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Should foreigners be allowed to own Vietnam's tourism property or not?
24/08/2020 12:37 | Source: Thanh nien Viet
Recently, in the context of the domestic real estate market facing many difficulties from the Covid-19 pandemic, the Ministry of Construction (MoC) has proposed allowing foreign organizations and individuals to buy and own tourism real estate in Vietnam. This move shows the Government's efforts and companionship to overcome this difficult period with businesses.

According to Dr. Su Ngoc Khuong, Senior Director at Savills Vietnam, the MoC’s proposal on enabling foreign organizations and individuals to buy and own tourism properties in Vietnam is a should-do. With special incentives from Mother Nature such as many landscapes across the country; an increasingly improved transport system, and open investment policy, Vietnam has its own advantages compared to other Southeast Asia countries in attracting investment for the tourism industry and the tourism real estate segment.

Property development near beach
Among 63 provinces and cities of Vietnam, more than half are coastal ones, so the potential for tourism, hospitality and resort is huge.

Under the Law on Real Estate Business, which officially takes effect from July 1, 2015, more foreign individuals and entities are allowed to buy and own houses in Vietnam, including: foreign businesses investing in the local housing market; foreign-invested business; branches and representative offices of foreign businesses; foreign investment funds and foreign bank’s branches operating in Vietnam. If the laws are losen, allowing these entities to buy, sell and own tourism real estate, Mr. Khuong thinks this is the right thing to do. In terms of geography, Vietnam has a strong coastline of 2500km long. Among its 63 provinces and cities, more than half are coastal ones, so the potential for tourism, hospitality and resort is huge and needs to be fully exploited. Selling real estate to foreign investors is also a form of exporting real estate on the spot. Even foreigners owning a condotel or house in Vietnam, the property is still in the country.

Moreover, the ownership of real estate in Vietnam also increases consumer spending as well as foreign inflows into other economic sectors such as tourism, services, and finance. In fact, the trend of receiving foreign investment for tourism products has been deployed quite effectively in neighboring countries like Thailand, Singapore ...

There are three key points to ensure the realization of the State’s policy in encouraging foreigners to invest in tourism real estate. 

Firstly: the development and synchronization of the tourism industry in Vietnam. The tourism industry needs to be developed in a diversified and attractive way so that it can lure investors. Vietnam must prove its tourism advantages thoroughly.

Secondly: legal paperwork. Favorable legal procedures will remove barriers, allowing tourism real estate projects to be implemented, creating a clear investment environment, thereby attracting investment in not only residential real estate but also other industries like services, business, manufacturing.

Last but not least, security and defense factors. These tourism property projects should be developed in locations that do not impact the national security and defense.