Draft laws on limiting overseas real estate transations under discussion
29/09/2020 08:42 | Source: ThanhnienViet
The Ministry of Planning and Investment is collecting comments on the draft Decree of the Government on outward investment, guiding the Law on Investment No. 61/2020 / QH14, replacing Decree No. 83/2015.

The draft has additional content on real estate business and conditions for overseas investment. Specifically, in the field of real estate business, regarding condition for individuals to invest abroad, the draft says: "The investor must be an enterprise established under the provisions of the Law on Enterprises".

This regulation is intended to limit overseas real estate investment by individuals. Under the 2020 Law on Investment, real estate is a conditional offshore investment sector.

According to the Ministry of Planning and Investment, the regulation that investors must be legal entities will facilitate the management and avoid the situation of individuals investing in real estate abroad to prepare for their immigration plans, instead of for business purposes. 

In addition to the above condition, the Ministry of Planning and Investment also additionally stipulates the cases in which individuals are not allowed to invest abroad referred to in Clause 2, Article 17 of the 2020 Law on Enterprises, who do not have rights to establish and manage enterprises in Vietnam (Article 2 of the Draft Decree).

Specifically, individuals not allowed to invest abroad include: Leadership officers, professional managers in State enterprises; cadres, civil servants and public employees (according to the Law on Cadres and Civil Servants and the Law on Public Employees); professional officers, non-commissioned officers, soldiers ...; juveniles, people with cognitive difficulties, people with limited/incapable of civil acts; people who are examined for penal liability, serving imprisonment sentences, administrative handling measures ... are banned by the Court from holding certain posts, practicing certain occupations or doing certain jobs; in other cases according to the provisions of the Law on Anti-Corruption and Law on Bankruptcy.

This regulation aims to ensure that individuals investing abroad have full legal status and take responsibility under the law; preventing individuals having problems with domestic ties from dispersing their assets.