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PROPERTY

Cash injection

Upcoming changes to the Land Law are set to increase remittances
as overseas Vietnamese gain the right to purchase property.
By THANH XUAN

he Land Law 2024 is set to come According to the State Commission of annual remittances are directed towards
into effect on July 1, introducing for Overseas Vietnamese Affairs, as of investments in the real estate market.
T several significant amendments, with 2023 there were approximately 6 million According to Mr. Nguyen Van Dinh,
a key focus on extending property owner- Vietnamese individuals residing and work- Chairman of VARS, reforms in the Land
ship rights to overseas Vietnamese. Under ing in over 130 countries and territories Law reflect an appropriate perspective in
Clauses No. 3 and 6 in Article No. 4, con- around the world, 80 per cent of whom line with international trends and offer sig-
cerning “Land Users”, the Law states that are in developed countries. This figure nificant benefits. The influx of funds will
individuals eligible for land allocation, has continually increased since 2015, when serve as crucial support for the real estate
land leasing, and acknowledgment of land there were only 4.5 million such individuals market for the foreseeable future, especially
use rights include those residing domesti- in 109 countries and territories. Data from considering the rising demand for capital
cally, Vietnamese citizens living overseas, the Ministry of Labor, Invalids and Social among many real estate companies.
and individuals of Vietnamese origin settled Affairs also indicates that there are 650,000 Ms. Nguyen Viet Trieu, representing
abroad. They must demonstrate their Vietnamese workers actively engaged in the Vietnamese Association in Europe, told
intentions towards stable land use, meet employment in 40 countries and territories a recent event that, in the past, overseas
requirements for obtaining land use cer- globally, representing a promising resource Vietnamese often had to rely on family
tificates, and claim ownership rights to for the country’s real estate market. members to hold property in Vietnam in
property associated with land. This category Figures compiled by the Vietnam Asso- the latter’s name, due to concerns about
encompasses individuals residing domes- ciation of Realtors (VARS) reveal that complicated procedures. However, the new
tically, Vietnamese citizens living abroad, remittances to Vietnam have consistently regulations for the Land Law will make it
and Vietnamese expatriates. put the country among the top 10 recipients easier for overseas Vietnamese to own prop-
over the past decade. Remittances have erty in Vietnam. This represents a significant
also consistently been among the top 3 legal advancement, with far-reaching impli-
Attracting
highest in the Asia-Pacific region. From cations for various aspects of the lives and
remittances
The newly-established legal framework 1993 to the end of 2022, they totaled $190 businesses of overseas Vietnamese.
has paved the way for investment by over- billion, nearly matching the volume of “There is a growing number of Viet-
seas Vietnamese. Broadening participation disbursed FDI during the same timeframe. namese nationals living abroad nearing
in real estate transactions also helps bring Remittances to Vietnam last year totaled retirement age and considering returning
in additional remittances, which together around $16 billion, for a notable 32 per to Vietnam to settle,” she said. “Additionally,
with FDI are a vital source of foreign cent increase against 2022. It has been some investors of Vietnamese origin are
capital for Vietnam. estimated that approximately 25 per cent eager to engage in the domestic real estate

40 Vietnam Economic Times May 27, 2024 en.vneconomy.vn