Vietnam may allow foreigners to build houses

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vietnam+economyThe Vietnam government considers to include in its new real estate law a provision that foreign institutions are allowed to build houses for lease or sale, VietnamNet Bridge reported.

Under the current draft law, foreigners would have the right to do business in the real estate market under four modes 1) building houses for sale, lease 2) leasing houses for re-leasing 3) building technical infrastructure works on leased land for lease, and 4) leasing the land with technical infrastructure works for re-leasing.

However, foreigners will not have the right to receive ownership certificates. Under the current laws, only the State of Vietnam can grant the certificates. In Vietnam, possessing houses in reality and having the ownership certified are the two different stories. This explains why in Hanoi and Ho Chi Minh City, tens of thousands of apartments, which have been used for the last many years, still have not got the land use right certificates, or called “red book”.

A report showed that in Hanoi, 82,200 sold apartments still have not been granted red books by October 2013. According to the Hanoi Department of Natural Resources and the Environment, there are three reasons behind this. First, the investor might not accord the approved designs when building the houses. Second, the investors still have not fulfilled the financial duties. Third, the real owners of the apartments have not made payment, or have not applied for certificate granting.

However, no matter what the reason is, it is foreseeable that once foreign investors join the market, the existing problem would get even more serious. This would cause a bigger headache to the watchdog agencies, which have to deal with too many documents and problems. Meanwhile, buyers would feel discouraged because they don’t know when they can receive red books which prove their ownership.

Under the current laws, red books must be granted within 30 days from the day the properties are transferred to buyers. However, in most of cases, people cannot get red books within the given period.

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The Vietnam government considers to include in its new real estate law a provision that foreign institutions are allowed to build houses for lease or sale, VietnamNet Bridge reported. Under the current draft law, foreigners would have the right to do business in the real estate market under four modes 1) building houses for sale, lease 2) leasing houses for re-leasing 3) building technical infrastructure works on leased land for lease, and 4) leasing the land with technical infrastructure works for re-leasing. However, foreigners will not have the right to receive ownership certificates. Under the current laws, only the State...

Reading Time: 2 minutes

vietnam+economyThe Vietnam government considers to include in its new real estate law a provision that foreign institutions are allowed to build houses for lease or sale, VietnamNet Bridge reported.

Under the current draft law, foreigners would have the right to do business in the real estate market under four modes 1) building houses for sale, lease 2) leasing houses for re-leasing 3) building technical infrastructure works on leased land for lease, and 4) leasing the land with technical infrastructure works for re-leasing.

However, foreigners will not have the right to receive ownership certificates. Under the current laws, only the State of Vietnam can grant the certificates. In Vietnam, possessing houses in reality and having the ownership certified are the two different stories. This explains why in Hanoi and Ho Chi Minh City, tens of thousands of apartments, which have been used for the last many years, still have not got the land use right certificates, or called “red book”.

A report showed that in Hanoi, 82,200 sold apartments still have not been granted red books by October 2013. According to the Hanoi Department of Natural Resources and the Environment, there are three reasons behind this. First, the investor might not accord the approved designs when building the houses. Second, the investors still have not fulfilled the financial duties. Third, the real owners of the apartments have not made payment, or have not applied for certificate granting.

However, no matter what the reason is, it is foreseeable that once foreign investors join the market, the existing problem would get even more serious. This would cause a bigger headache to the watchdog agencies, which have to deal with too many documents and problems. Meanwhile, buyers would feel discouraged because they don’t know when they can receive red books which prove their ownership.

Under the current laws, red books must be granted within 30 days from the day the properties are transferred to buyers. However, in most of cases, people cannot get red books within the given period.

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