NA orders solutions to prevent transfer of property to foreigners
NA orders solutions to prevent transfer of property to foreigners
The National Assembly’s (NA’s) supervision delegation has asked the Government to issue policies to prevent the Vietnamese people from buying land lots and apartments and transferring them to foreigners.
At a discussion today, May 27, as part of the NA’s seventh sitting, Vu Hong Thanh, head of the NA's Economic Committee, delivered a report on the deployment of policies and laws on the planning, management and use of land in urban areas since the 2013 Land Law took effect.
Although there are no official statistics on the ownership of Vietnamese property by foreigners, the demand has surged, according to real estate insiders.
A report by property service provider CB Richard Ellis (CBRE) showed that foreigners, especially Chinese, have expressed keen interest in the real estate market in HCMC over the last three years.
In the January-September period last year, foreigners buying apartments in HCMC through CBRE Vietnam made up 76% of the total, where 31% were Chinese.
The rate was only 2% in 2016 and 4% in 2017, which proves that the Chinese are showing increasing interest in the high-end property segment in HCMC.
Current regulations set the ceiling of foreign ownership in realty projects at 30% of the total number of houses or apartments. However, local agencies have yet to work out solutions to record the total number of apartments owned by foreigners.
Thanh also mentioned many other shortcomings in the management and use of property products.
Specifically, Danang City and Hai Duong, Quang Nam, Ben Tre and Ca Mau provinces have yet to get approval for adjustments to their land use plans. In addition, the development of social infrastructure projects has failed to meet the demand, Thanh said.
In Hanoi and HCMC, land for traffic projects accounts for only 9% of the total land space, while the rate should be 20%-26% in central cities, 18%-23% in satellite cities and 16%-20% in towns. Further, the ratio of parking areas to urban construction land is currently less than 1%, lower than the requirement of 3%-4%.
Violations in build-transfer projects and the use of military land and land for cultural works were also pointed out.
Moreover, appointments of investors and contractors, land transfers and the conversion of land use purposes have not been handled in a transparent manner. Further, the values of land lots were not appraised based on market prices, causing losses for the State budget and leading to complaints and lawsuits from locals, Thanh Nien Online newspaper reported.
Some localities failed to fulfill their duties in collecting land use fees, such as Hanoi, Haiphong, Bac Giang, Khanh Hoa, Dong Nai and Binh Duong.
Thanh also mentioned violations in taking back land lots to make room for projects, site clearance compensation and resettlement, such as in the Thu Thiem New Urban project in HCMC’s District 2.
Therefore, the NA’s supervision delegation asked the Government to direct ministries, agencies and localities to work out effective solutions to address these shortcomings, clarify the responsibilities of related individuals and organizations, impose sanctions on offenders and report the results to the NA at its 10th sitting in October next year.
Deputy Hoang Quang Ham from Phu Tho Province agreed with the NA’s supervision delegation, adding that penalties should be handed down to both State officials and enterprises involved in land-related violations.
The Vietnam News Agency cited deputy Ly Tiet Hanh from Binh Dinh Province as saying that many plots of land are being used wastefully, while the quality of urban planning activities remains poor.
Also, the urban land bank has yet to be exploited effectively to contribute to the country’s socioeconomic development. As a result, land-related problems have become obstacles to improving the business environment and national competitiveness, Hanh added.
She proposed the Government review the management and use of land lots across the country to prevent the waste of land.
In addition, contradictory regulations should be eliminated, such as provisions in the Land Law and the Law on the Auction of Assets.
She also suggested supplementing more specific regulations on the division and allocation of land and the auction of land use rights.
