Logo of Phnom Penh Post newspaper Phnom Penh Post - VN sets new rules for individual overseas real estate investment



VN sets new rules for individual overseas real estate investment

Content image - Phnom Penh Post
Viettel Group has invested in providing telecommunications services in a number of countries. Vietnam is developing a decree to better manage overseas investments. Photo baodauthau.vn

VN sets new rules for individual overseas real estate investment

Individuals will no longer be allowed to invest in real estate abroad if a new draft decree issued by the Ministry of Planning and Investment is approved.

Enterprises founded under the provisions of the Law on Enterprise would be exempt from the ruling.

The regulation aimed at preventing individuals from investing in real estate in foreign countries for the purpose of obtaining citizenship, according to the ministry.

According to Nguyen Van Toan, deputy chairman of the Vietnam Association of Foreign-Invested Enterprises (VAFIE), there had been a number of cases of individuals attempting to be naturalised through citizenship-by-investment to avoid civil liability in Vietnam. These cases must be prevented, he said.

However, some individuals did invest in property in foreign countries for legitimate business purposes. Toan also pointed out that a number of individual investors were pumping money into real estate assets in Cambodia and Laos, and their investments were proving to be effective.

“The regulation banning all individuals from investing in real estate assets sounds unreasonable and should be reconsidered. Other management measures would be more helpful,” Toan said.

The draft decree also includes regulation about individuals who would be banned from investing abroad, including government officials, military officers, soldiers and managers of state-owned enterprises (SOEs).

The Ministry of Planning and Investment said the regulation would help limit possible risks such as investing abroad to disperse assets.

According to Toan, this regulation was appropriate and compliant with other established regulations in Vietnam.

Notably, the draft decree differentiated overseas investments made by SOEs and private companies, which was critical for more efficient management, Toan said.

The draft decree also includes regulations about the definition of overseas investment capital, overseas investment of foreign-invested economic organisations, and investment in merger and acquisition deals in foreign countries.

Do Nhat Hoang, director of the ministry’s Foreign Investment Agency, said the decree aimed to create favourable conditions for investing abroad but also tightened management on overseas investments for purposes other than legitimate business.

Vietnam’s overseas investment had seen significant development since 2015, with more active participation of private companies and individuals in a number of sectors, according to the Ministry of Planning and Investment.

Statistics showed that Vietnamese investors invested in 1,741 projects abroad with total registered capital of $22.9 billion, of which about $9.65 billion was disbursed.

Vietnamese overseas investments were also more diversified in term of sectors and destinations countries. Vietnamese firms were expanding their investments in Japan, the US, the Republic of Korea, Singapore, Australia and the EU, besides traditional markets like Cambodia, Laos and Russia.

Vietnam’s overseas investment mainly flowed into agriculture, oil exploration and exploitation, commerce and trade, real estate, industrial production, banking and telecommunications.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration