VietNamNet Bridge – The National Assembly (NA) Legal Committee at the NA session in Hanoi on Saturday approved in principle a proposal for allowing overseas Vietnamese, locally known as Viet Kieu, foreign organizations and individuals to own homes in the country.

An apartment building in HCMC. The National Assembly Legal Committee has thrown support behind a proposal for allowing overseas Vietnamese, foreign organizations and individuals to own homes in the country.

Having heard a presentation on the draft amendments to the Housing Law by Minister of Construction Trinh Dinh Dung, Phan Trung Ly, chairman of the Legal Committee, said the committee agreed on the proposal that Viet Kieu, foreign organizations and individuals should be eligible for home ownership in Vietnam. However, it is necessary to clarify how the expansion of home ownership to foreigners would impact on the housing ownership rights of local citizens, national security and social order.

According to articles 155 and 157 of the draft amended law, foreigners allowed to enter Vietnam and keen to own a home in the country have the right to buy and own it.

Minister Dung said what has been happening on the real estate market has revealed shortcomings of the current Housing Law, which came into force eight years ago.

Therefore, it needs amending and supplementing to suit the current market conditions.

For instance, the current law imposes various limitations on home ownership by overseas Vietnamese, foreign individuals and organizations, making the property market unattractive to Viet Kieu and foreign entities.

In addition, local authorities are not mandated to set up housing development programs and resources mobilization schemes. As a result, there has been an imbalance between housing supply and demand and a shortage of low-cost homes for low-income people.

In contrast, the luxury housing segment has been booming, causing an oversupply of high-end apartments whose demand is low.

Property developers have over the years focused much more on commercial apartment projects than budget home developments. Local authorities have also not paid due attention to affordable home developments, so a great number of social policy beneficiaries and low-income people cannot buy housing.

Besides, the law does not stipulate specific incentives for investment in the budget home segment, especially in big cities with strong demand for housing, and policies for condo building management.

Therefore, the amended law is expected to solve problems including planning, management, and restoration of apartment buildings, financing for housing development, and mechanisms or incentives to boost the development of social housing for low-income people, Dung said.

The forthcoming relaxation of home ownership rules is aimed at attracting talent, as well as resourceful and experienced people who can lend a helping hand to developing the country and boosting the nation’s integration in the world.

Source: SGT