Draft Law on Special Administrative-Economic Units contains provision for extending leaseholds for foreigners to 99 years, up from 50.
The leasehold for home ownership for foreigners in Vietnam will be extended from 50 years to 99 years if the draft Law on Special Administrative-Economic Units is approved.
Prime Minister Nguyen Xuan Phuc chaired a meeting on August 2 to discuss the draft.
He agreed to create an outstanding institutional framework that transcends existing laws and minimizes the application of business investment conditions in special zones, to attract investment into such zones.
Regarding land policy, the law will be adjusted to extend the leasehold to 99 years for foreigners and allow them to mortgage assets in association with land use rights at foreign credit institutions.
PM Phuc confirmed the determination to establish a law guaranteeing long-term and sustainable development. He highlighted the spirit of ensuring international and regional competitiveness and seeking advantages to attract investment.
He asked the Ministry of Planning and Investment to update information on special zones and issues identified by strategic investors.
Vietnam has 18 special economic zones with 325 industrial zones. At the end of 2016, the government agreed to establish three more: Van Don in northern Quang Ninh province, North Van Phong in south-central Khanh Hoa province, and Phu Quoc Island, off the coast of the Mekong Delta’s Kien Giang province.
Vietnam opened up its housing market to outsiders in 2015, with a regulation stating that foreign investment funds, foreigners with valid visas, and international firms operating in Vietnam and overseas could buy unlimited residential properties with a leasehold of 50 years.
According to the Ministry of Natural Resources and Environment (MoNRE), more than 80,000 foreigners live and work in Vietnam and there are more than 4 million Viet Kieu (overseas Vietnamese).