Limit 30% of foreign ownership about the realty projects in special economic zones

Limit 30% of foreign ownership about the realty projects in special economic zones

Foreign investors will be restricted to 30 percent ownership of real estate projects in Vietnam’s future special economic zones if a new draft law is approved, despite government promises of added incentives to attract overseas investment. The cap is the same as the one currently imposed across the country.

The Law on Special Economic and Administrative Units, which is being drafted at the moment, would grant foreign investors 99-year leaseholds on properties in new investment areas, almost twice the 50-year terms granted elsewhere in Vietnam.

But a major barrier remains as the law would only allow foreigners to buy up to 30 percent of an apartment building or resort project in these areas, said Tran Huy Dong, director of the Economic Zones Management Department at the Ministry of Planning and Investment. The limit is to guarantee security and prevent acquisitions by foreigners in special economic zones.

He said the heads of these zones will have to consult the Ministry of National Defense and the Ministry of Public Security before granting any land to foreign investors. However, the policy will be open to changes depending on investors’ demands. Vietnam is preparing to develop special economic zones in the northern province of Quang Ninh, the central province of Khanh Hoa and the southern resort island of Phu Quoc.

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The government has cast them as major investment magnets along the lines of Singapore and Hong Kong. The investment ministry said that investors in these special zones will receive greater incentives and fewer restrictions than in Vietnam’s 18 existing “normal” economic zones, and they will be free from local regulations. Casinos have been approved in these zones, which will be the first in the country to be licensed to receive Vietnamese citizens.

Phung Quoc Hien, vice chairman of the legislative National Assembly, even suggested opening “red-light districts” in these zones at a meeting earlier this month. Life has such realistic demands. We’ve got to go with the flow and work out an appropriate management mechanism.

This draft law is expected to be presented to the National Assembly in May next year.

Source: VNexpress

September 27, 2017 / by / in
Living in District 2 of Ho Chi Minh City, why not?

Tired of the crazy life in District 1? Yes, well many people are. For a lot of people the endless hubbub of Saigon’s center is just too much after a while, and to retreat to a more quiet, slower pace of life is a welcome relief. They like to be able to hear birds, to share the street with bicycles rather than roaring mopeds, to sit by a quiet river or relax in a local cafe where everyone knows everyone because there aren’t that many people in the area. Therefore, living in District 2 will be a favorable option!

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  1. Accommodation:

District 2 is the ideal neighborhood for your family home. Many expat families live here due to the high concentration of international schools and the comparative safety of its streets. Facilities are aimed at the expat community – from shopping malls to small businesses and hair salons – and the majority of people here are foreign. There are a various types of accommodation including apartments, serviced apartments, houses, villas and rooms for rent. Almost of them are brand-new, modern and full of utilities.

  1. Transportation:

It’s quite convenient and less traffic jam as the center of HCMC. Once one of the poorest districts in the city, District 2 is now a fast-developing hot spot. Passing under the Saigon Tunnel on Mai Chi Tho Street and seeing the cranes in the distance will give an indication of the city’s plans to create a second CBD. With its close proximity to D1, D2 will also be the first stop on the city Metro Line.

  1. Facilities:

The facilities of District 2 have developed very quickly recently with many supermarkets (Big C, Mega Mart, etc.), shopping centers (Vincom Mega Mall) or hospitals like the Family Medical Practice. Especially, the district’s expat enclave, Thao Dien Ward, has two of the most prestigious international schools, as well as villas and compounds and a fair few Western restaurants and bars. Because of its international schools, D2 is home to many expats with young families. Its ambience is more suburban than big city, despite rapid development, and the streets are less crowded than in the CBD.

  1. Where to eat:

District 2, particularly Thao Dien Ward, is home to a variety of coffee shops and restaurants. It’s a great area of town for a nice family dinner, or a nice ladies’ brunch. Check out the restaurant and bar at Thao Dien Village, which offers a range of Italian, Vietnamese and Thai cuisine as well as a delicious tapas menu.

  1. Things to do and nightlife:

Saigon’s arts hub and one of the city’s best spots for live music is located in Thao Dien Ward, District 2. Saigon Outcast offers a variety of workshops from figure drawing to cooking contests, hosts a number of festivals and events, nurtures Ho Chi Minh City’s hottest up and coming musicians and celebrates the arts in this city. Their monthly urban flea market is a great day out for the kids, with its variety of boutique clothes stalls, artists, delicious foods and cute little gifts.

September 18, 2017 / by / in
Ho Chi Minh City will not allow to build the small apartments

According to the latest news, Ho Chi Minh City has decided not to allow investors to build commercial apartments under 25 square meters (270 square feet) out of fear that fast urbanization and population growth may spiral out of control. In a letter sent to the Ministry of Construction, the city said small apartments are not part of its development plans. Small apartments would allow more people to buy property in the already overcrowded city, which would lead to population growth and more pressure on infrastructure, it said.

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To strengthen its argument, the city stated that it does not want to create “elevated slums”. In a letter issued in April to a domestic developer, the ministry said the firm would be allowed to build 25-square-meter apartments to attract low-income earners before new national standards for apartment sizes are set.

Vietnam’s 2015 construction law abolished a previous requirement that set the minimum area for an apartment at 45 square meters, but did not stipulate a new limit. In December 2015, a government decree on housing development for low-income earners came into force and set the minimum area at 25 square meters. Decrees often require guidance from related ministries before they are implemented.

Construction businesses and provincial authorities have been seeking permission to build commercial houses of 30-40 square meters to attract individuals, small families and low-income buyers, and they have been given the go-ahead due to the huge demand, the construction ministry said. Vietnam currently has 2.2 million people working in industrial parks, but only 20 percent of them have their own homes, according to the ministry.

HCMC’s decision appears to be its latest attempt to rescue itself from the infrastructure mess it has found itself in. The city has already instructed its construction department not to license any more high-rise condo buildings on roads that simply cannot handle them. This follows high-rise projects on Ung Van Khiem St and Nguyen Huu Canh St in Binh Thanh District and Ben Van Don St in District 4 that have put immense pressure on infrastructure, local media reported.

Tim Doling, a British author who has studied Vietnam’s history and tourism extensively, wrote on his Facebook page: “More warnings that continued construction of massive ugly high rises along the city’s main arteries will cause infrastructure to ‘break down’, with increased risk of flooding and further heavy traffic pressure.” Ung Van Khiem St is less than 2km long but is now home to around ten condo projects, while Nguyen Huu Canh St, one of the main roads connecting the eastern part of the city with the downtown, often suffers from flooding and heavy traffic jams.

Explaining the reason for these projects, the construction department said it had been given the nod to make adjustments to the city’s development plan by allowing investors to build more high-rise buildings in those areas. The Department of Transport said “due to the need to streamline administrative procedures, it hasn’t been invited to comment on residential apartment construction.” The city may be trying to make amends for the situation by putting high-rise condo buildings on hold and saying no to small apartments, but experts have described its solutions as “locking the stable door after the horse has already bolted.”

Source: VNexpress

September 18, 2017 / by / in
More 750 foreigners own the property in Vietnam

Even though Vietnam has relaxed the policies that allow foreigners to buy houses in the country, the numbers are not as high as expected. More than 750 foreigners have been granted house ownership certificates in Vietnam since the Law on Housing came into effect in 2014, reports the Ministry of Construction. The figure is six times higher than that of eight years since Vietnam implemented the Resolution No 19/2008/QH12, which piloted the scheme to allow foreign organizations and individuals to buy and own homes in the country.

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However, a representative from the Ministry of Construction’s Housing and Real Estate Market Management Department told the Vietnam News Agency that the number of foreigners buying houses in Vietnam was still low due to many other factors including their financial capacity, jobs, demand and the cost of real estate.

The regulations on housing and the policies on house ownership in Vietnam have been relaxed including the conditions of house ownership and the number of houses being owned by foreigners, which all suit the current situation, the representative said.

Mr Nguyen Khanh Duy, director of sales at Savills Vietnam in Ho Chi Minh City, said legal procedures on real estate ownership of foreigners in Vietnam had basically received positive feedback from both buyers and sellers. The attraction of foreigners buying homes in the country in accordance with the law is expected to develop the country’s real estate market, especially in the segment of luxury housing which is abundant.

Source: Vietnamnews

September 7, 2017 / by / in