A close eye will still be kept on real estate deals

The government is yet to fully open up the real estate market, preferring to retain control

However, to ensure transparency, relevant agencies still plan to keep the lucrative sector under tight control.
The draft law on real estate business, the first ever in Vietnam, states that “Vietnamese overseas, foreign individuals and foreign organisations will be permitted to participate in real estate business, particularly construction of projects for sale, lease and other real estate services.”
Experts said that the permit, which won’t be different from current regulations, have been set at the top level of legislation creating confidence in the foreign community and promising to diversify and energise the real estate business.
Nguyen Duc Kien, chairman of the National Assembly Budget and Economic Committee said that under the international integration process, Vietnam is required to eliminate discrimination between domestic and foreign investors.
However, experts still said that under the draft statement, foreign organisations still don’t have the right to transfer land and real estate projects, therefore, there remains some differences between domestic and foreign investors.
“The opening of the land and real estate market should be done step by step,” Kien said, adding that the government would take into consideration developments of Vietnam’s integration and define when exactly the full opening up of the sector should occur.
“The government will work out specific categories on scopes of real estate business in which foreign individuals, organisations and Vietnamese overseas are allowed to conduct,” he said.
Tran Hong Viet, a deputy from Hau Giang province, said that presently the price of real estate property was illogically high and therefore the participation of foreign individuals, organisations and Vietnamese overseas “will help the market become healthier, more transparent and especially make the price of real estate lower.”
“Such regulations as the draft law are suitable with the trend of Vietnam’s integration commitments,” he said.
Tran Thanh Khiem, a deputy from Ca Mau province agreed, saying that the real estate market “has not developed strongly due to a lack of diversification from participating investors.”
He predicted that from now on, together with the official opening of real estate market permitting foreign individuals, organisations and Vietnamese overseas to participate in real estate business activities, the market promises to strongly develop on the right track.
However, to ensure the transparency of information on real estate property transactions, organisations are required to make public information related to real estate property and their transaction on real estate property transaction floors, according to the draft law.
The real estate property transaction floors will be established by individuals and organisations which have business activities related to real estate property, and will be supervised by concerned agencies with regular reports being submitted to concerned agencies.
Nguyen Ngoc Lam, a deputy from Haiphong city said that the regulation on making public the information regarding real estate property put up for transaction will help to improve the transparency of the real estate property business environment.