective from 01.07.2015, Richard Leech said that may Law no immediate impact, but it definitely makes the housing market has improved recently went towards more positive.
"Housing Law amendment will help Vietnam market becomes more attractive for foreigners living and working in Vietnam, who want to invest in this market and erase the initial barriers, create a more fair  playing field between foreigners and people of Vietnam, "said Mr. Leech.

Source: Vietnamnet