Strict regulations will be set for investors in housing and real estate projects in Viet Nam. — Photo dothi.net

DA NANG (Biz Hub)— More amendments on how to ease house ownership for local people and to develop a sustainable real estate market were proposed at a seminar on draft revised laws on Housing and the Law on Real Estate Business on Friday.

Deputies from relevant ministries, experts and businesses voiced their opinions to amend regulations regarding the sale, purchase and leasing of houses, and housing development objectives.

Opinions were given on how to encourage foreign organisations and individuals to invest in housing construction or enter into real estate transactions in Viet Nam as well as the desires of many overseas Vietnamese to buy and own homes.

Head of the housing and real estate department under the ministry of construction Nguyen Manh Khoi said amendments on these laws, which issued in 2005, should be made in meeting the current demands of socio-economic development.

"The law on the housing and property business should be reformed in order to encourage foreign investment in housing and real estate projects, creating more favourable conditions for healthy and transparent development of the property market," Khoi said at the seminar.

"The proposals of amendments about draft laws on the housing and real estate business also focus on the ownership of houses and apartments in Viet Nam for foreigners. We mean that a foreigner with a three-month entry visa would allow buying at least a house and an apartment in Viet Nam," he said.

He added that representative offices of foreign businesses or individuals would get the ownership of a house (maximum area of 500sq.m land) or an apartment associated with land-use right in 50 years and the ownership will be extended by 50 years.

Khoi said foreigners should get compensation in case their houses or apartments were cleared by the State.

He also said overseas Vietnamese are allowed to buy or lease a house in Viet Nam.

Nguyen Thuy Nhan, general director of HCM City-based Binh Chanh construction investment company, said he expects that the draft revised laws would be soon ratified.

"We are looking forward to detailed regulations on land-use right procedures, transparent policies and public information on planning from the draft revised laws," Nhan said.

Deputy minister of construction Nguyen Tran Nam said the proposed amendments to these laws aim to correct defects in the laws passed in 2005, and set the property market as well as housing investment on the right track.

"Vast amendments to the laws have been proposed by deputies from relevant ministries, businesses and provincial administrations and experts. We want to hear opinions from all deputies in order to report to the Government before the draft revised laws will likely be proposed to the National Assembly in October for ratification next year," Nam said.

"We are also trying to ease the complications of house and apartment ownership for people, businesses and organisations. Of course, strict regulations will be set for investors in housing and real estate projects," he added.

Nguyen Van Phan, deputy head of real estate business department, said the draft revised laws eyes stricter management of real estate businesses.

"Property developers must have a minimum legal capital of VND2 billion (US$95,000), while each real estate business should include at least two professional agents or occupational certificate of property," Phan said.

He said the draft revised laws also require that real estate project investors must take out risk insurance or make a deposit at bank for their housing or property projects.

"The stricter regulations aim to protect buyers in case businesses suffer bankruptcy," he explained.

Phan also said that prevention of money laundering in real estate has also been proposed.

"All real estate transaction from VND2 billion or suspected trade must be declared."

Vice minister Nam also stressed the real estate sector needed the State's intervention to ensure sustainable development.

He said the draft revised law also requires that real estate or housing projects must be assessed by local government for buyers before being sold.

At Friday's event, the ministry of construction and Da Nang City also agreed on a joint action plan to create a vision for a housing strategy in the central city towards 2020 and 2030.

Da Nang has built 8,000 apartments with total investment of VND1.7 trillion ($81 million), and nine buildings for 10,000 students with a cost of VND460 billion ($22 million). — VNS